TABLE B1

Estimates of the Difference in Average Flood Damages Due to Having a Flood Insurance Policy (in Euros) for Households Located in the Elbe and Danube River Catchment Areas Separately

Elbe Catchment: Historically Compulsory InsuranceDanube Catchment: Historically Voluntary Insurance
Contents DamageBuilding DamageContents DamageBuilding Damage
Comparison of mean flood damage suffered by households with and without flood insurance2,838** (1,149)1,253 (3,411)360 (1,694)6,651** (2,961)
ATT based on PSM using as matching method:
  Nearest neighbor matching1,073 (2,772)9,571 (8,629)1,573 (3,355)6,763 (7,460)
  Radius matching1,282 (2,085)8,436 (6,831)1,707 (3,306)5,627 (5,764)
  Stratification matching1,356 (2,887)8,790 (5,561)1,228 (3,631)5,751 (6,003)
  Kernel matching (Gaussian)1,380 (2,074)7,956 (4,970)1,465 (3,005)6,315 (5,964)
  Kernel matching (Epanechnikov)1,371 (2,135)9,091* (4,862)1,652 (3,006)5,561 (6,025)
Average ATT estimate1,2928,7691,5256,000
Number of matches2032034348
Variables described in Appendix A3–32, 34–413–8, 10–32, 34–403–32, 34–403–8, 10–32, 34–40
  • Note: The numbers in parentheses are standard errors. The average treatment effect on the treated (ATT) is estimated using propensity score matching (PSM) with different matching methods.

  • *, ** Statistical significance at the 10% and 5% levels, respectively.