TABLE B3

Coefficient Estimates of U.S. Bivariate Probit Models between a Known Deductible and the Employment of Risk Reducing Measures

Independent VariableAny Preevent PreparationWindow ProtectionOther Risk Reduction
Coef.Std. Err.Coef.Std. Err.Coef.Std. Err
Flood insurance0.1730.1370.377***0.0810.399***0.085
Experienced damage0.1370.1310.1220.0810.394***0.086
Safety−0.0020.0020.0010.0010.0000.001
100–year floodplain0.2200.1710.1030.093−0.1390.100
Distance to coast0.0820.057−0.068**0.031−0.0260.032
Hurricane Irene−0.306**0.1360.364***0.088−0.1000.092
Hurricane Isaac−0.0430.2100.895***0.1150.1710.118
Constant1.767***0.245−1.091***0.143−1.094***0.150
Known Deductible
Flood insurance0.0480.0780.0480.0780.0480.078
Experienced damage0.319***0.0760.319***0.0760.319***0.076
Safety0.0020.0010.0020.0010.0020.001
100-year floodplain−0.0310.091−0.0310.091−0.0310.091
Distance to coast−0.0170.027−0.0170.027−0.0170.027
Hurricane Irene0.236***0.0800.235***0.0800.235***0.080
Hurricane Isaac−0.0020.111−0.0020.111−0.0020.111
Constant−0.711***0.136−0.711***0.136−0.711***0.136
ρ−0.0430.0750.0390.0470.087*0.048
Likelihood test ρ = 00.3220.5700.7000.4023.1730.074
N1,3691,3691,369
Log-likelihood−1,152.18−1,666.78−1,582.77
Likelihood ratio χ2 (prob > χ2)47.96*** [0.00]206.71*** [0.00]112.49*** [0.00]
  • Note: Numbers in square brackets are p-values. “Don’t know” responses were excluded for window protection and other risk reduction as dependent variables. Regressions with the “don’t know” responses included were also estimated, and results do not differ materially from those presented here.

  • *, **, *** Statistical significance at the 10%, 5%, and 1% levels, respectively.