TABLE 4

Probit Regression Results

All Flood Zones (805 Observations)
VariableCoef.S.E.Marg.a
Future storms0.0050.0050.001
Future damage0.058**0.0250.016
Risk aversion (gain)0.0000.0360.000
Risk aversion (loss)0.096**0.0380.027
Disaster assistance0.281**0.1110.078
Insurer credibility0.245**0.1170.067
Number of flood events0.410**0.1720.114
Years on coast—0.0010.003—0.000
Distance—0.007**0.003—0.002
Mortgage0.1430.1210.039
SFHA0.738***0.2220.232
Mortgage×SFHA1.490***0.3460.465
Income0.056***0.0150.016
Other property0.0690.2050.019
Florida— 1.974***0.552—0.504
CRS—0.108***0.040—0.030
Florida×CRS0.181**0.0770.050
Hispanic0.316*0.1760.092
Male0.0680.1080.019
Kids—0.1900.127—0.052
Mobile home—0.587*0.323—0.143
Constant—0.913**0.448
Log-likelihood—397.759
Likelihood ratio chi-square253.220
Pseudo R-squared0.242
  • Note: CRS, Community Ratings System; SFHA, Special Flood Hazard Area.

  • a Marginal effects for binary variables calculated as ΔF(z) = F(βx + αz I z = 1) — F(βx + αz I z = 0), where z is the dummy variable in question, and all other variables are held at the means. Marginal effects for continuous variables are computed at the means.

  • *, **, *** Significant at p =0.10, 0.05, and 0.01, respectively.