Flood Risk Perceptions: Accuracy, Determinants, and the Role of Probability Weighting

Dylan Turner () and Craig Landry

Land Economics, 2024, vol. 100, issue 3, 478-504

Abstract: This study analyzes survey data of U.S. East Coast homeowners to characterize accuracy and determinants of homeowner flood risk (mis)perceptions. Using an array of instruments, we assess subjective risk perceptions and compare them with objective risk estimates. Reduced-form regressions suggest flood experience, worry, and flood zone classification influence relative perceptions of risk. Common probability weighting functions do not fit the divergence in risk perceptions, suggesting that the source of the probability distortions is most likely due to misperceiving the true risk rather than a widespread behavioral heuristic.

JEL-codes: D81 Q54 (search for similar items in EconPapers)
Date: 2024
Note: DOI: https://doi.org/10.3368/le.100.3.120722-0101R
References: Add references at CitEc
Citations:

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/100/3/478
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:100:y:2024:i:3:p:478-504

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().