Publication Details

Category Text Publication
Reference Category Journals
DOI 10.1007/s10640-012-9586-y
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Title (Primary) Uncertainty of governmental relief and the crowding out of flood insurance
Author Raschky, P.A.; Schwarze, R.; Schwindt, M.; Zahn, F.
Source Titel Environmental & Resource Economics
Year 2013
Department OEKON
Volume 54
Issue 2
Page From 179
Page To 200
Language englisch
Keywords Insurance demand; Governmental relief; Natural hazards
UFZ wide themes RU6;
Abstract This paper discusses the problem of crowding out of insurance by co-existing governmental relief programs—the so-called ‘charity hazard’—in the context of different institutional schemes of governmental disaster relief in Austria and Germany. We test empirically whether an assured partial relief scheme (as in Austria) drives a stronger crowding out of private insurance than a scheme promising full relief which is subject to ad-hoc political decision making (as in Germany). Our general finding is that the institutional design of governmental relief programs significantly affects the demand for private natural hazard insurance.

Persistent UFZ Identifier https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=13228
Raschky, P.A., Schwarze, R., Schwindt, M., Zahn, F. (2013):
Uncertainty of governmental relief and the crowding out of flood insurance
Environ. Resour. Econ. 54 (2), 179 - 200 10.1007/s10640-012-9586-y