Wind Insurance and Mitigation in the Coastal Zone
研究了标准房屋保险不保风灾时，居民购买风灾保险和采取减灾措施的决定，发现两者正相关，即买保险的家庭减灾投入更多。
This paper presents the only study analyzing the decision to purchase wind coverage for individuals whose standard homeowner’s policy excludes wind, and one of very few analyses of the decision to undertake wind mitigation measures. Because these two decisions are closely related, a simultaneous mixed-process approach is used that allows for correlated disturbances across probit (insurance) and tobit (mitigation) equations. Results indicate a positive correlation between errors of the insurance and mitigation models; conditioning on covariates, households that hold wind insurance tend to engage in greater levels of wind mitigation. <i></i>