Abstract
AbstractAlternative federal flood disaster assistance programs are evaluated through an economic comparison of flood insurance and disaster loan programs. The distribution of costs, benefits, and program transfers, both private and public, are simulated over time and are analyzed to determine the sensitivity of program performance to specific program parameters. Empirical results demonstrate that both programs provide adequate levels of protection at approximately equivalent costs. Variations in premium and interest rate subsidies have major effects on the distribution of total costs between the public and private sectors.
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