We estimate the effects on county-wide housing development in Florida of community-level participation in the National Flood Insurance Program using panel data methods and observed variation in the timing of the decision to join the program. We find that program participation increased housing...

Our study examines whether the NFIP induces excessive risk taking in real estate development, and the extent to which this places additional burdens on taxpayers. We use data from Florida over the period 1975 to 2000, during which time communities in each of the state's counties (with the...