Flood Risk Belief Heterogeneity and Coastal Home Price Dynamics : Going Under Water ?

@inproceedings{Bakkensen2017FloodRB,
  title={Flood Risk Belief Heterogeneity and Coastal Home Price Dynamics : Going Under Water ?},
  author={Laura A Bakkensen and Lint Barrage},
  year={2017}
}
How will climate risk beliefs affect coastal housing market dynamics? This paper provides both theoretical and empirical evidence: First, we build a dynamic housing market model with heterogeneity in home types, consumer preferences, and flood risk beliefs. The model incorporates a Bayesian learning mechanism allowing agents to update their beliefs depending on whether flood events occur. Second, to quantify these elements, we implement a door-to-door survey campaign in Rhode Island. The… CONTINUE READING