The Effects of Floodplain Regulation on Housing Markets

Flooding is the costliest form of natural disaster in the United States, with losses expected to increase substantially over the next 25 years due to climate change and population growth in risky areas.  

In their paper The Effects of Floodplain Regulation on Housing Markets, C. Lowell Harriss Dissertation Fellows Abigail Ostriker and Anna Russo weigh the costs and benefits of regulation that requires the elevation of homes and purchase of insurance in flood-prone areas. The study finds that the existing policy substantially reduces expected flood damages, although poor targeting prevents the maximum possible social welfare gains. 

The coauthors will discuss their research at the Lincoln Institute on April 19, from 12:00 to 1:00 p.m. (EDT). Lunch will be provided. 

Speakers 

Abby Ostriker is a PhD student in economics at the Massachusetts Institute of Technology. She earned her BS in mathematics from MIT in 2016. Her research aims to use the tools of public finance to study the economics of environmental risk, with a particular focus on adaptation to climate change. 

Anna Russo is a PhD student in economics at the Massachusetts Institute of Technology, with research interests in public economics, industrial organization, and market design. She obtained her BS from Yale University in 2017.