What's at Stake? Understanding the Role of Home Equity in Flood Insurance Demand

2021 ◽  
Author(s):  
Yanjun Liao ◽  
Philip Mulder
Keyword(s):  
Flood Insurance ◽  
Home Equity ◽  
Insurance Demand

Home Equity and Labor Income: The Role of Constrained Mobility

2020 ◽  
Author(s):  
Radhakrishnan Gopalan ◽  
Barton Hamilton ◽  
Ankit Kalda ◽  
David Sovich
Keyword(s):  
Law Enforcement ◽  
Labor Income ◽  
Detailed Data ◽  
Job Tenure ◽  
Home Equity ◽  
Employment Opportunities ◽  
Nonlinear Relation ◽  
Local Employment

Abstract Using detailed data for U.S. homeowners, we document a negative, nonlinear relation between the loan-to-value ratio (LTV) of homeowners' primary residence and their labor income. Consistent with high LTV individuals experiencing constrained mobility, we find stronger effects among subprime, liquidity-constrained individuals and those living in regions with limited alternative local employment opportunities and strict noncompete law enforcement. Though high LTV individuals are less likely to move across MSAs, they are more likely to change jobs without changing their residence. We find no effects among similar neighboring renters employed at the same firm and with a similar job tenure.

The Role of Soft Information in a Dynamic Contract Setting: Evidence from the Home Equity Credit Market

2010 ◽  
Author(s):  
Sumit Agarwal ◽  
Brent W. Ambrose ◽  
Souphala Chomsisengphet ◽  
Chunlin Liu
Keyword(s):  
Credit Market ◽  
Soft Information ◽  
Home Equity ◽  
Dynamic Contract

Discriminant factors of flood insurance demand for flood-hit residential properties: a case for Malaysia

2013 ◽  
Vol 8 (1) ◽  
pp. 39-51 ◽  
Author(s):  
G.U. Aliagha ◽  
A.H. Mar Iman ◽  
H.M. Ali ◽  
N. Kamaruddin ◽  
K.N. Ali
Keyword(s):  
Flood Insurance ◽  
Insurance Demand ◽  
Residential Properties

scholarly journals Influence of flood risk characteristics on flood insurance demand: a comparison between Germany and the Netherlands

2013 ◽  
Vol 13 (7) ◽  
pp. 1691-1705 ◽  
Author(s):  
I. Seifert ◽  
W. J. W. Botzen ◽  
H. Kreibich ◽  
J. C. J. H. Aerts
Keyword(s):  
The Netherlands ◽  
Flood Risk ◽  
Risk Perceptions ◽  
Private Insurance ◽  
Insurance Coverage ◽  
Individual Risk ◽  
Flood Insurance ◽  
Insurance Demand ◽  
Information Campaigns ◽  
Demand For Insurance

Abstract. The existence of sufficient demand for insurance coverage against infrequent losses is important for the adequate function of insurance markets for natural disaster risks. This study investigates how characteristics of flood risk influence household flood insurance demand based on household surveys undertaken in Germany and the Netherlands. Our analyses confirm the hypothesis that willingness to pay (WTP) for insurance against medium-probability medium-impact flood risk in Germany is higher than WTP for insurance against low-probability high-impact flood risk in the Netherlands. These differences in WTP can be related to differences in flood experience, individual risk perceptions, and the charity hazard. In both countries there is a need to stimulate flood insurance demand if a relevant role of private insurance in flood loss compensation is regarded as desirable, for example, by making flood insurance compulsory or by designing information campaigns.

scholarly journals Risk communication nudges and flood insurance demand

2021 ◽  
pp. 100366
Author(s):  
Peter John Robinson ◽  
W.J. Wouter Botzen ◽  
Sem Duijndam ◽  
Aimée Molenaar
Keyword(s):  
Risk Communication ◽  
Flood Insurance ◽  
Insurance Demand

Home equity commitment and long-term care insurance demand

2010 ◽  
Vol 94 (1-2) ◽  
pp. 44-49 ◽  
Author(s):  
Thomas Davidoff
Keyword(s):  
Long Term Care ◽  
Home Equity ◽  
Insurance Demand ◽  
Term Care ◽  
Long Term Care Insurance

scholarly journals The Role of Insurance in Reducing Direct Risk - The Case of Flood Insurance

2014 ◽  
Vol 7 (3-4) ◽  
pp. 241-278 ◽  
Author(s):  
Swenja Surminski
Keyword(s):  
Flood Insurance

scholarly journals Moving to a Job: The Role of Home Equity, Debt, and Access to Credit

2017 ◽  
Vol 9 (2) ◽  
pp. 149-181 ◽  
Author(s):  
Yuliya Demyanyk ◽  
Dmytro Hryshko ◽  
María Jose Luengo-Prado ◽  
Bent E. Sørensen
Keyword(s):  
Labor Markets ◽  
Great Recession ◽  
The United States ◽  
Home Equity ◽  
Access To Credit ◽  
Individual Level ◽  
The Great Recession ◽  
Significant Barrier ◽  
Out Of Area

We use individual-level credit reports merged with loan-level mortgage data to estimate how home equity interacted with mobility in relatively weak and strong labor markets in the United States during the Great Recession. We construct a dynamic model of housing, consumption, employment, and relocation, which provides a structural interpretation of our empirical results and allows us to explore the role that foreclosure played in labor mobility. We find that negative home equity is not a significant barrier to job-related mobility because the benefits of accepting an out-of-area job outweigh the costs of moving. This pattern holds even if homeowners are not able to default on their mortgages. (JEL D14, G01, J61, R23, R31)

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