Wisconsin MBA

Two separate research papers by faculty from the Actuarial Science, Risk Management and Insurance department were cited in a New York Times' Room for Debate feature on "Who Benefits From Federal Flood Aid?"

In making her case for a private market solution to flood aid, Carolyn Dehring of the University of Georgia cites two separate studies she conducted with Martin Halek and Professor Mark Browne of the Wisconsin School of Business.

"I have recently conducted two studies on the National Flood Insurance Program. In the first study, with Martin Halek of the University of Wisconsin, we find that barrier island properties in Florida built before their communities joined the program sustained less structural damage from Hurricane Charley in 2004 than similarly located structures built after the communities joined. We attribute this discrepancy to the program’s construction standards, which allowed lower elevations and weaker foundations relative to the earlier building code," she contends.

"In the second study, with Bill Lastrapes and David Eckles of the University of Georgia and Mark Browne of the University of Wisconsin, we examine participation in the National Flood Insurance Program in Florida over a 25-year period and find that participation is associated with higher levels of residential construction (after controlling for the fact that faster-growing communities may be more apt to join the program). This outcome is expected if subsidized insurance increases housing demand in high risk areas."

To read more of the article and follow the debate, click here.