Flood Risk and Salience: New Evidence from the Sunshine State

Laura A. Bakkensen, Xiaozhou Ding, Lala Ma

Research output: Contribution to journalArticlepeer-review

24 Scopus citations


A growing literature finds evidence that flood risk salience varies over time, spiking directly following a flood and then falling off individuals' cognitive radar in the following years. In this article, we provide new evidence of salience exploiting a hurricane cluster impacting Florida that was preceded and followed by periods of unusual calm. Utilizing residential property sales across the state from 2002 through 2012, our main estimate finds a salience impact of −8%, on average. The salience effect persists when we base estimation only on spatial variation in prices to limit confounding from other simultaneous changes due to shifting hedonic equilibria over time. These effects range from housing prices decreases of 5.4–12.3% depending on the year of sale. Understanding flood risk salience has important implications for flood insurance and disaster policy, the benefits transfer literature, and, more broadly, our understanding of natural disaster resilience. JEL Classification: Q51, Q54, R21.

Original languageEnglish (US)
Pages (from-to)1132-1158
Number of pages27
JournalSouthern Economic Journal
Issue number4
StatePublished - Apr 2019

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Flood Risk and Salience: New Evidence from the Sunshine State'. Together they form a unique fingerprint.

Cite this