ECIN Replication Package for "Social Learning about Climate Risks"

Replication code and data for Social Learning about Climate Risk.<br><br>Abstract: This paper examines whether social learning facilitates climate risk perception updates to inform climate adaptation. We estimate a network difference-in-differences (NDID) model with a social network adjacency matrix constructed from the Facebook Social Connectedness Index (SCI). We find that regional flooding brought by Hurricanes Harvey and Irma increased flood insurance policies nationwide to the extent of each county’s social network proximity to the flooded areas. Such social learning induced 250,000 more policies in flooded counties and 81,000 more policies in unflooded counties in three years. We find evidence of the salience effect but no support for adverse selection or over-insurance.