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.