This grant supports the research of New York University professor Richard Revesz, who is studying the effects of the National Flood Insurance Program, which provides subsidized flood insurance to at-risk communities in exchange for implementing floodplain management ordinances that would make future construction less vulnerable to the damage caused by flooding. Revesz will investigate a series of interrelated issues, including who primarily benefits from the program, how it affects construction decisions, how to estimate costs and benefits, and what “moral hazard” or “adverse selection” problems the program creates. Particular emphasis will be based on investigating consumer, government and firm behavior in the wake of Superstorm Sandy, which caused massive flooding in the New York City metropolitan area in 2012.