This paper studies the politico-economic reasons for the refusal of a proposed compulsory flood insurance scheme in Germany. It provides the rationale for such scheme and outlines the basic features of a market-orientated design. The main reasons for the political down-turn of this proposal were...

The economic literature to date is underestimating the importance of regional price level differences. Only in the form of "rent indices" are these differences considered in relation to overall quality of life. As experimental estimates by the Federal Institute for Research on Building, Urban...