Effects of government flood expenditures: the problem of crowding-out

Large inland floods represent a serious threat to the Central European territory. It is therefore necessary to develop efficient flood-risk management based on shared responsibility, stressing the importance of the self-engagement of local actors (such as municipalities, household, etc.). Central government flood expenditures are an influential factor that shapes their motivation and expectations. In this context, the article investigates the relevance of the concept of crowding out. In particular, it search for the reflection of the concept in the flood governance literature. A thorough review of Web of Science sources in the past 20 years has been undertaken in this matter. Furthermore, the intention is to discuss the problem of data availability (especially regarding flood expenditures of central governments) for assessing the crowding-out effect on a macroeconomic basis. The Czech central government's activity after the disastrous floods of 1997 and 2002 is used as a case study.