We provide the planner's solution to a model where households learn from exogenous natural disaster arrivals about … since disaster leads to pessimistic arrival-rate beliefs and taxes or mandates to fund mitigation, which reduce consumption …

Despite escalating disaster losses and predicted increases in weather-related catastrophes, takeup of protective …

public-private risk pool. The default frame was changed so the homeowner could either opt-in by purchasing this coverage or … opt-out of being given this protection and receiving a premium discount. Assigning participants to a public-private risk …

shocks to aggregate uncertainty, I introduce a small, time-varying risk of economic disaster in a standard real business … risk of disaster does not affect the path of macroeconomic aggregates - a "separation theorem" between macroeconomic … probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the …

Recent studies have shown that disaster risk can generate asset return moments similar to those observed in the U ….S. data. However, these studies have ignored the cross-country asset pricing implications of the disaster risk model. This … paper shows that standard U.S.-based disaster risk model assumptions found in the literature lead to counterfactual …

the mean and volatility of equity returns. Our model assumes a small risk of a rare disaster that is calibrated based on … the international data on large consumption declines. We allow the risk of this rare disaster to be stochastic, which … specifications for the stochastic rare disaster probability and show that the data favor a multifrequency process. Finally, we show …

associated with a stronger relationship between premiums and local disaster risk: A one standard-deviation increase in disaster …-through of reinsurance costs. Third, we project that if the reinsurance shock persists, growing disaster risk will lead climate … risk is associated with $500 higher premiums in 2023, up from $300 in 2018. Second, using the rapid rise in reinsurance …

and optimistic behavior in good times. In a disaster, uncertainty about duration acts as an amplification mechanism … welfare cost of parameter uncertainty can be extreme. However, in advance of a disaster, uncertainty about the arrival rate … full information and pay less for insurance against the next disaster …