This article studies the effects of direct and indirect loss experience of extreme catastropheson expectations concerning the likelihood of future events by investigating the earthquakeinsurance take-up of Japanese households after the two costliest disasters in history. Directloss experiences...

We study how the urban context of a disaster affects protection decisions against catastrophes using the 1995 Kobe earthquake, which is highly relevant to urban life but difficult to link with rural life. We use a Bayesian approach to identify regions with major cities where the sensitivities of...