The United Nations Sendai (2015) framework aims to reduce disaster risk. We offer a careful definition and computation … of the individual and property risk targets. Selecting the largest and better studied class of “natural disasters” over … the period 1970-2018, we show that individual risk is “likely” falling, that property risk is neither rising nor falling …

tackle rare disaster events. This framework integrates importance sampling with the reinforcement learning algorithm. Instead …

between consumption losses in a disaster and the risk premium, a small amount of risk sharing can significantly attenuate the … effect that disaster risk has on the equity premium. We characterize the sensitivity of risk premium to wealth distribution … lead to significant variation in disaster risk premium. It also highlights the conditions under which disaster risk premium …

-varying risk of economic disaster. Both asset prices and macroeconomic aggregates respond to this time-varying risk. The model is … prices. An increase in the risk of disaster leads to a collapse of investment and a recession, with no current or future …Most macroeconomic models fail to replicate the level, volatility, and countercyclicality of risk premia which has been …

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 …

between consumption losses in a disaster and the risk premium, a small amount of risk sharing can significantly attenuate the … effect that disaster risk has on the equity premium. We characterize the sensitivity of risk premium to wealth distribution … lead to significant variation in disaster risk premium. It also highlights the conditions under which disaster risk premium …

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 …

disagreements among investors about disaster risk. We show that such disagreements generate strong risk sharing motives, such that … just a small amount of optimists in the economy can significantly reduce the disaster risk premium. Our model highlights … the "latent" nature of disaster risk: the disaster risk premium will likely be low and smooth during normal times, but can …