The study of natural catastrophe models plays an important role in the prevention and mitigation of disasters. After … the occurrence of a natural disaster, the reconstruction can be financed with catastrophe bonds (CAT bonds) or reinsurance … basis risk borne by the sponsor while still preserving a non-indemnity trigger mechanism. Our results indicate that the …

We examine the connection between tail risk — as measured in Kelly and Jiang (2014) — and the cross-section of expected … risk appears to forecast discount rates — and not cash flows — which seems inconsistent with crash-based explanations of … the importance of tail risk. We also compare the time series of tail risk to measures of aggregate uncertainty, a measure …

their clients’ natural disaster risk … disaster area. We find robust evidence that banks charge significantly higher loan spreads for firms located in the … neighborhood of the disaster area than for remote firms. The results are not driven by regional spillovers, limited credit supply …

This study provides empirical support for recent theoretical models that allow for time-varying rare disaster risk … disaster probability, have a statistically significant and economically large impact on both the mean and volatility of world … the involvement of major powers. Using predictive regressions, there is no significant relation between crisis risk and …