We investigate the economic impact of stochastic endogenous extreme events and insurance in a growth model. Our … analytical results and computational experiments show that i) transparency of the insurance sector is the decisive requisite for … insurance fairly is preferable to an insurance industry which provides insurance with an overhead. …

costs but also to natural disaster risks. Costly insurance and charity donation both lead to low insurance purchase. While …Prevention and insurance are studied in an urban model with spatial heterogeneity due not only to commuting transport … the former leads to high prevention, the latter leads tolow prevention. In the presence of charity, implementing insurance …