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In recent decades, the world has faced an increasing number of natural and man-made disasters. Such disasters include tsunamis, earthquakes, the current ongoing financial crisis, terrorism, riots, and wars. These disasters generate tremendous social and economic costs, especially for the poor in...
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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 …
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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 …
Persistent link: https://www.econbiz.de/10014351381
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insuring against natural disasters with catastrophe (CAT) bonds. We calibrate the model by reference to the risk of earthquakes …
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insuring against natural disasters with catastrophe (CAT) bonds. We calibrate the model by reference to the risk of earthquakes …
Persistent link: https://www.econbiz.de/10012456995