risk aversion is assumed, a "tyranny of catastrophic risk" (TCR) emerges, i.e., project evaluation may be dominated by the … catastrophic event even if its probability is negligibly small. With low degrees of risk aversion, however the catastrophic risk …

experience suggests there are ways to strengthen policy frameworks to increase resilience to natural disaster shocks, including …

from natural hazards. Increasing investments in disaster risk reduction have led to a significant reduction in human … and poor countries. The analysis suggests indeed that economic growth leads to better defenses but also more risk taking …, making average disaster losses grow with income. In the future, larger resources and better defenses are likely to make …

. There is now a growing tendency for risk manager to bypass traditional insurance markets, and a variety of instruments … designed directly to transfer risk to the financial markets. After a couple of years of low catastrophe claims, 1998 claims are …

The use of structural models for decision-making under risk and uncertainty in applied economics is scarce compared to … making in the presence of natural hazard risk. Utilizing a unique data set that includes information on risk preferences …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback … effects on the macroeconomy. Research on disaster risks has also actively been pursued in the macroeconomic models of climate … change. Our paper uses insights from the former work to study disaster risks in the macroeconomics of climate change and to …

We investigate the relationship between bank lending and catastrophe risk by analyzing the exposure of banks to Italian … firms located in areas at risk of flooding. By matching a new map of flood risk areas with proprietary data on bank loans at … negatively correlated with their flood risk exposure. A province-level analysis, which also allows us to control for bank- and …

costs but also to natural disaster risks. Costly insurance and charity donation both lead to low insurance purchase. While …