tropical cyclones. By 2050 these numbers are likely to more than double, leading to a greater concentration of hazard risk in … many of the world's cities. The authors discuss what sets hazard risk in urban areas apart, summarize estimates of … valuation of hazard risk, and discuss implications for individual mitigation and public policy. The main conclusions are that …

Expected Utility theory is not only applied to individual choices but also to ethical decisions, e.g. in cost … EU theory is able to deal with "catastrophic risks," i.e. risks of high, but very unlikely losses, in an ethically … appealing way. In this paper we show that this is not the case. Rather, if in the framework of EU theory a plausible level of …

-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …

disaster-prone areas of the world, it has the lowest levels of insurance coverage. This paper examines the vulnerability of … vulnerability. The paper finds that catastrophic risk insurance significantly improves Belize's debt sustainability. In addition …

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 …

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 …

. 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 … reduced form approaches. This is unfortunate, as structural models have clear connections to theory and permit direct tests of … making in the presence of natural hazard risk. Utilizing a unique data set that includes information on risk preferences …