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The year 2005 brought record numbers of hurricanes and storm damages to the United States. Was this a foretaste of … may be underestimated by current storm models. Fourth, 2005 appears to have been a quadruple outlier, involving a record … landfall in the United States, and an intense storm hitting the most vulnerable high-value region in the country …
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We investigate the uncertainty dynamics surrounding extreme weather events through the lens of option and stock markets by identifying market responses to the uncertainty regarding both potential hurricane landfall and subsequent economic impact. Stock options on firms with establishments...
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