We test if and how banks adjust their lending in response to disaster risk in the form of a natural catastrophe … disaster shocks faced especially by small and medium firms. …

that reside in counties unaffected by the natural disaster that we specify as macro shock increase lending to firms inside …

natural disasters are shared internationally to a generally very limited extent. This finding of home bias in disaster risk … international sharing of disaster risk. For advanced economies, a lack of international risk-sharing is correlated with a lack of … room to manoeuvre to do so. At high levels of public debt, a lack of ex ante insurance can turn disaster risk into …

Office of US Foreign Disaster Assistance (OFDA), we show that substantially larger amounts of aid are disbursed when natural …