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Linking Risk Models to Microeconomic Indicators
- Publication Year :
- 2015
- Publisher :
- World Bank, Washington, DC, 2015.
-
Abstract
- Catastrophe risk models are quantitative models used to estimate probabilistic loss distributions for a specified range of assets subject to a baseline level of disaster risk. While cat risk models are used extensively by the insurance and reinsurance industry to estimate expected losses to insured assets, their ability to estimate damages outside of a narrow range of physical assets such as buildings or infrastructure is still limited. This paper first provides a brief outline of cat risk models as they currently exist, and then outlines the major econometric issues involved in incorporating research from the growing literature on the microeconomic impacts of disasters into a cat model framework. Attention is specifically drawn to issues arising from the generally low recurrence frequencies of disasters, the likely role of difficult-to-document indirect damages in influencing total disaster costs, and issues related to generalizing disaster response functions across different domains. The paper ends by noting the large discrepancy between the current state of the literature on disaster impacts on microeconomic indicators and the level needed for adequate cat risk model performance, and suggests means of closing that gap as well as potential areas for future research.
- Subjects :
- MEASURES
INDICATORS
HEAT WAVES
STORM
ECONOMIC GROWTH
REINSURANCE
DISASTER EVENTS
NATURAL SCIENCES
MODELING
DISASTER REDUCTION
SPACE
POLICY MAKERS
LAND USE
DAMAGE
INCOME
TROPICAL CYCLONE
ENVIRONMENTAL DISASTER
ENVIRONMENTAL CATASTROPHE
EARTHQUAKES
BUILDING CODE
SCIENCE
CATASTROPHIC NATURAL DISASTERS
BANK
PROBABILITY DISTRIBUTIONS
FARMERS
PHYSICAL DAMAGES
DISASTER RESPONSE
MODELS
DISASTER TYPE
DEVELOPMENT ECONOMICS
FIELD RESEARCH
MARKETS
FINANCE
METHODOLOGIES
FLOOD
BUILDING CODES
RECONSTRUCTION
VALIDITY
DUST BOWL
MEDICINE
CYCLONES
THEORY
SCIENCES
RISKS
NATURAL HAZARDS
RESPONSE TO DISASTER
CELLULAR PHONE
MARKET
ECONOMIC CONDITIONS
METHODOLOGY
VOLCANOES
DROUGHTS
NATURAL PHENOMENA
STORM SURGE
CLIMATE CHANGE
FLOODING
RESEARCH
ECONOMIC ACTIVITY
STORMS
WIND SPEED
CLIMATE VARIABILITY
TYPHOONS
PORTFOLIO
HURRICANES
NEGOTIATION
SURVEY DATA
FAT TAIL
EARTHQUAKE
DROUGHT
VALUE
RISK
ESTIMATES
PROBABILITY DISTRIBUTION
POLICIES
METHODOLOGICAL ISSUES
MANMADE DISASTER
TROPICAL CYCLONES
POLICY
VOLCANO
TIME
VARIABILITY
FATALITIES
DISASTERS
EFFECTS
INSURANCE
RESEARCHERS
OUTBREAKS
NATURAL DISASTERS
IMPACT OF DISASTERS
POLICY RESPONSE
CYCLONE INTENSITY
TSUNAMI
VOLCANIC ERUPTIONS
ESTIMATING
TECHNIQUES
DISASTER RISK FINANCING
TSUNAMIS
DAMAGES
INVESTMENT BEHAVIOR
DISASTER‐PRONE AREAS
FALLOUT
DISASTER
CLIMATE
DISASTER RISK
SIZE
INSURANCE MARKETS
ERUPTIONS
IMPACTS OF CLIMATE CHANGE
DISASTER TYPES
RESEARCH WORKING PAPERS
ENVIRONMENTAL ECONOMICS
RISK EXPOSURE
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.od......2456..79c9d47d56f23d9fab967ee4cb760269