IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Protection against major catastrophes: An economic perspective

  • Wenzel, Lars
  • Wolf, André
Registered author(s):

    This paper intends to further understanding of catastrophic events by reviewing the economic literature on their effects as well as potential means of dealing with the corresponding risks and uncertainties. Since 2000, the world has seen a number of catastrophes including terrorist attacks in the United States and Europe, tsunamis in Southeast Asia and Japan as well as volcanic eruptions in Iceland. All of these have had significant impacts on human well-being and economic activity beyond the regional level. In an increasingly populous and globalized world, these types of events and their repercussions are likely to increase. Hence, it is important to ensure that government and private entities cooperate in an attempt to reduce risks of catastrophes.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 137.

    in new window

    Date of creation: 2013
    Date of revision:
    Handle: RePEc:zbw:hwwirp:137
    Contact details of provider: Postal: Heimhuder Str. 71, D-20148 Hamburg
    Phone: +49 (0)40 34 05 76 - 0
    Fax: +49 (0)40 34 05 76 - 776
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Thomas K.J. McDermott, 2011. "The Effects of Natural Disasters on Human Capital Accumulation," The Institute for International Integration Studies Discussion Paper Series iiisdp391, IIIS, revised Feb 2012.
    2. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    3. Todd Sandler & Kevin Siqueira, 2006. "Global terrorism: deterrence versus pre-emption," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1370-1387, November.
    4. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
    5. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    6. Golany, Boaz & Kaplan, Edward H. & Marmur, Abraham & Rothblum, Uriel G., 2009. "Nature plays with dice - terrorists do not: Allocating resources to counter strategic versus probabilistic risks," European Journal of Operational Research, Elsevier, vol. 192(1), pages 198-208, January.
    7. Jason Bram & James Orr & Carol Rapaport, 2002. "Measuring the effects of the September 11 attack on New York City," Economic Policy Review, Federal Reserve Bank of New York, issue Nov, pages 5-20.
    8. Erwann Michel-Kerjan & Frederic Morlaye, 2008. "Extreme Events, Global Warming, and Insurance-Linked Securities: How to Trigger the “Tipping Point”," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 33(1), pages 153-176, January.
    9. Philip Ganderton & David Brookshire & Michael McKee & Steve Stewart & Hale Thurston, 2000. "Buying Insurance for Disaster-Type Risks: Experimental Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 271-289, May.
    10. Kenneth A. Froot, 2001. "The Market for Catastrophe Risk: A Clinical Examination," NBER Working Papers 8110, National Bureau of Economic Research, Inc.
    11. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, 09.
    12. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    13. Thomas Fomby & Yuki Ikeda & Norman V. Loayza, 2013. "The Growth Aftermath Of Natural Disasters," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(3), pages 412-434, 04.
    14. Ganderton, Philip T, et al, 2000. " Buying Insurance for Disaster-Type Risks: Experimental Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 271-89, May.
    15. Albala-Bertrand, J. M., 1993. "Political Economy of Large Natural Disasters: With Special Reference to Developing Countries," OUP Catalogue, Oxford University Press, number 9780198287650.
    16. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2010. "Catastrophic Natural Disasters and Economic Growth," Research Department Publications 4671, Inter-American Development Bank, Research Department.
    17. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
    18. Christian R. Jaramillo H., 2009. "Do Natural Disasters Have Long-term Effects on Growth?," DOCUMENTOS CEDE 006647, UNIVERSIDAD DE LOS ANDES-CEDE.
    19. Bruce Sacerdote, 2008. "When The Saints Come Marching In: Effects of Hurricanes Katrina and Rita on Student Evacuees," NBER Working Papers 14385, National Bureau of Economic Research, Inc.
    20. Hallegatte, Stephane & Hourcade, Jean-Charles & Dumas, Patrice, 2007. "Why economic dynamics matter in assessing climate change damages: Illustration on extreme events," Ecological Economics, Elsevier, vol. 62(2), pages 330-340, April.
    21. Hallegatte, Stéphane & Ghil, Michael, 2008. "Natural disasters impacting a macroeconomic model with endogenous dynamics," Ecological Economics, Elsevier, vol. 68(1-2), pages 582-592, December.
    22. Stephane Hallegatte & Jean Charles Hourcade & Patrice Dumas, 2007. "Why economic dynamics matter in assessing climate change damages : illustration on extreme events," Post-Print hal-00164626, HAL.
    23. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
    24. Tobias N. Rasmussen, 2004. "Macroeconomic Implications of Natural Disasters in the Caribbean," IMF Working Papers 04/224, International Monetary Fund.
    25. Faye Duchin, 2004. "Input-Output Economics and Material Flows," Rensselaer Working Papers in Economics 0424, Rensselaer Polytechnic Institute, Department of Economics.
    26. Steven N. Durlauf, 1991. "Multiple Equilibria and Persistence in Aggregate Fluctuations," NBER Working Papers 3629, National Bureau of Economic Research, Inc.
    27. Stéphane Hallegatte & Fanny Henriet, 2008. "Assessing the Consequences of Natural Disasters on Production Networks: A Disaggregated Approach," Working Papers 2008.100, Fondazione Eni Enrico Mattei.
    28. Kunreuther, Howard, 1996. "Mitigating Disaster Losses through Insurance," Journal of Risk and Uncertainty, Springer, vol. 12(2-3), pages 171-87, May.
    29. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    30. Jerry R. Skees & Barry J. Barnett & Anne G. Murphy, 2008. "Creating insurance markets for natural disaster risk in lower income countries: the potential role for securitization," Agricultural Finance Review, Emerald Group Publishing, vol. 68(1), pages 151-167, September.
    31. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516 Elsevier.
    32. Kunreuther, Howard & Novemsky, Nathan & Kahneman, Daniel, 2001. " Making Low Probabilities Useful," Journal of Risk and Uncertainty, Springer, vol. 23(2), pages 103-20, September.
    33. Kowalewski, Julia, 2009. "Methodology of the input-output analysis," HWWI Research Papers 1-25, Hamburg Institute of International Economics (HWWI).
    34. Kunreuther, Howard & Heal, Geoffrey, 2003. " Interdependent Security," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 231-49, March-May.
    35. Baez, Javier E. & de la Fuente, Alejandro & Santos, Indhira, 2010. "Do Natural Disasters Affect Human Capital? An Assessment Based on Existing Empirical Evidence," IZA Discussion Papers 5164, Institute for the Study of Labor (IZA).
    36. Michael Berlemann & Gerit Vogt, 2007. "Kurzfristige Wachstumseffekte von Naturkatastrophen," Ifo Working Paper Series Ifo Working Paper No. 52, Ifo Institute for Economic Research at the University of Munich.
    37. Hausken, Kjell, 2008. "Strategic defense and attack for series and parallel reliability systems," European Journal of Operational Research, Elsevier, vol. 186(2), pages 856-881, April.
    38. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug..
    39. Azaiez, M.N. & Bier, Vicki M., 2007. "Optimal resource allocation for security in reliability systems," European Journal of Operational Research, Elsevier, vol. 181(2), pages 773-786, September.
    40. Susan Laury & Melayne McInnes & J. Swarthout, 2009. "Insurance decisions for low-probability losses," Journal of Risk and Uncertainty, Springer, vol. 39(1), pages 17-44, August.
    41. Loayza, Norman & Olaberria, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2009. "Natural disasters and growth - going beyond the averages," Policy Research Working Paper Series 4980, The World Bank.
    42. Powell, Robert, 2009. "Sequential, nonzero-sum "Blotto": Allocating defensive resources prior to attack," Games and Economic Behavior, Elsevier, vol. 67(2), pages 611-615, November.
    43. Pauly, Mark V, 1974. "Overinsurance and Public Provision of Insurance: The Roles of Moral Hazard and Adverse Selection," The Quarterly Journal of Economics, MIT Press, vol. 88(1), pages 44-62, February.
    44. Todd Sandler, 2003. "Collective Action and Transnational Terrorism," The World Economy, Wiley Blackwell, vol. 26(6), pages 779-802, 06.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:zbw:hwwirp:137. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.