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Economic Development and Resilience to Natural Catastrophes – Insurance Penetration and Institutions

Author

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  • Breckner, Miriam
  • Englmaier, Florian
  • Stowasser, Till
  • Sunde, Uwe

Abstract

This paper provides new evidence on the negative effect of natural catastrophes on economic development. The findings indicate that private insurance markets accommodate the negative effects of natural catastrophes in developed countries, whereas they do not seem to be effective in developing countries. This pattern explains the heterogenous effects of natural disasters on income that have been found in previous studies. The results suggest that insurance and a stable, well-institutionalized environment complement each other in mediating the negative disaster shock. The analysis is based on novel data on natural disasters and global insurance penetration rates and contributes to the ongoing debate about the implications of natural catastrophes for development.

Suggested Citation

  • Breckner, Miriam & Englmaier, Florian & Stowasser, Till & Sunde, Uwe, 2016. "Economic Development and Resilience to Natural Catastrophes – Insurance Penetration and Institutions," VfS Annual Conference 2016 (Augsburg): Demographic Change 145501, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145501
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    Cited by:

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    2. Lodi, Chiara & Marin, Giovanni & Modica, Marco, 2022. "Fiscal policy response of local governments to floods in Italy," FEEM Working Papers 329435, Fondazione Eni Enrico Mattei (FEEM).
    3. Mr. Sebastian Acevedo Mejia & Claudio Baccianti & Mr. Mico Mrkaic & Natalija Novta & Evgenia Pugacheva & Petia Topalova, 2019. "Weather Shocks and Output in Low-Income Countries: The Role of Policies and Adaptation," IMF Working Papers 2019/178, International Monetary Fund.

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    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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