Linking Risk Models to Microeconomic Indicators
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 reinsura...
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World Bank, Washington, DC
2015
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okr-10986-222352021-04-23T14:04:07Z Linking Risk Models to Microeconomic Indicators Anttila‐Hughes, Jesse Sharma, Mohan FLOODING IMPACTS OF CLIMATE CHANGE RISKS VARIABILITY ENVIRONMENTAL ECONOMICS ECONOMIC GROWTH STORM DISASTER TYPES TIME WIND SPEED RESEARCH WORKING PAPERS INCOME INSURANCE MARKETS CATASTROPHIC NATURAL DISASTERS NATURAL SCIENCES FAT TAIL STORMS METHODOLOGICAL ISSUES PROBABILITY DISTRIBUTIONS BUILDING CODE PORTFOLIO POLICY RESPONSE CYCLONE INTENSITY MANMADE DISASTER EFFECTS OUTBREAKS DISASTER MODELS PROBABILITY DISTRIBUTIONS DAMAGES RESPONSE TO DISASTER ENVIRONMENTAL DISASTER NEGOTIATION MEASURES DISASTER EVENTS EARTHQUAKES ECONOMIC CONDITIONS HURRICANES PROBABILITY DISTRIBUTION TSUNAMIS ECONOMIC ACTIVITY NATURAL PHENOMENA POLICY RESPONSE TECHNIQUES SPACE INVESTMENT BEHAVIOR TSUNAMI DEVELOPMENT ECONOMICS METHODOLOGIES CELLULAR PHONE VOLCANO DISASTER RESPONSE INSURANCE MARKETS STORM SURGE NATURAL DISASTERS VOLCANIC ERUPTIONS MARKETS CELLULAR PHONE SCIENCES DISASTERS INDICATORS RESEARCH CLIMATE CHANGE CYCLONES CYCLONE INTENSITY FARMERS DUST BOWL ENVIRONMENTAL ECONOMICS MODELING VOLCANOES FINANCE HEAT WAVES STORM SURGE LAND USE CLIMATE VARIABILITY REINSURANCE DROUGHTS TROPICAL CYCLONE EARTHQUAKE POLICY MAKERS DISASTER REDUCTION CLIMATE CHANGE DISASTER RISK POLICIES SCIENCE DROUGHT VALIDITY VALUE POLICY MAKERS BANK MEDICINE DISASTER RISK FINANCING FALLOUT IMPACT OF DISASTERS CLIMATE FIELD RESEARCH HEAT WAVES DISASTER EVENTS RISK EXPOSURE RESEARCHERS DAMAGE IMPACT OF DISASTERS SIZE DISASTER‐PRONE AREAS BUILDING CODE FIELD RESEARCH MARKET ENVIRONMENTAL CATASTROPHE FLOOD PHYSICAL DAMAGES POLICY INSURANCE THEORY RESPONSE TO DISASTER BUILDING CODES ESTIMATING RISK DISASTER TYPE BUILDING CODES TROPICAL CYCLONES FATALITIES DISASTER‐PRONE AREAS SURVEY DATA DEVELOPMENT ECONOMICS IMPACTS OF CLIMATE CHANGE ESTIMATES DISASTER RISK FINANCING METHODOLOGY FAT TAIL ERUPTIONS NATURAL HAZARDS WIND SPEED TYPHOONS DISASTER TYPE RECONSTRUCTION ECONOMIC CONDITIONS ENVIRONMENTAL DISASTER NATURAL DISASTERS 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. 2015-07-20T15:23:12Z 2015-07-20T15:23:12Z 2015-07 Working Paper http://documents.worldbank.org/curated/en/2015/07/24744806/linking-risk-models-microeconomic-indicators http://hdl.handle.net/10986/22235 English en_US Policy Research working paper,no. WPS 7359; Policy Research Working Paper;No. 7359 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
FLOODING IMPACTS OF CLIMATE CHANGE RISKS VARIABILITY ENVIRONMENTAL ECONOMICS ECONOMIC GROWTH STORM DISASTER TYPES TIME WIND SPEED RESEARCH WORKING PAPERS INCOME INSURANCE MARKETS CATASTROPHIC NATURAL DISASTERS NATURAL SCIENCES FAT TAIL STORMS METHODOLOGICAL ISSUES PROBABILITY DISTRIBUTIONS BUILDING CODE PORTFOLIO POLICY RESPONSE CYCLONE INTENSITY MANMADE DISASTER EFFECTS OUTBREAKS DISASTER MODELS PROBABILITY DISTRIBUTIONS DAMAGES RESPONSE TO DISASTER ENVIRONMENTAL DISASTER NEGOTIATION MEASURES DISASTER EVENTS EARTHQUAKES ECONOMIC CONDITIONS HURRICANES PROBABILITY DISTRIBUTION TSUNAMIS ECONOMIC ACTIVITY NATURAL PHENOMENA POLICY RESPONSE TECHNIQUES SPACE INVESTMENT BEHAVIOR TSUNAMI DEVELOPMENT ECONOMICS METHODOLOGIES CELLULAR PHONE VOLCANO DISASTER RESPONSE INSURANCE MARKETS STORM SURGE NATURAL DISASTERS VOLCANIC ERUPTIONS MARKETS CELLULAR PHONE SCIENCES DISASTERS INDICATORS RESEARCH CLIMATE CHANGE CYCLONES CYCLONE INTENSITY FARMERS DUST BOWL ENVIRONMENTAL ECONOMICS MODELING VOLCANOES FINANCE HEAT WAVES STORM SURGE LAND USE CLIMATE VARIABILITY REINSURANCE DROUGHTS TROPICAL CYCLONE EARTHQUAKE POLICY MAKERS DISASTER REDUCTION CLIMATE CHANGE DISASTER RISK POLICIES SCIENCE DROUGHT VALIDITY VALUE POLICY MAKERS BANK MEDICINE DISASTER RISK FINANCING FALLOUT IMPACT OF DISASTERS CLIMATE FIELD RESEARCH HEAT WAVES DISASTER EVENTS RISK EXPOSURE RESEARCHERS DAMAGE IMPACT OF DISASTERS SIZE DISASTER‐PRONE AREAS BUILDING CODE FIELD RESEARCH MARKET ENVIRONMENTAL CATASTROPHE FLOOD PHYSICAL DAMAGES POLICY INSURANCE THEORY RESPONSE TO DISASTER BUILDING CODES ESTIMATING RISK DISASTER TYPE BUILDING CODES TROPICAL CYCLONES FATALITIES DISASTER‐PRONE AREAS SURVEY DATA DEVELOPMENT ECONOMICS IMPACTS OF CLIMATE CHANGE ESTIMATES DISASTER RISK FINANCING METHODOLOGY FAT TAIL ERUPTIONS NATURAL HAZARDS WIND SPEED TYPHOONS DISASTER TYPE RECONSTRUCTION ECONOMIC CONDITIONS ENVIRONMENTAL DISASTER NATURAL DISASTERS |
spellingShingle |
FLOODING IMPACTS OF CLIMATE CHANGE RISKS VARIABILITY ENVIRONMENTAL ECONOMICS ECONOMIC GROWTH STORM DISASTER TYPES TIME WIND SPEED RESEARCH WORKING PAPERS INCOME INSURANCE MARKETS CATASTROPHIC NATURAL DISASTERS NATURAL SCIENCES FAT TAIL STORMS METHODOLOGICAL ISSUES PROBABILITY DISTRIBUTIONS BUILDING CODE PORTFOLIO POLICY RESPONSE CYCLONE INTENSITY MANMADE DISASTER EFFECTS OUTBREAKS DISASTER MODELS PROBABILITY DISTRIBUTIONS DAMAGES RESPONSE TO DISASTER ENVIRONMENTAL DISASTER NEGOTIATION MEASURES DISASTER EVENTS EARTHQUAKES ECONOMIC CONDITIONS HURRICANES PROBABILITY DISTRIBUTION TSUNAMIS ECONOMIC ACTIVITY NATURAL PHENOMENA POLICY RESPONSE TECHNIQUES SPACE INVESTMENT BEHAVIOR TSUNAMI DEVELOPMENT ECONOMICS METHODOLOGIES CELLULAR PHONE VOLCANO DISASTER RESPONSE INSURANCE MARKETS STORM SURGE NATURAL DISASTERS VOLCANIC ERUPTIONS MARKETS CELLULAR PHONE SCIENCES DISASTERS INDICATORS RESEARCH CLIMATE CHANGE CYCLONES CYCLONE INTENSITY FARMERS DUST BOWL ENVIRONMENTAL ECONOMICS MODELING VOLCANOES FINANCE HEAT WAVES STORM SURGE LAND USE CLIMATE VARIABILITY REINSURANCE DROUGHTS TROPICAL CYCLONE EARTHQUAKE POLICY MAKERS DISASTER REDUCTION CLIMATE CHANGE DISASTER RISK POLICIES SCIENCE DROUGHT VALIDITY VALUE POLICY MAKERS BANK MEDICINE DISASTER RISK FINANCING FALLOUT IMPACT OF DISASTERS CLIMATE FIELD RESEARCH HEAT WAVES DISASTER EVENTS RISK EXPOSURE RESEARCHERS DAMAGE IMPACT OF DISASTERS SIZE DISASTER‐PRONE AREAS BUILDING CODE FIELD RESEARCH MARKET ENVIRONMENTAL CATASTROPHE FLOOD PHYSICAL DAMAGES POLICY INSURANCE THEORY RESPONSE TO DISASTER BUILDING CODES ESTIMATING RISK DISASTER TYPE BUILDING CODES TROPICAL CYCLONES FATALITIES DISASTER‐PRONE AREAS SURVEY DATA DEVELOPMENT ECONOMICS IMPACTS OF CLIMATE CHANGE ESTIMATES DISASTER RISK FINANCING METHODOLOGY FAT TAIL ERUPTIONS NATURAL HAZARDS WIND SPEED TYPHOONS DISASTER TYPE RECONSTRUCTION ECONOMIC CONDITIONS ENVIRONMENTAL DISASTER NATURAL DISASTERS Anttila‐Hughes, Jesse Sharma, Mohan Linking Risk Models to Microeconomic Indicators |
relation |
Policy Research working paper,no. WPS 7359; |
description |
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. |
format |
Working Paper |
author |
Anttila‐Hughes, Jesse Sharma, Mohan |
author_facet |
Anttila‐Hughes, Jesse Sharma, Mohan |
author_sort |
Anttila‐Hughes, Jesse |
title |
Linking Risk Models to Microeconomic Indicators |
title_short |
Linking Risk Models to Microeconomic Indicators |
title_full |
Linking Risk Models to Microeconomic Indicators |
title_fullStr |
Linking Risk Models to Microeconomic Indicators |
title_full_unstemmed |
Linking Risk Models to Microeconomic Indicators |
title_sort |
linking risk models to microeconomic indicators |
publisher |
World Bank, Washington, DC |
publishDate |
2015 |
url |
http://documents.worldbank.org/curated/en/2015/07/24744806/linking-risk-models-microeconomic-indicators http://hdl.handle.net/10986/22235 |
_version_ |
1764450525647994880 |