Abstract

http://ssrn.com/abstract=1478791
 
 

References (23)



 
 

Citations (1)



 


 



The Economic and Policy Consequences of Catastrophes


Robert S. Pindyck


Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Neng Wang


Columbia Business School - Finance and Economics

September 2009

NBER Working Paper No. w15373

Abstract:     
How likely is a catastrophic event that would substantially reduce the capital stock, GDP and wealth? How much should society be willing to pay to reduce the probability or impact of a catastrophe? We answer these questions and provide a framework for policy analysis using a general equilibrium model of production, capital accumulation, and household preferences. Calibrating the model to economic and financial data, we estimate the mean arrival rate of shocks and their size distribution, the tax on consumption society would accept to limit the maximum size of a catastrophic shock, and the cost to insure against its impact.

Number of Pages in PDF File: 43

working papers series


Download This Paper

Date posted: September 28, 2009  

Suggested Citation

Pindyck, Robert S. and Wang, Neng, The Economic and Policy Consequences of Catastrophes (September 2009). NBER Working Paper No. w15373. Available at SSRN: http://ssrn.com/abstract=1478791

Contact Information

Robert S. Pindyck (Contact Author)
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
50 Memorial Drive, E52-450
Cambridge, MA 02142
United States
617-253-6641 (Phone)
617-258-6855 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Neng Wang
Columbia Business School - Finance and Economics ( email )
3022 Broadway
New York, NY 10027
United States

Feedback to SSRN


Paper statistics
Abstract Views: 414
Downloads: 25
References:  23
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.344 seconds