Catastrophic Risk Management and Economic Growth
Authors: Ermoliev YM, Ermolieva TY, MacDonald GJ, Norkin VI
Publication Year: 2000
Reference: IIASA Interim Report IR-00-058
Abstract
This paper outlines the main features of catastrophic risk management: endogenously generated catastrophes, mutually dependent losses, lack of historical data, the necessity of long-term perspectives and geographically explicit models, the involvement of various agents. We briefly discuss the long-term effects of shocks on economic growth and the need for the co-existence of anticipative risk-averse (ex-ante) policies with adaptive risk- prone (ex-post) policies.