Publication:
The Macro Financing of Natural Hazards in Developing Countries

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dc.contributor.authorMahul, Olivier
dc.contributor.authorGurenko, Eugene
dc.date.accessioned2012-06-22T20:16:03Z
dc.date.available2012-06-22T20:16:03Z
dc.date.issued2006-12
dc.description.abstractThe authors propose a financial model to address the design of efficient risk financing strategies against natural disasters at the country level. It is simple enough to shed analytical light on some of the key issues but flexible and realistic enough to provide some quantitative guidance on the ex ante financing of catastrophic losses. The risk financing problem is decomposed into two steps. First, the resource gap, defined as the difference between losses and available ex-post resources (such as post-disaster aid), is identified. It determines the losses to be financed by ex ante financial instruments (reserves, catastrophe insurance, and contingent debt). Second, the cost-minimizing financial arrangements are derived from the marginal costs of the financial instruments. The model is solved through a series of graphical analyses that make this complex financial problem easier to apprehend. This model captures and explains the main impacts of financial parameters (such as insurance premium, cost of capital) on efficient risk financing structures.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/12/7245786/macro-financing-natural-hazards-developing-countries
dc.identifier.doi10.1596/1813-9450-4075
dc.identifier.urihttps://hdl.handle.net/10986/8860
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4075
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectARBITRAGE
dc.subjectATTACHMENT POINT
dc.subjectBALANCE SHEETS
dc.subjectBANK LENDING
dc.subjectBASIS RISK
dc.subjectBONDS
dc.subjectBORROWING
dc.subjectCAPITAL BASE
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCATASTROPHE LOSS
dc.subjectCATASTROPHES
dc.subjectCATASTROPHIC EVENTS
dc.subjectCATASTROPHIC RISKS
dc.subjectCONSUMERS
dc.subjectCOST OF CAPITAL
dc.subjectCOVERAGE
dc.subjectCREDIT FACILITIES
dc.subjectCREDIT FACILITY
dc.subjectCREDIT RISK
dc.subjectDEBT
dc.subjectDEVELOPMENT BANKS
dc.subjectDISASTER
dc.subjectDISASTER RELIEF
dc.subjectDISASTER RISK
dc.subjectDISASTERS
dc.subjectDROUGHT
dc.subjectDROUGHTS
dc.subjectEARTHQUAKE
dc.subjectEARTHQUAKES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC RISK
dc.subjectFINANCIAL ENGINEERING
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL MARKETS
dc.subjectFLOODS
dc.subjectHOUSING
dc.subjectHURRICANE
dc.subjectHURRICANES
dc.subjectINDEMNITY
dc.subjectINFLATION
dc.subjectINFRASTRUCTURE LOANS
dc.subjectINSURANCE
dc.subjectINSURANCE CLAIMS
dc.subjectINSURANCE COMPANIES
dc.subjectINSURANCE COVERAGE
dc.subjectINSURANCE INDUSTRY
dc.subjectINSURANCE MARKETS
dc.subjectINSURANCE POOLS
dc.subjectINSURED LOSSES
dc.subjectINTERNATIONAL FINANCIAL INSTITUTIONS
dc.subjectLATIN AMERICAN
dc.subjectLIQUIDITY
dc.subjectMARKET RISK
dc.subjectMIDDLE EAST
dc.subjectMITIGATION
dc.subjectMITIGATION MEASURES
dc.subjectMORAL HAZARD
dc.subjectMULTILATERAL DEVELOPMENT BANKS
dc.subjectNATURAL CATASTROPHES
dc.subjectNATURAL DISASTER
dc.subjectNATURAL DISASTERS
dc.subjectNATURAL HAZARDS
dc.subjectNORTH AFRICA
dc.subjectOPERATING COSTS
dc.subjectPREMIUMS
dc.subjectPRESENT VALUE
dc.subjectPROGRAMS
dc.subjectRECONSTRUCTION
dc.subjectREINSURANCE
dc.subjectREINSURANCE COMPANIES
dc.subjectREINSURANCE CONTRACTS
dc.subjectREINSURERS
dc.subjectRESERVES
dc.subjectRESOURCE ALLOCATION
dc.subjectRISK ASSESSMENT
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectRISK MANAGEMENT MODEL
dc.subjectRISK MITIGATION
dc.subjectRISK PREMIUM
dc.subjectRISK SHARING
dc.subjectRISK TRANSFER
dc.subjectSECURITIES
dc.subjectSHAREHOLDERS EQUITY
dc.subjectSTORM
dc.subjectSTORMS
dc.subjectTAXATION
dc.subjectUNDERWRITING
dc.subjectWESTERN EUROPE
dc.titleThe Macro Financing of Natural Hazards in Developing Countriesen
dspace.entity.typePublication
okr.crossref.titleThe Macro Financing Of Natural Hazards In Developing Countries
okr.date.doiregistration2025-04-10T12:27:29.994613Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/12/7245786/macro-financing-natural-hazards-developing-countries
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.guid461721468324550447
okr.identifier.doi10.1596/1813-9450-4075
okr.identifier.externaldocumentum000016406_20061205151452
okr.identifier.internaldocumentum7245786
okr.identifier.reportWPS4075
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/12/05/000016406_20061205151452/Rendered/PDF/wps4075.pdfen
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicBanks and Banking Reform
okr.topicInsurance and Risk Mitigation
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicEnvironment::Natural Disasters
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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