An imperfect storm: Fat-tailed tropical cyclone damages, insurance, and climate policy
Marc Conte () and
David Kelly ()
Journal of Environmental Economics and Management, 2018, vol. 92, issue C, 677-706
We perform two tests that estimate the mass of the upper tail of the distribution of aggregate US tropical cyclone damages. Both tests reject the hypothesis that the distribution of damages is thin tailed at the 95% confidence level, even after correcting for inflation and growth in population and per capita income. Our point estimates of the shape parameter of the damage distribution indicate that the distribution has finite mean, but infinite variance.
Keywords: Natural disasters; Catastrophes; Fat tails; Tropical cyclones; Hurricanes; Adaptation; Disaster aid; Property insurance (search for similar items in EconPapers)
JEL-codes: Q54 H84 Q58 R11 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:92:y:2018:i:c:p:677-706
Access Statistics for this article
Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates
More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().