Self-insurance against natural disasters

Journal Article (Journal Article)

Expenditures on self-insurance to mitigate the effects of natural disasters on the value of private assets are examined in a model where individuals are partially insured against financial loss by a public relief program and where private insurance is unavailable. The model predicts that optimal private expenditures on self-insurance will be excessive or insufficient according to the nature of the technology by which individuals protect their assets. The comparative static effects of variations in the level of public compensation, individual wealth, and attitudes toward risk and the degree of environmental uncertainty on self-insurance expenditures and on the magnitude and frequency of public compensation are also characterized and their implications for remedial government policies are examined. © 1989.

Full Text

Duke Authors

Cited Authors

  • Lewis, T; Nickerson, D

Published Date

  • January 1, 1989

Published In

Volume / Issue

  • 16 / 3

Start / End Page

  • 209 - 223

Electronic International Standard Serial Number (EISSN)

  • 1096-0449

International Standard Serial Number (ISSN)

  • 0095-0696

Digital Object Identifier (DOI)

  • 10.1016/0095-0696(89)90010-7

Citation Source

  • Scopus