Rare disaster, economic growth, and disaster risk management with preferences for liquidity

IF 1.8 4区经济学 Q2 BUSINESS, FINANCE

International Review of Finance Pub Date : 2023-10-26 DOI:10.1111/irfi.12437

Ting Lu, Pengfei Luo

引用次数: 0

Abstract

This paper examines the effect of preferences for liquidity on the relationship between disasters and growth along with disaster risk management. It further demonstrates that preferences for liquidity lead to less consumption. Moreover, from preferences for liquidity perspective, our model can potentially reconcile the conflicting predictions on the interaction between disasters and growth in the empirical findings. Finally, we find that preferences for liquidity cause policymakers to become more incentivized in mitigating disaster risk and lead them overestimate the welfare benefit of policy instruments.

查看原文本刊更多论文

罕见灾害、经济增长和流动性偏好下的灾害风险管理

本文研究了流动性偏好对灾害与增长之间的关系以及灾害风险管理的影响。它进一步证明，流动性偏好会导致消费减少。此外，从流动性偏好的角度来看，我们的模型有可能调和实证研究结果中关于灾害与增长之间相互作用的相互矛盾的预测。最后，我们发现，对流动性的偏好会促使政策制定者更积极地降低灾害风险，并导致他们高估政策工具的福利收益。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

International Review of Finance BUSINESS, FINANCE-

CiteScore

3.30

自引率

5.90%

发文量

期刊介绍： The International Review of Finance (IRF) publishes high-quality research on all aspects of financial economics, including traditional areas such as asset pricing, corporate finance, market microstructure, financial intermediation and regulation, financial econometrics, financial engineering and risk management, as well as new areas such as markets and institutions of emerging market economies, especially those in the Asia-Pacific region. In addition, the Letters Section in IRF is a premium outlet of letter-length research in all fields of finance. The length of the articles in the Letters Section is limited to a maximum of eight journal pages.