Date(s) - 03/25/2019
12:00 pm - 1:00 pm
Andrew G. Clark Building
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The Brown Bag Seminar Series offers current ECON graduate students the opportunity to present ongoing research or to workshop new ideas. The seminars are held on Mondays from 12:00-1:00pm in Clark C307 and are open to everyone.
March 25th’s presenter is ECON PhD. graduate student Yuchen Hu. She will be presenting her paper: “Rainy day fund and natural hazard: a CGE application to Memphis, Shelby County.”
Abstract: Carefully preparing for future loss due to natural disaster is needed as more and more people choose to live in hazard prone areas. But voluntary insurance behavior is limited partly because of inconsistency between pre-determined coverage period and actual time of a possible hazard. (Kunreuther (1996)) Hence the idea of rainy-day fund can step in and become an effective mechanism in preventing losses and improving resiliency for residents and firms located in such hazard prone areas.
This paper will use a CGE model developed for Memphis, Shelby county, an area with potential risk of earthquake, to compare two economies where one utilizes rainy day fund before disaster and one doesn’t with regard to the trajectory of pre-disaster development and post-disaster recovery, so that the cost and benefit may be obtained for the rainy-day fund.