Catastrophe Risk Models for Evaluating Disaster Risk Reduction Investments in Developing Countries

Major natural disasters in recent years have had high human and economic costs, and triggered record high postdisaster relief from governments and international donors. Given the current economic situation worldwide, selecting the most effective disaster risk reduction (DRR) measures is critical. This is especially the case for low‐ and middle‐income countries, which have suffered disproportionally more economic and human losses from disasters. This article discusses a methodology that makes use of advanced probabilistic catastrophe models to estimate benefits of DRR measures. We apply such newly developed models to generate estimates for hurricane risk on residential structures on the island of St. Lucia, and earthquake risk on residential structures in Istanbul, Turkey, as two illustrative case studies. The costs and economic benefits for selected risk reduction measures are estimated taking account of hazard, exposure, and vulnerability. We conclude by emphasizing the advantages and challenges of catastrophe model‐based cost‐benefit analyses for DRR in developing countries.     

The economics of adding and subdividing independent risks: Some comparative statics results

In this paper we address the problem of determining whether adding independent risks or subdividing them is a good substitute for insurance. Despite the fact that accepting more i.i.d. risks increases total risk, it is shown that some risk-averse decision makers can rationally reduce their demand for insurance by doing so. Similarly, a better diversified portfolio of i.i.d. risky assets can rationally be more insured, even if diversification is a risk-reduction scheme. We derive conditions sufficient to obtain unambiguous comparative statics results. Assuming that absolute risk aversion is decreasing and that the fourth derivative of the utility function is positive, we show that diversification is an exceptionally good substitute for insurance. Under the same conditions, adding independent risks to wealth reduces the demand for insurance on each unit.     

The Development of Object Construction From Infancy Through Toddlerhood

Early in development, children explore and combine objects in increasingly complex ways. One manual skill, object construction, represents a major shift in how objects are explored relative to other objects. Despite recent connections with cognitive functioning such as spatial skills, the development of object construction ability has rarely been studied and its trajectory has not been adequately described. The purpose of this study was to describe the development of three types of object construction (stacking, nesting, and affixing) across 5 monthly infant visits and 7 monthly toddler visits using a longitudinal design and a large sample size. Infants (10–14 months, n = 131) and toddlers drawn from the infant sample (18–24 months, n = 65) were given sets of age‐appropriate toys each of which elicited at least one type of constructive play. We described success at different construction tasks and identified trends for construction skill for infant and toddler development using multilevel modeling. We found that each of the three construction actions developed in unique ways across the 10‐ to 24‐month period. Infant construction skill predicted the development of toddler skill, but toddler construction skill diverged from infant trajectories. We discuss the role of combination strategies in the development of object construction skill and how object construction could be related to other domains of development.     

Adolescents,Online Marketing and Privacy: Predicting Adolescents’ Willingness to Disclose Personal Information for Marketing Purposes

The present study aims at exploring which factors predict the willingness of adolescents to disclose personal information in response to online marketing requests. Our analyses show that especially privacy concerns and perceived benefits explain a considerable portion of variance in both willingness to disclose profile data (e.g. age, hobbies, favourite products) and contact data (e.g. phone number, e‐mail address, home address). An interesting interrelationship was found between profile data and contact data disclosure. Contrary to our expectations, parental mediation strategies were only a weak predictor of teenagers’ willingness to disclose contact information. Policy implications that emerge from the central findings of this study are discussed.