This paper compares different solution methods for computing the equilibrium of dynamic stochastic general equilibrium (DSGE) models with rare disasters along the lines of those proposed by Rietz (1988), Barro (2006), Gabaix (2012), and Gourio (2012). DSGE models with rare disasters require...

This paper analyses decision under uncertainty with catastrophic risks, and is motivated by problems emerging from global environmental risks. These are typically low-probability events with major irreversible consequences. For such risks, the Von Neumann Morgens-tern (NM) axioms for decision...

This paper compares different solution methods for computing the equilibrium of dynamic stochastic general equilibrium (DSGE) models with rare disasters along the line of those proposed by Rietz (1988), Barro (2006}, Gabaix (2012), and Gourio (2012). DSGE models with rare disasters require...

This paper analyses decision under uncertainty with catastrophic risks, and is motivated by problems emerging from global environmental risks. These are typically low-probability events with major irreversible consequences. For such risks, the Von Neumann Morgens-tern (NM) axioms for decision...

This paper analyses decision under uncertainty with catastrophic risks, and is motivated by problems emerging from global environmental risks. These are typically low-probability events with major irreversible consequences. For such risks, the Von Neumann--Morgenstern (NM) axioms for decision...