We examine businesses' financial management of a rare, severe event using detailed firm-level data collected following Hurricane Sandy in the New York area. Credit played a prominent role in financing recovery; more negatively affected firms took on debt because of Sandy (38%) than received...

Economic and insured losses from natural catastrophes have increased significantly in recent years and are challenging the way catastrophe risk insurance markets operate today. This chapter focuses on how insurance in combination with other policy tools can reduce losses from natural disasters...

Motivated by the results of the field experiment in the United Sates to distinguish two sources of ambiguity and its relation with the robust learning theory, we propose an insurance pricing formula to accommodate the ambiguity types in the robust learning framework. Based on the field...