Tahun Terbit

2008

Deskripsi Fisik

xiv, 135p.: ill.; 27cm

Why should developing countries buy expensive catastrophe (CAT) insurance? Abstracting from risk aversion or hedging motives, we find that insurance may have a catalytic role on external finance. Such effect is particularly strong in those low- to middle-income countries that face financial constraints when hit by a shock or in its anticipation. Insurance makes defaults less likely, thereby rel…