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Conceptual and Practical Considerations for Sharing Catastrophic/Systemic Risks
Author(s) -
Skees Jerry R.,
Barnett Barry J.
Publication year - 1999
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349889
Subject(s) - systemic risk , government (linguistics) , business , risk management , risk analysis (engineering) , economics , finance , linguistics , philosophy , financial crisis , macroeconomics
Catastrophic or systemic risks are a major challenge for the farm and food system and rural communities. Private sector markets for sharing catastrophic risks are limited, but less so than in the past. This article presents a conceptual base for understanding why markets for sharing catastrophic risks may be incomplete and/or inefficient. Next, federal efforts to address catastrophic risk losses are reviewed. Finally, new capital market developments are presented and an alternative is introduced where the government would write risk options for specific perils.