Ateneo - UPO

The course will offer a theoretical framework for analyzing decision-making strategies under conditions of uncertainty and examining policy options for disaster prevention and mitigation. It will also provide a reasoned review of the literature on the impacts of disasters on individual well-being and economic growth.

Main references (NOT TO BUY): RICHARD ZECKHAUSER (1996), The Economics of Catastrophes, Journal of risk and uncertainty, Vol. 12, No. 2/3, Special Issue: The Stanford University Conference on Social Treatment of Catastrophic Risk (1996), pp. 113-140 Published by: Springer Stable URL: https://www.jstor.org/stable/41760803
Handbook on the Economics of Disasters, Edited by Mark Skidmore, Publication Date: 2022 ISBN: 978 1 83910 372 8 Extent: 520 pp

The reading material will be provided by the Instructor.

The slides of each lesson, the exercises and any supplementary material will be
uploaded to DIR at the end of each class.

The course aims to provide the basics of risk literacy and the fundamental principles of risk management. By the end of the course, students should have the essential knowledge needed to interpret and, eventually, participate constructively in discussions about the best strategies for preventing or managing the consequences of catastrophic events.

None. However, during the course, simple mathematical models are developed that require basic knowledge of differential calculus.

Face-to-face lectures and online modules.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

Written exam

• Definition and taxonomy of catastrophes:
o direct effects
o externalities
• Decision-making under uncertainty:
o foundational concepts and definitions in risk preference theory
o empirical methods to assess risk preferences
o the cases of insurance and location choice.
• Policies for prevention and mitigation of disasters
o Coase theorem vs regulation
o Risk benefit analysis of preventive actions
o States’ reactions to major economic disasters
• Effects of Disasters on individuals’ wellbeing
• Effects of Disasters on long term growth

Acquisition of basic concepts of risk literacy. Ability to critically read academic and popular articles on the topics of prevention and assessment of the economic consequences of catastrophes.