The Benefit-Cost Ratio as a Decision Criteria When Managing Catastrophes
研究了灾难管理项目因非边际性而相互依赖，指出高相对风险规避下，避免一场灾难的效益取决于其他灾难的背景风险，并利用效益成本比和风险规避系数为最优政策提供边界。
Abstract Previous work has shown that when projects are non-marginal, it creates an interdependence among projects. This implies that policies to manage catastrophes should not be evaluated in isolation but in conjunction with each other. As long as relative risk aversion is sufficiently high, the benefits of averting one catastrophe depend positively on the background risk created by other catastrophes. This specific bias makes it possible to create upper and lower boundaries on the willingness to pay to manage catastrophes and the optimal policy. These boundaries can be used to make inferences on which catastrophes should be averted and not, and in which order. The upper and lower boundaries depend only on the individual catastrophe’s benefit-cost ratio and the coefficient of risk aversion, which both are easy to identify using standard economic frameworks.