000			01450nas a2200205Ia 4500
008			241128c99999999xx |||||||||||| ||und||
022			_a1573-1502
100			_aNaevdal, Eric _9124008
245		0	_aExogenous Hazard Rates and Precautionary Behaviour in Resource Economic Dynamics
260			_bEnvironmental and Resource Economics
260			_c2024
300			_a2543-2569
520			_aEconomic analysis of catastrophic risk is a topic that unfortunately has become more relevant since the 1960s. An important question when a vital resource stock is at risk is whether one should invest more in the stock to create a buffer against a catastrophe or allow the stock to decrease as risk makes its future value decrease. The present paper analyses exogenous catastrophic risk where the probability of catastrophe cannot be controlled. Conditions for when precautionary behaviour is optimal are given with general functional forms. The paper analyses both problems with a single catastrophe and problems with an infinite sequence of catastrophes. It is shown that most of the results pertaining to a single catastrophe carry over to the case with an infinite number of catastrophes.
650			_a Dynamic Optimization
650			_a Exogenous Hazard Rate _9124009
650			_a Population Growth
650			_a Precautionary Behaviour _9124010
650			_aCatastrophic Risk _9124011
856			_uhttps://doi.org/10.1007/s10640-024-00896-5
999			_c134651 _d134651