Abstract
What is the appropriate role of the federal government in dealing with ambiguous risks, where the insurance industry is reluctant to offer coverage and homeowners and businesses have a limited interest in voluntarily adopting loss-reduction measures? This question is of increasing importance today because of the potentially high costs to society from low-probability events.
Many of the ideas in this paper are based on joint work with colleagues and students. In particular, the discussion on earthquake risks reflects research undertaken with Ann Butler, Neil Doherty, Anne Kleffner, and Jack Morrison; Carrie Ericson helped to summarize the legislative and regulatory history association with the underground storage tank risk. This research was partially supported by NSF Grant #SES88-09299 and a grant from the Russel Sage Found.
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Kunreuther, H., Kane, E.J. (1993). Ambiguity and Government Risk-Bearing for Low-Probability Events. In: Sniderman, M.S. (eds) Government Risk-Bearing. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2184-2_2
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DOI: https://doi.org/10.1007/978-94-011-2184-2_2
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