Governance, Risk and Financial Impact of Mega Disasters (eBook)

Lessons from Japan

Akiko Kamesaka, Franz Waldenberger (Herausgeber)

eBook Download: PDF

2019 | 1st ed. 2019
XI, 114 Seiten
Springer Singapore (Verlag)
978-981-13-9005-0 (ISBN)

Infos

This book addresses researchers, practitioners, and policy makers interested in understanding the financial implications of mega-disaster risks as well as in seeking possible solutions with regard to governance, the allocation of financial risk, and resilience. The first part of this book takes the example of Japan and studies the impact of mega earthquakes on government finance, debt positions of private household and businesses, capital markets, and investor behavior by way of economic modeling as well as case studies from recent major disasters. In Japan, the probability of a mega earthquake hitting dense agglomerations is very high. Like other large-scale natural disasters, such events carry systemic risks, i.e., they can trigger disruptions endangering the stability of the social, economic, and political order. The second part looks at the experience of the Japanese government as a provider of disaster-risk finance and an active partner in international collaboration. It concludes with an analysis of the general characteristics of systemic risk and approaches to improve resilience. 

Akiko Kamesaka is Professor at Aoyama Gakuin University in Tokyo Japan, School of Business Administration. She is also the director of the Financial Markets Research Center, Aoyama Gakuin University, and she was a visiting research fellow at the Economic and Social Research Institute, Cabinet Office, Government of Japan. She has worked as an accountant at a large accounting firm in Tokyo, and has studied at the University of Tokyo graduate school of economics. Her interests include analysis on well-being, worldview, and investor behavior, and she has many publications in economics and finance. She received the Ibbotson Associates Japan Research Award at the Asia-Pacific Finance Association / Pacific-Basin Financial Management Society / Financial Management Association joint conference for her research on investor behavior in Japan. She was invited to speak at a panel on subjective well-being and sustainability at the 4th OECD World Forum, and has presented her work at many other large conferences and meetings. She has been conducting investor surveys in Japan with Professor Robert J. Shiller, who was awarded the Nobel Prize in Economic Sciences in 2013.

Franz Waldenberger obtained his PhD in economics from the University of Cologne. After positions with the German Monopolies Commission and the German Institute of Japanese Studies (DIJ), he became Professor for Japanese Economy at Munich University. He has been visiting professor at various Japanese universities, including the University of Tokyo, Tsukuba University, Hitotsubashi University and Osaka City University. He serves as editor in chief of Contemporary Japan and as member of the editorial board of Asian Business & Management. Presently, he is on leave from Munich University to head the DIJ in Tokyo. His research focuses on the Japanese economy and corporate governance. Professor Waldenberger is member of the German Japan Forum and member of the board of the Japanese-German Business Association (DJW). 

Inhalt

Preface 6
Contents 7
Editors and Contributors 8
1 Financial Impact of Mega Disasters 11
1 Introduction 11
1.1 Background 11
1.2 Insuring Against Earthquake Risk 13
1.3 Investor Behavior 15
1.4 Outline of the Book 17
1.5 Concluding Remarks 20
References 21
2 Japan’s Disaster Risk Financing: Framework and Policies 23
1 Introduction 23
2 Basic Frameworks for DRM and DRF in Japan 24
3 Earthquake Insurance 28
3.1 Origin 28
3.2 Structure 30
3.3 Three-Tiered Burden-Sharing System 32
3.4 Activation Record 35
4 Fiscal Framework for Recovery and Reconstruction from Earthquakes 35
4.1 Great Hanshin–Awaji Earthquake (1995) 37
4.2 Great East Japan Earthquake (2011) 38
4.3 Kumamoto Earthquake (2016) 39
4.4 Summary 40
5 Japan’s Efforts to Promote DRF in the International Arena 40
6 Conclusion 43
References 43
3 Analysis of the Possible Impact of a Tokyo Mega Earthquake on Japanese Public Finance 45
Appendix 55
References 56
4 Law and Policy Responses to Disaster-Induced Financial Distress 57
1 Japan’s 2011 Tsunami and Post-disaster Debt 57
2 Double-Loans as a Key Challenge for Financial Recovery 60
3 Financial Law and Policy Responses 64
3.1 Loan Deferments and Debt Factoring 65
3.2 Private Liquidations 67
3.3 Consumer Credit 69
3.4 Charity Money 70
3.5 Housing Aid, Government Loans and Subsidies 71
4 Discussion of the Responses to Disaster-Induced Financial Distress 74
4.1 Limited Effectiveness and Efficiency 75
4.2 Social Justice and Social Injustice 78
4.3 Suggestions for Improvement 82
References 85
5 How the Capital Market Reacted to the Great East Japan Earthquake: A Risk Perspective 91
1 Introduction 91
2 Disasters and the National Economy: Not Such a Great Impact? 92
3 Impact of the Great East Japan Earthquake from the Credit Risk Perspective 93
4 Impact of the Great East Japan Earthquake from the Market Risk Perspective: The Case of Electric Power Companies 95
4.1 Analysis by Stochastic Beta Under State Space Model 97
5 Impact of the Great East Japan Earthquake from the Market Risk Perspective: Do Insurance Companies Gain Anything from Disasters? 103
6 Summary and Conclusion 104
References 105
6 Systemic Risks: Common Characteristics and Approaches for Improving Resilience 107
1 Introduction 107
2 Major Characteristics of Systemic Risks 109
3 Systemic Risk Evaluation 111
3.1 Inclusion of Additional Evaluation Criteria 111
3.2 Risk Classification: Six Different Risk Classes 112
4 Systemic Risk Management 115
4.1 Addressing Complexity, Uncertainty and Ambiguity 115
4.2 Instrumental Processing Involving Governmental Actors 117
4.3 Epistemic Processing Involving Experts 118
4.4 Reflective Processing Involving Stakeholders 118
4.5 Participative Processing Involving the Wider Public 120
5 Conclusions 122
References 123

Produkt-Details

• Erscheint lt. Verlag: 23.11.2019
• Reihe/Serie: Economics, Law, and Institutions in Asia Pacific
• Reihe/Serie: Economics, Law, and Institutions in Asia Pacific
• Zusatzinfo: XI, 114 p. 35 illus., 29 illus. in color.
• Sprache: englisch
• Themenwelt: Naturwissenschaften
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Allgemeines / Lexika
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Versicherungsbetriebslehre
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
• Schlagworte: disaster risk • Earthquake insurance • insurance • japan earthquake • Mega disasters • Resilience • Risk finance • risk governance • systemic risk
• ISBN-10: 981-13-9005-3 / 9811390053
• ISBN-13: 978-981-13-9005-0 / 9789811390050