Article ID Journal Published Year Pages File Type
1141171 Mathematics and Computers in Simulation 2008 8 Pages PDF
Abstract

Traditional discounting dramatically affects the outcome of catastrophic risk management and spatio-temporal vulnerability modeling. The misperception of discount rates produces inadequate evaluations of risk management strategies, which may provoke catastrophes and significantly contribute to the increasing vulnerability of our society. This paper analyses the implication of potential catastrophic events on the choice of discounting. In particular, it shows the necessity of using proposed equivalent undiscounted stopping time criterion and Monte Carlo based stochastic optimization procedures.

Related Topics
Physical Sciences and Engineering Engineering Control and Systems Engineering
Authors
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