The Effects of Great Earthquakes on the Premiums for Earthquake Insurance in Japan: A Bayesian Approach
In this talk Dr. Kakamu discusses his research: The paper examines the effects of the great earthquake on the premiums for earthquake insurance from a Bayesian point of view. Using the latent variable technique, we construct a linear regression model, which incorporates the changes in the participation behavior as parameters to identify the regions (prefectures) where the changes occurred. With three periods panel datasets in Japan, we examined the difference and similarity between Great Hanshin Earthquake in 1995 and Great East Japan Earthquake in 2011. Empirical results show that the difference and similarity in these two earthquakes and spatial phenomena can be observed.
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