Abstract:Natural disasters exert a signi cant impact on government nances. Catastrophe bonds (CAT bonds) constitute risk-transfer instruments that could help governments improve their scal resilience when catastrophic events occur. However, given the very limited issuance of sovereign CAT bonds so far, their actual impact on scal resilience is di cult to quantify. There is no literature on this topic currently available. I attempt to ll this gap and assess the impact of CAT bond payouts on the scal balance of the Mexic… Show more
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