02025cas a2200277 a 4500 AALejournalIMF019124 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498302654 1018-5941 BD-DhAAL BD-DhAAL Cantelmo, Alessandro. Policy Trade-Offs in Building Resilience to Natural Disasters : The Case of St. Lucia / Alessandro Cantelmo, Leo Bonato, Giovanni Melina, Gonzalo Salinas. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Resilience to climate change and natural disasters hinges on two fundamental elements: financial protection -insurance and self-insurance- and structural protection -investment in adaptation. Using a dynamic general equilibrium model calibrated to the St. Lucia's economy, this paper shows that both strategies considerably reduce the output loss from natural disasters and studies the conditions under which each of the two strategies provides the best protection. While structural protection normally delivers a larger payoff because of its direct dampening effect on the cost of disasters, financial protection is superior when liquidity constraints limit the ability of the government to rebuild public capital promptly. The estimated trade-off is very sensitive to the efficiency of public investment. Mode of access: Internet Bonato, Leo. Melina, Giovanni. Salinas, Gonzalo. IMF Working Papers; Working Paper ; No. 2019/054 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/054/001.2019.issue-054-en.xml IMF e-Library