Committee members John Curtis, James Emme, Vello Kuuskraa,
and Dianne Nielson and National Research Council staff members
Tammy Dickinson, Monica Lipscomb, and Karen Imhof were
fundamental in developing the workshop agenda, identifying speakers,
running the workshop, and writing this report. It was a great team effort.
My thanks to each of them.
Compliance with the program is near universal. Since the ﬁrst day the restrictions were imple-
mented they have been enforced vigorously by the city police.
4 One of the advantages of basing
the restrictions on license plates is that vehicles violating the ban are easy to spot. Mexican law
stipulates that vehicles that violate the ban are to be impounded for 48 hours and their owners are
to pay a ﬁne equivalent to $200 U.S. dollars.
Along with providing more realistic views of ecosystem service provision and use, these flow maps can also enable improved value transfer. A better understanding of the relative strength of flow can identify regions more likely to provide higher or lower levels of value (Boyd and Wainger 2003). Indeed the flow of benefits is the only quantity that relates supply and demand and is a natural candidate for a quantitative statement of value. In order for a flow of benefit to exist, a potential for provision must coexist with a need for use; the marginal value is determined by the “difference...
The study of natural catastrophe models plays an important role in
the prevention and mitigation of disasters. After the occurrence of a nat-
ural disaster, the reconstruction can be ﬁnanced with catastrophe bonds
(CAT bonds) or reinsurance. This paper examines the calibration of a real
parametric CAT bond for earthquakes that was sponsored by the Mexican
government. The calibration of the CAT bond is based on the estimation
of the intensity rate that describes the earthquake process from the two
sides of the contract, the reinsurance and the capital markets, and from the
In February, 1898, while engaged upon the translation and commentary of the anonymous Hispano Mexican
MS. of the Biblioteca Nazionale Centrale Library, of Florence, my interest was suddenly and unexpectedly
diverted from my self-imposed task by the circumstances described in the opening pages of the present
The Mexican legal system is a mixture of U.S. constitutional theory within a civil law system.
Mexico’s legal framework concerning real property includes the Federal Constitution, Federal
Civil Code, state civil codes, municipal laws and ordinances. Additionally, the Foreign Investment
Law and Foreign Investment Law Regulations regulate foreign investment. In Mexico, real
property is classified as either public, private or communal, the nature of which will affect the
property’s use and potential alienation.
The idea that would become the foundation of this book—that indigenous
people’s stewardship of the land carries important lessons for us in the mod-
ern world—germinated in my mind as I stood in a Mexican farmer’s ﬁelds
in summer 1983. Growing alongside the many kinds of crop plants were a
variety of native herbs and trees. Insects buzzed and clicked, and birds chat-
tered.The land smelled good and radiated beauty.The farmer was using the
land quite intensively, yet much of the natural plant and animal diversity
In September 2001, a survey was carried out among members of the Mexican-
Swiss Business Association (Asociación Empresarial Mexicano-Suiza) in Mexico in
order to identify business opportunities for Swiss exporters in the Mexican market.
Many survey participants – mostly high ranking business executives with a good
knowledge of both the Swiss and the Mexican business environment – said they
saw good business opportunities for Swiss producers of high quality consumer
Article 27 of the Federal Constitution serves as the foundation for property rights in Mexico. Under
Article 27, only Mexicans by birth or naturalization and Mexican corporations have the inherent right
to acquire ownership of land. Even so, the state has the authority to grant foreigners the same right
given to its citizens to acquire real property, but only if foreign purchasers agree not to invoke the
protection of their governments in matters relating to real property.
As the study of natural catastrophe models plays an important role in the preven-
tion and mitigation of disasters, the main motivation of this paper is the analysis
of pricing CAT bonds. In particular, we examine the calibration of a parametric
CAT bond for earthquakes that was sponsored by the Mexican government and
issued by the special purpose CAT-MEX Ltd in May 2006.
In 1996, the Mexican government established the Mexico’s Fund for Natural
Disasters (FONDEN) in order to reduce the exposure to the impact of natural
catastrophes and to recover quickly as soon as they occur. However, FONDEN is
funded by ﬁscal resources which are limited and have been insuﬃcient to meet the
government’s obligations. Faced with the shortage of the FONDEN’s resources
and the high probability of earthquake occurrence, in May 2006 the Mexican gov-
ernment sponsored a parametric CAT bond against earthquake risk.
Nature abhors a vacuum. Me, too, I guess I tried to fill it in my usual
ways. Drank too much beer, cooked elaborate Mexican dinners, walked
aimlessly in the dripping woods under slate-gray Oregon skies.
And of course, I watched television: old movies seen in worn prints,
music videos with strutting rock stars, baseball games inching to conclusion
across bright-green fields Ghost images, ghost voices pulled by my
dish antenna from the satellite-thick sky. The void remained: I had a talent
growing slack from disuse; I had an empty space in my bed.