The Hungarian government is experiencing escalating costs for ood mitigation
measures and for economical compensation to victims. In a joint
research project between the International Institute of Applied System Analysis
(IIASA) in Austria, Computer and System Science Department (DSV)
in Sweden, and the Hungarian Academy of Science, the ooding problem of
Upper Tisza in Hungary is investigated. A catastrophe simulation model has
been implemented, where dierent policy options are tested and evaluated.
We investigate how the willingness to buy insurance aects the results on
the macro-level and on the micro-level.