This paper applies the methodology of real options for valuing firms that for any reason are subject to a possible expropriation. In the development of this research is added to the valuation by discounted cash flows the value of the premium which shareholders would receive as compensation for...

Two sets of issues loom large on the economic horizon of Malawi: poverty alleviation and the country's vulnerability to shocks emanating from the outside world. In this paper, simulations with a Computable General Equilibrium (CGE) model of Malawi are used to analyze aspects of these issues. Two...

This paper extends the model with narrow framing suggested by Barberis and Huang (2009) to also account for probability weighting and a convex-concave value function in the specification of cumulative prospect theory preferences on narrowly framed assets. We show that probability weighting is...

Keywords: Dynamic Modeling, Snowplows, Multi-Unit Vehicles, Icepack Impacts, Braking Control, Steering Control.

Markowitz's mean-variance (MV) efficient portfolio selection is one of the most widely used approaches in solving portfolio diversification problem. However, contrary to the notion of diversification, MV approach often leads to portfolios highly concentrated on a few assets. Also, this method...