This paper presents an optimal portfolio algorithm under equilibrium conditions to evaluate future cash flows. The Algorithm employs expected return-risk approximation of utility function and bivariate distribution of cash flows of an investment and returns on market portfolios. The proposed...

The article presents an analysis and partial survey regarding the validity of VaR risk measures in comparison to traditional risk measures. The assumed individuals are either maximizing their expected utility or possess a lexicographic utility function. The analysis is carried out for generally...

This paper uses a unique data set and advanced econometric methods to examine the effect of terrorism on financial markets of both sides of the barricade in the Israeli-Palestinian conflict. The main finding are: (1) Real economies on both sides suffered significantly during the intifada period;...

Inequality aversion and risk-aversion are widely assumed in economic models; however existing economic literature fails to distinguish between the two. This paper presents methodology and a laboratory experiment, which separates inequality aversion from risk aversion. In a set of laboratory...

Inequality aversion and risk aversion are widely assumed features of economic models. But a review of the literature revealed that inequlity aversion and risk aversion are treated as separate variables. This paper presents exploratory research designed to separate inequality aversion from risk...

Inequality aversion and risk aversion are widely assumed features of economic models. But a review of the literature revealed that inequlity aversion and risk aversion are treated as separate variables. This paper presents exploratory research designed to separate inequality aversion from risk...