but subject to economic constraints. The crises occurred because the market neglected to consider pertinent economic … optimizer should be the entire industry. The second economic constraint concerns the modeling of the drift of the price of the …

Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an …

a richer risk attitude than that captured in the standard discounted expected utility model. I derive three models that … permit a more comprehensive risk evaluation. These preference representations differ regarding the consistency requirements …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, leading to …

and an increase in any insurance parameter would make the investor more “conservative.” The effect of a stock market …This paper studies the interdependence between property insurance and portfolio selection. The insurance premium of …, an increase in volatility would encourage those with a greater-than-unity relative risk aversion to purchase more …

forward, especially if it has substantial monopoly power on the oil market, gives high priority to the public spending target …