We characterize a firm as a nexus of activities and projects with their associated cashflows. Production and operations activities and real risk management activities distribute cashflows over states of nature and time periods, leading to a transformation possibility frontier similar to a...

Using a unique proprietary dataset of primary insurers and reinsurers, we analyze the structure of the reinsurance market. The dataset, which spans six years, contains the quotes for different reinsurance layers, for different clients, for different treaties, and for different lines of business....

We investigate investment behavior when there is asymmetry of information between owners (the principal) and managers (the agent). The model accepts the standard cost-of-adjustment model as a particular case and is directly compared with it. For all types, information asymmetry distorts the...