Two measures of an error-ridden explanatory variable make it possible to solve the classical errors-in-variable problem by using one measure as an instrument for the other. It is well known that a second IV estimate can be obtained by reversing the roles of the two measures. We explore a simple...

In this paper, we consider an operational routing problem to decide the daily routes of logging trucks in forestry. The industrial problem is difficult and includes aspects such as pickup and delivery with split pickups, multiple products, time windows, several time periods, multiple depots,...

The storm Gudrun hit southern Sweden in January 2005 and approximately 70 million cubic meters of forest was wind felled. The existing logistic planning at forest companies in the damaged area had to be changed over night. There was a direct shortage of both harvest and transportation...

We describe the decision support system RuttOpt, which is developed for scheduling logging trucks in the Swedish forest industry. The system is made up of a number of modules. One module is the Swedish road database NVDB which consists of detailed information of all the roads in Sweden. This...

We study a problem of tactical planning in a divergent supply chain. It involves decisions regarding production, inventory, internal transportation, sales and distribution to customers. The problem is motivated by the context of a company in the speciality oils industry. The overall objective at...

In this paper, the problem of calculating covariances and correlations between time series which are observed irregularly and at different points in time, is treated. The problem of dependence between the time stamp process and the return process is especially highlighted and the solution to...

The univariate Normal Inverse Gaussian (NIG) distribution is found useful for modelling financial return data exhibiting skewness and fat tails. Multivariate versions exists, but may be impractical to implement in finance. This work explores some possibilities with links to the mixing...

What drives extreme and rare economic events? Motivated by recent theory, and events in US subprime markets, we begin to open the black box of extremes. Specifically, we build a taxonomy of extremes, then extend standard economic analysis of extreme risk. First, we model the potentially relevant...

We compare the Nash bargaining solution in a reinsurance syndicate to the competitive equilibrium allocation, focusing on uncertainty and risk aversion. Restricting attention to proportional reinsurance treaties, we find that, although these solution concepts are very different, one may just...

What drives extreme economic events? Motivated by recent theory, and events in US subprime markets, we begin to open the black box of extremes. Specifically, we extend standard economic analysis of extreme risk, allowing for dynamics and endogeneity. We explain how endogenous extremes may arise...