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Demand and pricing of preventative healthcare

Vandoros, Sotiris; Carman, Katherine Grace - London School of Economics (LSE) - 2011

This study introduces a theoretical framework for the economics of preventative healthcare. Mathematical models are used to explain how the price and utilization of prevention change depending on demand, as well as factors such as the price of a cure, the probability of illness, the efficacy of...

Persistent link: https://www.econbiz.de/10010744804

Entry, standards and competition : firm strategies and the diffusion of mobile telephony

Koski, Heli; Kretschmer, Tobias - London School of Economics (LSE) - 2005

This paper studies the effects of a country’s regulatory setting and competitive environment on the performance of second-generation (2G) mobile telecommunication. We consider three dimensions of sector performance: entry time, service prices and diffusion. We address the question of...

Persistent link: https://www.econbiz.de/10010746333

Rational trader risk

Kondor, Peter - London School of Economics (LSE) - 2004

Allowing for a richer information structure than usual, we show that rational traders’ calculation with short-term price fluctuations may heavily influence their behaviour even if the interim price is not influenced by non-rational agents i.e. there is no noise trader risk. Instead, traders...

Persistent link: https://www.econbiz.de/10010884635

Semiparametric estimation of a characteristic-based factor model of common stock returns

Connor, Gregory; Linton, Oliver - London School of Economics (LSE) - 2006

We introduce an alternative version of the Fama-French three-factor model of stock returns together with a new estimation methodology. We assume that the factor betas in the model are smooth nonlinear functions of observed security characteristics. We develop an estimation procedure that...

Persistent link: https://www.econbiz.de/10010884698

The lifecycle of the financial sector and other speculative industries

Biais, Bruno; Rochet, Jean-Charles; Woolley, Paul - London School of Economics (LSE) - 2009

Speculative industries exploit novel technologies subject to two risks. First, there is uncertainty about the fundamental value of the innovation: is it strong or fragile? Second, it is difficult to monitor managers, which creates moral hazard. Because of moral hazard, managers earn agency rents...

Persistent link: https://www.econbiz.de/10010744809

Endogenous state prices, liquidity, default, and the yield curve

Espinoza, Raphael A.; Goodhart, Charles; Tsomocos, … - London School of Economics (LSE) - 2007

We show, in an exchange economy with default, liquidity constraints and no aggregate uncertainty, that state prices in a complete markets general equilibrium are a function of the supply of liquidity by the Central Bank. Our model is derived along the lines of Dubey and Geanakoplos (1992). Two...

Persistent link: https://www.econbiz.de/10010745061

Portfolio choice beyond the traditional approach

Penaranda, Francisco - London School of Economics (LSE) - 2007

corresponding equilibrium implications in terms of portfolio advice and asset pricing. …

Persistent link: https://www.econbiz.de/10010745189

Simulated nonparametric estimation of dynamic models with applications to finance

Altissimo, Filippo; Mele, Antonio - London School of Economics (LSE) - 2005

This paper introduces a new class of parameter estimators for dynamic models, called Simulated Nonparametric Estimators (SNE). The SNE minimizes appropriate distances between nonparametric joint (or conditional) densities estimated from sample data and nonparametric joint (or conditional)...

Persistent link: https://www.econbiz.de/10010745257

Revisited multi-moment approximate option pricing models: a general comparison (Part 1)

Jurczenko, Emmanuel; Maillet, Bertrand; Negrea, Bogdan - London School of Economics (LSE) - 2002

different multimoment approximate option pricing models. We first recall the link between the riskneutral density and moments in … several four-moment approximate option pricing models, namely, the Jarrow and Rudd (1982), Corrado and Su (1996-b and 1997-b … restriction (see Longstaff, 1995) and consequently revisit the approximate option pricing models under study. We also get for …

Persistent link: https://www.econbiz.de/10010745304

Central banks and financial crises

Buiter, Willem H. - London School of Economics (LSE) - 2008

The paper draws lessons from the experience of the past year for the conduct of central banks in the pursuit of macroeconomic and financial stability. Macroeconomic stability is defined as either price stability or as price stability and sustainable output or employment growth. Financial...

Persistent link: https://www.econbiz.de/10010745389