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fatality probability. Estimation results further suggest that the fatality risk is even higher if the striking vehicle is a … light truck (SUV, pickup truck, or minivan). We calculate that the value of the external risk generated by the gain in fleet …
Persistent link: https://www.econbiz.de/10013123307
I study irreversible investment decisions when projects take time to complete, and are subject to two types of uncertainty over the cost of completion. The first is technical uncertainty, i.e., uncertainty over the amount of time, effort, and materials that will ultimately be required to...
Persistent link: https://www.econbiz.de/10012774773
-contribution (DC) plans that typically contain a minimum benefit guarantee (DC-MB). Risk management techniques must be used to control …-funding is very effective in controlling guarantee costs in traditional DB plans, it is highly ineffective for DC-MB plans. This … the Samp;P500. Calculations show that the true risk-adjusted value of unfunded guarantees in a realistic DC-MB plan equals …
Persistent link: https://www.econbiz.de/10012787366
emissions. In the near-term, R&D investments, either by government or the private sector, can bring down the costs of these … technologies under uncertainty. Specifically, given two technologies, one with lower costs at present, but the other with greater …
Persistent link: https://www.econbiz.de/10013018720
This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated with a 15 basis point lower spread than that of loans that are not subsequently...
Persistent link: https://www.econbiz.de/10013128899
This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers and costly default. We show that prepayment penalties improve welfare by ensuring longer-term lending contracts, which prevents the mortgage pools from becoming disproportionately...
Persistent link: https://www.econbiz.de/10013135393
) suggests that the decision to commit crime involves a weighing of both benefits and costs, implying that both tough and soft … of at-risk populations, including in particular efforts to improve the social-cognitive skills of justice …
Persistent link: https://www.econbiz.de/10013136359
A long theoretical literature in economics addresses the heavy reliance of the U.S. criminal justice system on very expensive forms of punishment - prison - when cheaper alternatives - such as fines and other sanctions - are available. This paper analyzes the role of fines as a criminal sanction...
Persistent link: https://www.econbiz.de/10013137008
resolved crises if they monitor the worker. If monitoring costs are positive but sufficiently small, for a range of …
Persistent link: https://www.econbiz.de/10013118123
The conventional model for the use of cost effectiveness analysis for health programs involves determining whether the cost per unit of effectiveness of the program is better than some socially determined maximum acceptable cost per unit of effectiveness. If a program is better, the policy...
Persistent link: https://www.econbiz.de/10013099121