Risk aggregation with dependence uncertainty refers to the sum of individual risks with known marginal distributions and unspecified dependence structure. We introduce the admissible risk class to study risk aggregation with dependence uncertainty. The admissible risk class has some nice...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>In this article, insurance claims are priced using an indifference pricing principle. We first revisit the traditional economic framework and then extend it to incorporate a financial (sub)market as a tool to invest and to (partially) hedge. In this context, we...</p>

Assuming that agents' preferences satisfy first-order stochastic dominance, we show how the Expected Utility paradigm can rationalize all optimal investment choices: the optimal investment strategy in any behavioral law-invariant (state-independent) setting corresponds to the optimum for an...

Most decision theories, including expected utility theory, rank dependent utility theory and cumulative prospect theory, assume that investors are only interested in the distribution of returns and not in the states of the economy in which income is received. Optimal payoffs have their lowest...

In standard portfolio theories such as Mean-Variance optimization, expected utility theory, rank dependent utility heory, Yaari's dual theory and cumulative prospect theory, the worst outcomes for optimal strategies occur when the market declines (e.g. during crises), which is at odds with the...

In conventional economic theories, population is determined outside of the economic system. However, classical political economists such as Adam Smith and Thomas Malthus have long argued for the endogenous determination of population, hence establishing a connection between economics and...

We conduct an input-output analysis of China’s employment changes due to changes in trade structure on sectoral level. We find that between 2002 and 2007 China generated about 71 million jobs due to trade expansion. We also estimate the additional amount of trade that would be needed if China...

The impact of hydraulic engineering works and human activities on hydrology has become a hot issue along with the economy and social development. The water cycle model of the upper reaches of the Yangtze River (URYR) is established based on the improved Soil and Water Assessment Tool (SWAT)...

Abstract Vertical specialization is a measure of the import content of exports. Given the widely recognized importance of trade in tasks and global production networks, vertical specialization has recently gained the attention of international trade researchers and policy makers. In this note,...