Annuity contracts transfer the risk of an individual outliving available assets to aninsurance company. Thus, the insurance company has to value and manage longterm risks. Interest rate risk and longevity risk are the two most important risks forannuity providers. In this paper, we develop a...

Proper pricing and risk assessment of implicit options in life insurance contractshas gained substantial attention in recent years, which is reflected in a growing literaturein this field. The purpose of this article is to outline the significance of implicitoptions in life insurance. Toward...

Durch Gesetz vom 18. Januar 2002 ist § 42 des Arbeit -nehmererfindungsgesetzes (ArbEG) novelliert worden.Mit der Änderung wurde das bis dahin geltende sogenannte Hochschullehrerprivileg abgeschafft. Pro -fessoren, Dozenten und wissenschaftliche Angestelltean Hochschulen (hierunter werden...

In den letzten Jahren hat die Zahl von Cross –Border –Leasing (CBL) Transaktionenin Deutschland verstärkt zugenommen.2 Mit wachsender Bedeutung rückte dieseSonderform des Leasings aber auch immer mehr ins öffentliche Blickfeld und begegnetgroßem Misstrauen.Internationales Leasing, zu dem...

Applying data from 13 waves of the Swiss Labor Force Survey (1991-2003) I assess costs andbenefits of fixed-term contracts. First, I analyze the existence of a contract related wage gapand the effort response of temporary employees in terms of unpaid overtime hours. Second, Iinvestigate whether...

We reexamine the issue of executive compensation within a gen-eral equilibrium production context. Intertemporal optimality placesstrong restrictions on the form of a representative manager's compen-sation contract, restrictions that appear to be incompatible with thefact that the bulk of many...

How can a principal (an agent) ensure that an agent (a principal) will work (pay up), ifpayment (work) precedes work (payment)? When a banknote is torn in two, each part is byitself worthless. A principal can pre-commit to payment-on-delivery, by tearing a banknoteand giving the agent the first...

The paper discusses the role of various constituencies in the corporate governance of a corporation from the perspective of incomplete contracts. A strict shareholder value orientation in the sense of a rule that at any time firm decisions should be made strictly in the interest of the present...

This paper investigates four common features (covenants) of venture capital investment contracts from a real option perspective, using both analytical solutions and numerical analysis to draw inferences for a better understanding of contract features.