stemming from abroad and derive the equilibrium demand for forward contracts. It turns out that risk averse agents will not buy … aforementioned literature obsolete. Using real world data for Germany we calibrate our model. We find that in equilibrium risk averse …

empirical strategy to test whether oligopolistic frms use forward contracts for strategic motives, for risk-hedging, or for both …. An increase in the number of players weakens the incentives to sell forward for risk-hedging reasons.However, if …Building on a model of the interaction of risk-averse frms that compete in forward and spot markets, we develop an …

these instruments in the banking in- dustry which is heavily exposed to credit risk. However, while recent literature mainly …

commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and … should be considered as viable futures products in financial portfolios for risk management. …

Dominance and further toDecreasing Absolute and Increasing Relative Risk Aversion Stochastic Dominance. The efficient sets …

Consider a simple two-state risk with equal probabilities for the two states. In particular, assume that the random … way, we can extend and generalize existing results about risk attitudes. This lottery preference includes behavior … exhibiting higher order risk effects, such as precautionary effects and tempering effects. …

hedging the Value at Risk is zero and the bank chooses to over-hedge. … new ways to banks to manage credit risk. In this paper we use a simple microeconomic model to show how a credit option of … the put type can be used by a bank's risk-averse management to hedge against credit risk. We find that under optimal …

speculative hedging is. Analysing tax-sensitivity of the corporate hedge shows that a higher risk in the first place may reduce …Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and … differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and …