hedging in the presence of demand uncertainty. In this situation, we find that the integrated model can result in better …In this paper, we present a multi-stage stochastic programming model that integrates financial hedging decisions into … particular, we show that, in the illustrative example, the exchange-rate uncertainty cannot be completely eliminated by financial …

This paper discusses methods to quantify risk and uncertainty in macroeconomic forecasts. Both, parametric and non … macroeconometric model of the Bundesbank for Germany. Forecast intervals that integrate judgement on risk and uncertainty are obtained. …

hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function …, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in …

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

main aim is to minimize this shortfall risk by making use of results from bsde theory. … possible at time T if the initial capital is not sufficient to hedge xc. This introduces a new risk into the market and our …

this uncertainty cost? Is there a hedging strategy that decision makers can adopt to cope with delayed action and uncertain …. What additional economic cost of mitigation measures will this delay imply? At the same time, the uncertainty surrounding … computing the optimal abatement strategy in the presence of uncertainty about a global stabilisation target (which will be …

The optimum behavior of a competitive risk-averse international trader who supplies or demands commodities invoiced in … foreign currency is examined when his profits are subject to several forms of risk: production, domestic cost, the exchange …-futures markets in the presence of cost and output uncertainty. New results on the implications of the framework for the separation …

This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for … discounting, it mis-estimated climate risk, possibly hugely. Given the uncertainty about estimating the SCC, the note concludes by …

This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for … discounting, it mis-estimated climate risk, possibly hugely. Given the uncertainty about estimating the SCC, the note concludes by …