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A new options-pricing formula applies to far-out-of-the money put options on the stock market when disaster risk dominates, the size distribution of disasters follows a power law, and the economy has a representative agent with Epstein-Zin utility. The elasticity of the put-options price is one...
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, with sizable forecast downgrades in most years. EMDEs continue to face downside risks to growth outlook over the next …-than-expected growth in major economies, and disorderly financial market developments. These risks are accompanied by region-specific risks …, including geopolitical tensions, armed conflict, and severe weather events. If risks materialize, their impact on EMDEs depends …
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This paper aims to present the factors that determine the economic growth nowadays, in the globalization era. From geography and climate to innovation and training, these factors diversified depending on the evolution of the economy and economic thought. Because of enhanced mobility as a result...
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