In this paper we focus on the analysis of the effect of prediction and estimation risk on the loss distribution, risk measures and economic capital. When variables for the determination of probability of default and loss distribution have to be predicted because they are not available at the...

Political restraints and proceeding effects of global warming cause the need for a change in electricity generation in Europe and its member states. As a consequence, German utilities face uncertainties of different types than in the past. Traditional investment valuation approaches are not able...