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disasters / Howard C. Kunreuther and Erwann O. Michel-Kerjan -- 5. NBCR Terrorism : who should bear the risk? / Dwight Jaffee …
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This study considers a pure exchange economy with insurance against ambiguous loss. Ambiguity preferences are represented by the expected utility with uncertainty (EUUP) theory advocated by Izhakian (2017). The economic premium principle of Buhlmann (1980) is generalized under EUUP. We also...
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investors take on all financing-related exchange rate risk, even though this may mean higher tariffs for consumers as a premium … for bearing that risk. …
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