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In this paper, we study the optimal reinsurance designs by minimizing the risk-adjusted value of an insurer's liability, where the valuation is carried out by a cost-of-capital approach based on either value at risk or conditional value at risk. To prevent moral hazard and be consistent with the...
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The earning structure in science is known to be flat relative to the one in the private sector, which could cause a brain drain toward the private sector. In this paper, we assume that agents value both money and fame and study the role of the institution of science in the allocation of talent...
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Team production is increasingly common in bench science, because scientists specialize and then combine their skills in … funding toward senior scientists. Junior scientists have reduced prospects of ever obtaining enough funding to run their own … fewer promotions, more funding to senior scientists, and more mid-career exit. We apply the insights gained to thinking …
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We investigate whether excessively optimistic beliefs may play a role in the persistent demand for doctoral and post-doctoral training in science. We elicit the beliefs and career preferences of doctoral students through a novel survey and randomize the provision of structured information on the...
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