Financial regulators are increasingly taking aim at the culture of Wall Street by demanding risk mitigation. Proprietary trading with its accompanying lucrative and yet risky operations was one of the key drivers of the 2008 financial crisis. Several banks traded for their own gains at extremely...

Using an option pricing framework, we extend Stock and Wise (1990)’s and Fraser, Jennings, and King (2000)’s into a new model that shows how different forms of price indexing alter the calculation of the present values of Social Security benefits. We find that, under the current method (wage...

Regime-switching Levy processes integrate jump-diffusions and Markov regime-switchings. When they are coalesced with nonlinear partial differential equations of second order, the technique of viscosity solutions proves critical in the resolution process. However, applications to carbon policies...

Rising global oil production is contributing to the increase of domestic revenues through a variety of fiscal mechanisms in many governments around the world. Concomitantly, the global low-carbon transition is compelling the same governments to require special taxes such as carbon tax on oil...