This paper develops a model for evaluating the cost of expropriation risk, which is determined with respect to the government's incentive to expropriate. The model includes the positions of both government and firm. The government's decision to expropriate is modeled as an American style call...

In this paper we look at the cumulative conditional expected outcome of two dependent assets. We then develop a conditional stochastic dominance relation between the two assets. We use this to determine the composition of an optimal portfolio. We show that for any concave von Neumann-Morgenstern...

In this article we study the tradeoffs between average output and reduced volatility due to macroeconomic intervention. Using a Keynesian model of regulated Brownian motion with an endogenous producer/investor term, we show that when intervention is perfect and costless, the rewards in terms of...