In this paper we analyze a simple two-sided adverse selection model with one principal and one agent. They are both risk neutral and have private information about their type. We also assume that the private information of the principal is correlated with the one of the agent. The main result of...

The paper develops a class of Financial market models with jumps based on a Brownian motion, and inhomogeneous telegraph processes: random motions with alternating velocities. We assume that jumps occur when the velocities are switching. The distribution of such a process is described in detail....

This paper analyses migrants’ financial behaviour and financial services demand and investigates supply policies that banks can adopt in order to satisfy their specific financial needs. On the demand side we draw a theoretical framework about migrants’ life cycle and financial needs to...

We study the properties of multifunction operators that are contractive in the Covier-Nadler sense. In this situation, such operators $T$ possess fixed points satisying the relation $x \in Tx$. We introduce an iterative method involving projections that guarantees convergence from any starting...

The LASSO is a widely used statistical methodology for simultaneous estimation and variable selection. In the last years, many authors analyzed this technique from a theoretical and applied point of view. We introduce and study the adaptive LASSO problem for discretely observed ergodic diffusion...

In this paper we propose the use of $\phi$-divergences as test statistics to verify simple hypotheses about a one-dimensional parametric diffusion process $\de X_t = b(X_t, \theta)\de t + \sigma(X_t, \theta)\de W_t$, from discrete observations $\{X_{t_i}, i=0, \ldots, n\}$ with $t_i =...

Most natural phenomena or the experiments that explore them are subject to small variations in the environment within which they take place. As a result, data gathered from many runs of the same experiment may well show differences that are most suitably accounted for by a model that...

Using a probit model we empirically estimated the role of emotional factors in determining household participation in the debt market, after controlling for traditional economic predictors, such as age, level of education, income, wealth, and work status. A sample of 445 Caucasian subjects,...

Many inverse problems in applied mathematics can be formulated as the approximation of a target element $u$ in a complete metric space $(X,d)$ by the fixed point $\bar x$ of an appropriate contraction mapping $T : X \to X$. The method of {\em collage coding} seeks to solve this problem by...

When the choice of one firm's internationalisation regards the establishment of a subsidiary in a foreign country, then internationalization is a very complex process involving many variables. Some of these variables concern the internal organization of the firm - as for example its economic...