This paper presents evidence of a significant positive relationship between the ratios of life insurance premiums quoted to smokers relative to the premiums quoted to non-smokers, and the financial strength of the insurance company. This suggests that life insurers reveal increasing relative...

We analyze the role of risk aversion and intertemporal substitution in a simple dynamic investment model. Our main finding is that risk aversion cannot by itself explain a negative relationship between aggregate investment and aggregate uncertainty, as the effect of increased uncertainty in...

En este documento se propone un modelo de equilibrio general en el que las decisiones de los agentes consumidores y firmas están sujetas a la incertidumbre existente en la tasa de interés, se asume que el comportamiento de ésta puede describirse a través de un movimiento geométrico...

For carbon-intensive, internationally-traded industrial goods, a unilateral increase in the domestic CO2 price may result in the reduction of the domestic production but an increase of imports. In such sectors as electricity, cement and steel, the trade flows result more from short-term regional...

Ambiguity is pervasive in many environments and is increasingly being introduced into economic and financial models. This paper characterises ambiguity in the form of newly defined Choquet random walks: discrete-time binomial trees with capacities instead of exact probabilities on their...

Empirical studies have found that a low interest rate environment accelerates firmsf investment and debt financing, leading to subsequent balance-sheet problems in many countries in recent years. We examine the mechanism whereby firmsf debt financing and investment become more accelerated and...

The theory of capital developed by Bohm-Bawerk and Wicksell emphasized the roundabout nature of the production process. The basic insight is that production necessarily involves time. One element of the production process is to determine the period of production, or the length of time from the...

In January 2008, China adopted a new labour contract law. This new law represents the most significant reform to the legislation on employment relations in mainland China in more than a decade. The paper provides a theoretical framework on the inter-linkages between labour market regulation,...

We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision. Investing in research allows him to acquire information, and then to reduce the uncertainty of the risks of his project. We find that whatever the innovator's preferences, that is...