Andersen and Petersen (1993) presented an extension of the basic DEA methodology, called modified DEA, which has the desirable feature of ranking not only the inefficient DMUs, but the e ficient ones as well. However, when their basic approach is extended to the cases of variable returns to...

Klein and Kleindorfer provide a brief overview of the current extent of their research on this topic. The intent of this research is to empirically address interactions across the multiple stakeholders in the Catastrophe Insurance Business, i.e. homeowners, businesses, insurers, reinsurers, the...

Financial innovation has been described as the "life blood of efficient and responsive capital markets." Yet, there have been few quantitative investigations of financial innovation and the diffusion of these new technologies. Of the latter, there have been only three prior quantitative studies,...

This paper studies competition between two firms that service time sensitive customers. Customers choose firms based on the firms' prices, the firms' expected waiting and service times, and the firms' brands. The firms may choose diverse strategies: one could choose a high price, but serve...

Recent literature has trumpeted the claim that extreme value theory (EVT) holds promise for accurate estimation of extreme quantiles and tail probabilities of financial asset returns, and hence holds promise for advances in the management of extreme financial risks. Our view, based on a...

In this study we consider the linkage between productivity change and profit change. We develop an analytical framework in which profit change between one period and the next is decomposed into three sources: (i) a productivity change effect (which includes a technical change effect and an...

There is substantial debate about the effects of technological change on wages. We argue that the relationship between technology and wages is context-dependent. To test this proposition, we use data gathered from 303 U.S. bank branches and examine empirically the association between different...

While competition constrains the ability of banks to extract informational rents from lending relationships, their informational monopoly also curtails competition through the threat of adverse selection. To analyze an intermediary's optimal strategic response to these opposing effects we...

Depository institutions play a crucial role in an economy. They create assets to finance a portion of government spending, i.e. deficits, and to support private sector expenditures for everything from plant and equipment to consumer durables. They also and simultaneously serve as a repository...