The main purposes of this paper are to review and integrate the applications of discriminant analysis, factor analysis, and logistic regression in credit risk management. First, we discuss how the discriminant analysis can be used for credit rating such as calculating financial z-score to...

A critical assumption in the vast literature on inventory management has been that the current level of inventory is known to the decision maker. Some of the most celebrated results such as the optimality of base-stock policies have been obtained under this assumption. Yet it is often the case...

This paper is concerned with finding an optimal inventory policy for a finite horizon, two-stage inventory model. In this model, products may be manufactured in two stages. The first stage uses raw material from an external supplier and the second stage uses raw material from defective items...

We propose a model where customers are classified into two groups: short lead-time customers who require the product immediately and long lead-time customers to whom the supplier may deliver either immediately or in the next cycle. Unmet orders are backlogged with associated costs. Specifically,...

We investigate a manufacturer's information acquisition and subsidization strategies in a supply chain featuring two competing retailers who sell substitutable products and have private demand information. The manufacturer can decide whether to acquire demand information at a cost and further...

This paper discusses the role of deterministic components in the DGP and in the auxiliary regression model which underlies the implementation of the Fractional Dickey-Fuller (FDF) test for I(1) against I(d) processes with d [0, 1). This is an important test in many economic applications because...

This paper looks to see if departures from risk neutrality cause subjects to behave differently in randomly terminated supergames compared to infinitely discounted supergames. I show that if subjects have a strictly monotonic utility function, and that utility function is applied to their entire...

Some existing nonparametric two-sample tests for equality of multivariate distributions perform unsatisfactorily when the two sample sizes are unbalanced. In particular, the power of these tests tends to diminish with increasingly unbalanced sample sizes. In this paper, we propose a new testing...

We have a collection of N agents and an outside entity that is interested in the population's aggregate action. The outside entity would like to enact a policy with the intention of increasing the aggregate action; for example, if the outside entity were a national government, it might be...

This presentation motivates the concept of smart derivative contracts. Inspired by smart contracts from distributed ledger technology, we define a derivative contract with an automatic termination feature