Recently distortion risk measure has been an interesting tool for the insurer to reflect its attitude toward risk when forming the optimal reinsurance strategy. Under the distortion risk measure, this paper discusses the reinsurance design with unbinding premium constraint and the ceded loss...

We investigate vulnerability of complex networks including model networks and real-world networks subject to path-based attacks. Specifically, we remove approximately the longest simple path from a network iteratively until there are no paths left in the network. We propose two algorithms, the...

Centrality is a fundamental measure in network analysis. Specifically, centrality of a path describes the importance of the path with respect to the remaining part of the network. In this paper, we propose a tunable path centrality (TPC) measure, which quantifies the centrality of a path by...

Illiquid secondary asset markets have adverse effects on firms' funding conditions and investment decisions. Yet, the micro-foundations of asset liquidity and the impact on aggregate business cycle, and the transmission of (unconventional) monetary policy interventions are scarcely explored. We...

Many economists find it necessary to forecast inflation locally or nationally based on the annual Consumer Price Index (CPI) value before the figures are released from the Bureau of Labor Statistics. There is no regular “official release date,” although the BLS usually targets the 20th of...

Estimating natural rate of unemployment (NAIRU) is important for understanding the joint dynamics of unemployment, inflation, and inflation expectation. However, existing literature falls short in endogenizing inflation expectation together with NAIRU in a model consistent way. We develop and...

Banks in the euro area typically hold a large amount of government debt in their bond portfolios, which are valued both for their low credit risk and high liquidity. During the sovereign debt crisis, these characteristics of government debt were severely impaired in stressed euro area countries....