The market model of interest rates specifies simple forward or Libor rates as lognormaly distributed, their stochastic dynamics has a linear volatility function. This model is extended to quadratic volatility which is the product of a quadratic polynomial and a level-independent covariance...

The following paper focuses on the incompleteness arising from model misspecification combined with trading restrictions. While asset price dynamics are assumed to be continuous time processes, the hedging of contingent claims occurs in discrete time. The trading strategies under consideration...

It is well-known that Gaussian hedging strategies are robust in the sense that they always lead to a cost process of bounded variation and that a superhedge is possible if upper bounds on the volatility of the relevant processes are available, cf. El Karoui, Jeanblanc-Picque and Shreve (1998)...

The quarterly International Economic Trends is a compilation of data on the G-7 countries and the euro area, including output, inflation, labor markets, interest rates, government budgets, international trade, and more. A brief essay in each issue covers a topic relevant to international economics.

Supply and use tables and symmetric input-output tables are an integral part of the European System of Accounts (ESA 1995). The present Input-Output Manual discusses compilation issues and provides best practices and harmonised solutions. Its main objective is to assist statistical institutes in...