This paper studies the pricing of discrete arithmetic Asian options (AAOs) with fixed strikes under the Hull-White interest rate model. For the pricing of AAOs, we first investigate the stochastic dynamics of the price of the underlying asset under the T-forward measure, and then study the...

The effect of income on individuals' welfare attitudes varies across societies. Existing studies focus on institutions and macroeconomic conditions to explain the variation. We argue that knowledge mediates self-interested individuals' income-based welfare attitudes. We focus on a set of...

This paper explores how trade and foreign direct investment (FDI) condition the effect of foreign aid on environmental protection in aid recipient countries. We suggest that (1) environmental protection should be viewed as a public good and (2) all else equal, resource flows from abroad (via...

How does economic globalization influence individuals' welfare attitudes? We part ways with the literature whose focus has been on identifying the losers and exploring whether and to what extent they demand government compensation. By intersecting two dimensions of globalization perceptions –...