infonet-economy

Uncertainty pervades most aspects of life. From selecting a new technology to choosing a career, decision makers rarely know in advance the exact outcomes of their decisions. Whereas the consequences of decisions in standard decision theory are explicitly described (the decision from description (DFD) paradigm), the consequences of decisions in the recent decision from experience (…

CEO compensation has increased substantially over the past 15 years, but so has forced turnover. Motivated by this observation, we investigate whether part of the development of CEO pay can be explained by a premium which compensates CEOs for increased job risk. We find that for the CEOs of the largest US corporations, a one percentage point increase in turnover risk is, on average,…

This article deals with the analysis of large or complex system dynamics (SD) models, exploring the benefits of a multimethodological approach to model analysis. We compare model analysis results from SD and social network analysis (SNA) by deploying SNA techniques on a pertinent example from the SD literature—the world dynamics model. Although SNA is a clearly distinct method from…

Network techniques are applied to a case study. The results show that using a joint approach can help in giving further insight into the analysis of informal ties in an organization. Special emphasis is given to centrality. The concept of mutual awareness, both on an individual and a global levels, is introduced and illustrated.

A fast method is developed for value-at-risk and expected shortfall prediction for univariate asset return time series exhibiting leptokurtosis, asymmetry and conditional heteroskedasticity. It is based on a GARCH-type process driven by noncentral t innovations. While the method involves the use of several shortcuts for speed, it performs admirably in terms of accuracy and actually…

Background: The principles of biomedical ethics – autonomy, non-maleficence, beneficence, and justice – are of paradigmatic importance for framing ethical problems in medicine and for teaching ethics to medical students and professionals. In order to underline this significance, Tom L. Beauchamp and James F. Childress base the principles in the common morality, i.e. they claim that…

This working paper reports the preliminary results of an effort to analyse under what conditions liquidity can be created in an historic context setting. Starting point is the notion made by Dang, Gorton, and Holmstrom (2012) that symmetric ignorance can create liquidity in money markets under certain circumstances. The authors take as an example the New York clearing house (NYCH)…

This paper provides evidence that demand for equity index options has predictive power for
future volatility beyond current and lagged volatility in publicly available data. The predictive power increases prior to macroeconomic announcements and exhibits a positive relation with investor uncertainty about macroeconomic news. Straddle positions that trade on the volatility…