infonet-economy

The objective of this thesis is to consider different risk
management issues in relation to operational risk with a special emphasis on terrorism risk. Our motivation to implement research in this particularly challenging area of risk management is due to the increasing magnitude of operational losses over the last decade and their negative effect on financial industry. This...

Der Beitrag analysiert den Entstehungsprozess von IFRS 3 (rev. 2008) in bezug auf die Diskussion zum Full Goodwill Accounting und erläutert Auswirkungen des Wahlrechts auf die Bilanz und Erfolgsrechnung anhand eines Fallbeispiels.

The ability to share the other’s feelings, known as empathy, has recently become the focus of social neuroscience studies. We review converging evidence that empathy with, for example, the pain of another person, activates part of the neural pain network of the empathizer, without first hand pain stimulation to the empathizer’s body. The amplitude of empathic brain responses is...

The bulk of evidence on the lack of international risk sharing is based on regressions of idiosyncratic consumption growth on idiosyncratic output growth. This paper argues that the results from such regressions obtained from international data are, however, not directly comparable to those based on regional data: the standard practice of running such regressions on international...

This paper presents an axiomatic model of probabilistic choice under risk. In this model, when it comes to choosing one lottery over another, each alternative has a chance of being selected, unless one lottery stochastically dominates the other. An individual behaves as if he compares lotteries to a reference lottery—a least upper bound or a greatest lower boundnin terms of weak...

This paper analyzes labor market success of workers who are displaced in boom versus recession periods. Moreover, the empirical analysis contrasts workers from small firms and large firms. The idea is that displacement carries no information about workers' productivity in large firms but is a signal of low productivity in small firms. This signal is stronger when the plant...

People care a great deal about their relative economic position and not solely about their absolute economic position. However, behavioral evidence is rare. This paper provides evidence on how the relative income position affectsnprofessional sports performances. Our analysis suggests that if a player’s salary is below the average and this difference increases, his performance...

We propose a valuation method for financial assets subject to default risk, where investors cannot observe the state variable triggering the default but observe a correlated price process. The model is sufficiently general to encompass a large class of structural models and can be seen as a generalization of the model of Duffie and Lando (Econometrica 69:633–664, [2001]). In this...