This paper describes a statistical sample design to measure portfolio- at-risk in microfinance. It applies the design to the microfinance portfolio of Banco do Nordeste in Brazil. Statistical audit sampling requires no special knowledge of statistics and is useful for due- diligence inspections...

Path-dependent options have become increasingly popular over the last few years, in particular in FX markets, because of the greater precision with which they allow investors to choose or avoid exposure to well-defined sources of risk. The goal of the paper is to exhibit the power of stochastic...

In order to analyze, understand and prescribe natural resource management strategies, the decision making framework should ideally capture the dynamics of inter-dependency between the economic and ecological systems in an integrated manner. However, by including two complex systems within a...

An analytically tractable approximation of a numerical model is used to investigate coalition formation between nine major world regions with regard to their policies for greenhouse gas emission reduction. Full cooperation is not individually rational. Assuming non-transferable utility, side...

We propose a simple rule of thumb on how to choose one's game partner that allows economic agents who care about the future to learn to cooperate in the iterated prisoner's dilemma. This rule of thumb uses partner selection strategically to reward cooperative behavior and teach defectors a...

In this paper, we consider the financial equilibrium problem consisting of multiple sectors, each of which seeks to determine the optimal size of its portfolio, along with its optimal holdings of assets as well as liabilities. We construct the network underlying each sector's optimization...