Among the different criteria used for testing sustainability of public debt, the econometric approach determines whether a government is able to sustain its budget deficits without defaulting on its debt. In this contribution, by linking three different motives proposed respectively by Trehan...

In this work, we study the optimal reinsurance under the Haezendonck risk measure by minimizing the total risk of the insurer. Firstly, the optimal reinsurance model with the expectation premium principle is proposed. Then, on the basis of our model, the explicit solution is obtained, i.e. the...

Optimal designs for mixture experiments defined on the regular simplex are widely available but a lot fewer optimal designs are available for mixture experiments defined on the q-dimensional design space: S∗q={(z1,…,zq)′∈Rq|z1+⋯+zq≤1,zi≥0,i=1,…,q}. This paper proposes a flexible...

Major European countries have recently adopted bankruptcy codes that strengthen entrepreneurs’ power to renegotiate outstanding liabilities. Renegotiation in bankruptcy allows lenders to increase recovery rates, however it also weakens the contract’s ability to solve the moral hazard problem...

We examine the relationship between fiscal deficits and per-capita income growth in a panel of 27 European countries, allowing for perceived risks, in terms of fiscal sustainability, associated with additional government spending. Such risks are proxied by the conditional variability of...

In this paper we test whether German public debt has been sustainable by resorting to a test proposed by Bohn (1998). We apply non-parametric and semi-parametric regressions with time depending coefficients. This test shows that the mean of the coefficient relevant for sustainability has been...