Purpose – To study stochastic volatility in the pricing of options. Design/methodology/approach – Random‐coefficient autoregressive and generalized autoregressive conditional heteroscedastic models are studied. The option‐pricing formula is viewed as a moment of a truncated normal...

Purpose – To study stochastic volatility in the pricing of options. Design/methodology/approach – Random-coefficient autoregressive and generalized autoregressive conditional heteroscedastic models are studied. The option-pricing formula is viewed as a moment of a truncated normal...

Purpose – Customer support assumes strategic importance in India for branded IT‐hardware products. An authorized service center and a stream of specialized service centers undertake field services and represent a sale‐territory's support network. “Time constrained” service men have to...

Under the Mac Sharry and Agenda 2000 reforms, direct payments comprised a significant portion of farmers’ income in the EU. Farmers had to engage in production to receive these payments but the payments were relatively risk-free and therefore risk may not have played an important role in the...

River flooding is a problem of international interest. In the past few years many countries suffered from severe floods. A large part of the Netherlands is below sea level and river levels. The Dutch flood defences along the river Rhine are designed for water levels with a probability of...

Purpose – The aim of this paper is to call the attention of public entities for the econometric frontier models which allows benchmarking the tax offices accurately. In the context of the European Maastricht, the European countries face public receipts shortage and to focus in the management...

Purpose – The aim of this paper is to call the attention of public entities for the econometric frontier models which allows benchmarking the tax offices accurately. In the context of the European Maastricht, the European countries face public receipts shortage and to focus in the management...

In the framework of the European Union, one of the economic sectors of most interest to politicians, academics and professionals has been the banking sector. The aim of this paper is to verify the existence of differences in the efficiency of the banking sectors and what variables determine...

The use of a deterministic numeric paradigm in auditing and accounting may well be the root cause of many current problems. This paper argues that risk‐based accounting methods should start using probabilistic inputs which would show resultant distributions as output. “Stochastic...