Recent studies suggest that the correlation of stock returns increases with decreasing geographical distance. However, there is some debate on the appropriate methodology for measuring the effects of distance on correlation. We modify a regression approach suggested in the literature and...

A firm’s current leverage ratio is one of the core characteristics of credit quality used in statistical default prediction models. Based on the capital structure literature, which shows that leverage is mean-reverting to a target leverage, we forecast future leverage ratios and include them...

Abstract We show how regional prediction of car insurance risks can be improved for finer subregions by combining explanatory modeling with phenomenological models from industrial practice. Motivated by the control-variates technique, we propose a suitable combined predictor when claims data...

Distributional properties are considered of the typical cell of stationary iterated tessellations (SIT), which are generated by stationary Poisson-Voronoi tessellations (SPVT) and stationary Poisson line tessellations (SPLT), respectively. Using Neveu’s exchange formula, the typical cell of...

Distributional properties are considered of the typical cell of stationary iterated tessellations (SIT), which are generated by stationary Poisson-Voronoi tessellations (SPVT) and stationary Poisson line tessellations (SPLT), respectively. Using Neveu’s exchange formula, the typical cell of...