By providing financial security against droughts, floods, tropical cyclones and other forms of weather extremes, insurance instruments present an opportunity for developing countries in their concurrent efforts to reduce poverty and adapt to climate change. By pricing risk, insurance provides...

Häufig unterlaufen Kartelle wettbewerbsrechtliche Beschränkungen und werden illegal tätig. Der Autor beleuchtet die empirischen Schwierigkeiten, die sich daraus für die Kartellforschung ergeben. Auf der Ebene der Kartelltheorie stellt sich das Problem, daß die verwendeten spieltheoretischen...

We have recently proposed an alternative approach to economic analysis, which we call Imperfect Knowledge Economics (IKE). Although IKE builds on the methodology of contemporary macroeconomics by modeling aggregate outcomes on the basis of mathematical representations of individual decision...

This paper discusses the I(2) model with breaks in the deterministic component and illustrates the model with an analysis of German and US prices, exchange rates, and interest rates in the period 1975-1999. It provides new results on the likelihood ratio test of overidentifying restrictions on...

Macroeconomic models that are based on either the rational expectations hypothesis (REH) or behavioral considerations share a core premise: All future market outcomes can be characterized ex ante with a single overarching probability distribution. This paper assesses the empirical relevance of...