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Identifying and Reducing Overlap in Farm Program Support

Cooper, Joseph C.; O'Donoghue, Erik J. - Agricultural and Applied Economics Association - AAEA - 2011

The current debate surrounding the 2012 Farm Act stresses cutting costs while maintaining, or even strengthening, farmers’ “safety net.” One way to cut costs is to reduce or eliminate potential overlap of farm program payments. Using simulations, we explore the interaction between the...

Persistent link: https://www.econbiz.de/10009002495

Incentives and Risks in Relationships Between the Principal and the Agent

Minasyan, Vigen - Volkswirtschaftliche Fakultät, … - 2014

The paper addresses a basic model of moral hazard (risk) [Gibbons, 2010; Gibbons, 2005] and suggests some of its modifications. In the basic model of moral risk, questions are put and examined that have not been considered in the previous researches. In particular, it is proved that the level of...

Persistent link: https://www.econbiz.de/10011123517

A Quantum-Conceptual Explanation of Violations of Expected Utility in Economics

Aerts, Diederik; Broekaert, Jan; Czachor, Marek; … - Volkswirtschaftliche Fakultät, … - 2011

The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's Sure … presence of the 'disjunction effect'' of decision theory and use our earlier study of this effect in concept theory to put …

Persistent link: https://www.econbiz.de/10011107454

Are small groups expected utility?

Morone, Andrea; Morone, Piergiuseppe - Volkswirtschaftliche Fakultät, … - 2012

. Specifically, we intend to assess if there exists a risky choice theory that statistically fits group decisions significantly …

Persistent link: https://www.econbiz.de/10011108949

A Theoretical Assessment on Optimal Asset Allocations in Insurance Industry

Jarraya, Bilel; Bouri, Abdelfettah - Volkswirtschaftliche Fakultät, … - 2013

In recent years the financial markets known a rapid development and become more and more complex. So, many regulatory requirements, focused on banks as well as insurance sector, have been developed. These regulatory are concentrated essentially on business risk control and required capital to...

Persistent link: https://www.econbiz.de/10011110361

Optimal Use of Put Options in a Stock Portfolio

Peter N, Bell - Volkswirtschaftliche Fakultät, … - 2014

In this paper I consider a portfolio optimization problem where an agent holds an endowment of stock and is allowed to buy some quantity of a put option on the stock. This basic question (how much insurance to buy?) has been addressed in insurance economics through the literature on rational...

Persistent link: https://www.econbiz.de/10011114281

Corporate Management of Highly Dynamic Risks: The Case of Terrorism Insurance in Germany

Thomann, Christian; Pascalau, Razvan; Schulenburg, … - Volkswirtschaftliche Fakultät, … - 2007

This article extends the theory of corporate risk management to encompass highly dynamic risks. Taking Viscusi'�s (1989 …) prospective reference from the context of individual decision making and applying it to a corporate context we propose a theory of …

Persistent link: https://www.econbiz.de/10005789691

Solving Daniel Bernoulli's St Petersburg Paradox: The Paradox which is not and never was

Vivian, Robert William - Volkswirtschaftliche Fakultät, … - 2003

It has been accepted for over 270 years that the expected monetary value (EMV)of the St Petersburg game is infinite. Accepting this leads to a paradox; no reasonable person is prepared to pay the predicted large sum to play the game but will only pay, comparatively speaking, a very moderate...

Persistent link: https://www.econbiz.de/10005790291

Joint Estimation of Risk Preferences and Technology: Flexible Utility of Futility?

Lence, Sergio H. - Agricultural and Applied Economics Association - AAEA - 2007

The present study sets up a thought experiment calibrated to represent risks of a high-risk production activity (farming), and investigating whether the structure of risk aversion (i.e., the changes in absolute or relative risk aversion associated with changes in wealth) can be estimated with...

Persistent link: https://www.econbiz.de/10005803187

On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination

Naqvi, Nadeem - Volkswirtschaftliche Fakultät, … - 2010

This paper examines some of the consequences for economic theory of the replacement of binary personal preferences by … both much damage to existing theory and greater opportunity for providing formal explanations of such phenomena as … economic theory that is founded on a choice theory that is based exclusively on binary relational personal preferences. …

Persistent link: https://www.econbiz.de/10008529321