This paper examines the effects of major event risk on the optimal intertemporal asset allocation in a continuous time setting. We start by firstly proposing a general framework in which we model three types of event risks: i) the individual jumps of asset prices, ii) the individual jumps of the...

This paper outlines a dynamic model with three levels of government: federal, state and local in the Stackelberg game structure with the superor government as the leader and all its subordinate governments the followers.It studies the optimal design of block grants and matching grants from both...