In this paper, we propose a new drawdown-based regime-switching (DBRS) Lévy insurance model in which the underlying drawdown process is used to model an insurer’s level of financial distress over time, and to trigger regime-switching transitions. By some analytical arguments, we derive...

In this paper, we consider a risk model which allows the insurer to partially reflect the recent claim experience in the determination of the next period’s premium rate. In a ruin context, similar mechanisms to the one proposed in this paper have been studied by, e.g., Tsai and Parker (2004),...

Drawdowns measuring the decline in value from the historical running maxima over a given period of time, are considered as extremal events from the standpoint of risk management. To date, research on the topic has mainly focus on the side of severity by studying the first drawdown over certain...

In recent years, Chinese policy makers have tried to balance development in different regions of the country by relocating industrial production from prosperous zones to less developed areas. However, this type of industrial relocation is usually accompanied by the transfer of pollution...

This research extends the exploration of single-play/multiple-play distinctions from monetary gambling paradigm to emergency management situation. We conducted three studies (two survey studies and one eye tracking study) to test whether an emergency plan we formulated in advance based on...

The strong similarities between intertemporal and risky choice raised the possibility that risk and time delay were psychologically interchangeable in the way they influence preference. Consistent with the single-process view, several previous studies have indicated that introducing uncertainty...