The article examines an approach to the simulation of financial institution behavior (and bank in particular) based upon system dynamics methods. Research results indicate that system dynamics modeling can to further for better understanding of banking troubles hidden causes. Therefore the...

The analysis and measurement of poverty is a crucial and unsolved issue in the field of social science. This work aims to measure poverty as a multidimensional notion using a new composite indicator. However, subjective choices as different weighting schemes on the indicator's construction could...

Insurance and reinsurance live and die from the diversification benefits or lack of it in their risk portfolio. The new solvency regulations allow companies to include them in their computation of risk-based capital (RBC). The question is how to really evaluate those benefits. To compute the...

This study sheds new light on the question of whether or not sentiment surveys, and the expectations derived from them, are relevant to forecasting economic growth and stock returns, and whether they contain information that is orthogonal to macroeconomic and financial data. I examine 16...

In the first section we recall Bak Sneppen model and its evolutions. In this paper we wish to present some simplified cases in which explicit computations via Markov chains are possible, hence reaching a better understanding of some rather hidden phenomena of the general case: in particular...

The aim of the paper is the axiomatic justification of the theory of experience and chance, one of the dual halves of which is the Kolmogorov probability theory. The author’s main idea was the natural inclusion of Kolmogorov’s axiomatics of probability theory in a number of general concepts...

This work is the third, but not the last, in the cycle begun by the works [23, 22] about the new theory of experience and chance as the theory of co~events. Here I introduce the concepts of two co~event means, which serve as dual co~event characteristics of some co~event. The very idea of dual...

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...

I analyze 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. My model rephrases a fundamental question from insurance economics: how much coverage should a risk averse agent buy? Classic studies of...

In the Schumpeterian creative disruption age, the authors firmly believe that an increasing application of electronic technologies in the finances opens a big number of new unlimited opportunities toward a new era of the ultra high frequency electronic trading in the foreign currencies exchange...