securities paid little attention to credit risk, or that they were comfortable with the high level of credit risk that they were … control techniques, we develop a paradigm for risk management, with the constraint that there be no default on short- term …/underemphasize risk. Bubbles tend to occur. However, when the shocks occur, the government cannot fulfill its commitments …

We consider the optimal dividend problem in the so-called degenerate bivariate risk model under the assumption that the …