Regulatory-Optimal Funding

Funding decisions

Funding decision is one of the financial strategic decisions of a corporation. There are also two other finan-cial strategic decisions that a corporation faces, the investment and the dividend decision. This paper de-scribes briefly the investment and the dividend decision, although its main focus is on funding decision. In de-scribing the funding decision the researchers will first explain the...

Toward a Regulatory Framework for Third-Party Funding of Litigation

Optimal funding of a defined benefit pension plan

In this paper, we address the issue of determining the optimal contribution rate of a stochastic defined benefit pension fund. The affiliate’s mortality is modelled by a jump process and the benefits paid at retirement are function of the evolution of stochastic salaries. Assets of the fund are invested in cash, stocks and a rolling bond. Interest rates are driven by a Vasicek model. The object...

Optimal Institutional Mechanisms for Funding Generic Advertising: An Experimental Analysis

Given the uncertain legal status of generic advertising programs for agricultural commodities, alternative voluntary funding institutions are investigated hat could provide a high level of benefits to producers. This experimental study simulates key economic and psychological factors that affect producer contributions to generic advertising. The results suggests that producer referendum play a ...

Funding Shocks and Optimal University Admissions and Financial Aid Policies

A positive shock to funding, such as a major donation, causes an optimizing university to raise its admissions standards and reduce tuition charges net of financial aid across all student categories. However, the shock’s effect on enrollment may not be uniform. Student categories given little weight in the university’s objective function may be treated as “inferior goods,” that is, positive sho...