The objects of the study are the territories of innovative development, which are created in the regions to support the full cycle of production of innovative products. Risk assessment is the part of requirements to design of the development strategies of such territories and their implementation as it is shown in the paper. The author offers a comprehensive multi-level risk classification of t...

Where a service provider faces substantial operational risk in meeting demand, as well as price risk in resourcing it from a wholesale market, conventional risk management optimization methods can be quite inefficient. As a leading example of this problem, we analyze the management of an electricity contracts portfolio. We develop a contingent optimization approach that accounts for the stochas...

This paper studies a new risk measure derived from the expected area in red introduced in Loisel (2005). Specifically, we derive various properties of a risk measure defined as the smallest initial capital needed to ensure that the expected time-integrated negative part of the risk process on a fixed time interval [0, T ] (T can be infinite) is less than a given predetermined risk limit. We als...

Based on the results of a Delphi survey conducted among a list of experts, the paper provides a guideline for both public and private parties in defining a list of significant risks in PPP motorway projects, preparing a practical risk allocation framework and identifying the most suitable mitigation strategies.

This paper proposes a simple model for understanding transaction costs – their composition, size and policy implications. We distinguish between investments in institutions that facilitate exchange and the cost of conducting exchange itself. Institutional quality and market size are determined by the decisions of risk averse agents and conditions are discussed under which the efficient allocati...

This paper explores the influence of international risk sharing on aggregate growth for a country that trades with the rest of the world. Learning by doing supports long-run growth as it generates sector-specific increases in productivity proportional to labor’s allocation across sectors. The paper shows that trade permits specialization in production which raises the growth rate of aggregate o...

This article defines in a precise manner three different mechanisms to achieve impartiality in distributive justice and studies them experimentally. We consider a first-person procedure, the Rawlsian veil of ignorance, and two third-party procedures, the impartial spectator and the ideal observer. As a result, we find striking differences in the chosen outcome distributions by the three methods...

Professional investors today speak incessantly about beta, still treating beta as the cornerstone of investment portfolios that it should be, yet using the term in most instances in a manner that is devoid of the meaning and the insight that justifies that foundational treatment. The term beta is routinely treated as synonymous with the term “asset class,” and by treating it this way, the term ...

Does experience modulate elicited risk preferences? How does experience shape expectations? This paper provides evidence that investors’ own experiences play a key role in shaping revealed risk preferences and the weighting of past observations when forming expectations. The results suggest that experiencing severe negative or positive returns leads subjects’ revealed preferences to become clos...