Risk classification involves concepts similar to those in ratemaking (Chapter 3) and individual risk rating (Chapter 4). Actuaries use risk classification primarily in ratemaking when there is not sufficient information to estimate a price for a given individual. In order to derive a price, individuals who are expected to have the same costs are grouped together. The actuary then calculates a p...

Accurate and effective electricity price forecasting is critical to market participants in order to make an appropriate risk management in competitive electricity markets. Market participants rely on price forecasts to decide on their bidding strategies, allocate assets and plan facility investments. However, due to its time variant behavior and non-linear and non-stationary nature, electricity...

In this study business operations and liquidity and credit risk on price fluctuations on the stock exchange since 2010 to 2013 has been Tehran distance. The sample consisted of 76 company The systematic elimination method is selected. The company had a total of 304 years, in this study, the hypothesis of linear regression and correlation to analyse the data and test hypotheses Eviews software i...

introduction: risk is an essential component in the production and sale of agricultural products. due to the nature of agricultural products, the people who act in this area including farmers and businesspersons encounter unpredictable fluctuations of prices. on the other hand, the firms that process agricultural products also face fluctuation of price of agricultural inputs. given that the can...

This study examines the effect of managerial ability on subsequent stock price crash risk using listed firm data in Korea. Compared to some financially advanced countries, the influence of managers is particularly more powerful in Korea, as ownership and management are not effectively separate in most Korean firms. In addition, we considered the effect of large business groups called Chaebol, w...

This paper tests the efficiency of insurance markets in the Pakistan Punjab by examining how crop choices are affected by the presence of price and yield risk. We estimate reduced-form and structural models of crop choices. Although we cannot reject the hypothesis that village members efficiently share risk among themselves, production choices are shown to depend on risk. Existing risk sharing ...

This paper studies auctions with a temporary Buy-It-Now (BIN) price using a two-stage model. In the first stage, a group of bidders (early bidders) are offered a ”Buy-It-Now” (BIN) option to purchase the item immediately at a listed price (BIN price). If no early bidder accepts the BIN price, the BIN option disappears and the second stage starts with an additional group of bidders (late bidders...

We apply nonparametric panel data kernel regression to investigate production risk, output price uncertainty, and risk attitudes of Polish dairy farms based on a firm-level unbalanced panel data set that covers the period 2004–2010. We compare different model specifications and different approaches for obtaining firm-specific measures of risk attitudes. We found that Polish dairy farmers are ri...