Value at Risk (VaR) has emerged in recent years as a standard tool to measure and control the risk of trading portfolios. Yet, existing theoretical analyses of the optimal behavior of a trader subject to VaR limits have produced a negative view of VaR as a risk-control tool. In particular, VaR limits have been found to induce increased risk exposure in some states and an increased probability o...

A firm has to decide sequentially to replace its technology and to implement a new one chosen among an increasing range over time under technological and market uncertainty. The optimal decision rule is a (s, S) style policy where the trigger and target technology levels are positively correlated with boom persistence and negatively related with recession persistence and technological uncertain...

Trimethoprim resistance in Streptococcus pneumoniae can be conferred by a single amino acid substitution (I100-L) in dihydrofolate reductase (DHFR), but resistant clinical isolates usually carry multiple DHFR mutations. DHFR genes from five trimethoprim-resistant isolates from the United Kingdom were compared to susceptible isolates and used to transform a susceptible control strain (CP1015). A...

We consider a firm that produces a specialty or a branded image good, where consumers derive part of their utility from the eliteness of the brand’s image and exclusivity of the product. Once high valuation consumers have purchased the product, it is optimal for the firm to reduce the price and capture lower valuation consumers. However, this dilutes the exclusivity of the brand, and results in...

The purpose of this paper is to examine the determinants of Taiwan’s manufacturing firm growth, in particular, the effects of corporate financial choices and the financial structure on firm growth in different industries besides other physical factors discussed in the literature. We construct an unbalanced dynamic panel data using 280 listed and OTC manufacturing firms over the period 1991-2002...

Abstract. On the basis of analysis scientific approaches and practical application, authors have concluded that venture investment innovation activity is a type entrepreneurship based on ability an entrepreneur to accumulate investments from various sources, which focused use technical technological innovations are assessed as highly profitable, aimed at fulfilling projects not been tested in p...

We develop a dynamic, structural model to quantitatively assess the effects of risk, uncertainty and asymmetric beliefs about project quality on the characteristics of venture capital relationships. We estimate the model parameters with data about the distributions of total investments, payoffs, risks and returns of venture capital projects. Entrepreneurial optimism mitigates the agency costs o...

Financial market frictions distort the allocation of resources among productive units—all else equal, firms whose financing choices are affected by financial frictions face higher borrowing costs than firms with ready access to capital markets. As a result, input choices may differ systematically across firms in ways that are unrelated to their productive efficiency. We propose a simple account...