Values of travel time savings are often used in cost-benefit analysis of transport projects and policies, and also to compute generalised travel costs. There has been considerable debate as to whether different research methods (e.g. stated versus revealed preference) will lead to different values of travel time savings, and which segmentations (e.g. by income or mode) are most important to cap...

Merton Model is one of the famous credit risk models. This model presumes that the only source of uncertainty in equity prices is the firm’s net asset value .But the above market condition holds only when the market is efficient which is often been ignored in modern research. Another, the original Merton Model is based on assumptions that in the event of default absolute priority holds, renegot...

Fifty North Sea oil & gas investment transactions were analysed using traditional spreadsheet based financial modelling methods. The purpose of the analysis was to determine if there was a statistically significant relationship between the price paid for an oil & gas asset and the actual or expected financial return over the asset’s economically useful life. Several interesting and statisticall...

1 This is the written version of the Cattedra Galileana lectures, Scuola Normale Supe-riore, in Pisa, 2002, made possible through the wonderful organizational work of Maurizio Pratelli, to whom I am most grateful. I am also grateful for support for the course offered by the Associazione Amici della Scuola Normale Superiore, who were generously represented by Mr. Carlo Gulminelli.

This paper estimates a consumption-based, no-arbitrage model of the term structure of real interest rates. The model nests the standard long-run risk model which assumes constant market prices of risk. We find that the long-run consumption risk dominates the short-run and volatility risks and drives most of the movements of bond risk premiums. The risk premium for consumption volatility is nega...

Welcome to the course page for Business Finance for Life Scientists This content is designed provide an overview of financial statements, and basic finance principles used in financial planning and decision making. The goal of this workshop is to help prepare scientists who want to start their own labs, and inform scientists who want to go into industry. This page includes the lecture videos, c...

This paper is concerned with the stochastic comparison of two individual risk models for homogeneous portfolios with different claim size distributions. It is shown that a Lorenz order between the claim sizes, or a hamr-order if the claim sizes are NBUE, are transferred to the corresponding individual risk models. © 2001 Elsevier Science B.V. All rights reserved.

We investigate how managerial ability affects the intentional distortion of financial statements (earnings management). On the one hand, better managers receive a compensation premium for their perceived ability, and to the extent that earnings management would tarnish their reputations, we expect them to manage earnings less. On the other hand, better managers may be more able to extract rents...

1 The views expressed here do not necessarily reflect those of the International Monetary Fund.

The precautionary savings model predicts that households accumulate wealth to self-insure against unexpected declines in future income and unforeseen expenditures. The goals of this study are twofold. First, we investigate whether the near-elderly who face higher health risks save more. Second, we examine the factors that contribute to health risks that the near-elderly face. We use data from t...