This paper presents a model tha t measures the impact of political risk on portfolio investment when the political risks are multivariate and correlated across countries. The multivariate approach generalizes the single country model but retains most of its characteristics in terms of its ability to price political risk based on the stochastic process of exposure to loss and the expected freque...

The main role of the insurance sector is coverage risks through pooling techniques. Against payment a premium, company compensates for unexpected losses, including catastrophic events and pandemics. However, differently from event, COVID-19 pandemic has highlighted that global impact on economic financial activities highly correlated. itself been strongly affected both by exponential growth cla...

this paper reviews the relationship between inflation rate and minimum wage in iran’s economy over the 1969-2005. according to the economic literature, there is a narrow relationship between inflation rate and minimum wage. some economists believe in increased inflation due to minimum wage. the other group of economists considers the increased inflation as a cause for increasing minimum wage. t...

This paper studies whether adverse selection can rationalize a universal mandate for unemployment insurance (UI). Building on unique feature of the policy in Sweden, where workers opt supplemental UI coverage above minimum mandate, we provide first direct evidence and derive its implications design. We find that risk is more than twice as high who buy coverage. Exploiting variation prices, show...

ABSTRACT Insurance pricing is subject to stricter regulation in some states than others. This cross-sectional variation, coupled with the occurrence of staggered deregulation several states, enables a powerful test political cost hypothesis that managers manipulate accruals mitigate adverse effects rate regulation. We show insurers understate their loss reserve more regulated regimes, finding c...

Abstract In a factor timing context, academic research has focused on identifying set of predictors that can explain the dynamics portfolios. We propose an alternative approach for portfolio returns by exploiting information from their characteristics. Different combinations dimension reduction techniques are employed to independently reduce number both and portfolios predict. Characteristic-ba...