This paper examines households' self-insurance in financial markets when a rare personal disaster, such as disability or long-term unemployment, may occur during working years. Personal disaster risk alters lifetime ex-ante investment choices, even if most workers will not experience disaster. Uncertainty about the size of human capital losses, which characterizes disasters, results lower risk-...

This chapter reviews economic analyses of privacy. We begin by scrutinizing the ‘‘free market’’ critique of privacy regulation. Welfare may be non-monotone in the quantity of information; hence, there may be excessive incentive to collect information. This result applies to both non-productive and productive information. Over-investment is exacerbated to the extent that personal information is ...

The purpose of this project is to describe and explain the foreign investment decision process in the uncertain and turbulent environment of transition economy. By getting an in-depth understanding of how decision-making works in the environment of transition economy, the study intends to contribute to the development of business administration theory in the area of foreign investment decision-...

We provide evidence that a personality trait, aggression, has a first-order effect on group financial decision making. In a laboratory experiment on group portfolio choice, highly aggressive subjects (measured by a standard psychology test) were much more likely to recommend risky investment strategies consistent with their own personal information, regardless of the information received by oth...

Many firms have stockholders who face severe restrictions on their ability to sell their shares and diversify the risk of their personal wealth. We study the costs of these liquidity restrictions on stockholders using a continuous-time portfolio choice framework. These restrictions have major effects on the optimal investment and consumption strategies because of the need to hedge the illiquid ...

Foreign aid recipient fiscal response in developing countries is studied using utility/welfare maximization principle. The underlying assumption of this function (utility/welfare can be maximized by narrowing the deviations of the actual values from their desired values subject to the constraints of finance) doesn’t capture the interplay between project aid inflows and the adjustment process of...

This paper consists of two parts. In the first part we carry out a traditional growth accounting exercise for the private business sectors of the Swedish economy. We search for structural breaks during the sample period, using Chow tests, using a dynamic specification of Total Factor Productivity (TFP) growth rates. Grangercausality tests are carried out for the nine sub-sectors of the private ...

Organizational culture has a considerable impact on investment and acceptance of a new technology system such as knowledge management and especially it can be led to success or failure of knowledge management programs in organization. According to scientific evidences, human characteristics are effective on knowledge management and the process of knowledge management by people contains their pe...

Analytics-a new frontier in claims management Insurers are facing a perfect storm, making sustainable profits even more challenging Four key trends are driving this event: ► An increase in the number and severity of natural disasters, which is driving up claims and reinsurance costs; ► Requirements to satisfy new prudential regulations will result in increased capital adequacy requirements; ► V...