the main purpose of this paper is to investigate the performance of nigerian insurance companies using data envelopment analysis (dea). because of the unavailability of the required data, the study is limited to ten nigerian insurance companies for the period of five years from 2008 to 2012. the input employed were commission expenses and management expenses, while premium and investment income...

Hosts (or nodes) in the Internet often face epidemic risks such as virus and worm attack. Despite the awareness of these risks and the importance of network/system security, investment in security protection is still scare, and hence epidemic risk is still prevalent. Deciding whether to invest in security protection is an interdependent process: security investment decision made by one node can...

We consider renegotiation of social earnings insurance arrangements by majority voting in an economy where ex-ante identical individuals make unobservable private investments in education. We show that voting-based renegotiation can result in a higher expected level of investment in comparison to the case where social insurance is determined by an appointed social planner. We also find that, wi...

Two contrasting hypotheses about what determines remittances sent by Dominican migrants to their rural parents in the Sierra are tested: (a) an insurance contract taken by parents with their migrant children and (b) an investment by migrants in potential bequests. Results show that the reason to remit is affected by destination (U.S. vs. cities in the Dominican Republic), gender, and household ...

In these notes, we present some methods and applications of large deviations to finance and insurance. We begin with the classical ruin problem related to the Cramer’s theorem and give en extension to an insurance model with investment in stock market. We then describe how large deviation approximation and importance sampling are used in rare event simulation for option pricing. We finally focu...

This paper models an economy in which risk-averse savers and risk-neutral entrepreneurs make investment decisions. Aggregate investment in high-yielding risky projects is maximized when risk-neutral agents bear all nondiversifiable risks. A role of banks is to assume nondiversifiable risks by pledging their capital in addition to diversifying risks. Banks, however, do not completely eliminate r...

Globalization and Human Capital Formation by Fredrik Andersson and Kai A. Konrad This paper compares education investment in closed and open economies without government and with a benevolent government. Closed economies suffer from a holdup problem of excessive redistribution, and governments use education policy as a second-best tool. Globalization that increases labor mobility reduces govern...

In these notes, we present some methods and applications of large deviations to finance and insurance. We begin with the classical ruin problem related to the Cramer’s theorem and give en extension to an insurance model with investment in stock market. We then describe how large deviation approximation and importance sampling are used in rare event simulation for option pricing. We finally focu...