The large irrigation expansion of the last 50 years has significantly increased pressures over water resources in EU Mediterranean basins. Under these circumstances water pricing has been especially encouraged, since within the EU policy context it is widely believed that higher water prices reduce water demand. This paper presents a Revealed Preference Model that provides a clear intuition of ...

This paper proposes an econometric procedure that allows the estimation of the pricing kernel without either any assumptions about the investors preferences or the use of the consumption data. We propose a model of equity price dynamics that allows for (i) simultaneous consideration of multiple stock prices, (ii) analytical formulas for derivatives such as futures, options and bonds, and (iii) ...

In this work we consider three problems of the standard market approach to pricing of credit index options: the definition of the index spread is not valid in general, the usually considered payoff leads to a pricing which is not always defined, and the candidate numeraire one would use to define a pricing measure is not strictly positive, which would lead to a non-equivalent pricing measure. W...

Infrastructure as a Service (IaaS) is a rapidly expanding model of cloud computing. It includes control of computing resources, such as memory, computing power and storage capacity, satisfying the most fundamental IT needs for businesses on a usage-based payment model. Currently, there is an increased demand for IaaS services, which in turn feeds competition among cloud providers. As the price ...

Demand for Quality of Service on the Internet By Jörn Altmann, UC Berkeley The INternet Demand EXperiment Project (INDEX) is a field trial investigating the structure of user demand for qualitydifferentiated Internet access. Demand can be measured in terms of bandwidth, transmitted bytes and connect time, as a function of price and application. Several experiments have been conducted, each runn...

European water policy, as set out in the Water Framework Directive (WFD), requires all EU Member States to implement volumetric water pricing at rates that roughly cover the total costs of providing water services. The objective of this paper is to develop a methodology that, for the different farmtypes in an irrigable area, will enable us to analyse the differential impact that a pricing polic...

We price moneyness-based portfolio returns on the LIBOR futures options in an Intertemporal CAPM framework as an extension of the pricing kernel approach. In contrast to existing studies for pricing index options, our results show that only the real interest rate is significant in the pricing kernel for LIBOR options. The polynomial pricing kernel with linear interpretation outperforms the iso-...

Beta, as measured by the Capital Asset Pricing Model (CAPM), is widely used for pricing stocks, determining the cost of capital, and gauging the extent to which markets are integrated. The CAPM model assumes that equilibrium conditions prevail. The choice of which market portfolio to use in the regression – the home country or global index – depends on the level of global market integration. We...