Valuing political risk

Article Abstract:

A model is designed to gauge the probable effects of political risk to foreign direct investment projects. The proposed approach, unlike other political risk assessment instruments, considers all the elements that generate losses and relates them to the risk's evolution process. It further utilizes the concept of Poisson jumps and geometric Brownian motion to represent explicit events and ongoing changes, respectively. Before the model can be used to obtain the cost of political risk involved, the current level of risk exposure must first be established.

Models, Analysis, Foreign investments, Risk management, Political aspects, Political risk

---

The rate of return on savings and loan assets

Article Abstract:

A mathematical model was developed to assess the determinants of the rate of return on savings and loans assets. Data from savings and loan associations from 1965 to 1991 were ran through co-integration, Granger-Causality and OLS tests to determine the significant factors which have led to the collapse of the US savings and loan industry. Findings showed that mortgage rate, capital/asset ratio, price of crude oil, cost of deposits and the ceiling on federal deposit insurance determined the rate of return.

Savings & Loan Assns, Savings Institutions, Savings and loan associations, Savings and Loan Associations Bailout Crisis, 1987-

---

Income-constrained purchases of insurance and assets

Article Abstract:

A mathematical model was modified to test the hypothesis of the interdependency of demands for insurance policies and insurable assets. Results of the modeling showed a more realistic result that concurs with intuition and empirical observation. The model showed that full coverage of insurable assets are optimal despite premium loading by insurers. The study also showed insurance to be a normal good if the insurable assets are normal goods and the insurance is treated not as a Giffen good.

Similar abstracts:

• Abstracts: The political economy of public savings and the role of capital mobility
• Abstracts: On the relevance of learning and evolution to economic theory. Royal Commission 'Report on Transport and the Environment' - economic effects of recommendations
• Abstracts: Insolvency, moral hazard and expense preference behavior: evidence from US savings and loans associations. The effect of the 1971 advertising ban on behavior in the cigarette industry
• Abstracts: Monolog vs. dialog in costly bilateral communication. The value of information in internal management communication
• Abstracts: The economics of religious indulgences. Religion as paradigm. The conflict of science and religion: religious metaphysics and the scientific world view as alternatives

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.