Decomposition and characterization of risk with a continuum of random variables

Article Abstract:

The different risks involved in a continuum of random variables were characterized and represented. A main theorem was developed which states that a weak measurability condition on a process is equivalent to either decomposition risk, approximation by simple processes or approximation by large samples. In addition, an extension theorem was also formulated which states that payoff functions defined on simple processes are continuous extensions of the main theorem.

Decision theory, Games of strategy (Mathematics)

---

Risk-sharing between and within families

Article Abstract:

Panel Study of Income Dynamics (PSID) data was evaluated to determine risk-sharing levels between and within American families. The PSID data represented a random sample of families made up of original household members and split-offs from two distinct periods including 1968-1981 and 1985-1987. Zero percentage change is observed for the methodology's p-value, indicating a rejection of inter- and intra-family full risk-sharing.

United States economic conditions, Households

---

Individual risk and mutual insurance

Article Abstract:

A market defined by the presence of Arrow securities and mutual insurance contracts is used to describe the accomplishment of economic efficiency despite strong individual risk. Market clearing is still achieved despite uncertainty with accounting for both individual and collective risks. Thus, individual risk pooling and collective risk spreading generate allocational efficiency in the market.

Economic aspects, Insurance industry, Equilibrium (Economics)

Similar abstracts:

• Abstracts: Axiomatic characterizations of the Walras correspondence for generalized economies
• Abstracts: Congestion pricing and capacity of large hub airports: a bottleneck model with stochastic queues. Proportional budgeting and decentralization
• Abstracts: Oligopolistic competition and the optimal provision of products. Revisiting the Sen poverty index
• Abstracts: The entry and exit of workers and the growth of employment: an analysis of French establishments. Unemployment fluctuations in the United States: further tests of the sectoral-shifts hypothesis
• Abstracts: Two mixed normal densities from cointegration analysis. Estimation of regression coefficients of interest when other regression coefficients are of no interest

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