We investigate how investors perceive the adoption of expected-loss model (ELM) for impairment incorporated in IFRS 9. Using a sample European listed banks covering period standard-setting process 9, we examine whether market perceives new regulation to increase shareholder wealth. First, document positive reaction ELM events. Second, find that potential benefits are more pronounced larger bank...

Growth models under uncertainty and constant relative risk aversion (CRRA) utility are fragile in explaining consumers’ choice, as equilibrium consumption is dependent on distributional assumptions. We show that, under semi-nonparametric distributions, general equilibrium models are stable, as the existence of expected utility is guaranteed. © 2011 Elsevier B.V. All rights reserved.

Two expected utility models are considered for a multi-period portfolio selection task of a special nature: the generalized logarithmic and negative exponential models. A weak version of the models is formulated in which the single parameter of each of the models is allowed to vary freely from one period to another in order to account for observed individual differences between subjects as well...

Models of risky choice have attracted much attention in behavioural economics. Previous research has repeatedly demonstrated that individuals’ choices are not well explained by expected utility theory, and a number of alternative models have been examined using carefully selected sets of choice alternatives. The model performance however, can depend on which choice alternatives are being tested...

In general, a newly purchased item or system is warranted for a specific period. When the system fails during the warranty period, it is repaired free of charge. Even if the system is repairable, there exists some warranty services under which the manufacturer replaces the failed system during the warranty period. This study considers a case where a manufacturer offers an additional warranty se...