One of the topical problems of the economics sciences and practices is Latvian national economy risk management scientific basis working out. The main tasks of risk management are risk management methodology elaboration, identification of risk factors, analysis, assessment, acceptation of decision, components and principles of monitoring and adaptation to Latvia’s conditions. The main component...

A cost structure is proposed for evaluating and improving the ecological-economic efficiency of baling sub-scheme units within solid waste management schemes that end with, for example, incineration for heat and power production. The methodology proposed employs the previously introduced WAste Managements’ Efficient Decision model (WAMED) and the COmpany STatistical BUSiness Tool for Environmen...

Welfare Economics is fortunate that there are two Fundamental Theorems of Welfare Economics. Positive Economics on the other hand is seemingly endowed with none. One of the fundamental results of Positive Economics is that a competitive equilibrium exists under fairly general conditions; this then may be called the First Fundamental Theorem of Positive Economics (FFTPE). The existing results on...

For more than forty years, economists have routinely rejected the postulate that economic theory should be realistic. Ever since Milton Friedman sketchily outlined a positive methodology for economics, most students of our science have come to endorse Friedman’s view and have claimed that the only quality standard of economic reasoning was its predictive power. Good theories yield fairly correc...

A positive correlation between insurance coverage and ex post risk can be an indicator for private information in insurance markets. However, this test fails if agents have heterogeneous risk attitudes. We propose a new test that conditions on unobserved types of individuals who differ in their risks preferences. This makes it possible to detect asymmetric information without direct evidence of...