This article analyzes optimal, dynamic portfolio and wealth/consumption policies of utility maximizing investors who must also manage market-risk exposure using Value-atRisk (VaR). We find that VaR risk managers often optimally choose a larger exposure to risky assets than non-risk managers and consequently incur larger losses when losses occur. We suggest an alternative risk-management model, ...

The surge in capital flows towards emerging market countries is one of the major developments in the world economy in the 1990s. In particular, short-term flows, in the form of portfolio investments or bank loans, have grown at an extremely rapid pace. At the same time, emerging markets have experienced an increasing number of financial crises, with dire consequences. It is increasingly argued ...

Banks advance loans in the absence of precise knowledge in relation to the outcome of borrowers’ projects. Consequently, uncertainty in relation to loan repayment emerges. Thus, banks introduce the ‘credit standard’ as insurance against loans, so that should borrowers’ projects fail, borrowers have an alternative means of honouring their debt obligations. It is argued in this paper that in the ...

Retirement flexibility and inability to borrow against future labor income can significantly affect optimal consumption and investment. With voluntary retirement, there exists an optimal wealth-to-wage ratio threshold for retirement and human capital correlates negatively with the stock market even when wages have zero or slightly positive market risk exposure. Consequently, investors optimally...

As reported, most DC pension scheme participants simply follow proposed defaults, even though they have the freedom to choose. Consequently, default designs have dramatic impacts on individuals’retirement saving outcomes. Given the fact that the default design matters, this paper evaluates contribution default designs to help DC plan participants to save and invest wisely. The proposed defaults...

The application of automatic theorem provers to discharge proof obligations is necessary to apply formal methods in an efficient manner. Tools supporting formal methods, such as Atelier B, generate proof obligations fully automatically. Consequently, such proof obligations are often cluttered with information that is irrelevant to establish their validity. We present iapa, an “Interface to Auto...

This article examines potential climate change impacts on agricultural production at two locations in south-eastern Bavaria. The predicted changes of climatic variables lead to a higher yield variability and therefore increased production risk. Consequently, there is a need for adaptation strategies, especially an improved risk management, which will help farmers to cope with higher yield risks.

Handicap International (HI) has supported the Department of Health and Family Welfare (DoHFW), Government of Gujarat, in India for the implementation of a State-wide project for prevention, early identification, intervention and rehabilitation of disability and its complications. Despite the Gujarat health system being better developed than other Indian states health systems, disability has lar...