The traditional formula used for analysis of surplus in the presence of a conservative valuation basis is compared to a similar formula used for analysis of profit under the margin on services valuation method using a realistic basis. Deficiencies of the former formula relative to the latter are noted. A revised formula is presented which overcomes these deficiencies while still allowing the us...

This paper presents evidence of both counter-cyclical and secular decline in the union membership wage premium in the US and the UK over the last couple of decades. The premium has fallen for most groups of workers, the main exception being public sector workers in the US. By the beginning of the 21 Century the premium remained substantial in the US but there was no premium for many workers in ...

This issue brief explains how the Medicare Part D low income benchmark premium is calculated, what factors influence the level of the low-income benchmark premium in any given year, and the implications of the benchmark amount for Medicare drug plans and beneficiaries as it changes from year to year. The paper provides a simplified, two-year example of how the low-income benchmark premium is ca...

We consider the risk premium π demanded by a decision maker with present wealth x in order to be indifferent between obtaining a new level of wealth y1 with certainty, or to participate in a lottery which either results in unchanged wealth x or a level of wealth y2 > y1. We then define the relative risk premium λ as the quotient between π and the increase in wealth y1−x which the decision maker...

Purpose This paper generalizes the quadratic framework introduced by Le Courtois (2016) and Sumpf (2018), to obtain new credibility premiums in balanced case, i.e. under squared error loss function. More precisely, authors construct a net function where are estimated based on values of past observations parametric non-parametric approaches, this is useful for practitioner who wants explicitly t...

Using comprehensive company-level ownership data from Japan, the authors found that the equity size premium correlates strongly with the investment flows of international institutional investors. When investment flows intensified and shifted into larger stocks in the mid-1990s, the equity size premium was reversed. Their findings suggest that a large fraction of the time variation in the size p...

this research applies and compares the market leverage lally method, ibbotson and sinquefield method and siegel method, to present alternative measures for market risk premium (mrp) estimation and test forecasting power of these methods in calculating expected rate of return. the higher level of leverage implies greater risk of investment in a specified stock, so higher return is expected by in...