Revista de Econom´a del Rosario. Vol. 14. No. 1. Enero - Junio 2011. 57 - 60
Adding one risk to another: generalizing the unavoidable
(background) risk
Received: January, 2011 - Accepted: March, 2011
Moawia Alghalith *
Economics Department.
University of West Indies.
Resumen
Este artfculo ofrece una generalization del modelo de riezgo subyacente. En primer lugar, se re-
lajan los supuestos de independencia. En segundo lugar, se adopta una forma funcional general.
Tercero, se adopta un tipo de riesgo general. Adicionalmente se presenta una nueva forma gene-
ral de riesgo subyacente.
Clasificacion JEL: D8, D2.
Palabras clave: Riesgo subyacente, incertidumbre.
Abstract
This paper provides a complete generalization of the background risk models. In so doing, first,
it relaxes the independence assumption. Second, it adopts a general functional form. Third, it
adopts a general type of risk. Furthermore, it introduces a new general form of background risk.
JEL Classification: D8, D2.
Keywords: Background risk, uncertainty.
*UWI. St. Augustine, Trinidad. Tel: (868) 7245804. E-mail: [email protected]
© Revista de Economta del Rosario. Universidad del Rosario.
ISSN 0123-5362 - ISSNE 2145-454x
More intriguing information
1. An Empirical Analysis of the Curvature Factor of the Term Structure of Interest Rates2. Are combination forecasts of S&P 500 volatility statistically superior?
3. Banking Supervision in Integrated Financial Markets: Implications for the EU
4. The name is absent
5. Global Excess Liquidity and House Prices - A VAR Analysis for OECD Countries
6. Dendritic Inhibition Enhances Neural Coding Properties
7. Herman Melville and the Problem of Evil
8. Mortality study of 18 000 patients treated with omeprazole
9. Modellgestützte Politikberatung im Naturschutz: Zur „optimalen“ Flächennutzung in der Agrarlandschaft des Biosphärenreservates „Mittlere Elbe“
10. The name is absent