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Starting with a time-0 coherent risk measure defined for " value processes " , we define, also at intermediate times, a risk measurement process. Two other constructions of such measurement processes are given in terms of sets of test probabilities. These constructions are identical and related to the former construction when the sets fulfill a stability(More)
We explain why and how to deal with the definition, acceptability, computation and management of risk in a genuinely multitemporal way. Coherence axioms provide a representation of a risk-adjusted valuation. Some special cases of practical interest allowing for easy recursive computations are presented. The multiperiod extension of Tail VaR is discussed.(More)
Motivated by a simple model, I use DHS data to test nine hypotheses about the prevalence and decline of African polygamy. First, greater female involvement in agriculture does not increase polygamy. Second, past inequality better predicts polygamy today than does current inequality. Third, the slave trade only predicts polygamy across broad regions. Fourth,(More)
Much of economics is built on the assumption that individuals are driven by self-interest and economic development is an outcome of the free play of such individuals. On the few occasions that the existence of altruism is recognized in economics, the tendency is to build this from the axiom of individual selfishness. The aim of this paper is to break from(More)
We consider a bank having several trading desks, each of which trades a different class of contingent claims with each desk using a different model. We assume that the models are arbitrage-free. A practical question is whether a bank using several models can be arbitraged. Surprisingly it can happen that in some cases there must be an arbitrage. We discuss(More)
Much of economics is built on the assumption of individuals being driven by nothing but self-interest; and economic development is viewed as an outcome of the free play of such individuals. On the few occasions that economics recognizes the role of trust, integrity, in-group cooperation and altruism, the tendency is to build up to these from the axiom of(More)
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