Waseda Organizational and Financial Economics Seminar:
“Optimal Effort in a Two-Period Model” (May 20)
講演者 / Speaker
WONG, Keith （Professor, Faculty of Business and Economics,University of Hong Kong）
- Field of Research Interests
Risk Management, Corporate Finance, Real Options
日 時 / Date & Time
Monday, 20 May 2019, 13:00 – 14:30
会 場 / Venue
Rm. #1111 on the 11th floor, Building #11, Waseda University
主 旨 / Outline
“Optimal Effort in a Two-Period Model”
This paper develops a generic model of effort in two periods wherein an individual exerts effort in monetary terms in the first period so as to improve risk in the second period. We specify such a risk improvement by means of a linear combination of two fixed distributions that can be ranked via first-order stochastic dominance. When the two fixed distributions degenerate to singletons, our two-period model of effort reduces to the two-period model of self-protection. Within an intertemporal framework with Kreps-Porteus-Selden preferences, we examine the comparative statics of effort with respect to the prevalence of uncertainty and to increased risk aversion. We further examine the precautionary motive of saving in our two-period of effort wherein the uncertainty is endogenously determined by the choice of effort. Finally, we show that our results are consistent with recent experimental evidence about the negative relationship between prudence and self-protection regardless of the timing of loss.
プログラム / Schedule
13:00～13:05 Opening Remarks （MIYAJIMA, Hideaki (Advisor, WIAS / Professor, Waseda University)）
13:05～14:05 Presentation
14:05～14:25 Question-and-answer session
14:25～14:30 Concluding Remarks（MIYAJIMA, Hideaki ）
対 象 / Prospected Audience
Faculty and staff members of a university, grad students, undergraduates, the general public
主 催 / Organizer
Research Institute of Business Administration, Waseda University
Waseda Institute for Advanced Study, Waseda University
申込み / Registration
Free of charge. Please come to the event venue directly.
