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Rare Disasters
In economics, a rare disaster is a collapse that is infrequent and large in magnitude, having a negative effect on an economy. Rare disasters are important because they provide an explanation of the equity premium puzzle, the behavior of interest rates, and other economic phenomena. The parameters for a rare disaster are a substantial drop in GDP and at least a 10% decrease in consumption. Examples include financial disasters: the Great Depression and the 1997 Asian financial crisis; wars: World War I, World War II, and regional conflicts; epidemics: influenza outbreaks and the Asian Flu; weather events; and earthquakes and tsunamis; however, any event that has a substantial impact on GDP and consumption could be considered a rare disaster. The idea was first proposed by Rietz in 1988, as a way to explain the equity premium puzzle. Since then, other economists have added to and strengthened the idea with evidence, but many economists are still skeptical of the theory. Model ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Earthquake
An earthquake (also known as a quake, tremor or temblor) is the shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves. Earthquakes can range in intensity, from those that are so weak that they cannot be felt, to those violent enough to propel objects and people into the air, damage critical infrastructure, and wreak destruction across entire cities. The seismic activity of an area is the frequency, type, and size of earthquakes experienced over a particular time period. The seismicity at a particular location in the Earth is the average rate of seismic energy release per unit volume. The word ''tremor'' is also used for Episodic tremor and slip, non-earthquake seismic rumbling. At the Earth's surface, earthquakes manifest themselves by shaking and displacing or disrupting the ground. When the epicenter of a large earthquake is located offshore, the seabed may be displaced sufficiently to cause ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cuban Missile Crisis
The Cuban Missile Crisis, also known as the October Crisis (of 1962) ( es, Crisis de Octubre) in Cuba, the Caribbean Crisis () in Russia, or the Missile Scare, was a 35-day (16 October – 20 November 1962) confrontation between the United States and the Soviet Union, which escalated into an international crisis when American deployments of missiles in Italy and Turkey were matched by Soviet deployments of similar ballistic missiles in Cuba. Despite the short time frame, the Cuban Missile Crisis remains a defining moment in national security and nuclear war preparation. The confrontation is often considered the closest the Cold War came to escalating into a full-scale nuclear war. In response to the presence of American Jupiter ballistic missiles in Italy and Turkey, the failed Bay of Pigs Invasion of 1961, and Soviet fears of a Cuban drift towards China, Soviet First Secretary Nikita Khrushchev agreed to Cuba's request to place nuclear missiles on the island to deter a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rajnish Mehra
Rajnish Mehra (Hindi: रजनीश मेहरा) (born January 15, 1950) is an Indian American financial economist. He currently holds the E.N. Basha Arizona Heritage Endowed Chair at the Arizona State University and is a Professor of Economics Emeritus at the University of California, Santa Barbara. Education Mehra received his doctorate in Industrial Administration from Carnegie Mellon University (1978), a M.S. in Computer Science from Rice University (1974), a B.Tech in Electrical Engineering from the Indian Institute of Technology, Kanpur (1972). He spent a year studying Mathematics at St. Stephen's College, Delhi University (1966–67). Career In 1976, he was appointed assistant professor at the School of Business, Queen's University in Kingston, Canada. He subsequently moved to the Columbia Business School in 1977, and in 1985 to the University of California, Santa Barbara, where he taught until 2010. He was department Chair from 2001-04. From 2012-2016 he hel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Edward C
Edward is an English given name. It is derived from the Anglo-Saxon name ''Ēadweard'', composed of the elements '' ēad'' "wealth, fortune; prosperous" and '' weard'' "guardian, protector”. History The name Edward was very popular in Anglo-Saxon England, but the rule of the Norman and Plantagenet dynasties had effectively ended its use amongst the upper classes. The popularity of the name was revived when Henry III named his firstborn son, the future Edward I, as part of his efforts to promote a cult around Edward the Confessor, for whom Henry had a deep admiration. Variant forms The name has been adopted in the Iberian peninsula since the 15th century, due to Edward, King of Portugal, whose mother was English. The Spanish/Portuguese forms of the name are Eduardo and Duarte. Other variant forms include French Édouard, Italian Edoardo and Odoardo, German, Dutch, Czech and Romanian Eduard and Scandinavian Edvard. Short forms include Ed, Eddy, Eddie, Ted, Teddy and Ned. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Probability Of Default
Probability of default (PD) is a financial term describing the likelihood of a default over a particular time horizon. It provides an estimate of the likelihood that a borrower will be unable to meet its debt obligations. PD is used in a variety of credit analyses and risk management frameworks. Under Basel II, it is a key parameter used in the calculation of economic capital or regulatory capital for a banking institution. PD is closely linked to the expected loss, which is defined as the product of the PD, the loss given default (LGD) and the exposure at default (EAD). Overview The probability of default is an estimate of the likelihood that the default event will occur. It applies to a particular assessment horizon, usually one year. Credit scores, such as FICO for consumers or bond ratings from S&P, Fitch or Moodys for corporations or governments, typically imply a certain probability of default. For group of obligors sharing similar credit risk characteristics such as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk-free Interest Rate
The risk-free rate of return, usually shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations. Since the risk-free rate can be obtained with no risk, any other investment having some risk will have to have a higher rate of return in order to induce any investors to hold it. In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield to maturity on a risk-free bond issued by a government of the same currency whose risks of default are so low as to be negligible. For example, the rate of return on T-bills is sometimes seen as the risk-free rate of return in US dollars. Theoretical measurement As stated by Malcolm Kemp in chapter five of his book ''Market Consistency: Model Calibration in Imperfect Markets'', the risk-free rate means different things to different people and there is no consensus on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robert Barro
Robert Joseph Barro (born September 28, 1944) is an American macroeconomist and the Paul M. Warburg Professor of Economics at Harvard University. Barro is considered one of the founders of new classical macroeconomics, along with Robert Lucas, Jr. and Thomas J. Sargent. He is currently a senior fellow at Stanford University's Hoover Institution and co-editor of the influential ''Quarterly Journal of Economics''. Academic career Barro graduated with a B.S. in physics from the California Institute of Technology in 1965, where he learned under Richard Feynman, but he realized he "wouldn't be close to the top in those fields." He then turned to economics and earned a PhD from Harvard University in 1970. He first reached wide notice with a 1974 paper, "Are Government Bonds Net Wealth?" It argued that under certain assumptions, present governmental borrowing would be matched by increased bequests to future generations to pay future taxes expected to pay down the government bonds; thus a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rietz
''For the musician, see Julius Rietz.'' Rietz () is a municipality in the Imst (district), Imst district, Austria, and is located 23 km east of Imst and 4 km west of Telfs on the southern shore of the Inn River. It is a peculiarity that the village has no sun during winter time because of the height of the Stubai Alps. The village is mentioned in documents dating from the year 1264 and has been a community since the year 1325. The main source of income is tourism. Population References External links Cities and towns in Imst District {{Tyrol-geo-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tsunami
A tsunami ( ; from ja, 津波, lit=harbour wave, ) is a series of waves in a water body caused by the displacement of a large volume of water, generally in an ocean or a large lake. Earthquakes, volcanic eruptions and other underwater explosions (including detonations, landslides, glacier calvings, meteorite impacts and other disturbances) above or below water all have the potential to generate a tsunami. Unlike normal ocean waves, which are generated by wind, or tides, which are in turn generated by the gravitational pull of the Moon and the Sun, a tsunami is generated by the displacement of water from a large event. Tsunami waves do not resemble normal undersea currents or sea waves because their wavelength is far longer. Rather than appearing as a breaking wave, a tsunami may instead initially resemble a rapidly rising tide. For this reason, it is often referred to as a tidal wave, although this usage is not favoured by the scientific community because it might give ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Epidemic
An epidemic (from Ancient Greek, Greek ἐπί ''epi'' "upon or above" and δῆμος ''demos'' "people") is the rapid spread of disease to a large number of patients among a given population within an area in a short period of time. Epidemics of infectious diseases are generally caused by several factors including a significant change in the ecology of the areal population (e.g., increased stress maybe additional reason or increase in the density of a vector species), the introduction of an emerging pathogen to an areal population (by movement of pathogen or host) or an unexpected genetic change that is in the pathogen reservoir. Generally, epidemics concerns with the patterns of infectious disease spread. An epidemic may occur when host immunity to either an established pathogen or newly emerging novel pathogen is suddenly reduced below that found in the endemic equilibrium and the transmission threshold is exceeded. For example, in meningococcal infections, an attack rate in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
