476 research outputs found
Flow Analysis, Linearity, and PTIME
Abstract. Flow analysis is a ubiquitous and much-studied component of compiler technology—and its variations abound. Amongst the most well known is Shivers ’ 0CFA; however, the best known algorithm for 0CFA requires time cubic in the size of the analyzed program and is unlikely to be improved. Consequently, several analyses have been de-signed to approximate 0CFA by trading precision for faster computation. Henglein’s simple closure analysis, for example, forfeits the notion of di-rectionality in flows and enjoys an “almost linear ” time algorithm. But in making trade-offs between precision and complexity, what has been given up and what has been gained? Where do these analyses differ and where do they coincide? We identify a core language—the linear λ-calculus—where 0CFA, simple closure analysis, and many other known approximations or restrictions to 0CFA are rendered identical. Moreover, for this core language, analysis corresponds with (instrumented) evaluation. Because analysis faithfully captures evaluation, and because the linear λ-calculus is complete for ptime, we derive ptime-completeness results for all of these analyses.
Mental accounting, access motives, and overinsurance
People exercising mental accounting have an additional motive for buying insurance. They perceive a risk of having insufficient funds available to self-insure. In this way insurance protects the consumption value of the insured asset beyond the expenditure to acquire/replace it. This complements previous approaches based on probability weighting and loss aversion to explain the high profitability of warranties and an aversion toward deductibles. It helps to account for why the value of a warranty is found to be positively related to the value of the product and why there is seemingly contradictory empirical evidence on how household income affects demand for warranties. The adapted model rationalizes a strong aversion to deductibles, and explains the observed sensitivity of this aversion to the insurance context. Finally, it predicts a strong impact of how an insurer pays out benefits on the value and cost of insurance. This can explain both the evidence on strong deductible aversion for flood insurance and the lack of such evidence for long-term care insurance
Affective Reactions Influence Investment Decisions: Evidence from a Laboratory Experiment With Taxation
We investigate the effect of taxation on gains and losses on the investment behavior of investors. Based on the insights of both economic research on the influence of taxation on investment behavior and psychological concepts dealing with the descriptive decision behavior of investors we expect investors to react to taxation of investment alternatives they face with behavioral and affective changes. By conducting a laboratory experiment with a total of 72 participants based on the experimental design of Fochmann, Kiesewetter, and Sadrieh (2012) that allows to quantify the reactions of investors to taxation on gains and loss deduction independent of their individual risk preferences and additionally measuring the affective reactions of our participants, we explore the role of affect in the relation of taxation and decision making. Hence, we are able to show that affective reactions to the taxation situations, in particular the perceived valence of these situations, influence the change in behavior of investors when confronted with taxation on gains and limited loss deduction
Zur Quantifizierung der Risikoprämien deutscher Versicherungsaktien im Kontext eines Multifaktorenmodells
Vorgestellt wird eine empirische Studie, welche den Zusammenhang zwischen Rendite und Risiko für ein Sample deutscher Versicherungsaktien im Zeitraum 1975-1998 untersucht. Als Methode wurde ein Multifaktorenmodell mit makroökonomischen Faktoren verwendet. Je nach Untersuchungszeitraum beläuft sich der Anteil der erklärten Varianz auf 9,29% bis 13,62%. Es konnte eine signifikanter negativer Einfluß zwischen der Veränderung des allgemeinen Zinsniveaus und den Risikoprämien von Versicherungsaktien identifiziert werden. Weiterhin ist Wechselkurses der DM zum US-Dollar signifikant
Real Tax Effects and Tax Perception Effects in Decisions on Asset Allocation
We test the predictions of the theoretical literature initiated by the study of Domar and Musgrave (1944) with a laboratory experiment in which subjects have to decide on the composition of an asset portfolio. Our simple design enables us to distinguish between Real Tax Effects and Perception Effects when a proportional income tax, with and without a full loss offset provision, is introduced. Observed investment behavior is partially inconsistent with the theoretical predictions if we do not control for the Perception Effects. However, if we consider these effects, we find support for the theory. The isolated Perception Effects can explain the unexpected behavior observed in previous studies and has both scientific and political implications
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