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Risk sharing has been practiced in various forms in the financial industry. This paper is the first to study both dynamic and static risk‐sharing mechanisms for a group of participants over multiple periods. The design of risk‐sharing strategies is based on the Pareto optimization of quadratic utilities of participants' reserves. Such a framework builds a connection between portfolio optimization in the finance literature and that for risk sharing in the insurance literature. Building on the most common form of reinsurance—pro rata treaties, we propose a peer‐to‐peer (P2P) network for risk sharing. Assuming independent multivariate losses over time, we find that the optimal risk‐sharing allocation exhibits a three‐component structure with the long‐term limit and two correction terms. This allows us to show convergence of the risk‐sharing solution and the ratios of long‐term reserves. Furthermore, we study the impact of actuarial fairness on various risk‐sharing strategies and their long‐term limits. [ABSTRACT FROM AUTHOR]

Severance savings accounts (SSA) is an important government program aimed at protecting laid-off workers and stimulating savings. We analyze the distributive and aggregate effects of SSA in a rich life-cycle model with heterogeneous agents and incomplete markets. The model is estimated to be consistent with micro and macro data from Brazil. Our analysis reveals that, despite a decrease in voluntary savings, the policy expands aggregate savings, output, and wages, leading to long-run welfare gains. We show that although better risk sharing is important for our findings, the bulk of the gains come from improved efficiency as labor productivity increases and labor supply is reallocated towards highly educated workers and the early stages of the life cycle where agents are generally poorer and leisure is less valued. Interestingly, most of the gains we find accrue to less educated agents as the distribution of this group is skewed towards the informal sector, and they do not directly incur the additional burden from the increase in contributions. We also explore an alternative policy design in which households are allowed to access their severance savings accounts only after retirement, as in a defined contribution pension system. We find that despite greater uncertainty in medical costs later in life, households prefer a more flexible system that provides access to the SSA fund during working-age and after retirement. [ABSTRACT FROM AUTHOR]

This paper considers a risk sharing scheme of independent discrete losses that combines risk retention at individual level, risk transfer for too expensive losses and risk pooling for the middle layer. This ensures that pooled losses can be considered as being uniformly bounded. We study the no-sabotage requirement and diversification effects when the conditional mean risk-sharing rule is applied to allocate pooled losses. The no-sabotage requirement is equivalent to Efron's monotonicity property for conditional expectations, which is known to hold under log-concavity. Elementary proofs of this result for discrete losses are provided for finite population pools. The no-sabotage requirement and diversification effects are then examined within large pools. It is shown that Efron's monotonicity property holds asymptotically and that risk can be eliminated under fairly general conditions which are fulfilled in applications. [ABSTRACT FROM AUTHOR]

Population ageing undermines traditional social security pension systems that combine pay-as-you-go and defined benefits (DB). Indeed, demographic risk, if guaranteed benefits remain unaltered, will be borne entirely by workers through increases in the contribution rate. To avoid a substantial increase of the contributions and in order to maintain simultaneously the financial sustainability and the social adequacy of the public pension system, risk sharing and automatic balancing mechanisms need to be put in place. We present a two-step convex family of risk-sharing mechanisms. The first shares the risk between contributors and retirees through adjustments in the contribution rate, used to calculate the global covered wage bill, and the benefit ratio that represents the relationship between average pensions and wages. The second step studies how the retirees' risk should be shared between the different retirees' generations through adjustments in the replacement rate and a sustainability factor that affects pension indexation during retirement. We perform a detailed study of the effect of social planner's targets and solidarity weight between various generations in a deterministic and stochastic environment. [ABSTRACT FROM AUTHOR]

Aim Methods Results Conclusion To clarify the possible role of accidental asphyxiation/suffocation for infants in shared sleeping situations.As it has recently been shown that there is an association between maternal obesity and sudden unexpected infant death (SUID) an index was calculated by dividing parental body mass index (BMI) by the shared sleeping surface area.A much higher index was derived for an obese individual on a narrow sleeping area such as a sofa (50) compared to a thin adult on a queen‐sized mattress (5).The index may be a way of semi‐quantitating high, and low, risk shared sleeping situations. [ABSTRACT FROM AUTHOR]

In this article, we highlight an underdiscussed element of field work: reciprocal community requests—requests from community to engage beyond conducting ethical research and to support a community's own work. We draw from our own fieldwork in New Orleans, LA, Camden, NJ, and Philadelphia, PA, to make these requests visible and discuss their importance. We find that these reciprocal requests extend far beyond consideration of rigorous research or an ethics of consent. We discuss our framework of how to answer these requests, drawing from abolition principles of (1) Participatory Partnership, (2) Finding Shared Values, (3) Sharing Risk. [ABSTRACT FROM AUTHOR]

An abundant collection of literature investigates why migrants remit. Migrants' remittance‐sending practices can be driven by either altruism or the insurance motive. In this study, I first develop a stylized theoretical framework that generates testable predictions regarding the two frequently discussed motives. Then, using a panel data set pooled from three waves of the China Laborforce Dynamic Survey (2012–2016), I find empirical evidence for migrants' remittance‐sending practices under mixed motives that incorporate both altruism and insurance. Findings presented in this study are of great significance in understanding family ties and the risk sharing mechanism between rural‐to‐urban migrants and households of origin. [ABSTRACT FROM AUTHOR]

Plasma cell mucositis (PCM) is a rare inflammatory condition affecting the oral tissues, often triggered by allergens or inflammation. Autism spectrum disorder (ASD), a neurodevelopmental condition, poses unique challenges in oral care and hygiene due to behavioral and sensory issues. These conditions have not previously been reported in concert but may share risk factors including through the development of inflammation. We present a case of severe PCM in a 23‐year‐old male with ASD, illustrating diagnostic complexities and management strategies. The patient presented with widespread and severe lesions, raising the possibility of underlying causes. After multiple interventions, including topical steroids and trigger avoidance, the patient achieved near‐complete resolution of the oral lesions. Immunohistochemical and serological investigations suggested an underlying monoclonal gammopathy, warranting hematological evaluation. Our case shows how PCM and ASD can affect each other, highlighting the importance of understanding how these conditions interact, and the need for tailored approaches to oral health in this population. Further research is needed to elucidate any pathophysiological or risk‐based link between ASD and inflammatory oral conditions and to refine management strategies for PCM in patients with neurodevelopmental disorders. [ABSTRACT FROM AUTHOR]

We provide conditions for the feasibility of robust Pareto-improving (RPI) policies when markets are incomplete and the interest rate is below the growth rate. We allow for arbitrary heterogeneity in preferences and income risk and a wedge between the return to capital and bonds. An RPI improves risk sharing and can induce a more efficient level of capital. Elasticities of aggregate savings to changes in interest rates are the crucial ingredients to the feasibility of RPIs. Government debt may complement rather than substitute for capital in an RPI. Our analysis emphasizes the welfare-improving qualities of government bonds versus explicit redistribution. (JEL D52, E43, E62, H20, H63) [ABSTRACT FROM AUTHOR]

This article builds a two‐country model of gross capital flows where agents share tradable output risk using two bonds, subject to stochastic collateral constraints. Equilibrium portfolios are short in domestic bonds and long in foreign bonds because the endogenous movements of the real exchange rate provide a hedge against domestic output shocks. Under negative domestic shocks, these external positions transfer wealth from home to abroad. During the Great Recession, the model shows that such wealth transfer from the United States mitigated the consumption drop abroad. Quantitatively, financial frictions account for about half of the collapse in U.S. gross flows in 2008. [ABSTRACT FROM AUTHOR]

Background setting: Traditional spatial or non-spatial regression techniques require individual variables to be defined as dependent and independent variables, often assuming a unidirectional and (global) linear relationship between the variables under study. This research studies the Bayesian shared component spatial (BSCS) modeling as an alternative approach to identifying local associations between two or more variables and their spatial patterns. Methods: The variables to be studied, young offenders (YO) and violent crimes (VC), are treated as (multiple) outcomes in the BSCS model. Separate non-BSCS models that treat YO as the outcome variable and VC as the independent variable have also been developed. Results are compared in terms of model fit, risk estimates, and identification of hotspot areas. Results: Compared to the traditional non-BSCS models, the BSCS models fitted the data better and identified a strong spatial association between YO and VC. Using the BSCS technique allowed both the YO and VC to be modeled as outcome variables, assuming common data-generating processes that are influenced by a set of socioeconomic covariates. The BSCS technique offered smooth and easy mapping of the identified association, with the maps displaying the common (shared) and separate (individual) hotspots of YO and VC. Conclusions: The proposed method can transform existing association analyses from methods requiring inputs as dependent and independent variables to outcome variables only and shift the reliance on regression coefficients to probability risk maps for characterizing (local) associations between the outcomes. [ABSTRACT FROM AUTHOR]

Social relations, as a form of informal insurance system, exert both a promotional and a substitution effect on household participation in commercial insurance market. This study, rooted in social relation theory, categorizes social relations into strong and weak relations. Through establishing a social network model, we demonstrate the opposing effects of strong and weak relations on commercial insurance participation. By utilizing the data from the CHFS in 2015, we identify these contrasting influences and their mechanisms. It has been found that social relations can significantly enhance the likelihood and extent of household's participation in commercial insurance. Strong relations exert a substitution effect on household commercial insurance participation, while weak relations have a promotional effect. Strong relations enable household risk sharing through the mechanism of social reciprocity, consequently significantly reducing the household's demand for commercial insurance. Meanwhile, weak relations significantly increase household commercial insurance participation through information dissemination and peer effect mechanisms. This research provides a fresh perspective on how emerging economies and developing countriese can properly handle the relationship between traditional culture and modern market systems, thereby promoting the development of the commercial insurance market. [ABSTRACT FROM AUTHOR]

To ensure the successful implementation of the old community renewal project (OCRP), it is essential for the participants to allocate the project risks reasonably. Firstly, this study comprehensively identifies the 20 key risk factors of the OCRP. Secondly, an index system is established from three dimensions to evaluate the risk allocation ability of participants, including a total of nine evaluation indexes. Furthermore, a risk-sharing model based on TOPSIS method and bargaining game model is proposed to determine the optimal risk bearer and risk-taking ratio between the government and the private sector in OCRP. Finally, an OCRP in Chongqing is taken as a case study to verify the applicability of the developed model. The results indicate that in OCRP under PPP mode, the government need to independently bear 7 risks related to politics, law, policy, while the private sector needs to independently bear 8 risks mainly from project financing, design, construction, operation, and maintenance stages. In addition, the risk-taking ratios of 5 risks that require both parties to share are divided. The research findings provide references for ensuring the smooth implementation of urban renewal and sustainable development. [ABSTRACT FROM AUTHOR]

We introduce and analyze a novel collective defined contribution plan (CDC) that guarantees at least a target benefit as a lump sum upon retirement. The guarantee is provided by the remaining working generations under a pre-determined linear intergenerational risk sharing (IRS) rule. Through a simulation-based study, we show that the CDC scheme consistently outperforms the comparable individual DC scheme (IDC) in terms of risk-adjusted performance. An extensive sensitivity analysis indicates that this outperformance is robust, especially in a ‘double-hit’ scenario where the underlying market dynamics and the demographics are severely worse than expected. Our work indicates that guaranteed retirement benefits can be organized via a CDC scheme with IRS in a way that it is, first, beneficial for all generations to join and, second, resilient against demographic change. [ABSTRACT FROM AUTHOR]

In a decision-making problem where a group must select an action from risky lotteries to receive a payoff that needs to be distributed among the group members, the group's external risky choice and internal resource allocation emerge as two critical and interrelated subproblems. Individuals unconsciously exhibit social comparison behavior in many group contexts, profoundly impacting their payoff preferences. In this study, we first formulate a novel group resource allocation model and explore how the allocation equality of group resource is influenced by social comparisons. Particularly, we discuss the non-dictatorship condition under social comparison effects, which guarantees an extreme case of group resource allocation, i.e., "winner-take-all," does not appear. Subsequently, we investigate the group risky choice under the effects of social comparison. The main results show that (1) introducing social comparison effects can increase allocation equality when loss aversion is high but decrease allocation equality when loss aversion is low, and (2) the classical risk sharing rule still holds in the group under social comparison effects, but introducing social comparison effects will lead to the group being more risk averse. [ABSTRACT FROM AUTHOR]

The article analyzes criminal liability for improper omission in the supervision of the notary in relation to acts carried out in the service and the figure of the substitute in charge of compliance. Verifies the context and characteristics of the notary and registrar's activity in the Brazilian notarial model. Indicates the legal standards that govern the activity. It points out the system of responsibility in which the notary is inserted in a risk society and the implications of this for the community. Investigates criminal liability in the activity, as well as attempts to hold the notary criminally liable for any failure in supervision. In this line, it points out the problem of delegation in the complex structures of extrajudicial services to meet mass demands, as well as indicating the legal regime of this delegation and criminal liability for improper omission, pointing out elements such as risk sharing, primary duties and secondary duties. Finally, it points to a possible solution to this problem with the figure of sectoral supervision by the substitute in charge of compliance, in terms of the Spanish model. [ABSTRACT FROM AUTHOR]

Ecological barrier of national land space can be constructed to utilize the spatial-temporal evolution and influencing mechanism of landscape ecological risk in Xiuhe River Basin. It is of great significance to optimize the ecological risk management. This study aims to take the typical area with the mixed distribution in plain and mountainous areas in the time points of 2002, 2007, 2012, 2017 and 2022. Firstly, the grid database was constructed to cover the land use, human activities, climate and geographical location using GEE platform and ArcGIS 10.8 platform. Secondly, the landscape ecological risk of each evaluation unit was calculated using the landscape index. The spatial distribution of landscape ecological risk was then obtained by kriging interpolation. In addition, the spatial autocorrelation and topographic gradient classification models were used to reveal the spatial and temporal evolution of landscape ecological risk in horizontal and vertical space. Finally, the optimal parameter geographic detector was used to select the indicators from the human activities, climate conditions, natural environment and dimensions. A summary was made to clarify the influence and interaction mechanism of each factor on the landscape ecological risk. The results show that: 1) The spatial distribution of landscape ecological risks from 2002 to 2022 was characterized by "high concentration and low dispersion" from the perspective of temporal and spatial evolution, most of which were the low- and medium-low risk areas. The ecological risk level was basically high in the east and low in the west; The low-and medium-low risk areas increased by 491.89 km² over the past 20 years, while the high- and medium-high risk areas decreased by 926.17km². The ecological risk Basin was basically shifted from the high to low risk. The overall ecological risk shared the downward trend. 2) The landscape ecological risk was positively correlated in space, in terms of spatial and temporal distribution, with the significant spatial agglomeration and differentiation. The local agglomeration was mainly in the "H-H" and "L-L" pattern, with the gradually narrowing range of high-value agglomeration areas; The low ecological risk areas were distributed mainly in the middle and low terrain gradient on the vertical scale, while the high ecological risk areas were concentrated mostly in the range of low altitude and low slope gradient. The distribution index of high ecological risk increased with the decrease of altitude and the leveling of terrain, indicating the dominant distribution in space. 3) The landscape ecological risk was easily influenced by multi-dimensional factors. The explanatory power of natural environmental factors was generally stronger than that of human activities and climate conditions from the perspective of single factor. Each factor was relatively fluctuated in the different periods, but there was the strong influencing of topographic factors, human interference index, and annual average temperature; The interaction among factors showed a significant explanatory power enhancement at the level of factor detection, among which the interaction between natural environment and other factors was the strongest. The finding can also provide the useful reference for the management and control of ecological risks for the optimization of spatial layout. [ABSTRACT FROM AUTHOR]

With the financial burden of government increasing, the Public-Private-Partnership (PPP) model has become an alternative method to develop public infrastructure. To efficiently promote the private sector to participate in PPP, making a proper incentive policy is critical for the government. This paper examined the effects of two governmental support policies, i.e., tax reduction and risk-sharing, on the investment decision of the private sector, and further compared the relative efficacy of these two policies. The results manifest that: first, both tax reduction and risk-sharing policies motivate private sector to invest earlier; second, although the capital structure decision of the private sector is free from the influence of the risk-sharing policy, the optimal debt level under tax reduction policy shows a U-shape relationship with the incentive ratio; third, when completion risk is large, there exists efficiency loss for total benefits of the project under the risk-sharing incentive policy. Besides, the efficacy of two incentive policies varies depending on the scenario. Firstly, given the same incentive ratio, the risk-sharing policy proves to be more effective than the tax reduction policy. Secondly, when considering the same level of incentive loss for government, tax reduction policy outperforms than risk-sharing policy in terms of efficacy. Thirdly, the efficacy of these policies also depends on the completion risk level: under small completion risk, risk-sharing policy is more effective, whereas under large completion risk, the tax reduction policy takes precedence. Based on these findings, some managerial insights that could assist government in formulating more effective incentive policies are proposed. [ABSTRACT FROM AUTHOR]

Economic suffering prompted by the Covid-19 pandemic, coming on the heels of earlier 2008 global-financial and 2015 migration crises, revived debate on citizen support for European fiscal integration policies. Such support can be expected to reflect not only individual-level characteristics but also the extent of crisis exposure in subnational regional contexts where individuals live and work. Unfortunately, existing studies of public support have said little about such regional contexts. This study hence explores how regional-level experience with 'polycrisis' affects support for EU fiscal capacities, combining regional-level crisis measures with a 2020 survey experiment on European citizens' preferences towards fiscal capacity instruments in 5 European countries (DE, ES, FR, IT, NL). This allows tests of whether individual support for various European fiscal capacities reflect regional differences in covid suffering, growth losses after the 2008 global financial crisis, and migration spikes from the 2015 migration crisis. We expect and find that citizens in regions more heavily impacted by the pandemic, financial crisis, and (albeit less so) migration crisis – measured separately and as a composite – tend to more readily support European fiscal integration capacity that is redistributive between countries, financed through progressive taxation, refrains from budgetary conditionality, and is lenient towards reform non-compliance. [ABSTRACT FROM AUTHOR]

We show that a model of "the spirit of capitalism", or the concern for social status, can generate a high degree of international risk sharing as measured by asset prices, even when consumption and portfolio holdings exhibit "home bias". We also show how portfolio externalities can arise in the model and highlight the caution that one needs in interpreting asset-price-based measures of international risk sharing: in the presence of portfolio externalities, even when the measured degree of risk sharing is perfect, it is still possible for government policies to induce investors to hold better-diversified portfolios and attain higher welfare. [ABSTRACT FROM AUTHOR]

We consider the problem of finding (Pareto-)optimal allocations of risk among finitely many agents. The associated individual risk measures are law-invariant, but with respect to agent-dependent and potentially heterogeneous reference probability measures. Moreover, we assume that the individual risk assessments are consistent with the respective second-order stochastic dominance relations, but remain agnostic about their convexity. A simple sufficient condition for the existence of Pareto optima is provided. The proof combines local comonotonic improvement with a Dieudonné-type argument, which also establishes a link of the optimal allocation problem to the realm of "collapse to the mean" results. [ABSTRACT FROM AUTHOR]

The essence of credit guarantee financing (CGF) is the risk sharing between the guarantor and financial institution. Inspired by the case of the CGF of Evergrowing Bank, this study aims to explore the risk compensation strategies and guarantee decisions for guarantors under CGF and provide decision support for the efficient operation of the supply chain CGF. Considering three kinds of risk compensation contracts, namely cost-sharing, revenue-sharing, and quantity-flexibility, the Stackelberg game method is used to construct the supplier CGF model under the retailer's financial constraints. The results show that additional contract parameters, interest rate, debtor's initial capital, and implicit bankruptcy cost are the main factors affecting the credit guarantee coefficient decision. Besides, we find optimal additional contract parameters that can optimize the profits of supply chain members and complete the contract parameter design. The quantity-flexibility contract is the most effective strategy for the supplier to compensate for guarantee risk. However, the retailer's choice of additional contract depends on the initial capital or implicit bankruptcy cost. The main innovation of this study is that it endogenizes the credit guarantee decision and explores the details of the risk compensation contract. Further, the impact of implicit bankruptcy cost on CGF decision is also mentioned for the first time in supply chain finance. Our findings lead to recommendations for the optimal credit guarantee scheme and contract design of compensation for guarantee risk in the supply chain. [ABSTRACT FROM AUTHOR]

We analyse economic (EI) and financial (FI) integration, and their effects on international consumption risk sharing (RS) across 40 countries, including 21 developed (DEV) and 19 emerging (EM) markets, from 1995 to 2019. Utilizing the metric for EI and FI of Akbari et al. (2020, Journal of Financial and Quantitative Analysis, 55, 2270–303), and various RS proxies, we find that increasing EI reduces RS in EM, while FI enhances it. Conversely, there is no evidence that EI or FI influences RS in DEV, contradicting theoretical predictions from international business cycle models. These results remain robust when controlling for trade and financial openness and capital flow restrictions. Additionally, we investigate the direct influence of capital controls on market integration. Relaxing equity inflow controls significantly enhances market integration, specifically boosting EI in DEV, and FI in EM. In contrast, equity outflow restrictions and controls on other asset categories do not significantly impact market integration. Our findings challenge the idea that simply removing legal restrictions on international capital flows is sufficient or necessary to achieve greater market integration and improved RS. This underscores the perspective that adjustments in capital controls alone may not ensure macro‐financial stability. [ABSTRACT FROM AUTHOR]

Abstract To ensure the successful implementation of the old community renewal project (OCRP), it is essential for the participants to allocate the project risks reasonably. Firstly, this study comprehensively identifies the 20 key risk factors of the OCRP. Secondly, an index system is established from three dimensions to evaluate the risk allocation ability of participants, including a total of nine evaluation indexes. Furthermore, a risk-sharing model based on TOPSIS method and bargaining game model is proposed to determine the optimal risk bearer and risk-taking ratio between the government and the private sector in OCRP. Finally, an OCRP in Chongqing is taken as a case study to verify the applicability of the developed model. The results indicate that in OCRP under PPP mode, the government need to independently bear 7 risks related to politics, law, policy, while the private sector needs to independently bear 8 risks mainly from project financing, design, construction, operation, and maintenance stages. In addition, the risk-taking ratios of 5 risks that require both parties to share are divided. The research findings provide references for ensuring the smooth implementation of urban renewal and sustainable development.

In highly uncertain times, firms are increasingly exhibiting risk aversion to uncertain demand and altruism to supply chain partners to reduce risk and maintain stability. To deal with high demand fluctuations, numerous firms are adopting information‐sharing strategies. We study how a retailer's risk aversion and altruism affect her demand information‐sharing decision by constructing game‐theoretic models. We first show that information sharing makes double marginalization (DM) stronger and hurts the retailer and generates an information‐sharing DM effect. The retailer's risk aversion strengthens this effect, while her altruism weakens the effect. Meanwhile, information sharing generates an uncertainty reduction effect on the risk‐averse retailer by reducing volatility and an altruism improvement effect on the altruistic retailer by increasing the manufacturer's profit. Whether information sharing benefits the retailer depends on her level of risk aversion and altruism. The retailer prefers voluntary sharing when both her risk aversion and altruism are high. [ABSTRACT FROM AUTHOR]

The application of blockchain technology solves the trust problem between core enterprises (CEs), small and medium-sized enterprises (SMEs), and commercial banks, facilitating CEs and commercial banks to provide guarantee for SMEs and finance them, respectively. This study considers a three-level supply chain composed of a manufacturer, a distributor, and a capital-constrained retailer, and explores the operational strategies of blockchain platform finance (BPF), a supply chain finance mode enabled by blockchain technology. First, optimal decision solutions are obtained through decision and parameter sensitivity analyses. Second, by comparing the BPF and SME independent finance (SIF) modes, we obtain the applicable BPF mode conditions; for instance, when the retailer's initial capital is low and the production cost is high, BPF is the better option for the manufacturer, distributor, and retailer compared to SIF. Third, we find that risk sharing improves the financing efficiency of the BPF mode. This study provides a theoretical basis for decision makers to implement blockchain supply chain finance at three levels: joint financing and operation decision-making, financing mode selection, and financing efficiency improvement. [ABSTRACT FROM AUTHOR]

Informal risk sharing within social networks and formal financial contracts both enable households to manage risk. We find that financial contracting reduces participation in social networks. Specifically, increased crop insurance usage decreased local religious adherence and congregation membership in agricultural communities. Our identification utilizes the Federal Crop Insurance Reform Act of 1994 that doubled crop insurance usage nationally within a year, although changes in usage varied across counties. Difference-in-difference and Spatial First Difference tests confirm that households substituted insurance for religiosity. This substitution was associated with reductions in crop diversification and crop yields, indicating an increase in moral hazard. [ABSTRACT FROM AUTHOR]

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Abstract Many health insurance markets are organized by principles of regulated competition. Regulators of these markets typically apply risk equalization (aka risk adjustment) and risk sharing to mitigate risk selection. Risk equalization and risk sharing can have various positive and negative effects on efficiency and fairness. This paper provides a comprehensive framework for ex-ante evaluation of these effects. In a first step, we distinguish 22 potential effects. In a second step, we summarize and discuss quantitative measures used for evaluating risk equalization and risk sharing schemes in academic research. To underline the relevance of our work, we compare our framework with an existing framework that was previously used in the Dutch regulated health insurance market. We conclude that this framework is incomplete and uses inappropriate measures. To avoid suboptimal policy choices, we recommend policymakers (1) to consider the entire spectrum of potential effects and (2) to select their measures carefully.

This paper investigates a stochastic model of a continuous-time target benefit pension system with habit formation, where members' contributions are predetermined and pension payments depend on the financial condition of the system. Moreover, risk sharing among different generations is considered and we incorporate the habitual benefit payment process into the plan manager's objective. Concretely, the plan manager aims to minimize the deviation between actual payments and habitual payments, which can minimize the combined benefit-risk (i.e. deviation from the habitual target) and intergenerational transfers effectively. Furthermore, the pension fund is allowed to invest in a risk-free asset and a risky asset. By employing the martingale method, we derive the optimal investment strategy and the benefit adjustment strategy explicitly. Finally, numerical analysis is provided to illustrate the effects of model parameters on the optimal strategies. [ABSTRACT FROM AUTHOR]

As with previous crises, EU-wide risk-sharing has also been demanded during the Covid-19 pandemic. Yet, this crisis did not unfold in a political vacuum. Instead, public backing for EU-wide risk-sharing might have been informed by past crises experiences. Building on the idea of experienced reciprocal risk-sharing, we assume that the willingness to share risks is greater when a crisis-ridden country has also shown solidarity before, whereas readiness to cooperate may be mitigated by non-solidarity-oriented behaviour in the past. We test this assumption based on a survey experiment carried out in eleven EU countries in 2020. Our findings suggest that, when people are given information about whether another country has acted in solidarity in the past, this influences their willingness to support risk-sharing in the present. However, we also find evidence that respondents' preferences outside the experimental setting do not always match their country's recent history of reciprocal risk-sharing. [ABSTRACT FROM AUTHOR]

In many developing countries, poor households face multiple shocks that disrupt their consumption patterns and lead to an increased welfare loss. Consequently, households adopt coping mechanisms that negatively impact their overall well-being. While social safety nets have been implemented to protect vulnerable households, it is essential to assess their overall effectiveness, both in terms of their impact and their potential to replace the harmful coping strategies adopted by households. Therefore, the primary objective of this study is to examine the impact of cash transfers provided by the Benazir Income Support Program (BISP) on the consumption patterns of households in Pakistan, with a particular emphasis on how these transfers provide consumption insurance to ultra-poor families encountered with idiosyncratic and covariate shocks. The study analyzes both food and non-food expenditure to gain insights into the effectiveness of the program in providing economic security to vulnerable households. Using three rounds of the BISP survey (2011–2013–2016), the empirical analysis is done by employing regression discontinuity design (RDD), difference-in-difference (DID) technique, and ordinary least squares method. Using the DID approach, we find that from 2011 to 2016 the overall food and non-food consumption of BISP beneficiaries have increased considerably and these results are highly significant as well. However, the estimates for RDD are not significant for the years 2013 and 2016. We also observed households' consumption behavior in the presence of shocks and found that in the wake of idiosyncratic shocks, poor households can protect their consumption through informal transfer mechanisms by securing loans from family, friends, and landlords. However, this mechanism collapses when households encounter covariate shocks. Furthermore, BISP cash transfers are primarily effective in mitigating the impact of employment loss, loss of livestock, and the rise in food prices and remain inadequate in providing insurance against major other shocks encountered by the targeted poor households. The results indicate that BISP has the potential to substitute informal coping strategies used by the poor, it requires substantial transfers to offer comprehensive consumption insurance to the poorest of the poor in Pakistan. [ABSTRACT FROM AUTHOR]

While share pledging is a widespread leveraged financing practice in global stock markets, its potential impact on firms' exposure to market risk remains a topic of concern. In the context of the Chinese market, this study investigates the relationship between insiders' share pledging pressure and stock liquidity risk, with a particular focus on stock liquidity commonality. Using data from Chinese firms listed between 2009 and 2022, we find a positive correlation between heightened share pledging pressure and increased stock liquidity commonality. To precisely capture the margin call pressure arising from share pledging, we introduce an innovative method that considers both the price at which shares are pledged and their subsequent price dynamics. This relationship persists after addressing endogeneity concerns. Furthermore, we find that firms under significant share pledging pressure often resort to earnings manipulation, which exacerbates stock liquidity commonality. The findings underscore the significance of understanding the risks and impacts of share pledging in terms of liquidity risk. Insiders who utilize share pledging as a financing channel face a delicate balance between the benefits of expanded funding sources and the risks of losing control due to sustained stock price declines. This study provides valuable insights for investors, policymakers, and regulatory authorities in managing the potential liquidity risks associated with share pledging activities in the Chinese market. [ABSTRACT FROM AUTHOR]

We extend the framework introduced in 'Collective Arbitrage and the Value of Cooperation' by F. Biagini, A. Doldi, J.-P. Fouque, M. Frittelli, and T. Meyer-Brandis (arXiv: 2306.11599v2, 2024) in order to analyze collective dynamic risk measures. In segmented markets, we explore the implications of cooperation on dynamic risk measurement, focusing particularly on aggregation and time consistency. [ABSTRACT FROM AUTHOR]

Low income households in agrarian developing economies face considerable livelihood risks, which have negative impacts on welfare. A growing literature focuses on internal constraints on development, which can negatively affect saving and investment behavior. Here I propose that internal constraints may also hinder risk management. Specifically, I present a theoretical model that explores how fairness preferences may create an internal constraint on risk sharing, particularly in a context of wealth inequality, and thereby also affect demand for formal insurance. To test this theory, I utilize a lab experiment, conducted in Ghana, to investigate the impact of wealth inequality on utilization of risk‐management tools, interpersonal risk sharing and formal insurance, and explore how fairness preferences may mediate this effect. I find that inequality reduces risk sharing and increases demand for insurance. Moreover, I find suggestive evidence that fairness preferences create an internal constraint on risk sharing under inequality. [ABSTRACT FROM AUTHOR]

Objectives Methods Results Conclusions Our objective was to assess the numbers of eligible people living with HIV attending one HIV clinic and receiving statins, the factors increasing the likelihood of statin prescription, the knowledge and involvement of primary care in cardiovascular risk prevention in people living with HIV, and the barriers to and drivers of shared care between general practitioners (GPs) and an HIV centre.This was a retrospective case note review identifying cardiovascular risk, medications, and communication between the HIV clinic and GPs via an electronic survey of GPs identifying their knowledge about statin indications in people living with HIV.In total, 62% of GPs were unaware of the indication for statins in people living with HIV aged >40 years. A total of 33% of patients received statins, rising to 61% of patients with independent indications for statins. 92% of all statin prescriptions were provided by the GP. Statins were recommended in 25% of clinic letters but were not prescribed in 72% of these cases. There was discordance between antiretrovirals prescribed by the HIV clinic and those documented on the GP record in 60% of cases and in 40% of non‐antiretroviral medications.Our results indicate that GPs can engage people living with HIV in cardiovascular risk reduction measures but may not consider HIV a cardiovascular risk. Written communication alone is insufficient to improve safe patient care. Shared HIV care needs bidirectional shared medical records. Ongoing work needs to ensure that HIV is recognized as an independent cardiovascular risk factor. [ABSTRACT FROM AUTHOR]

Based on the perspective of the firm life cycle, this study constructs a complex bank-firm network system model under the influence of four technology financial policies (special funds, tax incentives, loan subsidies, and risk sharing) by depicting the behaviours of scientific innovation firms and banks. It examines the impact of the technology financial policies on the systemic risk of the bank-firm network system. Furthermore, this study examines the implementation effects of different technology financial policies at the three stages of start-up, growth, and maturity of scientific innovation firms. Based on the study, loan subsidies are the most effective of all four technology financial policies; however, the strength of the loan subsidies should be controlled in order to avoid excessive bank-firm credit exposure. Moreover, the study finds that policy support for scientific innovation firms is most effective during the start-up stage. [ABSTRACT FROM AUTHOR]

Introduction: The 21-point Brain Care Score (BCS) is a novel tool designed to motivate individuals and care providers to take action to reduce the risk of stroke and dementia by encouraging lifestyle changes. Given that late-life depression is increasingly recognized to share risk factors with stroke and dementia, and is an important clinical endpoint for brain health, we tested the hypothesis that a higher BCS is associated with a reduced incidence of future depression. Additionally, we examined its association with a brain health composite outcome comprising stroke, dementia, and late-life depression. Methods: The BCS was derived from the United Kingdom Biobank baseline evaluation in participants with complete data on BCS items. Associations of BCS with the risk of subsequent incident late-life depression and the composite brain health outcome were estimated using multivariable Cox proportional hazard models. These models were adjusted for age at baseline and sex assigned at birth. Results: A total of 363,323 participants were included in this analysis, with a median BCS at baseline of 12 (IQR: 11-14). There were 6,628 incident cases of late-life depression during a median follow-up period of 13 years. Each five-point increase in baseline BCS was associated with a 33% lower risk of incident late-life depression (95% CI: 29%-36%) and a 27% lower risk of the incident composite outcome (95% CI: 24%-30%). Discussion: These data further demonstrate the shared risk factors across depression, dementia, and stroke. The findings suggest that a higher BCS, indicative of healthier lifestyle choices, is significantly associated with a lower incidence of late-life depression and a composite brain health outcome. Additional validation of the BCS is warranted to assess the weighting of its components, its motivational aspects, and its acceptability and adaptability in routine clinical care worldwide. [ABSTRACT FROM AUTHOR]

The current blockchain systems lack the ability to resist quantum computing attacks. This puts the confidentiality and integrity of data in blockchain-based data sharing at risk. The security of data sharing faces the new challenges. In this paper, a blockchain data sharing scheme based on quantum re-encryption is proposed. The presented scheme uses quantum key and unitary matrix to encrypt data for two times. It ensures data sharing between the data owner and the data accessor without revealing the owner's private key. Moreover, it utilizes a quantum hash function based on controlled alternate quantum walks to compute quantum hash value. The obtained hash value has higher randomness, collision resistance and input sensitivity. Additionally, this method combines on-chain and off-chain storage. The combined storage method effectively alleviates the storage pressure on the blockchain. Finally, the security of the proposed scheme is analyzed. The results show that this scheme ensures the integrity, confidentiality and non-tampering of the shared data. At the same time, it protects the security of data owner's private keys. [ABSTRACT FROM AUTHOR]

Faster regulatory approval processes often fail to achieve faster patient access. We seek an approach, using performance-based risk-sharing arrangements, to address uncertainty for payers regarding the relative effectiveness and value for money of products launched through accelerated approval schemes. One important reason for risk sharing is to resolve differences of opinion between innovators and payers about a technology's underlying value. To date, there has been no formal attempt to set out the circumstances in which risk sharing can address these differences. We use a value of information framework to understand what a performance-based risk-sharing arrangements can, in principle, add to a reimbursement scheme, separating payer perspectives on cost-effectiveness and the value of research from those of the innovator. We find 16 scenarios, developing 5 rules to analyze these 16 scenarios, identifying cases in which risk sharing adds value for both parties. We find that risk sharing provides an improved solution in 9 out of 16 combinations of payer and innovator expectations about treatment outcome and the value of further research. Among our assumptions, who pays for research and scheme administration costs are key. Steps should be undertaken to make risk sharing more practical, ensuring that payers consider it an option. This requires additional costs to the health system falling on the innovator in an efficient way that aligns incentives for product development for global markets. Health systems benefits are earlier patient access to cost-effective treatments and payers with higher confidence of not wasting money. Innovators get greater returns while conducting research. • Accelerated regulatory approvals often fail to provide early access because of uncertainty about value. Performance-based risk-sharing arrangements (PBRSAs) have been used in some circumstances to achieve access, but many payers and innovators are resistant to using them. Value of Information approaches allow analysis of when risk sharing may help provide early access but, to date, have not addressed PBRSA use to resolve differences of opinion between innovators and payers about a technology's value. • We use a Value of Information framework to understand what a PBRSA can add to a reimbursement scheme, separating payer perspectives on cost-effectiveness and on the value of research from those of the innovator. We find 16 scenarios, developing 5 rules to analyze these 16 scenarios, identifying situations in which risk sharing adds value for both parties. We show that PBRSAs can address differences of opinion between payers and innovators about underlying value in 9 out of 16 scenarios. • Incentives should be aligned to make PBRSA choices efficient. Key requirements are that (1) innovators pay for both evidence generation costs and for the administration of PBRSAs, (2) prices could go up or down after evidence collection, and (3) innovators face penalties if they do not undertake and complete agreed research. Health systems benefits are earlier patient access to cost-effective treatments and payers having higher confidence of not wasting money. Innovators get greater returns while conducting research. [ABSTRACT FROM AUTHOR]

This study investigates how credit information sharing conditions debt financing to boost the profitability of 20 listed enterprises on the Ghana Stock Exchange between 2003 and 2013. We employ robust least squares and simultaneous bootstrapping models in a panel setting. Our findings show that the impact of debt financing on profitability increases when it is subject to information sharing and takes the shape of short, long, and total debts. In the worst-case situation, contingent debt financing reduces the negative impact of debt financing on profitability. Therefore, authorities must adopt laws and legislation that deepen, widen, and strengthen credit information sharing to offset the negative impact of information asymmetry on loan financing and business profitability. [ABSTRACT FROM AUTHOR]

Reading is a key gateway to learning, enabling independent access to a range of educational materials. Thus, reading difficulties leave a child particularly vulnerable to academic problems in later schooling and beyond. However, while there is good awareness of children with word reading difficulties within the education system, much less is known about the children who struggle to comprehend texts despite having adequate word reading skills. In this registered report, we investigated the later education and occupational outcomes of 947 children initially identified as having poor reading comprehension at 8–9 years from the Avon Longitudinal Study of Parents and Children, compared to peers not identified as having a specific reading difficulty (n = 4,516) and those with word reading weaknesses (n = 1,383). We observed that children with comprehension weaknesses (a) were less likely than typical readers to meet U.K. national educational targets as they progressed through education, with more marked differences for mathematics and science than English; (b) had poorer qualifications at the point of leaving compulsory education, which were comparable to children with word reading weaknesses; and (c) were the group at greatest risk of being out of employment, education and training at age 20. However, there was considerable variability in outcomes, with much of the risk shared with socio-demographic factors. The results address an important gap in knowledge regarding the functional consequences of reading comprehension difficulties in mid-childhood and inform discussions concerning the need for identification and targeted support in classroom settings. Educational Impact and Implications Statement: Some children struggle with reading comprehension beyond what would be expected based on their word reading skills, yet comparatively little targeted support is available for these children. In this study, we used a large U.K. sample to show that comprehension weaknesses are associated with poorer performance in national assessments at ages 10–11, 13–14, and 15–16 years, with outcomes comparable to children with word reading weaknesses. Children with comprehension weaknesses were also more likely to be out of education and employment at age 20, and much of this risk was shared with socio-demographic factors. The findings inform discussions over the need and nature of support required for reading comprehension weaknesses in the classroom. [ABSTRACT FROM AUTHOR]

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Many health insurance markets are organized by principles of regulated competition. Regulators of these markets typically apply risk equalization (aka risk adjustment) and risk sharing to mitigate risk selection. Risk equalization and risk sharing can have various positive and negative effects on efficiency and fairness. This paper provides a comprehensive framework for ex-ante evaluation of these effects. In a first step, we distinguish 22 potential effects. In a second step, we summarize and discuss quantitative measures used for evaluating risk equalization and risk sharing schemes in academic research. To underline the relevance of our work, we compare our framework with an existing framework that was previously used in the Dutch regulated health insurance market. We conclude that this framework is incomplete and uses inappropriate measures. To avoid suboptimal policy choices, we recommend policymakers (1) to consider the entire spectrum of potential effects and (2) to select their measures carefully. [ABSTRACT FROM AUTHOR]

Islamic Banking, also known as interest-free banking, operates in strict adherence to Sharia or Islamic law, differentiating itself from conventional banking through the prohibition of interest (Riba) and engagement in unethical business activities. This paper provides a comprehensive overview of Islamic banking principles, including profit and loss sharing, risk sharing, and the prohibition of speculation (Maisir) and uncertainty (Gharar). The historical development of Islamic banking, from its origins in the early Islamic era through its modern resurgence in the 20th century, is explored. Additionally, the paper examines the distinct features that set Islamic banking apart from conventional banking, emphasizing the ethical framework and social responsibilities inherent in Islamic finance. The growth and stability of Islamic financial institutions in the global market, particularly during economic downturns, highlight its potential as a viable alternative to traditional banking systems. [ABSTRACT FROM AUTHOR]

With the increase in cell and gene therapy (CGT) clinical trials in recent years has come a subsequent increase in the number of contract development and manufacturing organizations (CDMOs). Successful transition from development and early-phase clinical trials to commercialization of a CGT product often depends on selecting the best-suited CDMO. However, many CGT companies are small biotech companies that lack expertise in the field or do not have experience selecting and transferring a process to a CDMO. Given the interest in this topic, a roundtable with CGT developers and CDMO members at the 2023 annual meeting of the International Society of Cell and Gene Therapy Paris discussed these critical aspects of product development, including technical expertise, risk sharing and timing of partnerships. Here, we'll analyze the considerations discussed by the panel and elaborate on other factors crucial for CGT development. [ABSTRACT FROM AUTHOR]