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dc.contributor.authorVinokur, Leonen_US
dc.date.accessioned2012-02-09T14:07:17Z-
dc.date.available2012-02-09T14:07:17Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/55191-
dc.description.abstractThe Prospect Theory proposes to assess outcomes relative to a reference point (or benchmark). Although the literature recognises the relevance of dynamic benchmarks, most of the applications of Prospect Theory employ static reference points (or a status quo). This paper aims to develop a Prospect Theory framework for investment under uncertainty subject to a dynamic reference point, within the context of environmental policy making, where the distinction between a dynamic and a static frameworks is crucial. I evince that, in contrast to the static framework, in a dynamic framework the investor measures not only the absolute but also the relative risk premium (Sharpe ratio) of the investment opportunity, incorporating the risks and returns of a reference portfolio. I propose that there exists a relation between static and dynamic frameworks. Using the dynamic framework, I argue that in the environmental context international co-operation is the key to a successful environmental policy.en_US
dc.language.isoengen_US
dc.publisherQueen Mary, Univ. of London, School of Economics and Finance Londonen_US
dc.relation.ispartofseriesWorking Paper // School of Economics and Finance, Queen Mary, University of London 651en_US
dc.subject.jelD46en_US
dc.subject.jelG18en_US
dc.subject.jelQ58en_US
dc.subject.ddc330en_US
dc.subject.keywordprospect theoryen_US
dc.subject.keyworddynamic referenceen_US
dc.subject.keywordsustainable developmenten_US
dc.subject.stwProspect Theoryen_US
dc.subject.stwWerttheorieen_US
dc.subject.stwNachhaltige Entwicklungen_US
dc.subject.stwInternationale Umweltpolitiken_US
dc.subject.stwDynamisches Modellen_US
dc.subject.stwTheorieen_US
dc.titleEvaluation with dynamic reference: Sustainable investmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn614242967en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Paper Series, School of Economics and Finance, Queen Mary, University of London

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