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School of Economics and Finance, Queen Mary, University of London >
Working Paper Series, School of Economics and Finance, Queen Mary, University of London >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/55191
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Vinokur, Leon | | en_US |
| dc.date.accessioned | | 2012-02-09T14:07:17Z | | - |
| dc.date.available | | 2012-02-09T14:07:17Z | | - |
| dc.date.issued | | 2009 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/55191 | | - |
| dc.description.abstract | | The 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.iso | | eng | | en_US |
| dc.publisher | | Queen Mary, Univ. of London, School of Economics and Finance London | | en_US |
| dc.relation.ispartofseries | | Working Paper // School of Economics and Finance, Queen Mary, University of London 651 | | en_US |
| dc.subject.jel | | D46 | | en_US |
| dc.subject.jel | | G18 | | en_US |
| dc.subject.jel | | Q58 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | prospect theory | | en_US |
| dc.subject.keyword | | dynamic reference | | en_US |
| dc.subject.keyword | | sustainable development | | en_US |
| dc.subject.stw | | Prospect Theory | | en_US |
| dc.subject.stw | | Werttheorie | | en_US |
| dc.subject.stw | | Nachhaltige Entwicklung | | en_US |
| dc.subject.stw | | Internationale Umweltpolitik | | en_US |
| dc.subject.stw | | Dynamisches Modell | | en_US |
| dc.subject.stw | | Theorie | | en_US |
| dc.title | | Evaluation with dynamic reference: Sustainable investment | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 614242967 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Working Paper Series, School of Economics and Finance, Queen Mary, University of London
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