Intertemporal asset allocation when the underlying factors are unobservable

In the face of the recent financial crisis there is increased focus on long-term investment strategies. This is particularly true for institutional investors who manage our retirement savings. Simultaneously there is increased demand that financial assets be invested with an understanding of long-term environmental and social sustainability. Responsible investing provides a long-term sustainable investment strategy that values environmental, social and governance factors in investment decision-making. Responsible Investing has always had a broad mandate. Put simply, it is a long-term sustainable investment strategy that values environmental, social and governance factors in investment decision-making. This Introduction to the Next Generation of Responsible Investment explores this topic and provides an overview of each of the chapters in the volume.

In this paper, a novel framework for the estimation of optimal investment strategies for combined wind-thermal companies is proposed. The medium-term restructured power market was simulated by considering the stochastic and rational uncertainties, the wind uncertainty was evaluated based on a data mining technique, and the electricity demand and fuel price were simulated using the Monte Carlo method. The Cournot game concept was used to determine the Nash equilibrium for each state and stage of the stochastic dynamic programming (DP). Furthermore, the long-term stochastic uncertainties were modeled based on the Markov chain process. The long-term optimal investment strategies were then solved for combined wind-thermal investors based on the semi-definite programming (SDP) technique. Finally, the proposed framework was implemented in the hypothetical restructured power market using the IEEE reliability test system (RTS). The conducted case study confirmed that this framework provides robust decisions and precise information about the restructured power market for combined wind-thermal investors.

Assessing Long-Term Investor Performance: Principles, Policies and Metrics

The project "LONG TERM INVESTMENT DECISION" gives the brief idea regarding the various investment options that are prevailing in the financial markets in India.With lots of investment options like banks, Fixed Deposits, Government bonds, stock market, real estate, gold and mutual funds the common investor ends up more confused than ever.Each and every investment option has its own merits and demerits.This project I have discussed about few investment options available.Any investor before investing should take into consideration tae safety, liquidity, returns, entry/exit barriers and tax efficiency parameters.We need to evaluate each investment option on the abovementioned basis and then invest money.Today investor faces too much confusion in analyzing the various investment options available and then selecting the best suitable one.In the present project, investment options are compared on the basis of returns as well as on the parameters like safety, liquidity, term holding etc. thus assisting the investor as a guide for investment purpose.

Optimal reinsurance and investment strategies for insurers with mispricing and model ambiguity

This study examines the financial literacy of youths in Bhopal, with a specific focus on their understanding of Systematic Investment Plans (SIPs) as an investment strategy. As financial markets become more accessible, SIPs present a structured investment approach, yet the extent of knowledge and adoption among young individuals remains uncertain. The research aims to assess the youths' comprehension of SIPs, identify factors influencing their participation, and evaluate their attitudes toward long-term investment strategies. Financial literacy, especially regarding SIPs, is crucial for young people to build wealth and secure their financial future. In Bhopal, as in other regions, there is a need for greater awareness of systematic investment options to promote disciplined saving and investing. This study highlights knowledge gaps and provides insights for improving financial education programs for youth. The primary objective of this research is to evaluate the financial literacy of youth in Bhopal regarding SIPs, exploring their knowledge, factors influencing investment decisions, and the role of socio-economic variables in shaping their participation. For this study, a mixed-method approach will be used, combining quantitative data from structured questionnaires with qualitative insights from interviews and focus groups. The data will be analyzed using statistical methods for quantitative results and thematic analysis for qualitative findings. The findings will inform the creation of targeted financial education programs on SIPs to improve youth financial literacy, promote informed investment decisions, and encourage early, consistent investing. Additionally, the study may lay the groundwork for future research on financial literacy and investment behaviors in other regions of India.

sumption in period j, such that either the risk aversion index -u(x)/u'(x), or the risk aversion index -xu'(x)/u'(x), is a positive constant for all x > 0. In a second paper [6], it was further shown that this model, developed with the individual in mind, also gives rise to an induced theory of the firm under risk for the same class of utility functions. In the foregoing model, it was assumed that the individual's horizon was infinite (or known with certainty). In this paper, we consider the same basic model with three modifications. First, we postulate that the individual's, lifetime is a random variable with a known probability distribution. Second, we introduce a utility function intended to represent the individual's bequest motive. Third, we offer the individual the opportunity to purchase insurance on his life. It is found that when some or all of these modifications are made, all of the more important properties possessed by the optimal consumption and investment strategies under a certain horizon are preserved, albeit only under special conditions. In Section 2, the various components of the decision process are constructed. In the earlier model, the individual's objective was assumed to be the maximization of expected utility from consumption over time. Here, we postulate, more generally, that his objective is to maximize expected utility from consumption as long as he lives and from the bequest left upon his death. As before, the individual's resources are assumed to consist of an initial capital position (which may be negative) and a non-capital income stream. The latter, which may possess any time-shape, is assumed to be known with certainty and to terminate upon his death. In addition to insurance available at a fair' rate, the individual faces both financial opportunities (borrowing and lending) and an arbitrary number of productive investment opportunities. The interest rate is presumed to be known but may have any time-shape. The returns from the productive opportunities are assumed to be random variables, whose probability distributions may differ from period to period but are assumed to satisfy the no-easy-money condition. While no limit is placed on borrowing, the individual is required to be solvent at the time of his death with

Energy efficiency (EE) level has become an essential environmental index of products and can be improved by EE innovation. With consideration of EE level evolution and market differentiation, an optimal control model under a two-market framework is proposed to investigate EE innovation and two-stage pricing strategies. Impacts of consumer environmental awareness (CEA) and EE standard on optimal investment and pricing strategies are discussed. Results indicate that environmental awareness and standard result in strategy shift. As environmental awareness increases, the EE level driven by investment strategy may switch from staying in traditional market, to expanding markets by entering the green market and remaining at the standard, till capturing the green market and keeping above that standard. Impacts of standard on strategy shift exhibit a tricky trend. For loose and appropriate standards, the producer prefers to invest more to expand market by entering the green market with the increase of standard. However, a stringent standard may prevent the producer from entering the green market. In addition, optimal prices in both stages are positively impacted by the CEA and the standard.

The study aims to provide a comprehensive comparative analysis of active vs. passive investment strategies in the context of pension funds, aimed at providing insights into the dynamic discourse surrounding active and passive investment. Through an exploration of empirical data and scientific discourses, the study highlights the potential benefits and limitations of each strategy, ultimately contributing to the informed decision-making process for pension fund managers. The study will also use the Markowitz model and efficient boundary methods to analyze and optimize investment strategies, focusing on risk, cost and cost management, and investment strategy. The analysis will also provide insights that can be done for fund managers to target higher investment returns, in terms of influencing company decisions and behavior to implement long-term investment strategies by reallocating some assets to other investment strategies

The efficacy of any investment should be evaluated on the basis of a risk-reward analysis, which is why, in this chapter, we examine the relationship between risk and reward as it applies to mutual-fund investing. The chapter begins with a look at the principle of diversification, which is a major advantage afforded to mutual fund investors. It then offers an example of a typical mutual-fund investment objective and explains that objective by delineating its various parts, with special emphasis placed on the concept of investor constraint. The chapter concludes with an explanation of some of the common investment strategies that are used in long-term mutual-fund investing and how to determine which mutual fund shares have been redeemed.

We present a new urban transit investment model, integrating transport economic theory regarding optimal investment with transport modeling, planning, and network design. The model expands on the theory of optimal transit network planning and investment, accounting for the effects of the investment on accessibility, level of service, and speed. The model seeks long-term optimal transit investment and optimal road pricing simultaneously in an integrated, unified model. To illustrate the advantages of our approach, we applied our empirical model to two case studies, Tel Aviv and Toronto, integrating our theoretical contribution into practice. Our results demonstrate the model’s ability to indicate the optimal transit mode and investment on a corridor level and the total investment required for the city transit network. The model results were compared to the actual and planned transit networks of Tel Aviv and Toronto and showed the model’s capability to produce a good balance of strategic design and network details. The research concludes that applying the right toll with the applicable transit investment is crucial for obtaining an efficient network and performance. This research can direct planners and policymakers in planning urban transport and provide a comprehensive set of guidelines for optimizing the simultaneous investment in mass transit and the congestion toll toward more sustainable cities and transportation systems.

Tourism is an extremely vulnerable sector to external and internal crises. The current state of international tourism development is determined by the influence of dynamic geopolitical transformations that significantly change the structure, directions, and intensity of the tourism industry. Geopolitical processes determine the spatial structure of international tourist flows, their dynamics, and the direction of development of the global travel market. The purpose of this article is to analyze the impact of geopolitical challenges on international tourist flows and to identify the main trends in the world. As a result, geopolitical challenges are defined as a multifaceted set of factors, including political conflicts, military actions, economic sanctions, migration crises, the threat of terrorism, and a number of transformations in the system of international relations between different states. These factors lead to a reduction in tourist flows to the affected regions and a redistribution of tourists to more stable countries. The increase in international tourist flows is ensured by stable regions where favorable conditions for the development of tourism have been created and are maintained. Geopolitical risks are identified as one of the key determinants of global tourism development. Their impact manifests itself through changes in tourist flows; the growing role of security as a factor in the competitiveness of destinations; the intensification of regionalization in tourism; and the integration of politics, economics, and tourism into a single global context. General trends in the impact of geopolitical challenges on the development of international tourism are considered. International tourism after the COVID-19 pandemic is showing a significant but unstable recovery. Global shocks can instantly halt the mobility of millions of tourists and cause significant losses in the tourism industry, highlighting the need to integrate geopolitical risks into destination management strategies. Armed conflicts and regional instability cause an immediate reduction in tourist flows to risk areas and lead to a redistribution of demand between countries. Geopolitical challenges are changing the structure of demand: there is an increase in the regionalization of travel and a partial redirection of tourists to “safe” and politically neutral destinations. This phenomenon is accompanied by an increase in the importance of factors such as a country's digital reputation, safety indices and the presence of insurance/evacuation mechanisms in tourism offers. At the same time, some countries are benefiting in the short term from the “substitution effect” by welcoming tourists who have abandoned risky destinations. Sanctions and airspace closures, visa complications, and banking restrictions create practical obstacles to normal travel routes and logistics. This not only reduces the volume of international travel to and from sanctioned countries but also increases transaction costs for tour operators and heightens uncertainty in long-term investments in the tourism sector. Thus, geopolitical challenges are significantly transforming the global tourism landscape. They not only reduce the number of trips to high-risk areas but also affect the structure of the tourism market, logistics processes, and long-term investment decisions.

Family strategies concerning migration and occupations of children in a market-oriented agricultural economy

L'Union européenne (UE) vit un paradoxe : dix ans après la crise financière, la croissance est revenue, mais l'investissement de long terme (ILT) n'a pas retrouvé son niveau d'avant-crise. Pourtant les défis auxquels est confrontée l'UE nécessitent un effort sans précédent d'investissement long. La stabilité financière, priorité des réformes post-crise et condition nécessaire à la reprise de l'ILT, n'est toutefois pas une condition suffisante – la faiblesse persistante de l'ILT en Europe en témoigne. Les réformes adoptées au nom de la stabilité ont d'ailleurs eu tendance à pénaliser les investissements longs. Les « rustines » adoptées pour corriger ces effets indésirables n'ont eu finalement qu'une portée limitée et sans une approche cohérente et complète de l'ILT, les mesures prises ont parfois même été inadaptées. Nous proposons donc une définition simple mais complète de ce qu'un ILT est « par essence ». « L'investissement de long terme est la stratégie de placement financier déployée par un opérateur, quel qu'il soit, disposant de ressources stables qui, à la fois, autorisent et nécessitent une allocation d'actifs susceptibles de produire un retour économique dans le temps. » Sur cette base peut être créé un environnement réglementaire favorable suivant quatre grands principes : (1)replacer l'ILT au cœur des politiques publiques, (2) permettre une mesure adéquate des risques et des rendements de long terme, (3) favoriser une gestion actif-passif de long terme et (4) favoriser un alignement d'intérêts des différents acteurs sur des objectifs de long terme. Classification JEL : E22, E61, F55, H01.

The Rewards of a Long-Term Investment Strategy: Case of REITs