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Civil aviation is one of biggest industrial contributors to CO2 emissions worldwide. One of the most urgent problems of this sector is providing new technologies to continue operating in a more sustainable environment through a transition to clean energy. The Earned Value Management (EVM) model, as a traditional project management tool, is continuously being revised with new releases and extensions (e.g., ESM, EDM, QEVM, E-EVM, and ZEVM), but to date none of them has applied an expert judgment criterion to be able to modify and anticipate the final result of the project. In such a way, this paper introduces a novel approach to the topic with the so-called Enhanced and Efficient Earned Value Management (denoted E2-EVM) model by including this new capability through the real options methodology, thus helping to support the sustainability of the aerospace sector. This research focuses on three main goals: the description of recent green initiatives in the aerospace sector by checking its contribution to reaching the well-known Sustainable Development Goals (SDGs), the development of a new version of the EVM model by applying the real options methodology, and, finally, the financial contribution to the aerospace industry by applying these initiatives and methodologies.
Salvador Cruz Rambaud; Joaquín López Pascual; Juan Meléndez Rodríguez. Sustainability in the Aerospace Sector, a Transition to Clean Energy: The E2-EVM Valuation Model. Sustainability 2021, 13, 6717 .
AMA StyleSalvador Cruz Rambaud, Joaquín López Pascual, Juan Meléndez Rodríguez. Sustainability in the Aerospace Sector, a Transition to Clean Energy: The E2-EVM Valuation Model. Sustainability. 2021; 13 (12):6717.
Chicago/Turabian StyleSalvador Cruz Rambaud; Joaquín López Pascual; Juan Meléndez Rodríguez. 2021. "Sustainability in the Aerospace Sector, a Transition to Clean Energy: The E2-EVM Valuation Model." Sustainability 13, no. 12: 6717.
The framework of this chapter is the analysis of health expenditure as a variable which, from an intuitive point of view, must be positively correlated with life expectancy at birth. Traditionally, health outcomes have been studied from a macroeconomic perspective without taking into account new categories of public expenditures related to health such as social, educational and environmental protection expenditures. In consequence, the objective of this chapter is to investigate the relative importance of these public expenditures on health outcomes. The employed methodology is based on the main metrics which analyze the relative importance, by using the data of twenty-five European countries for the period 1995–2017. This study has found that social expenditure has the greatest relative importance on explaining life expectancy. On the other hand, our results show that public educational expenditure has the least relative importance. Finally, there is no evidence demonstrating the extent to which environmental expenditure contributes to improve population health.
Pedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. An Analysis of the Relative Importance of Social, Educational and Environmental Expenditures on Life Expectancy at Birth. Evidence from Europe. Inventive Computation and Information Technologies 2021, 275 -296.
AMA StylePedro Antonio Martín Cervantes, Nuria Rueda López, Salvador Cruz Rambaud. An Analysis of the Relative Importance of Social, Educational and Environmental Expenditures on Life Expectancy at Birth. Evidence from Europe. Inventive Computation and Information Technologies. 2021; ():275-296.
Chicago/Turabian StylePedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. 2021. "An Analysis of the Relative Importance of Social, Educational and Environmental Expenditures on Life Expectancy at Birth. Evidence from Europe." Inventive Computation and Information Technologies , no. : 275-296.
The framework of this paper is credit card holding by users and consumers, more specifically, the so-called revolving cards. In most cases, the true interest rate applied to a credit is much higher than its nominal interest rate. Usually, this is due to the existence of some fees to be paid by the holder, and to the process of splitting the periods of interest. However, the contracted annual interest rate of revolving cards is very high which, together with the peculiar amortization system, gives rise to an excessive amount of interests. The objective of this paper is to describe and analyze, from a legal and financial point of view, the main characteristics of the credit repayment in revolving cards. We conclude that the complete amortization of the principal needs a long duration and the payment of a high amount of interests.
Salvador Cruz Rambaud; Salvador Cruz Vargas. Revolving cards: A financial analysis of the credit repayment and legal implications. Studies of Applied Economics 2021, 39, 1 .
AMA StyleSalvador Cruz Rambaud, Salvador Cruz Vargas. Revolving cards: A financial analysis of the credit repayment and legal implications. Studies of Applied Economics. 2021; 39 (2):1.
Chicago/Turabian StyleSalvador Cruz Rambaud; Salvador Cruz Vargas. 2021. "Revolving cards: A financial analysis of the credit repayment and legal implications." Studies of Applied Economics 39, no. 2: 1.
The framework of this paper is credit card holding by users and consumers, more specifically, the so-called revolving cards. In most cases, the true interest rate applied to a credit is much higher than its nominal interest rate. Usually, this is due to the existence of some fees to be paid by the holder, and to the process of splitting the periods of interest. However, the contracted annual interest rate of revolving cards is very high which, together with the peculiar amortization system, gives rise to an excessive amount of interests. The objective of this paper is to describe and analyze, from a legal and financial point of view, the main characteristics of the credit repayment in revolving cards. We conclude that the complete amortization of the principal needs a long duration and the payment of a high amount of interests.
Salvador Cruz Rambaud; Salvador Cruz Vargas. Revolving cards: A financial analysis of the credit repayment and legal implications. Studies of Applied Economics 2021, 39, 1 .
AMA StyleSalvador Cruz Rambaud, Salvador Cruz Vargas. Revolving cards: A financial analysis of the credit repayment and legal implications. Studies of Applied Economics. 2021; 39 (1):1.
Chicago/Turabian StyleSalvador Cruz Rambaud; Salvador Cruz Vargas. 2021. "Revolving cards: A financial analysis of the credit repayment and legal implications." Studies of Applied Economics 39, no. 1: 1.
The framework of this paper is the aerospace industry, which is one of the world’s leading sectors, thus playing a noteworthy role in current society. This makes it especially important to try to optimize the management of the aerospace sector. Therefore, the main objective of this paper is to propose the so-called Enhanced-Earned Value Management (hereinafter, E-EVM) model, able to explore the simultaneous evaluation of many projects, from which the management of the project can take advantage. Additionally, this model considers the possibility of forecasting pending tasks, measurable in time units or cost units, until the end of the project. The main contribution of E-EVM methodology is its capacity to detect both delayed and advanced projects by converting times (hours) into monetary units (EUR). Empirically, this enhanced model has been applied to a real case study in the aerospace industry composed of thousands of subprojects and the results provide the project manager with valuable information to make decisions in a short term. Through computer graphic representation techniques, the visualization of project deployment can be improved. Finally, the E-EVM model can be used even in big projects where a very large volume of information must be simultaneously treated and also, it will be suitable to apply pattern recognition concerning the project performance.
Joaquín López Pascual; Juan Meléndez Rodríguez; Salvador Cruz Rambaud. The Enhanced-Earned Value Management (E-EVM) Model: A Proposal for the Aerospace Industry. Symmetry 2021, 13, 232 .
AMA StyleJoaquín López Pascual, Juan Meléndez Rodríguez, Salvador Cruz Rambaud. The Enhanced-Earned Value Management (E-EVM) Model: A Proposal for the Aerospace Industry. Symmetry. 2021; 13 (2):232.
Chicago/Turabian StyleJoaquín López Pascual; Juan Meléndez Rodríguez; Salvador Cruz Rambaud. 2021. "The Enhanced-Earned Value Management (E-EVM) Model: A Proposal for the Aerospace Industry." Symmetry 13, no. 2: 232.
The objective of this chapter is the analysis of the socioeconomic determinants of life expectancy at birth in European countries from 2000 to 2017 by using not only “traditional” variables such as per capita income and education but also sociocultural differences and public expenditure on social protection. The methodology employed in this chapter is Random Forest algorithm to measure the importance of certain variables which are related to life expectancy at birth. Our findings conclude that the variables with the greatest relative importance in explaining life expectancy at birth are per capita income, the variable “Area” (representative of the sociocultural differences between Eastern and the rest of European countries), the educational level of the population, and public expenditure on social protection. Contrarily, the least important variables are inflation, public environmental expenditure and unemployment. These results highlight the importance of public expenditure on social protection in the composition of public budget in order to reach health outcomes.
Pedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. Life Expectancy at Birth and Its Socioeconomic Determinants: An Application of Random Forest Algorithm. Soft Computing Applications for Group Decision-making and Consensus Modeling 2021, 383 -406.
AMA StylePedro Antonio Martín Cervantes, Nuria Rueda López, Salvador Cruz Rambaud. Life Expectancy at Birth and Its Socioeconomic Determinants: An Application of Random Forest Algorithm. Soft Computing Applications for Group Decision-making and Consensus Modeling. 2021; ():383-406.
Chicago/Turabian StylePedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. 2021. "Life Expectancy at Birth and Its Socioeconomic Determinants: An Application of Random Forest Algorithm." Soft Computing Applications for Group Decision-making and Consensus Modeling , no. : 383-406.
Traditionally, the interval and delay effects have been identified and considered as the same anomaly in the context of intertemporal choice, when individuals or groups of individuals make their decisions about reward preferences. This has supposed that most studies on this topic have been focused on the delay effect and, consequently, that the discount functions provided by the existing literature have considered only this effect. This is the case of hyperbolic discounting, which has been used to describe the delay, but not the interval effect. Therefore, the main objective of this paper is to carry out a detailed analysis of both anomalies, which will allow us to mathematically relate them, thus finding their analogies and differences. To do this, we will first analyze the concept of delay effect and later the different definitions of the interval effect. The main conclusion of this paper is twofold. On the one hand, if the benchmark for valuation is fixed, the delay effect coincides with the so-called decreasing interval effect. On the other hand, if the assessment reference point is the beginning of each interval, both anomalies are different. These findings make necessary to redefine the concept of interval effect. Finally, we will analyze the relationship between the interval effect, the delay effect and the subadditivity
Salvador Cruz Rambaud; Piedad Ortiz Fernández. Are Delay and Interval Effects the Same Anomaly in the Context of Intertemporal Choice in Finance? Symmetry 2020, 13, 41 .
AMA StyleSalvador Cruz Rambaud, Piedad Ortiz Fernández. Are Delay and Interval Effects the Same Anomaly in the Context of Intertemporal Choice in Finance? Symmetry. 2020; 13 (1):41.
Chicago/Turabian StyleSalvador Cruz Rambaud; Piedad Ortiz Fernández. 2020. "Are Delay and Interval Effects the Same Anomaly in the Context of Intertemporal Choice in Finance?" Symmetry 13, no. 1: 41.
The aim of this paper is to design the package of the R statistical software called “Annuity Random Interest Rate”, referred hereinafter as , in order to calculate the value of an n-annuity with payments of one unit each when the interest rate is random. To do this, we have employed different approaches; the two main methodologies treated in this study consider that all non-central moments of the capitalization factor are known, or contrarily some of them are unknown. Consequently, five different approaches have been developed and the practical application of the proposed methods is reflected in this paper by pricing an annuity with a random risk-free interest rate during the last ten years. The version is available from CRAN: https://cran.r-project.org/web/packages/AnnuityRIR/index.html.
Salvador Cruz Rambaud; Fabrizio Maturo; Ana Maria Sánchez Pérez; Massimo Squillante. AnnuityRIR: an R-package to approximate the value of an annuity according to the non-central moments of the capitalization factor. Quality & Quantity 2020, 1 -20.
AMA StyleSalvador Cruz Rambaud, Fabrizio Maturo, Ana Maria Sánchez Pérez, Massimo Squillante. AnnuityRIR: an R-package to approximate the value of an annuity according to the non-central moments of the capitalization factor. Quality & Quantity. 2020; ():1-20.
Chicago/Turabian StyleSalvador Cruz Rambaud; Fabrizio Maturo; Ana Maria Sánchez Pérez; Massimo Squillante. 2020. "AnnuityRIR: an R-package to approximate the value of an annuity according to the non-central moments of the capitalization factor." Quality & Quantity , no. : 1-20.
Blockchain technology has demonstrated huge potential in providing simplicity and efficiency for different industries. However, its implementation in the automotive and aerospace industry is quite slow because of its difficulty to show value creation. Real option methodology, specifically the learning option, is an assessment tool which fits the conditions under which investment in blockchain technology is carried out. Thus, its application can help managers to wisely invest in this technology despite the complexity of this industry. This study offers a suitable tool to assess the strategic value of an investment in blockchain technology from a conservative position by using the real option approach, particularly the learning option. Specifically, this paper provides the mathematical expression to obtain the value of a project which includes the learning option for n periods. Likewise, it tries to raise awareness among managers of the importance to gather relevant information before making irreversible decisions. The results show that, despite the high profitability of the analyzed sector and the strategic value added by the learning option to the investment, the value of this option remains constant over the project lifespan. This indicates that the blockchain investment has to be implemented as soon as possible given that it is a highly profitable project whose value increases very slowly by waiting to get more new information. In this way, the immediate investment in blockchain technology in the automotive and aerospace industry is recommended to reap the competitive advantages offered by digital technologies.
Ana María Sánchez Pérez; Jorge Tarifa Fernández; Salvador Cruz Rambaud. Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry. Mathematics 2020, 8, 2213 .
AMA StyleAna María Sánchez Pérez, Jorge Tarifa Fernández, Salvador Cruz Rambaud. Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry. Mathematics. 2020; 8 (12):2213.
Chicago/Turabian StyleAna María Sánchez Pérez; Jorge Tarifa Fernández; Salvador Cruz Rambaud. 2020. "Assessing Blockchain Investments through the Learning Option: An Application to the Automotive and Aerospace Industry." Mathematics 8, no. 12: 2213.
Framework: Financial Technology (FinTech) is an industry composed of diversified firms that combine financial services with innovative technologies. The research question and main goal are attempting to answer whether they are more similar to traditional banks or trendy technological firms deploying their innovativeness to favor financial inclusion and sustainability. Justification: Evaluators may wonder if FinTechs follow the typical evaluation patterns of bank/financial intermediaries or those of technological firms. Preliminary empirical evidence shows that the latter interpretation is the one consistent with the stock-market mood. Objective: This study goes beyond the extant literature, analyzing the differences between FinTechs and traditional banks in market valuation, and showing the potential for digital interaction and cross-pollination of complementary business models. Methodology: The differences will be empirically analyzed with the stock market valuation and the multipliers associated with these firms. Results: The main contribution of this paper is that the appraisal approaches of FinTechs follow those of technological startups, having a revenue model much more scalable than that of a typical bank. FinTechs may so provide a solution for sustainable finance with microfinance and crowdfunding among others. FinTechs and traditional banks may eventually converge towards a common market exploiting co-opetition strategies.
Roberto Moro-Visconti; Salvador Cruz Rambaud; Joaquín López Pascual. Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation. Sustainability 2020, 12, 10316 .
AMA StyleRoberto Moro-Visconti, Salvador Cruz Rambaud, Joaquín López Pascual. Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation. Sustainability. 2020; 12 (24):10316.
Chicago/Turabian StyleRoberto Moro-Visconti; Salvador Cruz Rambaud; Joaquín López Pascual. 2020. "Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation." Sustainability 12, no. 24: 10316.
Experimental studies reveal a preference for improving income sequences, challenging the axioms of the discounted utility model, such as the present value maximization principle. Through an experiment, we test the existence of this anomaly on short and long-term income sequences, by confirming previous experimental evidence. Although the participants are aware of the present value maximization, they select improving sequences of income mainly to cover their future spending needs, to feel motivation at work, and to receive a signal of success and status. In order to include this sequence effect in a mathematical valuation model, we propose an alternative model to value sequences which outperforms the traditional discounting model by fitting the present value with the preferences of the participants.
Adriana Garcia; María José Muñoz Torrecillas; Salvador Cruz Rambaud. The improving sequence effect on monetary sequences. Heliyon 2020, 6, e05643 .
AMA StyleAdriana Garcia, María José Muñoz Torrecillas, Salvador Cruz Rambaud. The improving sequence effect on monetary sequences. Heliyon. 2020; 6 (12):e05643.
Chicago/Turabian StyleAdriana Garcia; María José Muñoz Torrecillas; Salvador Cruz Rambaud. 2020. "The improving sequence effect on monetary sequences." Heliyon 6, no. 12: e05643.
Background: There has been a widespread debate about the overall impact of globalization on population, not just economically, but also in terms of health status. Moreover, the current health crisis is going to force governments to review the structure of the public budget to most effectively alleviate the negative economic and health effects on the population. Objective: The aim of this paper is to analyze the relative importance of globalization and the public budget composition—specifically the participation of public expenditure on healthcare, social services and environment in gross domestic product (GDP)—on life expectancy at birth in European countries during the period 1995–2017. Methods: The Multivariate Adaptive Regression Splines (MARS) methodology was applied to analyze the socioeconomic determinants of life expectancy at birth. Results: Our findings show that globalization has no relative importance as an explanatory variable of life expectancy in European countries, while government expenditure on social protection is the most relevant followed by public expenditure on health, gross national income per capita, education level of the population and public expenditure on environmental protection. Conclusion: European strategies intended to impact on health outcome should spend more attention to the composition of public budget.
Pedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. The Relative Importance of Globalization and Public Expenditure on Life Expectancy in Europe: An Approach Based on MARS Methodology. International Journal of Environmental Research and Public Health 2020, 17, 8614 .
AMA StylePedro Antonio Martín Cervantes, Nuria Rueda López, Salvador Cruz Rambaud. The Relative Importance of Globalization and Public Expenditure on Life Expectancy in Europe: An Approach Based on MARS Methodology. International Journal of Environmental Research and Public Health. 2020; 17 (22):8614.
Chicago/Turabian StylePedro Antonio Martín Cervantes; Nuria Rueda López; Salvador Cruz Rambaud. 2020. "The Relative Importance of Globalization and Public Expenditure on Life Expectancy in Europe: An Approach Based on MARS Methodology." International Journal of Environmental Research and Public Health 17, no. 22: 8614.
The objective of this study was to apply the Sadegh, Ragno, and AghaKouchak (SRA) approach to the field of quantitative finance by analyzing, for the first time, the relationship between price and trading volume of the securities using four stock market indices: DJIA, FOOTSIE100, NIKKEI225, and IBEX35. This procedure is a completely new methodology in finance that consists of the application of a Bayesian framework and the development of a hybrid evolution algorithm of the Markov Chain Monte Carlo (MCMC) method to analyze a large number (26) of parametric copulas. With respect to the DJIA, the Joe’s copula is the one that most efficiently models its succinct dependence structures. One of the copulas included in the SRA approach, the Tawn’s copula, is jointly adjusted to the FOOTSIE100, NIKKEI225, and IBEX 35 indices to analyze the asymmetric relationship between price and trading volume. This adjustment can be considered almost perfect for the NIKKEI225, and a relatively different characterization for the IBEX35 seems to indicate the existence of endogenous patterns in the price and volume.
Pedro Antonio Martín Cervantes; Salvador Cruz Rambaud; María Del Carmen Valls Martínez. An Application of the SRA Copulas Approach to Price-Volume Research. Mathematics 2020, 8, 1864 .
AMA StylePedro Antonio Martín Cervantes, Salvador Cruz Rambaud, María Del Carmen Valls Martínez. An Application of the SRA Copulas Approach to Price-Volume Research. Mathematics. 2020; 8 (11):1864.
Chicago/Turabian StylePedro Antonio Martín Cervantes; Salvador Cruz Rambaud; María Del Carmen Valls Martínez. 2020. "An Application of the SRA Copulas Approach to Price-Volume Research." Mathematics 8, no. 11: 1864.
This paper focuses on GARCH modelling of the nominal short‐term interest rates of the Spanish government three‐year bonds. This methodology allows an ex‐ante approximation to this variable which proves to be a valuable alternative against econometric specifications that imply a homoscedastic error term. Then, real short‐term interest rates are estimated by employing the reduced Fisher equation. Eventually, the results obtained are compared with the observed values of the real time‐series in order to measure their accuracy.
Javier Sánchez García; Salvador Cruz Rambaud. A GARCH approach to model short‐term interest rates: Evidence from Spanish economy. International Journal of Finance & Economics 2020, 1 .
AMA StyleJavier Sánchez García, Salvador Cruz Rambaud. A GARCH approach to model short‐term interest rates: Evidence from Spanish economy. International Journal of Finance & Economics. 2020; ():1.
Chicago/Turabian StyleJavier Sánchez García; Salvador Cruz Rambaud. 2020. "A GARCH approach to model short‐term interest rates: Evidence from Spanish economy." International Journal of Finance & Economics , no. : 1.
In recent years, community-based tourism has become a source of income within indigenous and rural communities, either as a principal or complementary activity. However, the management of the administrative and financial processes of this type of enterprise was unknown. In this sense, this paper aims to analyze the state of these processes within the so-called Community-Based Tourism Enterprises (CBTEs) in the provinces of Pichincha, Napo, and Imbabura (Ecuador). For this purpose, a matrix was designed to collect information on the administrative and financial processes that an enterprise should have, detailing all their elements with their respective assessment. Also, an interview was administered to the 28 community leaders (one for each CBTE) to diagnose each issue of business management. In this diagnosis, it was concluded that, despite having a certificate from the Ministry of Tourism (MINTUR), the Community-Based Tourism Enterprises have not implemented important administrative and financial processes such as a strategic plan, operational plan, market study, cost analysis, process manual, market plan, initial situation, results status, final status, or financial indicators. Therefore, in the long term, this leads to poor management of business resources, which can result in the closure of these enterprises.
Bertha Jaramillo-Moreno; Irene Sánchez-Cueva; Dayana Tinizaray-Tituana; Juan Narváez; Enrique Cabanilla-Vásconez; María Muñoz Torrecillas; Salvador Cruz Rambaud. Diagnosis of Administrative and Financial Processes in Community-Based Tourism Enterprises in Ecuador. Sustainability 2020, 12, 7123 .
AMA StyleBertha Jaramillo-Moreno, Irene Sánchez-Cueva, Dayana Tinizaray-Tituana, Juan Narváez, Enrique Cabanilla-Vásconez, María Muñoz Torrecillas, Salvador Cruz Rambaud. Diagnosis of Administrative and Financial Processes in Community-Based Tourism Enterprises in Ecuador. Sustainability. 2020; 12 (17):7123.
Chicago/Turabian StyleBertha Jaramillo-Moreno; Irene Sánchez-Cueva; Dayana Tinizaray-Tituana; Juan Narváez; Enrique Cabanilla-Vásconez; María Muñoz Torrecillas; Salvador Cruz Rambaud. 2020. "Diagnosis of Administrative and Financial Processes in Community-Based Tourism Enterprises in Ecuador." Sustainability 12, no. 17: 7123.
In this paper, we have tested the existence of a causal relationship between the arrival of the 45th presidency of United States and the performance of American stock markets by using a relatively novel methodology, namely the causal-impact Bayesian approach. In effect, we have found strong causal relationships which, in addition to satisfying the classical Granger Causality linear test, have been quantified in absolute and relative terms. Our findings should be included in the context of one of the main markets anomalies, the so-called "calendar effects". More specifically, when distinguishing between the subperiods of pre- and post-intervention, data confirm that the "US presidential cycle" represents a process of high uncertainty and volatility in which the behavior of the prices of financial assets refutes the Efficient-Market Hypothesis.
Pedro Antonio Martín Cervantes; Salvador Cruz Rambaud. An empirical approach to the “Trump Effect” on US financial markets with causal-impact Bayesian analysis. Heliyon 2020, 6, e04760 .
AMA StylePedro Antonio Martín Cervantes, Salvador Cruz Rambaud. An empirical approach to the “Trump Effect” on US financial markets with causal-impact Bayesian analysis. Heliyon. 2020; 6 (8):e04760.
Chicago/Turabian StylePedro Antonio Martín Cervantes; Salvador Cruz Rambaud. 2020. "An empirical approach to the “Trump Effect” on US financial markets with causal-impact Bayesian analysis." Heliyon 6, no. 8: e04760.
The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function.
Salvador Cruz Rambaud; Isabel González Fernández. A New Approach to Intertemporal Choice: The Delay Function. Symmetry 2020, 12, 807 .
AMA StyleSalvador Cruz Rambaud, Isabel González Fernández. A New Approach to Intertemporal Choice: The Delay Function. Symmetry. 2020; 12 (5):807.
Chicago/Turabian StyleSalvador Cruz Rambaud; Isabel González Fernández. 2020. "A New Approach to Intertemporal Choice: The Delay Function." Symmetry 12, no. 5: 807.
The framework of this paper is the concept of derivative from the point of view of abstract algebra and differential calculus. The objective of this paper is to introduce a novel concept of derivative which arises in certain economic problems, specifically in intertemporal choice when trying to characterize moderately and strongly decreasing impatience. To do this, we have employed the usual tools and magnitudes of financial mathematics with an algebraic nomenclature. The main contribution of this paper is twofold. On the one hand, we have proposed a novel framework and a different approach to the concept of relative derivation which satisfies the so-called generalized Leibniz’s rule. On the other hand, in spite of the fact that this peculiar approach can be applied to other disciplines, we have presented the mathematical characterization of the two main types of decreasing impatience in the ambit of behavioral finance, based on a previous characterization involving the proportional increasing of the variable “time”. Finally, this paper points out other patterns of variation which could be applied in economics and other scientific disciplines.
Salvador Cruz Rambaud; Blas Torrecillas Jover. An Extension of the Concept of Derivative: Its Application to Intertemporal Choice. Mathematics 2020, 8, 696 .
AMA StyleSalvador Cruz Rambaud, Blas Torrecillas Jover. An Extension of the Concept of Derivative: Its Application to Intertemporal Choice. Mathematics. 2020; 8 (5):696.
Chicago/Turabian StyleSalvador Cruz Rambaud; Blas Torrecillas Jover. 2020. "An Extension of the Concept of Derivative: Its Application to Intertemporal Choice." Mathematics 8, no. 5: 696.
This paper shows the interaction between probabilistic and delayed rewards. In decision- making processes, the Expected Utility (EU) model has been employed to assess risky choices whereas the Discounted Utility (DU) model has been applied to intertemporal choices. Despite both models being different, they are based on the same theoretical principle: the rewards are assessed by taking into account the sum of their utilities and some similar anomalies have been revealed in both models. The aim of this paper is to characterize and consider particular cases of the Time Trade-Off (PPT) model and show that they correspond to the EU and DU models. Additionally, we will try to build a PTT model starting from a discounted and an expected utility model able to overcome the limitations pointed out by Baucells and Heukamp.
Salvador Cruz Rambaud; Ana María Sánchez Pérez. Discounted and Expected Utility from the Probability and Time Trade-Off Model. Mathematics 2020, 8, 601 .
AMA StyleSalvador Cruz Rambaud, Ana María Sánchez Pérez. Discounted and Expected Utility from the Probability and Time Trade-Off Model. Mathematics. 2020; 8 (4):601.
Chicago/Turabian StyleSalvador Cruz Rambaud; Ana María Sánchez Pérez. 2020. "Discounted and Expected Utility from the Probability and Time Trade-Off Model." Mathematics 8, no. 4: 601.
The framework of this paper is intertemporal choice and, more specifically, the so-called delay effect. Traditionally, this anomaly, also known as decreasing impatience, has been revealed when individuals reverse their preferences over monetary or non-monetary rewards. In this manuscript, we will analyze the delay effect by using preference relations and discount functions. The treatment of the delay effect with discount functions exhibits several scenarios for this paradox. Thus, the objective of this paper is to deduce the different expressions of the delay effect and their mathematical characterizations by using discount functions in stationary and dynamic settings. In this context, subadditivity will be derived as a particular case of decreasing impatience. Finally, we will introduce a new discount function, the so-called asymmetric exponential discount function, able to describe decreasing impatience.
Salvador Cruz Rambaud; Piedad Ortiz Fernández. Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting. Mathematics 2020, 8, 367 .
AMA StyleSalvador Cruz Rambaud, Piedad Ortiz Fernández. Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting. Mathematics. 2020; 8 (3):367.
Chicago/Turabian StyleSalvador Cruz Rambaud; Piedad Ortiz Fernández. 2020. "Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting." Mathematics 8, no. 3: 367.