This paper deals with a stochastic dynamic optimization problem in the context of illegal company financing. Our analysis of the usury phenomenon is conducted by searching for the best interest rate which an illegal financier should apply to a company in order to bring about the firm’s bankruptcy whilst still securing the maximum wealth for the firm’s guarantee. In this case, the company itself can be taken over and used by the financier for illegal activities. Because of the highly complex nature of the problem, the analysis will be performed via simulation studies.
Illegal finance and usurers behavior
CERQUETI, ROY;QUARANTA, ANNA GRAZIA
2012-01-01
Abstract
This paper deals with a stochastic dynamic optimization problem in the context of illegal company financing. Our analysis of the usury phenomenon is conducted by searching for the best interest rate which an illegal financier should apply to a company in order to bring about the firm’s bankruptcy whilst still securing the maximum wealth for the firm’s guarantee. In this case, the company itself can be taken over and used by the financier for illegal activities. Because of the highly complex nature of the problem, the analysis will be performed via simulation studies.File in questo prodotto:
File | Dimensione | Formato | |
---|---|---|---|
Barone_Cerqueti_Quaranta_EJLE.pdf
solo utenti autorizzati
Tipologia:
Documento in post-print (versione successiva alla peer review e accettata per la pubblicazione)
Licenza:
DRM non definito
Dimensione
413.91 kB
Formato
Adobe PDF
|
413.91 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.