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Daily Archives: September 21, 2013

The Skin In The Game Heuristic for Protection Against Tail Events

The Skin In The Game Heuristic for Protection Against Tail Events – Constantine Sandis, Oxford Brooks; Nassim Nicholas Taleb, NYU-Poly; Université Paris I Panthéon-Sorbonne – Centre d’Economie de la Sorbonne (CES). July 30, 2013

“Standard economic theory makes an allowance for the agency problem, but not the compounding of moral hazard in the presence of informational opacity, particularly in what concerns high-impact events in fat tailed domains. But the ancients did; so did many aspects of moral philosophy. We propose a global and morally mandatory heuristic that anyone involved in an action which can possibly generate harm for others, even probabilistically, should be required to be exposed to some damage, regardless of context. While perhaps not sufficient, the heuristic is certainly necessary hence mandatory. It is supposed to counter risk hiding and transfer in the tails. We link the rule to various philosophical approaches to ethics and moral luck.”

Reducing Retirement Risk with a Rising Equity Glide-Path

Reducing Retirement Risk with a Rising Equity Glide-Path, Wade D. Pfau, The American College; Michael E. Kitces, The Kitces Report & Nerd’s Eye View; Pinnacle Advisory Group. September 12, 2013 “This study explores the issue of what is an appropriate default equity glide-path for client portfolios during the retirement phase of the life cycle. We find, surprisingly, that rising equity… Continue Reading

The International Court of Justice’s 2012 Jurisprudence

What a Difference a Year Makes: The International Court of Justice’s 2012 Jurisprudence. Sean D. Murphy, George Washington University – Law School, August 2013. Journal of International Dispute Resolution, 2013 (Forthcoming). GWU Law School Public Law Research Paper No. 2013-107 . GWU Legal Studies Research Paper No. 2013-107 “An analysis of any particular decision of the International Court of Justice sometimes misses… Continue Reading

EPIC – Foreign Intelligence Court Releases Controversial Opinion on Domestic Telephone Records Program

“The Foreign Intelligence Surveillance Court (FISC) has released an Opinion, justifying the NSA’s telephone record collection program. In the Opinion, Judge Claire Eagan states that “there is no Fourth Amendment impediment to the collection” of all domestic call detail records. Judge Eagan also concluded that all domestic call detail records are “relevant” under Section 215 because “individuals associated… Continue Reading

Federal Reserve Governor’s Speech on Macroprudential Regulation

Governor Daniel K. Tarullo At the Yale Law School Conference on Challenges in Global Financial Services, New Haven, Connecticut September 20, 2013 – Macroprudential Regulation “Real world crises have a way of shaking up the intellectual foundations of policy disciplines. Elements of received wisdom are undermined, while certain heterodox or less mainstream views are seen as more valid… Continue Reading