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Asymptotics of random contractions

Insurance: Mathematics and Economics, no. 3 (2010): 405-414

Cited: 64|Views11
EI

Abstract

In this paper we discuss the asymptotic behaviour of random contractions X=RS, where R, with distribution function F, is a positive random variable independent of S∈(0,1). Random contractions appear naturally in insurance and finance. Our principal contribution is the derivation of the tail asymptotics of X assuming that F is in the max-d...More

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