Modeling regulatory uncertainty in financial decisions with applications to taxation and insurance

• Applicants: Professorin Dr. Nicole Bäuerle; Professorin Dr. An Chen; Professorin Dr. Caren Sureth-Sloane
• Subject Area: Accounting and Finance ; Mathematics
• Term: since 2025
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 509303834

In this project, we focus on the fundamentals of asset allocation in selected regulated markets and institutions and organize our work along two parts: The first part is dedicated to interpreting regulatory uncertainty as model ambiguity in mathematical models of asset allocation problems. The second part uses concrete applications in taxation and insurance, as two prominent examples of regulatory uncertainty, to show theoretically how regulatory uncertainty affects financial decisions.

• DFG Programme: Research Units
• Subproject of: FOR 5583: Asset allocation and asset pricing in regulated markets and institutions
• Co-Investigator: Professorin Dr. Antje Mahayni