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Expected Loss Interest-Adjustment Theorem

Authors: Rupert Macey-Dare;

Expected Loss Interest-Adjustment Theorem

Abstract

This paper proposes and analyses the following theorem: Every legal claim or award that includes interest rate adjustment also incorporates an implicit head of loss or counterclaim for the expected opportunity cost or time value of the underlying claim amount. This expected opportunity cost satisfies no-arbitrage when compared with the parallel interest rate market. The inflation and discounting of nominal damage awards forwards and backwards in time and the relationship between indemnity interest rates and equity are all examined.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
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