• The Korean Journal of Financial Management
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• v.10 no.1
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• pp.249-280
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• 1993

Recent financial theory views insurance policies as financial instruments that are traded in markets and whose prices reflect the forces of supply and demand. This article analyzes individual's insurance purchasing behavior along with capital market investment activities, which will provide a more realistic look at the tradeoff between insurance and investment in the individual's budget constraint. It is shown that the financial economic concept of insurance cost should reflect the opportunity cost of insurance premium. The author demonstrates the importance of riskless and risky financial assets in reaching an equilibrium insurance premium. In addition, the paper also investigates how the investment income could affect the four established theorems on traditional insurance literature. At the present time in Korea, the price deregulation is being debated as the most important current issue in insurance industry. In view of the results of this paper, insurance companies should recognize investment income in pricing their coverage if insurance prices are deregulated. Otherwise. price competition may force insurance companies to restrict coverage or to leave the market.

• Economic and Environmental Geology
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• v.27 no.6
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• pp.557-561
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• 1994

Q estimates are made by direct measurements of energy loss per cycle from primary P and S waves, as a function of frequency. Assuming that intrinsic Q is frequency independent and scattering Q is frequency dependent over the frequencies of interest, the relative contributions of each, to a total observed Q, may be estimated. Test examples are produced by computing viscoelastic synthetic seismograms using a pseudo spectral solution with inclusion of relaxation mechanisms (for intrinsic Q) and a fractal distribution of scatterers (for scattering Q). The composite theory implies that when the total Q for S-waves is smaller than that for P-waves (the usual situation), intrinsic Q is dominating; when it is larger, scattering Q is dominating. In the inverse problem, performed by a global least squares search, intrinsic $Q_p$ and $Q_s$ estimates are reliable and unique when their absolute values are sufficiently low that their effects are measurable in the data. Large $Q_p$ and $Q_s$ have no measurable effect and hence are not resolvable. Standard deviation of velocity $({\sigma})$ and scatterer size (A) are less unique as they exhibit a tradeoff as predicted by Blair's equation. For the P-waves, intrinsic and scattering contributions are of approximately the same importance, for S-waves, the intrinsic contributions dominate.