ABSTRACT
Motivated by the stochastic...... model, this paper aims to incorporate the stochastic transmission shock (e.g COVID- 19) into the standard portfolio theory, and explores the optimal rules with respect to infections. The impact of COVID - 19 is decomposed into two dimensions such as infectivity (denoted by R-0) and infection rate (measured by I). The results indicate that infectivity mainly affects consumption, whereas the investment rule is merely governed by infection rate. Moreover, we find that higher infections lead to less sensitivity and smoother consumption compared with normal times. However, the sensitivity and volatility of investment with respect to infections present a U-shape and hump-shape, respectively. Notably, we shed new lights on the effect of transmission uncertainty and risk-aversion with pandemic shock. The innovative attempt of this paper not only enriches the research of epidemiology in the field of economics, but also provides a paradigm for studying investor's behavior under the normalization of epidemic situations.
ABSTRACT
The study aimed to investigate the influence of academic stressors on mental health and the mediating effect of social support and self-identity among college students and further studied the difference between the graduating students and non-graduating students during the COVID-19 Pandemic. Recruiting 900 college students as subjects, used the college students??? academic stressors questionnaire, social support questionnaire, self-identity scale and depression anxiety stress scales (DASS-21). The results showed that: (1) The college students??? academic stressor positively predicted mental health;(2) Social support and self-identity mediated the relationship;(3) The model also held when academic stressors was replaced by work stressor, but there were differences between the graduating and nongraduating students;(4) The direct effect work stressor on mental health in the graduating group was not significant;(5) The non-graduating students??? work stressor could not predict mental health through social support.
ABSTRACT
We develop a pricing model for pandemic European call and put options, in which the underlying variable is the infected population. Interestingly, the economic predictions of the pandemic options are essentially different from the common stock option. For example, the value of pandemic call option is concave in the underlying variable and decreasing in the volatility. In addition, the maturity has ambiguous impact on the valuation of pandemic call option. We show that the basic reproduction number, the unique characteristics of pandemic, has a significant effect on the valuation of each options.