Constructing elicitable risk measures

Fuente: arXiv
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Auteurs principaux: Ince, Akif, Moresco, Marlon, Peri, Ilaria, Pesenti, Silvana M.
Format: Preprint
Publié: 2025
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author Ince, Akif
Moresco, Marlon
Peri, Ilaria
Pesenti, Silvana M.
author_facet Ince, Akif
Moresco, Marlon
Peri, Ilaria
Pesenti, Silvana M.
contents We provide a constructive way of defining new elicitable risk measures that are characterised by a multiplicative scoring function. We show that depending on the choice of the scoring function's components, the resulting risk measure possesses properties such as monotonicity, translation invariance, convexity, and positive homogeneity. Our framework encompasses the majority of well-known elicitable risk measures including all elicitable convex and coherent risk measures. Our setting moreover allows to construct novel elicitable risk measures that are, for example, convex but not coherent. Furthermore, we discuss how higher-order elicitability, such as jointly eliciting the mean and variance or different quantile levels, fall within our setting.
format Preprint
id arxiv_https___arxiv_org_abs_2503_03471
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Constructing elicitable risk measures
Ince, Akif
Moresco, Marlon
Peri, Ilaria
Pesenti, Silvana M.
Mathematical Finance
Risk Management
We provide a constructive way of defining new elicitable risk measures that are characterised by a multiplicative scoring function. We show that depending on the choice of the scoring function's components, the resulting risk measure possesses properties such as monotonicity, translation invariance, convexity, and positive homogeneity. Our framework encompasses the majority of well-known elicitable risk measures including all elicitable convex and coherent risk measures. Our setting moreover allows to construct novel elicitable risk measures that are, for example, convex but not coherent. Furthermore, we discuss how higher-order elicitability, such as jointly eliciting the mean and variance or different quantile levels, fall within our setting.
title Constructing elicitable risk measures
topic Mathematical Finance
Risk Management
url https://arxiv.org/abs/2503.03471