The tax identity in risk theory - a simple proof and an extension

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Abstract

By linking queueing concepts with risk theory, we give a simple and insightful proof of the tax identity in the Cramér–Lundberg model that was recently derived in Albrecher & Hipp [Albrecher, H., Hipp, C., 2007. Lundberg’s risk process with tax. Blätter der DGVFM 28 (1), 13–28], and extend the identity to arbitrary surplus-dependent tax rates.
Original languageEnglish
Pages (from-to)304-306
JournalInsurance: Mathematics and Economics
Volume44
Issue number2
DOIs
Publication statusPublished - 2009

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