The mark-up shock group consists of the shocks to the wage mark-up, the domestic price and export price mark-ups, as well as the import price mark-up. The supply shock group comprises the persistent and the transitory component of the model’s permanent technology shock, and the transitory technology shock.
So do fire insurance premiums. More important, boards of directors, senior managers, and supervisory authorities need to balance emphasis on risk models that essentially have only dimly perceived sampling characteristics with emphasis on the skills, experience and judgment of the people who have to apply those models.