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Identifying interactions and understanding the underlying generating mechanism is essential for interpreting the response of black‐box models. We offer a systematic analysis of interaction types and corresponding sources, merging results of the broad statistical literature with findings developed within the computer experiment literature. Piecewise‐definiteness emerges a self‐standing interaction...
This article analyzes the mechanisms and effects of innovative financial instruments that a central public administration (CPA) may adopt to minimize the flood risk in particularly exposed regions. The pattern we suggest assumes that in risky areas the CPA can issue two financial instruments, called project options and CAT‐bonds, producing a dynamic interaction among three types of agents: the CPA...
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