Economics and Finance

More Accurate Objective Definition of Quality: Quality Is the Degree of Positivity

Authors: Runsheng Tu
Comments: 17 Pages.

The existing quality definition established by the authority mainly based on J. M. Juran is "quality is the degree to which a set of inherent characteristics fulfills requirements". Among them, "requirements" can be an individual's requirement and there is no positive restriction, and there are no restrictions on motivation . A high degree of meeting unreasonable requirements can also be called good quality. The judgment of the degree to which individual consumer demands are met is subjective. In this way, the quality definition of Juran can only be subjective. At least the two major shortcomings of subjectivity and lack of enthusiasm in existing quality definitions must be overcome. As long as the "requirements" in the definition of Juran’s quality are limited to objective social general requirements (which are also positive requirements), the goal can be achieved. The definition of Juran’s quality naturally became "quality is the degree of positivity". The new definition of quality has positive guiding significance for management theory and practice.
Category: Economics and Finance

JAPANESE CAPITALISM: Self-Destructing Cryptocurrency Backed by Government Authority

Authors: Weston Koyama
Comments: 7 Pages.

In this article I propose a version of capitalism centered on digital currency backed by government authority. I call this version of capitalism Japanese Capitalism because I believe that the monetary and fiscal policy outlined herein would benefit Japan greatly given its unique economic challenges, however, I think that all countries should eventually embrace Japanese Capitalism, which promises to eliminate the risk of economic depression, lessen the impact of economic recession, and maximize the welfare of all citizens.
Category: Economics and Finance

A Simple and Fairer System to Fund Social Security

Authors: Jabari Zakiya
Comments: 5 Pages.

FICA withholding from wages is currently used to fund Social Security. It uses a Cap with no Floor system, which subjects the first dollar of wage earners salaries to FICA, up to a wage cap, after which FICA is no longer applied. What is shown here, is that a Floor with no Cap system is better, for the myriad of reasons provided herein, and should be adopted by Congress to replace the current system.
Category: Economics and Finance

Is it Possible for Corporate Leaders to go Beyond Friedman's Doctrine?

Authors: Victor Christianto, Florentin Smarandache
Comments: 5 Pages. (Note by viXra Admin: An abstract is required on the submitted article)

The authors develop a model of business ethics that is more actual, especially in responding tovarious problems facing humanity today, including climate change. That this is also connected with not only environmental responsibilities but also the social responsibilities of large, medium and small business owners, seems quite clear. The only problem is that many of us seem to be bewitched by the doctrine known as the Friedman's doctrine, proposed by Milton Friedman in the 1970s, which essentially states that the onlysocial responsibility of a company is to make a profit.
Category: Economics and Finance

The Financial Collapse of Capitalism

Authors: Richard Michael Blaber
Comments: 28 Pages. Creative Commons License BY-NC-ND 4.0.

This paper will argue that the current level of international debt is a huge ‘bubble’ waiting to burst, and that, if and when it does so, the entire financial structure of global capitalism will collapse, taking capitalism, as such, with it. The mechanism of this collapse, if it occurs, will be a collapse of the international banking system, and complete loss of confidence on the exchange markets in any form of reserve currency — either the US dollar or any putative replacement for it.
Category: Economics and Finance

The Complexities of the Pharmaceutical Industry and the Drug Pricing Challenge

Authors: Massimo Titolo
Comments: 32 Pages.

The pharmaceutical industry, a dynamic sector integral to healthcare, is a highly complex field valued at nearly 1.5 trillion dollars. The sector encompasses the research, development, production, and marketing of drugs. Noteworthy companies like Pfizer and Bayer have played pivotal roles, tracing their origins to the 19th century. Presently, the industry is globally centralized, with developed and developing nations both participating. The industry's growth potential is vast, though developments face competition and challenges. The advent of COVID-19 has significantly impacted the industry, prompting both positive and negative effects. The drug pricing dilemma underscores the balance between profit and accessibility, spotlighting intricate ethical dilemmas. Regulatory systems like drug approval processes and pricing controls attempt to address these concerns. Government intervention seeks to strike equilibrium, but tensions persist between health and economics. Ethical controversies arise and are furthered by corrupt events such as the Thalidomide Scandal. Countries employ divergent pricing systems - the U.S. wrestles with private insurance, Medicare, Medicaid, and 340B programs, while European nations emphasize healthcare efficiency. The UK navigates compulsory licensing, global trade, and equity pricing. The pharmaceutical industry's multifaceted landscape traverses history, economics, ethics, and health, influencing and being influenced by global policies and perspectives. By analyzing varying strategies employed around the world and the evolution of the industry, leaders can progress towards a solution for the various challenges involved in drug pricing and the pharmaceutical industry as a whole.
Category: Economics and Finance

Scientific Investing: Revisiting the Foundation: Black Swan, Randomness, Causality, Convexity, Tail Risk, Tail Risk Hedging,Causal Factor Investing, Randomized Factor Investing, Flawed Conventional Statistical Tools, Forward Looking Finance in Time

Authors: Pankaj Mani
Comments: 145 Pages.

The paper attempts to unify scientifically the two extremes in the form of Duality of Randomness & Causality, Predictability & Uncertainty in Market like Wave-Particle duality scientifically in Nature. And how that should be leveraged in Financial Investment & Risk Management Strategies in Real World Practical Applications.Conventional Financial/Factor Investing has been studied and practiced from an economic perspective logic for a long time through the application of Conventional flawed Popular Statistical Tools. Factor Investing (Often Misunderstood by the Modelers) affecting trillions of dollars in investment globally seems to lack the proper Scientific base. This paper aims to check the conceptual Scientific validity of Financial Investment, Factor Investing, Valuation, Conventional Risk Management Tools, Black Swan , Tail Risk, Convexity, Conventional Statistical Tools e.g. Linear Regression, and Popular Risk measurement metrics e.g. Sharpe Ratio, Max Drawdown etc. , Historically important Puzzle e.g. Equity Risk Premium. Then it further explains the proposes the scientific foundation of Convexity, Causal Laws of Motion in Markets, Causal Based Randomized Factor Investing for Portfolio Management, and how Financial Investment & Risk Management should be studied and practiced in a Scientific way in the Real World rather than based on many economic theories without proper Scientific validation. It also talks about how Value should be redefined Scientifically in Real World Investment unlike Conventionally flawed definition . It looks scientifically at the foundational issues with the Conventional Statistical /Mathematical /AI/ML tools e.g. Non-Stationarity ,Linear Regression etc. applied in Real World Financial Investment and tries to make it scientific in improved way. It also proposes the new Causal Based Randomized Learning Approach for ML in Investment in Real World.This is basically a Conceptual Paper that also looks at the foundation of Conventional Mathematical & Statistical Tools applied in Investment & Risk domains e.g. Monte Carlo Simulations Probability theory, Expectations etc and how that need to be evolved in Real World Investment driven by Quantum Human Behavior Dynamics. In a nutshell, It explores how financial investment and risk management/taking should be done scientifically in forward direction of time rather backward direction of time as usually happens in most statistical based models in financial investment and risk areas.
Category: Economics and Finance

A Conceptual Framework of Value Systems

Authors: Bryce Petofi Towne
Comments: 26 Pages.

In an era marked by intricate global financial interdependencies, traditional economic paradigms underpinning value dynamics are under scrutiny. This paper introduces the "Value Systems" theoretical framework, offering a holistic perspective on the multifaceted mechanisms of value creation, perception, and transmission in modern financial markets. Grounded in both historical and contemporary analyses, the framework categorizes market participants into distinct types, from active proponents to intermediaries, elucidating their roles in shaping value dynamics. Real-world examples, ranging from the 2008 financial crisis to niche fandom economies, serve as illustrative touchpoints, highlighting the framework's applicability and implications. While primarily conceptual, this nascent framework underscores the need for a more comprehensive understanding of value in the face of evolving global financial challenges.Keywords: Value Systems, Financial Interdependencies, Market Participants, Value Dynamics, Economic Paradigms.
Category: Economics and Finance

Why the Economy is Hard to Manage and How This Could Possibly be Dealt with

Authors: Bertrand Wong
Comments: 12 Pages.

This paper raises some points about the economy and economic policies, and presents some possible economic solution, providing the stimulus for economic thought and importantly action to forestall economic problems. The practicable economic policies suggested in the paper would to some extent alleviate the serious economic problems of inflation, deflation, recessions and unemployment, though it is also hoped that the suggested economic policies could permanently eliminate these serious economic issues. The successful implementation of these economic policies would certainly lead to a better society, possibly with inclusive and sustainable economic growth, employment and decent work for all. [This paper published in an international economics journal is the sequel to the paper "We should Control the Economy and Not Let the Economy Control Us: How this May Be Achieved through a Macro-Economical Way" (which was published in 2021, https://doi.org/10.20935/AL3001 ).]
Category: Economics and Finance

Portfolio Construction and Management - Active vs. Passive Management

Authors: Lu Zhang
Comments: 6 Pages.

A common goal of portfolio investors is to seek for a higher risk adjusted return. However, according to Samelson (1965) and Farma (1970), the stock market is efficient and the market prices incorporate all information, which leaves no possibility for investors to achieve abnormal returns (Hilsted, 2012). There are various factors under the real world financial market, nevertheless; prevent the market from achieving its efficiency and thus leave room for arbitrage opportunities. The superior performance comes from factors such as market timing, economic environment, stock selection, trading and etc. In our project, we are interested in exploring the effect of active portfolio management strategy on portfolio performance. we used mean-variance optimization method to construct various portfolios of nine stocks that we have chosen from five different industries. More details of these nine stocks will be demonstrated in section 2. The two main optimization method we employed were minimization of risk with and without given expected return level. Then we utilized three strategies to invest and managed our portfolio, one passive strategy and two active strategies. The passive strategy would use the weights calculated from first year historical returns and fix the number of shares of each stock for next 4 years. The active strategies enable investor change the weights invested in each stock frequently: one allowed them change every year and the other allowed changing every quarter. We would employ mean-variance optimization method on a rolling basis in active strategies. To evaluate these three management strategies, we apply them to three-month intervals from 2012 to first quarter of 2016 and compare values of these portfolios during this period. In section 2, mean-variance optimization method will be explained, including risk-return tradeoff and efficient frontier, followed by details of rolling analysis of our portfolios. In section 3, we will present our results of portfolio constructions under two different optimization restrictions. Then the performances of passive strategy and two active strategies will be compared in terms of value of portfolio. In addition, we will explain limitations of our project and demonstrate future work that could be done to improve our findings.
Category: Economics and Finance

The Rise and Fall of Cryptocurrencies: Defining the Economic and Social Values of Blockchain Technologies, Assessing the Opportunities, and Defining the Financial and Cybersecurity Risks of the Metaverse.

Authors: Petar Radanliev
Comments: 44 Pages.

This study contextualises the common queries of "why is crypto crashing?" and "why is crypto down?", the research transcends beyond the frequent market fluctuations to unravel how cryptocurrencies fundamentally work and the step-by-step process on how to create a cryptocurrency.This research examines blockchain technologies and their pivotal role in the evolving Metaverse, shedding light on topics such as how to invest in cryptocurrency, the mechanics behind crypto mining, and strategies to effectively buy and trade cryptocurrencies. Through an interdisciplinary approach, the research transitions from the fundamental principles of fintech investment strategies to the overarching implications of blockchain within the Metaverse. Alongside exploring machine learning potentials in financial sectors and risk assessment methodologies, the study critically assesses whether developed or developing nations are poised to reap greater benefits from these technologies. Moreover, it probes into both enduring and dubious crypto projects, drawing a distinct line between genuine blockchain applications and Ponzi-like schemes. The conclusion resolutely affirms the continuing dominance of blockchain technologies, underlined by a profound exploration of their intrinsic value and a reflective commentary by the author on the potential risks confronting individual investors.
Category: Economics and Finance

Periphery of the Financial System (Outer Contour)

Authors: Dmitrii V. Guryanov
Comments: 94 Pages. (Name added to article by viXra Admin - Please conform!)

Nowadays among various participants of the global financial interactions there is a certain need for having a global non-fiat reserve and settlement currency. This paper describesa way of how the international financial set of rules could look like when based on non-fiat financial instruments, crowned by unified global non-fiat currency. This paper is a scientific type of approaching to the problem which ultimately describes the methodology of the provided solution, having a full set of required equations and their annotations. T
Category: Economics and Finance

The Catalas Model: A Novel Theoretical Framework for Dual-role Producer-Consumer Exchanges Involving Third-Party Beneficiaries and Intermediaries

Authors: Bryce Petofi Towne
Comments: 15 Pages.

The Catalas Model introduces a novel theoretical framework for understanding dual-role producer-consumer exchanges involving third-party beneficiaries and intermediaries. This study identifies the limitations of traditional frameworks and develops the Catalas Model to capture the complexities of modern market exchanges. The model incorporates the roles of third-party beneficiaries and intermediaries in the exchange process, offering valuable insights into market efficiency, consumer welfare, and overall economic performance. The applicability of the Catalas Model is demonstrated through real-world case studies, showcasing its adaptability across various industries and market scenarios. Furthermore, the research identifies key factors influencing exchange performance and discusses potential policy implications for regulators, businesses, and consumers. This innovative framework contributes to the literature by providing a more comprehensive understanding of intricate producer-consumer relationships in contemporary market exchanges.
Category: Economics and Finance

Valuation Model for Equity-Linked Securities with Guaranteed Return

Authors: David Lee
Comments: 17 Pages.

Equity-linked securities with a guaranteed return are desirable instruments in a volatile market environment. In this paper, we consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is bounded below by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. Here we present a new method for valuing the embedded Asian option. The method provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear, based on numerical testing against a Monte Carlo benchmark, to be accurate over a wide range of underlying security parameter values. Finally, we apply our method to value the embedded European style put option arising from a type of segregated fund with a maturity guarantee.
Category: Economics and Finance

The Influence of Consumer Expertise and Psychological Value on Product Pricing: An Examination of the Consumer Evaluation and Psychological Value Pricing Theory

Authors: Bryce Petofi Towne
Comments: 2 Pages. (Note by viXra Admin: This is a stub - Future stubs instead of fully written scholarly articles with scholarly refrences will not be accepted)

This paper introduces a new theoretical framework, the "Consumer Evaluation and Psychological Value Pricing Theory," which focuses on the influence of consumer evaluation abilities and psychological value on product pricing. By examining the interplay of these two elements, we aim to enhance our understanding of consumer behavior and pricing strategies, offering practical guidelines for real-world applications.
Category: Economics and Finance

Telelucru (Telework)

Authors: Nicolae Sfetcu
Comments: 76 Pages.

Telework, as a new way of working by performing an activity (form of work) flexible in time and at a distance, using information technology and advanced communications, is embodied in teleactivities and teleservices.In recent years, new information and communication technologies have developed rapidly, so that the emergence and development of the Information Society has been at the center of recent scientific, political and economic debates, generating new work opportunities but also essential changes in regarding the nature of work and the way of working, changes comparable to those that happened in the industrial revolution.In this context, telework has become a strategic field from a theoretical and practical point of view, because it represents a solution with important practical potential; can develop quickly; it can positively influence the lives of many Europeans; is an excellent promoter of new processes and advanced technologies; it is a component of the new scientific and technological revolution, oriented towards society based on information and knowledge.
Category: Economics and Finance

Poverty-Reducing Economy via Bitcoin and One-Dollar-Store Model

Authors: Aleksey Vaneev
Comments: 2 Pages.

This essay presents a transactional system based on blockchain technology that permits usage of digital currency ecosystem to reduce general poverty.
Category: Economics and Finance

Comparative Longitudinal Analysis on Global Inflation with a Special Emphasis on Indian Economy

Authors: Ram Sharma
Comments: 23 Pages. (Converted by viXra Admin)

The economic fluctuations in Indian housing markets have been time and again proved to be led by inflation (Granger Cause) (Richa Pandey & V. Mary Jessica, 2020). The purpose of this study is to perform a comparative longitudinal analysis on Global Inflation with a special emphasis on Indian Economy. The study aims to observe the positive cause-effect relationship between the rise of money supply and circulation in the economy and the succeeding rise in housing prices. A comparative longitudinal analysis on inflation can provide significant insights into the evolution of prices over time. By comparing inflation rates across different countries, researchers can identify patterns and commonalities that can help explain the underlying causes of inflation.
Category: Economics and Finance

Dynamic Cross-Sectional Factor Identification and Analysis of Consumer Perception Towards Insurance Schemes in India

Authors: Ram Sharma
Comments: 19 Pages.

The insurance industry is an integral part of any modern economy, providing individuals and businesses with protection against a wide range of risks. However, the success of the industry depends largely on consumer perception towards insurance schemes. Consumer perception towards insurance schemes can have a significant impact on the demand for insurance products, the competitiveness of the insurance market, and the overall profitability of insurance companies.
Category: Economics and Finance

On the Mathematical Model of Economic Dynamics

Authors: R. E. Liberzon
Comments: 6 Pages. In Russian

Under the most general assumptions, a resolving system of ordinary differential-differenceequations of arbitrary order is obtained.Its characteristic determinant, assuming equality of coefficients characterizing interaction between different subjects of mathematical model,is reduced to the tridiagonal Jacobi determinant.The latter is equal to the linear homogeneous difference equation, whose solution is obtained by the Daniel Bernoulli (Jacques Binet) approach,and the recurrence relation method. It is shown that for an arbitrary set of non-zerocoefficients of interaction all characteristic numbers are complex numbers with positive real parts, where from it follows that all solutions of the original system of differential equations are a linear combination of diverging harmonic oscillations.
Category: Economics and Finance

How to Handle System Failures Inside a Electronic Couponing System

Authors: Ivo Van Der Rijt
Comments: 1 Page. (Note by viXra Admin: This is a stub - Future stubs instead of fully written scholarly articles with scholarly refrences will not be accepted)

This paper describes various failures that can take place in a economic sytem that is not derived on debt and provide some quidance on how to tackle these issues.
Category: Economics and Finance

Starting a Business Inside a Electronic Couponing System

Authors: Ivo Van Der Rijt
Comments: 1 Page. (Note by viXra Admin: This is a stub - Future stubs instead of fully written scholarly articles with scholarly refrences will not be accepted)

This paper describes how to start a business inside an electronic coupon system.
Category: Economics and Finance

Supervision Inside an Electronic Couponing System

Authors: Ivo Van Der Rijt
Comments: 1 Page. (Note by viXra Admin: This is a stub - Future stubs instead of fully written scholarly articles with scholarly refrences will not be accepted)

This paper describes various ways of supervision inside (and of) a economic system that is not derived on a debt based money system.
Category: Economics and Finance

Advantages and Disadvantages of an Electronic Couponing System: a Chat with Chatgpt

Authors: Ivo Van Der Rijt
Comments: 1 Page. (Note by viXra Admin: This is a stub - Chat with AI will not be accepted in general; further, future stubs instead of fully written scholarly articles with scholarly refrences will not be accepted)

This paper describes a chat the author had with an A.I. in relation to a non debt based money sytem.
Category: Economics and Finance

用牛頓力學描述宏觀經濟學(Describing Macroeconomics with Newtonian Mechanics)

Authors: Wanchung Hu
Comments: 3 Pages. (Correction made by viXra Admin - Please conform!)

物理學和經濟學之間有一個類比。 在這裡，我將用牛頓力學來描述和推導宏觀經濟學的原理。 經濟學力定義為 F=dMV/dt=dPG/dt。 還將定義通貨膨脹率、利率、增長率和貨幣加速率之間的聯繫。 最小作用量原理將應用於經濟學原則。 因此，我們有了新的有力工具來分析經濟活動。

There is an analogy between physics and economics. Here, I will use Newtonian mechanics to describe and derive the principles of macroeconomics. Economic power is defined as F=dMV/dt=dPG/dt. The link between inflation, interest rates, growth rates and monetary acceleration will also be defined. The principle of least action will be applied to economic principles. As a result, we have new and powerful tools for analyzing economic activity.
Category: Economics and Finance

Gambling Model Within an Electronic Couponing System

Authors: Ivo van der Rijt
Comments: 1 Page.

This paper describes a way gambling and its outcomes can happen in a system that is not derived on a debt based monetary system.
Category: Economics and Finance

Analysis of Financial Crisis Causes and Complex Systems Scientific Methods

Authors: Duan Xian Xiang
Comments: 10 Pages.

The financial crisis is because money flows are blocked or interrupted, and gives two formulas. One formula is to calculate the speed of money flow, and another formula is the money demand and supply formula of the "nodes". The paper also presents methods for analyzing complex science, which economics is. The paper proposes several methods to analyze complex systems, such as "program" and "fractal".
Category: Economics and Finance

Measuring Wealth and Remuneration Gaps

Authors: Ricardo Alvira
Comments: 24 Pages. License CC-BY-NC-ND

The paradigm that our societies should provide equal access to opportunities and a sufficient level of well-being to citizens regardless of their personal characteristics (gender, race, religion...) is one of the pillars, perhaps an axiom, of our political systems. And the link detected between the possession of income and wealth and access to opportunities means that the measurement of economic inequality (or gap) between different social groups is an indirect indicator to evaluate the degree of compliance with the previous axiom; that is, the degree to which said groups have equal access to opportunities and well-being.The mathematical characterization of the gap between groups is therefore key in this assessment. However, most proposals to assess economic gaps between groups use mathematical characterizations of the income or wealth of each group to be compared, whose inadequacy has already been demonstrated. Thus, to make progress on this issue, this text presents an alternative characterization of the income or wealth of the groups, based on the economic concept of equivalent average income, which states a relationship between average income, economic inequality, and generated welfare. This allows us to contrast the optimality of the different possible characterizations against the current axiomatic for inequality indexes. Likewise, the conceptualization itself implies the formulation of an inequality index which, compared to the most commonly used indexes (Gini, Pietra, Atkinson, Theil), provides the advantage of being able to compute zero or negative income or wealth values.
Category: Economics and Finance

On the Theory of Oligopoly

Authors: Ate Nieuwenhuis
Comments: 44 Pages. 1 black-and-white figure

It is argued, in the context of a heterogeneous oligopoly with perfect information, that rational behaviour should lead to an equilibrium that is invariant to the choice of instrument, price or quantity, by firms. The Cournot oligopoly and the Bertrand oligopoly fail this test; as both solutions are considered an example of a Nash noncooperative equilibrium, this result casts doubt on the appropriateness of the latter concept. The conjectural variations oligopoly passes the test. A natural consistency condition on the conjectural variations implies that the solution is in fact the contract (hyper)surface. The non-uniqueness of the equilibrium can be resolved by introducing a concept of economic force exerted by agents analogous to the force of gravity exerted by massive objects. This leads to the conclusion that the joint profit maximizing point is the equilibrium, where the joint profit includes the profits of the consumers. The equilibrium depends on cardinal properties of the consumers’ utility functions. The emphasis is on the exposition of ideas rather than on technical detail.Keywords: Conjectural variation, Contract curve, Force, Game, Nash noncooperative equilibrium, OligopolyJEL: C70, D21, D43, L13
Category: Economics and Finance

Fifa World Cup 2022 and Gini Coefficient up to the Final

Authors: Anindya Kumar Biswas
Comments: 11 Pages.

In this paper we study the Fifa World Cup 2022 matches up to the Final. In the Group Stage, for the decided matches, the probability for a team with lower relative Gini coefficient to win was 22/38( (22-3)/(38-4) i.e. 19/34 in the most conservative estimate). The probability to win with lower HDI was 18/38 or, 1/2.11 i.e. less than half. The probability to win with lower Gini coefficients in the next three stages was 1/2.In the Round of Sixteen stage, the probability to win with lower HDI has swung to the opposite direction to 5/8 i.e. more than half, as in the previous World Cup. In the Quarter Final stage, the probability for a team with lower relative HDI to win was 3/4 i.e swung more to the right.In the Semi Final stage, the probability for a team with lower relative HDI to win was1/2 i.e. swung back to the center. In the Third Place Play-off, the team with lower relative Gini coefficient, higher HDI won. In the Final, the team with higher relative Gini coefficient, lower HDI won. The overall probability to win with lower relative Gini coefficient was 30/54(27/50).
Category: Economics and Finance

Fifa World Cup 2022 and Gini Coefficient up to the Round of Sixteen

Authors: Anindya Kumar Biswas
Comments: 9 Pages.

In this paper we study the Fifa World Cup 2022 matches up to the Round of Sixteen. We find that the empirical evidence of lower Gini coefficient is continuing to decide the higher probability of winning of a country in a match in the FIFA World Cup 2022up to the Round of Sixteen. Moreover, in the Group Stage, probability to win with lower HDI was 18/37 or, 1/2.06 i.e. less than half. In the Round of Sixteen stage probability to win with lower HDI has swung to the opposite direction to 5/8 i.e. more than half, as in the previous World Cup.
Category: Economics and Finance

How is Russia Disrupting the NATO Alliance and Challenging the United States of America’s Hegemony Through the Ukrainian Invasion?

Authors: Love Trivedi, Akshan Toshniwal
Comments: Pages.

The Russia-Ukraine war has sparked a series of controversies and debates as to what VladimirPutin's goals are. This paper aims to outline Putin's short-term goal: to disrupt the NATO alliance by weaponizing inflation. Putin is choking the European fuel supply as a response to various economic sanctions; however, the European Union is working towards finding alternatives. The commission is establishing a network of scientists working to find energy alternatives and increase the efficiency of their nuclear reactors. Putin is also working toward his long-term goal of disrupting US hegemony by skirting the SWIFT system. The US government has abolished the Russian financial institutions from its enhancedfinancial messaging system, with companies like Google Pay, PayPal, etc., exiting the Russian market. Russia is developing alternate methods by employing a vast network of programmers to develop an alternative to the SWIFT System and various currency swap agreements. Putin is employing a short-term and long-term strategy to establish a multipolar order and reinvigorate Russia's global standing.
Category: Economics and Finance

Practical Economy of the Equal Opportunity of Becoming an Investor: Two Concrete Economic Proposals in Order to Unconcentrate Investment Capacities

Authors: Didier Rabiat-Blanchard
Comments: 1 Page.

In order to practically improve the equal opportunity of becoming an investor, a zerointerest loan is proposed, as well as an unavoidable tax on all the lucrative activities of the verywealthy.
Category: Economics and Finance

Quantum Theory of the Development of Science and Society

Authors: Bezverkhniy Volodymyr Dmytrovych, Bezverkhniy Vitaliy Volodymyrovich
Comments: 45 Pages. In Russian

Применяя квантовую механику для изучения общественных процессов показано, что экономические волны Н. Кондратьева теоретически выводятся из квантовой теории развития науки и общества. Использование принципа неопределенности Гейзенберга для социальных явлений показывает, что развитие общества носит концептуально вероятностный характер и принципиально не может быть строго предсказано. Отказ от «стрелы времени» на квантовом уровне приводит к выводу, что «время» это определенное «усреднение и преобразование» периодических квантовых процессов на фундаментальном уровне. Также показана невозможность достижения технологической сингулярности и создание искусственного интеллекта подобного человеческому.

Using quantum mechanics to study social processes, it was shown that the economic waves of N. Kondratiev are theoretically derived from the quantum theory of the development of science and society. The use of Heisenberg’s uncertainty principle for social phenomena shows that the development of society is conceptually probabilistic in nature and cannot be strictly predicted in principle (given the mathematical formula). The rejection of the "time arrow" at the quantum level leads to the conclusion that "time in our world" is a definite "averaging and transformation" of periodic quantum processes at the fundamental level. It also shows the impossibility of achieving technological singularity and the creation of artificial intelligence like human.
Category: Economics and Finance

E-Book on Global Digital Marketing (Chinese)

Authors: Vasily Kashkin
Comments: 71 Pages.

Digital marketing provides a great opportunity to find customers on a global scale without having to conduct physical marketing in another country.This book may help companies discover export opportunities and benefit from globalization.On the basis of marketing, global sales are not only suitable for large enterprises, but also for small start-ups and medium-sized enterprises.Digital marketing is suitable for both the global promotion of services and the global promotion of goods.Both types of business were discussed.The rapid development of the global business field was also discussed in particular: information technology, educational technology、online media, professional business services.Another new issue is the increasing role of social media in all parts of the world, which has a significant impact on global business.This book provides you with practical tools that will help you：Choose the most suitable foreign target market;Develop a global sales and marketing strategy;Calculate the break-even point and return on investment of new international projects;Choose from many digital marketing tools and develop your own digital marketing strategy;Conduct export marketing research;Develop your international website.
Category: Economics and Finance

The Valuation of Cancellable Structured Note

Authors: Alex Yang
Comments: 21 Pages.

Many derivatives have callable or cancellable features that impact both value and risk significantly. This article presents a valuation model for generic cancellable structured notes. The model calculates the expectation of cancellation notes with respect to the probability that cancellation occurs.
Category: Economics and Finance

Verifying the Validity of the EKC Theory Using the National Footprint, Per Capita GDP, and CO2&GHG Data Set

Authors: David Lee
Comments: 5 Pages.

The research explores if the Environmental Kuznets Curve (EKC) theory is true. The national footprint, per capita GDP, and CO2&GHG data set were used during the research. The data retrieved from the research until now indicates that the EKC curve is true to a certain point, but is inconclusive to be proven as fully true. When more time should pass and more development in countries should occur, there may be more data to revisit the topic.
Category: Economics and Finance

Convertible Bond and Credit Risk

Authors: David Lee
Comments: 23 Pages.

Convertible bond is issued mainly by start-up or small companies. It is susceptible to credit risk. This paper presents a model for valuing convertible bonds by taking credit risk into account. Testing results show that model prices fluctuate randomly around market prices, indicating the model is quite accurate. Convertible bond arbitrage usually employs delta-neutral hedging where an arbitrageur buys a convertible bond and sells the underlying equity at the current delta. Delta neutral hedging removes small directional risks and makes a profit on an explosive upside or downside breakout if the position’s gamma is kept positive. Thus, delta neutral hedging is great for uncertain stocks that are expected to make large breakouts in either direction.
Category: Economics and Finance

Credit Valuation Adjustment with Wrong Way Risk

Authors: David Lee
Comments: 17 Pages.

This paper presents a new model for calculating credit valuation adjustment and wrong way risk. Empirically, we find evidence that wrong way risk has a material effect on credit valuation adjustment. The nature and direction of effect depend on payoff, correlation, credit quality and risk mitigation. The magnitude of the impact is relatively greater in credit and equity markets. Moreover, the empirical results indicate that diversification can reduce the impact of wrong or right way risk on the risky value of a portfolio.
Category: Economics and Finance

Derivative Valuation and Collateralization

Authors: David Lee
Comments: 15 Pages.

This paper presents a model that characterizes a collateral process directly based on Credit Support Annex (CSA). The model is devised that allows for collateralization adhering to bankruptcy laws. We find evidence that there is a strong linkage between market and credit risk. Our study suggests that banks and regulators need to think about an integrated framework to capture interactions of these two types of risk. This requires all profits and losses are gauged in a consistent way across risk types as they tend to be driven by the same economic factors.
Category: Economics and Finance

Is Our Research Productivity in Decline? a New Approach in Resolving the Controversy

Authors: Gennady Shkliarevsky
Comments: 36 Pages.

This contribution examines the current controversy over research productivity. There are two sides in this controversy. Using extensive data from several industries and areas of research, one side argues that research productivity is currently in decline. The other side disputes this conclusion. It contends that the data used in making this argument are selective and limited; they do not reflect the overall state of research. The conclusion that follows from this critique is that the indicators of research productivity we currently use are not reliable and do not warrant a definitive answer to the problem. The article agrees that we need a new set of indicators in assessing research productivity. It proposes that we should look at global indicators related to knowledge production in general, rather than look at selective data that are inevitably limited in their scope. The article argues that the process of creation plays the essential role in knowledge production. Therefore, the perspective that uses the process of creation as its central organizing principle offers a unique and global view on the production of knowledge and makes a definitive resolution of the controversy possible. The article also outlines some steps for improving research productivity and realizing the full potential of the human capacity to produce knowledge. Key words: Research productivity, knowledge growth, the process of creation, levels of organization, equilibration and the production of disequilibrium.
Category: Economics and Finance

The Potential of the Semiconductor Economy

Authors: Yuji Masuda
Comments: 2 Pages.

Today, "procedures" are more important than ever, but this is not a mysterious phenomenon. In politics as well, in order for those in power to gain power, there must be "procedures" that reflect the will of the people. Procedure is synonymous with law, while non-procedure is the opposite of law, which in some cases means disorderly freedom. This can be applied not only to the political world but also to the economic world.
Category: Economics and Finance

A Detailed Explanation of Some of the Essence of the Economy

Authors: Yuji Masuda
Comments: 1 Page.

The purpose of this section is to provide complementary detailed explanations in my vixra No.61, 68, and 69. In the previous paper, I have shown that Ohm's law V=RI holds if Money (Time) =V, Exchanging=R, and Something=I, Ohm's law V=RI holds, and this law holds in economics as well.
Category: Economics and Finance

The Theory of Quantitative Trading

Authors: Berdondini Andrea
Comments: 50 Pages.

This book consists of a selection of articles divided into three main themes: Statistics, Quantitative Trading, Psychology. These three arguments are indispensable for the development of a quantitative trading system. The order of the articles was chosen so as to constitute a single logical reasoning that develops progressively.
Category: Economics and Finance

The Penguin Dictionary of Economics and the Graphical Law

Authors: Anindya kumar Biswas
Comments: 17 Pages.

We study the Penguin Dictionary of Economics by Graham Bannock and R. E. Baxter, the eighth edition. We draw the natural logarithm of the number of entries, normalised, starting with a letter vs the natural logarithm of the rank of the letter, normalised. We conclude that the Dictionary can be characterised by BP(4,$\beta H=0$) i.e. a magnetisation curve for the Bethe-Peierls approximation of the Ising model with four nearest neighbours with $\beta H=0$, in the absence of external magnetic field, H. $\beta$ is $\frac{1}{k_{B}T}$ where, T is temperature and $k_{B}$ is the tiny Boltzmann constant. This is the case with the Oxford Dictionary of Economics by J. Black, N. Hashimzade and G. Myles, we have studied before.
Category: Economics and Finance

Infinite Growth: A Curse or a Blessing?

Authors: Gennady Shkliarevsky
Comments: 43 Pages.

The article discusses the controversy over infinite growth. It analyzes the two dominant perspectives on economic growth and finds them based on a limited and subjective view of reality. An examination of the principal aspects of economic growth--economic activity, value, and value creation—helps to understand what fuels economic growth. The article also discusses the correlations between production, consumption, as well as resources and population dynamics. The article finds that infinite and exponential economic growth is essential for the survival (conservation) of our economy and civilization. Key words: Economic growth, technological innovation, Solow, entropy, equilibration, production of disequilibrium, value creation, environmental degradation, and “Malthusian Loop.”
Category: Economics and Finance

Mathematical Pattern and City Landmark ( 2 )

Authors: Aaron Chau
Comments: 6 Pages.

The purpose of economic development must include a good residential environment.
Category: Economics and Finance

Build Robo-Advisor: a New Method to Coding K-Line Series

Authors: Fan Peiran
Comments: 19 Pages.

In the age of Big Data, Financial markets worldwide accumulate tones of data; we need a new method to build a frame so that new techniques like machine learning could have a chance reshape the foundation of the future market. This paper proposes a new frame to take the small step to this big future. This paper presented a new architecture of comprehensive system to define similarity could capture the almost every promising K-line patterns of the stock price with the power of big data techniques, this system allows us to generate patters, predict the possibility of correlated events attached, it is a necessary component in the field of finance technology. With this new tool, we predict direction of stock prices as a test. In order to define the K-line similarity, first we proposed a new coding system to every possible shape of K-line; then we coding the series of K-lines, with the decoding technique and inference approach algorithm we could find the transfer possibility of every possible pattern. Possibility turns to be the “knowledge” of this system. Naturally,” ARIMA with GARCH effect” model and Naïve Predict Model were chosen as the benchmark to test the feasibility of the system. Many specific patterns were thought to be magic in revealing the future of asserts, and the very shapes or patterns were based on experience of experts. In this study I use the data from Chinese stock market, by setting a series of basic method as benchmark. Many evidences show massive patterns search method based on K-line similarity match should be promising, the general predict power of pattern search is better using in massive predict rather than a single assert prediction. This tool is a new path to study patterns and events from K-line series, give a complete frame to train the deep learning networks like Generative Adversarial Network. By using this frame well, “Technical Analysis” will be reshaped.
Category: Economics and Finance

"The Phenomenon of Trade-Based Money Laundering in Bangladesh" - A Critical Review

Authors: Md Monzur Morshed, Taiabur Rahman
Comments: 15 Pages.

Bangladesh is one of the victims of financial crime like money laundering. Bangladesh's gross domestic product (GDP) has risen to 329.12 billion dollars in recent years and is steadily expanding. According to BASEL AML Index data (2020), Bangladesh's current AML score is 5.88. It stands in 38 rankings among 141 countries where Afghanistan ranks in the number one position, scoring 8.16, and Estonia ranks in 141 places with a score of 2.36. To fight financial crime like money laundering, The Central Bank of Bangladesh has taken necessary steps to be in line with FATF Status. In this connection, Trade-Based Money Laundering is a type of money laundering that shall closely monitor. Under-invoicing and over-invoicing are regularly practiced by the importers and exporters while declaring false prices of the goods. The remaining capital flies through "Hundi" and other media like Bitcoin or cryptocurrency platforms and uses offshore tax havens to hide the money. Though ML / TBML is a common problem over the entire world, in comparison to others, Bangladesh's progress is not significant, and not enough academic research is being published, which creates a considerable gap between the Government agencies and academia. This study attempts to break the ice between government agencies and academia. Still, more in-depth research shall be needed to combat Money Laundering (ML) or Trade-Based Money Laundering (TBML).
Category: Economics and Finance

Inner Price Theory

Authors: Silin Chen
Comments: 39 Pages.

Based on the calculation of the value of labor with reference to Morishima's linear equations, this article gives a calculation method for the value of complex labor and simple labor based on a more concise premise. This article follows the principle of axiomatization. After giving a set of underlying physical regulations close to common sense, based on the concepts of internal price and internal profit, it proves that the higher the total price of assets, the higher the internal profit rate of the entity, and according to the internal The level of profit rate classifies the subject into the proletariat, the micro-class, the bourgeoisie, and the big bourgeoisie. Based on the definition of production rights and regenerative property rights as derivative rights of ownership, this article demonstrates that the protection of the privatization of production rights and regenerative property rights will cause two positive feedback processes. As a result, the gap between the rich and the poor has widened.
Category: Economics and Finance

Mathematical Pattern and City Landmark

Authors: Aaron Chau
Comments: 10 Pages.

This article introduces the use of a mathematical pattern, to make a design drawing of an eternal city landmark. This not only helps economic development, and can make the collective memory of urban residents , infinite continua
Category: Economics and Finance

We Should Control the Economy and Not Let the Economy Control Us: Is this Achievable and How Is This Achievable?

Authors: Bertrand Wong
Comments: 5 Pages.

This article raises some important points about the economy and economic policies, and proposes some important solutions. Economic problems that plague us seem intractable and seem to require some radical counter-measures. One of the root causes of a recession is that people are not spending sufficiently. To overcome this problem a radical change in our monetary system could be effected. This article is the revised and expanded version of an article which had been published in a journal of a well-established professional body for economists, whose editor remarked that the ideas in the article are against conventional wisdom.
Category: Economics and Finance

A Brief Study Describing the Essential of Economics

Authors: Yuji Masuda
Comments: 3 Pages.

Understanding money, which is created from bartering, is essential in economics. The purpose of this study was to examine the mechanism of money from a fundamental perspective, and succeeded in describing the structure of modern consumption and even trends in the industrial economy in the coming decades.
Category: Economics and Finance

Quantum Macroeconomics Money Flow

Authors: Osvaldo Duilio Rossi
Comments: 11 Pages.

Economics have begun only recently to translate its laws in the language of quantum statistics, approaching only specific areas of interests (like Baaquie 2004; Orrell 2018), leaving unaltered the groundings of mainstream economics. Schmitt (1972; 1984) suggested a complete reformulation of neoclassic macroeconomics, but he did it introducing the concepts of wave distribution and transformation only in a humanistic frame, leaving unaltered the mathematics underneath. Here – on the basis of Rossi (2019-2020) – I suggest a basic reformulation of money theory, applying a slightly altered algebra of Dirac (1930), which I am giving account for (particularly in composition of matrices and vectors); and applying the basic principles of quantum mechanics coded by Feynman/Leighton/Sands (1963/2013), in order to explain how money flows through an economic system, meaning a circular model of money supply. That should explain why "natural" distributions of money (out of political control) tend to realize unfair or unsustainable solutions.
Category: Economics and Finance

The Implication of Exchange Rate Volatility on Nigeria’s External Reserves: 1980-2020

Authors: Garbobiya Tuwe Soro, Osman Nuri Aras
Comments: 10 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

Given the volatile nature of the exchange rate in Nigeria and the dynamics in the external reserves of the nation which are kept in foreign currency (dollar), this paper examined the impact of exchange rate shocks on the Nigerian external reserves using annual data from 1980 to 2019. Employing the Autoregressive Distributed Lag model, the results of the study indicates that exchange rate has an asymmetric impact on reserves, suggesting that the partial sum of exchange rate differ in magnitude and size relative to reserves in both positive and negative direction. The impact of a positive shock in exchange rate on reserves is statistically significant while the effect of a negative shock in exchange on reserve is statistically insignificant in the long-run. The same relationship holds for the short-run effect, although, both the positive and the negative short-run effects are statistically insignificant. The study therefore recommends that monetary authority should strengthens the exchange rate by adopting a flexible exchange floating and making it to thrives in order to boost reserves. Some of these policies could include allowing the market forces to determine the exchange rate and harmonizing the exchange rate position of the country.
Category: Economics and Finance

E-Money

Authors: Domenico Oricchio
Comments: 3 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

A secure money transfer in a nation, using files, and without mining to reduce the energy consumption.
Category: Economics and Finance

Update on the Essential of Economics

Authors: Yuji Masuda
Comments: 1 Page. [Corrections made by viXra Admin to conform with scholarly norm]

Understanding the money created from barter is essential in economics.In economics, the purchase price is made up of the exchange fee (intermediate fee) and the product price, but the price posted on the product in many stores is easily misunderstood because it includes the exchange fee to make it easier for consumers to understand the price of the product.
Category: Economics and Finance

Backtesting Investigation of Effect of the Optimized S&P 500 Portfolio Diversification with L2 Regularization

Authors: Andrei Keino
Comments: 5 Pages.

The article presents problems related the to long - only optimized (with the help of the Markowitz model) portfolio diversification with L2 regularization. The backtesting for stocks selected from some subset of S&P 500 index for the 2002 - 2019 year interval with Markowitz portfolio optimization with L2 regularization was performed. The expected return was varied from 0.1 to 0.25, the regularization parameter was varied in the range 0.05 - 0.15. The results of backtesting are shown. The geometrical average of annual return for year interval 2002 - 2019, was about 0.13 - 0.14 in all the parameter range. It has been exposed, that the mean annual portfolio return for this year range actually nearly not depends on the expected return and the regularization parameter, if they are changes in aforementioned range, but the minima and the maxima of the annual portfolio return, i.e. the variance of the annual portfolio return, moreover, shows more pronounced dependency on these parameters of the optimized portfolio. The data of the backtesting seems to show the heteroscedasticity of a stock market.
Category: Economics and Finance

Через эмиссионное финансирование к безналоговому бюджету и высокоэффективной экономике
Obtaining a Tax-Free Budget and a Highly Efficient Economy Through Financing with Issue Money

Authors: I. Oskembekov
Comments: 19 Pages.

Обеспечение доходов бюджета является важной задачей государства, которую оно всегда решало и решает через налогообложение. Однако такой способ решения нельзя считать эффективным. В работе рассмотрены принципиальные недостатки налогообложения, которые отрицательно влияют на экономическое состояние государства и определяют негативную сущность налогообложения. Это обстоятельство дает основание говорить о задаче обеспечения доходов бюджета, как о проблеме государства. Еще одной важной проблемой является низкая эффективность экономики. Она обусловлена зависимостью экономики от оборотных средств, которая определяет большую долю затрат в производстве продукции. Две данные проблемы, отличаясь друг от друга, имеют общее решение, идея которого предложена в работе. Идея сводится к организации новой деятельности, способной полностью обеспечивать доходы бюджета, не прибегая к налогообложению, и способной превратить государство в высокоэффективную экономическую систему. На примере государственного бюджета России и российской экономики дано обоснование проблем. Рассмотрен механизм реализации предлагаемой идеи. Дан прогноз по показателям новой экономики и бюджета.

Oligopoly Games for Use in the Classroom and Laboratory

Authors: Ate Nieuwenhuis
Comments: 13 Pages. 10 tables, 1 color figure

In support of the claim that the Nash equilibrium results from a flawed attempt to solve a game, this article studies two modifications of the classic oligopoly model of Cournot. The common cost function is quadratic, so that marginal cost may be increasing, constant or decreasing, and the (still linear) inverse demand functions allow for differentiated goods. A special feature of the model, not previously noted, is that at the optimal points the profit-output ratio of the industry is the same, regardless of the number of firms and of several other parameters. The choice of parameters is discussed and six model variants are analysed through numerical examples. Some comments on the use of this class of models in experimental economics are made. Keywords: Bertrand, Cournot, Collusion, Oligopoly, Game theory, Vector maximisation, Experimental economics JEL: C91, C92, D21, D43, L11, L13
Category: Economics and Finance

Balance Sheet and Seniority Constraints on the Repayment Value of Claims

Authors: Mauro Padellini
Comments: 47 Pages.

The problem is addressed of how (different types of) funding transactions may affect the repayment value of (credit or equity) claims; to this purpose a novel prove for the existence and uniqueness of the payment vector, which does not make (explicit) use of the fixed point theorem and allows for the presence of claims with different seniorities (i.e. credit and equity claims), is proposed. Different components of the overall displacement (the reduction of repayment value), related to i) seniority structure, ii) network of bilateral exposure and iii) imbalances between external loss and external capital, are calculated by sequentially relaxing different constraints in the mixed linear program used for calculating overall displacement. The possibility that more credit may reduce overall displacement (due to borrowing-from-Peter-to-pay-Paul effect) and more equity capital may on the contrary increase overall displacement (due to its role in the transmission of financial displacement) is exemplified, along with the possible negative dependence of relative displacement (the ratio between overall displacement and total claims) on total claims.
Category: Economics and Finance

Revisiting Natural Resources-Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries

Authors: Jian Xue, Zeeshan Rasool, RaimaNazar, Ahmad Imran Khan, Shaukat Hussain Bhatti, Sajid Ali
Comments: 21 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

Widespread interference of human activities has resulted in major environmental problems, including pollution, global warming, land degradation, and biodiversity loss, directly affecting the sustainability and quality of the environment and ecosystem. The study aims to address the impact of the extraction of natural resources and globalization on the environmental quality in the South Asian countries for the period 1991–2018. A new methodology Dynamic Common Cor-related Effects is used to deal with cross-sectional dependence. Most previous studies use only carbon dioxide emissions, which is an inadequate measure of environmental quality. Besides carbon dioxide emissions, we have used other greenhouse gas emissions like nitrous oxide and methane emissions with a new indicator, “ecological footprint.” Long-run estimation results indicate a positive and significant relationship of natural resources with all greenhouse gas emissions and a negative association with the ecological footprint. Globalization shows a negative association with carbon dioxide emissions and nitrous oxide emissions and a positive relationship with the ecological footprint. Institutional performance is negatively correlated with carbon dioxide emissions, methane emissions, and ecological footprint while positively associated with nitrous oxide emissions. The overall findings highlight the pertinence of reducing greenhouse gas emissions and ecological footprint, proper utilizing of natural resources, enhancing globalization, and improving institutional performance to ensure environmental sustainability.
Category: Economics and Finance

Зарплата сквозь призму числофизики (Salary Through the Prism of the Number of Physics)

Authors: Alexander Vasilievich Isaev
Comments: 24 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

Всего работающих в России (на январь 2014 г.) было около 76 миллионов человек, и весьма любопытно (поучительно) узнать, как распределяются зарплаты всех работников (скажем, в процентном выражении по условным зарплатным группам). Вместе с тем, современное общество сформулировало для себя ряд табу (которые многим людям полезны, как и заповеди Библии), и к которым относится «некрасивое» желание узнать о зарплатах окружающих вас людей, начиная от своих коллег по работе, просто знакомых и т.д. (вплоть до высших чиновников страны). Поэтому мы ограничимся чисто теоретическим и оригинальным по своей «технологии» исследованием, не затрагивающим чьих-то личных интересов. Более того, на самом деле автор, как всегда, преследует свою главную цель – показать читателю, что законы природы (а человек и его зарплата – это… часть природы!) «отражает», «моделирует» … мир натуральных чисел (1, 2, 3, 4, 5, 6, 7, …). В «голом виде» моя гипотеза вдохновляет считанных читателей, а вот разговор о зарплате (о деньгах!)может разбудить спящий разум даже ленивого двоечника – и в этом также одна из остроумных «придумок» Творца…

Распределение богатства в социуме и в природе (Distribution of Wealth in Society and in Nature)

Authors: Alexander Vasilievich Isaev
Comments: 17 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

Статья про логнормальные распределения (тильда-распределения) богатства среди миллиардеров и миллионеров (всего мира), а также про распределения богатств (но уже в самом широком смысле слова) в природе. Все эти распределения подчиняются одному фундаментальному закону – закону распределения богатства (ЗРБ).

Тайны статистики или что скрывают числа (Secrets of Statistics or What the Numbers Hide)

Authors: Alexander Vasilievich Isaev
Comments: 82 Pages. [Corrections are made by viXra Admin to comply with the rules of viXra.org]

Это 2-я книга автора по «экономике», изданная зимой 2003 г. Все экземпляры были проданы через «Дом книги» (дом Зингера). Переиздавал эту книгу два раза – так хорошо она «уходила». На базе этой книги (а также моей книжки «ЗРБ») мне предлагали защитить кандидатскую диссертацию по экономике (в солидном ВУЗе Петербурга). Но мне, увы, было лень сдавать кандидатский минимум и вообще «возиться» с защитой (а как-то иначе «решить» такие вопросы – просто не догадался, всё это было «не в моём духе», старался жить «честно»).

About Non-Negotiable Trade and Its Financing Through Monetary Emission

Authors: I. Oskembekov
Comments: 9 Pages.

Once, by its appearance, trade contributed to the transition of human society to a new stage of development. Playing a connecting role, it turned the scattered farms into a single economic system. Today society needs a new qualitative leap. And the main role here again belongs to trade. But in order to play its role, trade itself must first undergo qualitative changes. The paper provides a rationale for why and what changes are needed for trade, and outlines the elements of the future new economy.
Category: Economics and Finance

Election Manifesto for 2021 Tamil Nadu Assembly Polls

Authors: Acharya Sennimalai Kalimuthu
Comments: 20 Pages. [Corrections made by viXra Admin to conform with the requirements on the Submission Form]

This paper is written mostly for developing countries like India. Even developed countries may also implement some of the reforms proposed by the author. By birth all are equal. Nature has provided all resources. In some nations like the USA, Canada, UK, Norway, Sweden, Denmark, Holland, many of the European Union, all the Gulf countries and maybe in some other nation’s people do live above the poverty line. These are all developed countries. In developing countries, still people are struggling to meet their needs. Also, these masses are facing social injustice, all kinds of suppressions, corruption, unemployment, etc. Keeping these problems in mind, the author introduces some economic and administrative reforms for immediate implementation.
Category: Economics and Finance

Code of Conduct for MLAs and Ministers in Tamil Nadu State of India

Authors: Acharya Sennimalai Kalimuthu
Comments: 10 Pages. In present India, these code of conducts for elected memebers is a MUST [Corrections are made by viXra Admin to comply with the rules of viXra.org]

In this work, Code of ethics and Conducts for MLAs and Ministers in Tamil Nadu province of India has been proposed
Category: Economics and Finance

Koinomics: Application of Trinitarian Economics Concept based on Luke 16:1-9 (Gospel of Luke)

Authors: Robby Igusti Chandra, Victor Christianto
Comments: 17 Pages. Paper presented at Euroasia-Baku Eurasian University- Congress on Scientific Researchers and Recent Trends-VII, Dec 6-8, 2020. Conference web site : https://www.euroasiasummit.org/

The separation between the economic concept and moral values or theology occurs after the industrial age. Economic leaders who define the measurements in the macro-economic domain such as inflation rate, trade deficit, interest rate, gross domestic product (GDP), or debts do not include theological or moral concepts to their concerns. In daily business practices efficiency and effectivity in achieving net profits, brand image, and productivity becomes the success measurements. Thus, people accept the gap in wealth distribution as normalcy. Only in 2020 when humanity ends up being shaken by multiple crises such as COVID-19, social or political conflicts, global economic crises, people tend to evaluate such practices and the consequences. This article explores koinomics, a concept that combines economy and interrelational concerns with the theology about Christian view of Godhead as a proposed framework to deal with the wealth gap and economic success concerns. Thus, literature textual study becomes the main method. The study also analyses two communities as models that have been applying such a theological concept. As the result, the exploration on the relational dimensions of the Trinitarian God and the narrative in Luke 16 yields a finding that, there should be three main concerns and success measurements of business and economy: continuous creation process, inter-communal share and caring practices, added with mutual sustainable growth. The analysis on two models shows that they apply such idea successfully. Thus, the potentials of "koinomics" as a framework for business practices are affirmed, yet various challenges in business or economic contexts need to be answered from theological perspectives.
Category: Economics and Finance

On Some Rural Developmental Programs

Authors: S. Kalimuthu
Comments: 21 Pages. This is a revolutionary program. If implemented, the rural economy will MUCH prosper.

For rural development in Tamil Nadu State, India the author proposes ten point programs. The important feature is that the author appeals to the government to announce that the state agricultural laborers are government employees.
Category: Economics and Finance

The Essential of Economics

Authors: Yuji Masuda
Comments: 1 Page. [Corrections made by viXra Admin to conform with scholarly norm]

In economics, the purchase price is made up of the exchange fee (intermediate fee) and the product price, but the price posted on the product in many stores is easily misunderstood because it includes the exchange fee to make it easier for consumers to understand the price of the product.
Category: Economics and Finance

The Mathematical Underpinnings of Utility Functions and their Broader Implications on Game Theory

Authors: Aryamoy Mitra
Comments: 6 Pages.

The predominating objective of this short paper is to lay forth a series of results derived from the optimization of canonical utility and indifference functions (insofar as they are used conventionally), and then analogizing them in the context of payoffs. It concerns the categorizations of utility functions, indifference curves and other analytical constraints. To commence, it draws a generalization as to how utilities change with regards to marginal rates of substitution. Following this, it invokes a series of arguments as to how they can be maximized in both univariate and multivariate states.
Category: Economics and Finance

Comparative Statics for Oligopoly: Flawless Mathematics Applied to a Faulty Result

Authors: Ate Nieuwenhuis
Comments: 2 Pages. An earlier, almost identical version is available at https://dx.doi.org/10.13140/RG.2.2.22776.29443

The assumption that each player conditions on the endogenous actions of his rivals when the players are unable to cooperate is inconsistent with the assumption of rational, optimising behavior.
Category: Economics and Finance

Eternal Commercial Landmark and Riemann Hypothesis

Authors: Aaron Chau
Comments: 6 Pages.

In order to achieve better results in real estate investment and environmental protection planning, and also in order to have an eternal commercial building landmark to load our era into the history ; so such is human nature that kings, prime ministers, presidents, and chairpersons in different political systems , party committee secretaries and investors, they all hope to build an eternal commercial landmark in their country. However, where does the concept of eternal in the design diagram of this eternal landmark come from?
Category: Economics and Finance

A Study with a Comparative Analysis on Consumer Consumption Pattern of Carbonated Drinks and Fruit Based Drinks in the North-East Indian Market, 2020

Authors: Debashis Sarmah
Comments: 44 Pages.

In the cold beverage products, carbonated drinks were common preference most among all individuals and still it is, irrespective of their age groups as it has great brand value and promotional activities but in the present scenario, people preferring the fruit based drinks and fruit juices over carbonated drinks is on a rise. The study starts with determining the major factors affecting the consumption pattern of carbonated drinks and fruit juices, and ends up with the conclusion as per the state of mind of the average rational human being. The main purpose of the research study is to analyze consumer’s preference between carbonated drinks and fruit juices. In order to understand the factors that have played an important role in customer’s preference to choose between carbonated drinks and fruit-based drinks, the study is done on their perceptions and expectations towards both carbonated drinks and fruit based drinks. The research is mostly based on primary data, collected with the help of a purposefully designed questionnaire, which is then filled by the respondents in the Northeast India, with their responses based upon their consumption behaviors towards carbonated drinks and fruit-based drinks. As per the data and responses collected from the respondents of various age groups and from different professional fields, with further analysis, a comparative study has been done between the consumption of carbonated drinks and fruit based drinks. Keywords: Consumer preference, carbonated drinks, fruit-based drinks, Northeast
Category: Economics and Finance

The Perfect Market: A Theoretical Analysis of Deterministic Economics

Authors: Aryamoy Mitra
Comments: 72 Pages.

The following document is an exposition of an elementary idea, that details a few (likely trivial) identifications and advancements to the economic field of game theory. Examples are inclusive of collective group behavior, mutual evolution and cooperative outcomes. While they are yet to be engendered through a rigorous mathematical edifice, they nonetheless describe a set of tenets perhaps closely associated, with the behavioral facets of deterministic economics. For reference, this had been constructed several years ago.
Category: Economics and Finance

A Study on the Relationship of Stock Market Scams and Non-Performing Assets

Authors: Shubham Mittal
Comments: 8 Pages.

The Indian stock market saw many frauds/scams in the past decades. These activities stumbled the investors’ belief many times in the stock market and due to which this market is seeing drastic fluctuations from a very long time. And in the times of increasing non-performing assets (NPAs) combined with the fears of potential stock market frauds, the financial markets of India are suffering badly. In this study, I tried to compare the relationship between NPAs and Stock Market Scams (SMCs) and listed out possible scenarios where such relationships have impacted the financial sector of the Indian economy.
Category: Economics and Finance

A Review of Possible Implementation of Online Business Education for High School Students and Common People in Developing Countries

Authors: Victor Christianto, Florentin Smarandache
Comments: 6 Pages. This paper has not been submitted to a journal. Comments are welcome

Considering the persistence effect of recent covid-19, developing countries need to accelerate education for small business owners in order they can contribute better in national growth. In a recent paper, there is discussion on a validation process using the Neutrosophic strategy for the formation of the competence entrepreneurship in high education in “10 de Octubre” borough in Havana, Cuba confirmed its feasibility of use. Now, in this paper we will review possible implementation of online business education, which seems to be more favourable for millennial and Z generation who mostly prefer an easy and hassle-free forms of learning. More research and development are still needed.
Category: Economics and Finance

The Hidden Logic Behind Petty Business Growth in Nigeria

Authors: Betasha Felix Chawaza
Comments: 2 Pages.

A petty business grows big over the years due to a certain principle adopted/applied by its owner. This principle is known as the compound interest principle. Albert Einstein in the 20th Century identifies compound interest as one of the greatest discovery of the Century due to its amazing nature of turning a smaller number to a bigger number which is actually applicable in reality.
Category: Economics and Finance

Implementation of a Quality Management System – a Factor for Competitiveness of Commercial Enterprise

Authors: Lyubka Ilieva
Comments: 8 Pages.

Requirements of the European Union in the field of trade and development prospects to the sector are expressed in the quality of the offered products and the means for their sale. The European and world experience show that the implementation of quality management systems makes it possible to take active action to increase the competitiveness and efficiency of commercial enterprises. Among the main problems faced commercial enterprises, is the Organization and maintaining a successful business in the face of changing market and heady business environment. Market survival inevitably associated with the competitiveness of commercial enterprises. Survey of the quality management is dictated by the need to present how retailers deal promptly with the challenges they face in a rapidly changing business environment. Competitiveness is fundamental composite indicator, which is influenced by many factors: strategy of commercial enterprise; the presence of material, labor and financial resources; training and motivation of personnel; innovation potential; market share; efficiency of management. The provision and improvement of quality is one of the essential factors for increasing the market share of commercial enterprise, hence the competitiveness. The present study aims to present the competitive advantages they receive commercial enterprises by introducing quality management system. For this purpose, first of all, should be provided the link between the quality and the competitiveness of the commercial undertaking; next to identify the principles and requirements of the international standards for quality management systems; third, to explore to what extent have invaded the quality management systems among the Bulgarian commercial enterprises; and fourthly to identify benefits that provide integrated systems on the competitiveness of the commercial enterprise.
Category: Economics and Finance

Quality Certification in the Tourism Sector Through Implementation of Iso 9001

Authors: Lyubka Ilieva
Comments: 12 Pages.

After Bulgaria's accession to the European Union, the global business environment was subject to some changes related to the process of globalization, the dynamic development of markets, and the free movement of people within the community. These changes required that Bulgarian tourism enterprises seek new opportunities for gaining a competitive advantage based on the quality of their products and tourist services. This issue requires an investigation into the economic implications considering the single EU market and the associated challenges to the competitiveness of Bulgarian tourism enterprises. In order to obtain certificates for globally or nationally recognized quality marks and signs, tourism enterprises have to reorganize their activities in such a way as to meet the requirements for obtaining such certificates and the associated registered marks, which requires investment of time and money, as well as certain managerial skills. An alternative to this type of quality assurance of the tourist services is the development, implementation and certification of a Quality Management System (QMS) in accordance with the provisions of the ISO 9001 standard. This standard allows tourist enterprises to build quality management systems that are consistent with the specifics of their business and service technologies and processes. The aim of this article is to define the benefits for a tourism enterprise from the implementation of a QMS and certification under ISO 9001 to ensure the quality of their tourist services. To this end, the article reviews the available studies related to the quality assurance in the tourism sector in Bulgaria and the degree of its compliance with the ISO 9001 standard. The study demonstrates the author's thesis that the use of the most widely used international standard gives the tourist business the opportunity to demonstrate its ability to manage quality, irrespective of the category of the tourist site and the developed tourism activity, using a clearly identifiable and globally recognised quality sign.
Category: Economics and Finance

Some Options for Maintaining the Positive Effects of Trade and Addressing Negative Effects

Authors: Piero Benazzo
Comments: 19 Pages.

The analysis looks into how trade would acts as a communicating vessels which diffuses positive effects of increase in productivity. This tends to bring abough also dynamics of increased inequalities. Increase in inequalities would bring to a hidden effect due to a dual economy differential inflationary dynamics between the subsistence sector and the rest of the economy. These would hide an underestimation in their visible measure and would involute into further increase in inequalities. This would eventually decrease the market size for selling more than the increase in market size thanks to improved productivity. A frame of solution proposed would be to keep the positive effects of trade and find a new deal for addressing its negative effects. This would mean decreasing inequality. One general frame for such deal would be to impose duties commensurate to the differential inequality between importer and exporter’s country. In addition, to contribute reabsorbing inequality the collected duties on imports could be sent back to the exporting countries, on the condition that they be used for decreasing inequalities.
Category: Economics and Finance

Money Supply, Velocity and Asset Prices: Evidence from US Economy

Authors: Romain Bocher
Comments: 9 Pages.

This paper revisits the equation of exchange from the quantity theory of money, expanding the definition of the purchasing power of money to capital and property investment. Based on this new equation, empirical data on US Economy from 2009 to 2019 enable to show that money velocity is the main determinant of asset transactions and prices. Finally, the concept of velocity is reexamined to integrate the marginal propensity of money to inflate prices.
Category: Economics and Finance

Marketing Via Gift Coupons and Vacation Saving Schemes: An Initiative for Air Canada

Authors: Ekeme Ekere Afia
Comments: 7 Pages.

People like travel for a plethora of reasons: self-discovery, self-care, pursuit of adventures or even as a hobby. Particularly, in the face of immediate costs and delayed rewards, present biased individuals exhibit self-control problems in performing an action and as a result, procrastinate for as long as possible. This paper provides a behavioral intervention – targeting clients through gift coupons and vacation saving schemes in order to provide a nudge towards booking more flights, thereby increasing sales at Air-Canada.
Category: Economics and Finance

Machine Learning in Asset Management—Part 2: Portfolio Construction—Weight Optimization

Authors: Derek Snow
Comments: 9 Pages.

This is the second in a series of articles dealing with machine learning in asset management. This article focuses on portfolio weighting using machine learning. Following from the previous article (Snow 2020), which looked at trading strategies, this article identifies different weight optimization methods for supervised, unsupervised, and reinforcement learning frameworks. In total, seven submethods are summarized with the code made available for further exploration.
Category: Economics and Finance

The Rest Mass Value of The Earth and the Moon

Authors: Espen Gaarder Haug
Comments: 1 Page.

Here we will look at the value of the whole Earth if looked at as just as rest-mass energy that theoretically could be extracted. As it is very silly to use up our own planet (our home) as energy a slightly better alternative is to sell of the moon to aliens. So yes we will calculate what the value of the Earth and the moon as a value just from an energy perspective. However if advanced aliens every visit us, they possibly will just look at the Earth as a clump of fuel, if they are nice they pay us for it and leave us to keep the moon, or if they have empathy they will let us keep the Earth and even pay for the moon.
Category: Economics and Finance

Rural Money or How to Make Rural Economies Effective

Authors: I. Oskembekov
Comments: 22 Pages.

The reality is that the village is a weak link in the state economy. Meanwhile, it has great potential. The village is capable of being an effective system. Moreover, it can become the locomotive of the entire economy of the state. What determines such opportunities for the village? How to reveal this? How does the economic fate of not only the village, but also the state, and even the world economy depend on this? The article attempts to answer these and other questions.
Category: Economics and Finance

Self-Organized Critical Markets - Implied Volatility and Avalanche Intensity

Authors: Romain Bocher
Comments: 7 Pages.

Assuming self-organized criticality to characterize capital markets, this paper seeks to explain why equity implied volatility is a relevant proxy for avalanche intensity. Historical data analysis of the CBOE Volatility Index (VIX) shows that implied volatility spikes are distributed following a power law, making financial stress similar to earthquakes as anticipated long ago by Bak.
Category: Economics and Finance

Machine Learning in Asset Management—Part 1: Portfolio Construction—Trading Strategies

Authors: Derek Snow
Comments: 14 Pages.

This is the first in a series of articles dealing with machine learning in asset management. Asset management can be broken into the following tasks: (1) portfolio construction, (2) risk management, (3) capital management, (4) infrastructure and deployment, and (5) sales and marketing. This article focuses on portfolio construction using machine learning. Historically, algorithmic trading could be more narrowly defined as the automation of sell-side trade execution, but since the introduction of more advanced algorithms, the definition has grown to include idea generation, alpha factor design, asset allocation, position sizing, and the testing of strategies. Machine learning, from the vantage of a decision-making tool, can help in all these areas.
Category: Economics and Finance

The End of Laissez-Faire and Rise of Algorithmic Management and Politics.

Authors: Tariq Khan
Comments: 4 Pages.

The ground breaking research and article in the November 2019 Scientific American from Bruce Boghosian and team in “The Inescapable Casino” is discussed, quoted often, and extended into other areas. The general idea being that systems involving transactions between humans will inevitably lead to oligopolies and that this is not only seen in economies but also organizations and politics and that their recommendations intimate a much larger impact from the conclusions of their research.
Category: Economics and Finance

Agriculture 4.0

Authors: Diego Liberati
Comments: 3 Pages.

principles and actions mutuated from Industry 4.0 are trensposed and implemented to agriculture
Category: Economics and Finance

Problem of the Origin of Profit

Authors: James Smith
Comments: 34 Pages. Enjoy

I think I have proved that in an economy with fixed amount of money, no monetary profit is sustainable. The aggregate prices will always be above the public purchasing ability, therefore we have a mathematical problem. The notion that banks create new money is incorrect, that's why the government has to create new money and periodically inject it into circulation. Circulation with fixed amount of money would be inefficient and won't allow effective consumption of all the products produced.
Category: Economics and Finance

Money To Capital?

Authors: Stephen I. Ternyik
Comments: 2 Pages.

Conference contribbution; Worcester Polytechnic Institute 2020
Category: Economics and Finance

Impact of Higher Capital Adequacy Requirements for Banks: Evidence from BRICS

Authors: Noor Ulain Rizvi
Comments: 2 Pages.

The global financial crisis (GFC) of 2008 imposed huge costs on the economies which are unwinding to date. After the collapse of Lehman Brothers, the regulators were confronted with difficult questions, which led to the G-20 leaders to agree on a comprehensive set of prudential norms to increase the resilience of the banking systems. The central component of these reforms is raising capital requirements. Theoretically, the benefits of higher capital adequacy requirements are manifolds; it helps in building a strengthened and more resilient financial system which can reduce the frequency of financial crisis and the related cost of such crisis. Given the historical frequency of crises in BRICS, one may think that the benefits would be limited. However, the growing importance of BRICS on the global platform, along with the growing interconnectedness among economies, the exposure to potential shocks will only increase. Thus, it is in the interest of all the five economies to implement the new regulatory norms to build a more resilient financial system. The literature mostly considers the costs and benefits of the higher capital adequacy norms for the developed economies like the United States, the United Kingdom, and other OECD countries. However, it is equally crucial for BRICS economies to weigh the benefits of these norms on the economy against the potential costs. This study fills the gap in the literature by estimating the impact of higher capital adequacy requirements for each of the BRICS economies, standalone. The conceptual framework of estimating the costs and benefits for each of the BRICS economies is closely aligned with the Long Term Economic Impact (LEI) study by the Basel Committee on Banking Supervision (BCBS). The impact is estimated as the amount (in per cent) of GDP saved by increasing the capital requirements. The findings are then validated by a structured questionnaire, 2 administered on the banking experts who have been closely involved in the process of Basel implementation at their banks. This research delves deeper into the impact of higher capital adequacy requirement on the credit risk (risk in the loan portfolio of banks), which has been termed as the prime contributor to the systemic banking crisis in the past episodes of crises. A further disaggregation on the basis of ownership and accounting for the GFC is also done. The main findings of this study indicate that the net benefits of higher capital adequacy requirements outweigh the costs for all the BRICS economies; however, the benefits for Brazil and Russia are substantially higher. Also, a strong monetary policy of an economy can play a role in controlling the costs of higher capital for the economy. The survey results also establish that higher capital norms will increase the stability and resilience of the banking sector. The survey also gauges the opinion of experts on the indirect impact of these norms, along with the critical success factors in the process of implementation. Finally, the results of the empirical analysis establish a positive relationship between capital norms and credit risk. The study has important implications for academia and policymakers. While it enriches the existing body of knowledge with new findings and evidence for the academia, for the policymakers, it suggests that a more conservative approach results in a lower probability of a crisis. It is also suggested that there is enough room to increase the capital requirements above the regulatory ratios as the net impact will still be positive. To the best of the author’s knowledge, the study has made a novel attempt to assess the impact of each of the BRICS economies separately along with collecting the invaluable insights from the banking experts about the implementation process.
Category: Economics and Finance

Kalecki's Paradoxical Odyssey

Authors: Stephen Ternyik
Comments: 10 Pages.

Non-orthodox economic approach.
Category: Economics and Finance

The Absolute Smallest Possible Money Unit! When Money Crashes into the Laws of Physics

Authors: Espen Gaarder Haug
Comments: 4 Pages.

In this paper, we demonstrate that there is an absolute physical limit on how small the smallest money unit can be, no matter how much we are able to improve our technology. The smallest money unit seems to be directly linked to the smallest possible energy unit needed to store one bit. If the smallest money unit is smaller than the cost of energy of storing one bit then there seems to be an arbitrage, which will also constrain money producers such as central banks from issuing money with a smaller denomination than this minimum money unit. Keywords: Money units, money creation, arbitrage, information theory, Launder limit, the Planck constant.
Category: Economics and Finance

Relativistic Invariant Banking

Authors: Miroslaw Kozlowski
Comments: 5 Pages. We consider application of special relativity theory to banking processes

World market is very unstable . In this Essay we show why. For the growing stream of liquid money on the market , the velocity of financial processes is going to the limit value , invariant stream velocity. Which is the maximal velocity for physical processes in the market. When v= vin market is unstable and uncontrolled. It is ready to critical behavior with negative trends, i.e abrupt decreasing Price, smaller then established values
Category: Economics and Finance

The Valuation of Financial Derivatives Subject to Counterparty Risk and Credit Value Adjustment

Authors: Xiao, Tim
Comments: 40 Pages.

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level.
Category: Economics and Finance

1 期間2項モデルを活用した失業保険の価格決定

Authors: Hiroki Tahara
Comments: 3 Pages. Japanese Only

I determined general fee of employment insurance. I used one-term binomial models in order to determine general fee of employment insurance.
Category: Economics and Finance

On the Estimation of the Economic Value of a Dash Proposal

Authors: Pablo Menéndez-Ponte Alonso
Comments: 16 Pages.

This paper is concerned with the derivation of a consistent formal method to allow for estimating the economic value of a Dash proposal. Standing on the Currency Fair Value[1] theory as rational financial pricing model of a currency, the paper will arrive at a straightforward and objective calculation tool, in the form of several simple equations. These will allow Masternode owners and individuals who submit proposals to the Dash treasury to estimate the expected value return of the economic proposals and thus, enable them to make more rational decisions. Development of this new model will require differential analysis of the fair value equation, as a basis for the analytical expressions expected by the main target audience. This analysis goes beyond the scope of Dash and many other currency research efforts may also drawn upon it. Keywords: Dash·Proposal·Quantitative Finance·Asset Pricing·Currency Fair Value·Investing
Category: Economics and Finance

The Valuation of Credit Default Swap with Counterparty Risk and Collateralization

Authors: Xiao, Tim
Comments: 26 Pages.

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market.
Category: Economics and Finance

The Valuation of Interest Rate Swap with Bilateral Counterparty Risk

Authors: Xiao, Tim
Comments: 13 Pages.

This paper presents an analytical model for valuing interest rate swaps, subject to bilateral counterparty credit risk. The counterparty defaults are modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread.
Category: Economics and Finance

Health Insurance Funds that Manage Money Without Saving it

Authors: Dimiter Dobrev
Comments: 8 Pages. Bulgarian language

There is no need for the health insurance fund to collect health contributions and then to pay for the activities carried out with that money. It is better if the National health insurance fund collects the money and keeps it and the health fund only manages it without actually passing the money through it. This eliminates the risk of bankruptcy of the fund and the need to create a guarantee fund. So changing the fund will be very easy, because no real money will be moved, but only the subject that manages it will change.
Category: Economics and Finance

Contamination of Farms by Genetically Modified Organisms (GMOs): Options for Compensation

Authors: John Paull
Comments: 16 Pages.

There is no satisfactory legal remedy for farmers in Australia whose farm has been contaminated by genetically modified (GM) material. This is a deficiency of Australia’s Gene Technology Act 2000 and it has not been remedied. In the Marsh v Baxter case (2010-2016) an organic farm in Western Australia (WA) was contaminated with GM canola from a neighbouring farm. The organic farm lost its certification (along with the price premium for organic produce). The organic farmer (Marsh) sued the GM farmer (Baxter) for the agreed damages of A$85,000. The case was lost in the WA Supreme Court, then in the Court of Appeal, and finally it was rejected by the High Court of Australia. The legal fees were in the order of A$2,000,000, which is quite disproportionate to the agreed loss. A Parliamentary Inquiry (2017-2019) in WA examined “Mechanisms for compensation for economic loss to farmers in Western Australia caused by contamination by genetically modified material”. There were 121 submissions to the Inquiry and 22 public hearings. Seven ‘mechanisms’ were considered: (i) Do nothing; (ii) a GM Levy; (iii) a GM Technology Licence Bond; (iv) Non-GM farmer Insurance; (v) GM farmer Insurance; (vi) a Compulsory Third Party (CTP) GM Scheme; and, (vii) the Government pays. After its deliberations, the Standing Committee on Environment and Public Affairs did not recommend any change from the present unsatisfactory state of affairs where reliance on the common law offers no effective protection for non-GM farmers against contamination by genetically modified organisms (GMOs) (as witnessed in the Marsh v Baxter case). The ‘Do nothing’ option, which was supported by Monsanto and pro-GM farmer groups, prevailed. This paper explores the context and content of the Parliamentary Inquiry, presents the six proposed proactive options for compensation (of which only four appeared in the Inquiry Report), and the twelve findings of the Inquiry. Ultimately the Committee was timid where it might have been bold. The Inquiry was a lost opportunity for righting a known wrong. The Inquiry outcome will ensure that GM-farming remains a very contentious issue in WA and continues to lack any semblance of a social licence. However, the WA Parliamentary Inquiry (in toto, viz. the submissions, the hearings, and the Report) provides a rich trove of views and material for legislators and regulators in other jurisdictions who face the exact same issue of GM contaminations.
Category: Economics and Finance

Bilateral Defaultable Financial Derivatives Pricing and Credit Valuation Adjustment

Authors: Xiao, Tim
Comments: 19 Pages.

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread.
Category: Economics and Finance

Pricing Financial Derivatives Subject to Multilateral Credit Risk and Collateralization

Authors: Xiao, Tim
Comments: 26 Pages.

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market.
Category: Economics and Finance

Incremental Risk Charge Methodology

Authors: Xiao, Tim
Comments: 18 Pages.

The incremental risk charge (IRC) is a new regulatory requirement from the Basel Committee in response to the recent financial crisis. Notably few models for IRC have been developed in the literature. This paper proposes a methodology consisting of two Monte Carlo simulations. The first Monte Carlo simulation simulates default, migration, and concentration in an integrated way. Combining with full re-valuation, the loss distribution at the first liquidity horizon for a subportfolio can be generated. The second Monte Carlo simulation is the random draws based on the constant level of risk assumption. It convolutes the copies of the single loss distribution to produce one year loss distribution. The aggregation of different subportfolios with different liquidity horizons is addressed. Moreover, the methodology for equity is also included, even though it is optional in IRC.
Category: Economics and Finance

The Impact of Default Dependency and Collateralization on Asset Pricing and Credit Risk Modeling

Authors: Tim Xiao
Comments: 39 Pages.

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one.
Category: Economics and Finance

The Present and the Future of the World Economy

Authors: Ilyas Oskembekov
Comments: 16 Pages.

This work is a continuation of the conversation about the qualitative heterogeneity of money, but already in the scale of the world economy. The features of this phenomenon, its sources of existence and the negative impact on the state of the world economy are considered on the model of the world economic system. The possibility of creating a new efficient world economic system with a qualitatively homogeneous money supply is shown.
Category: Economics and Finance

Avaliação de Perdas Nos Sistemas Públicos de Abastecimento de água no Estado de Sergipe

Authors: Marcos Luciano Alves Barroso
Comments: 11 Pages.

In recent years, little attention has been paid to investments in maintenance and modernization of the management of public water supply systems in many Brazilian cities. In the State of Sergipe, this fact has resulted in a series of inefficiencies in the supply, among which, the high loss of water, physical and financial for the state concessionaire in several cities stands out. Thus this work seeks to identify a picture of the conditions of water loss management in the public supply systems in the six largest municipalities of the State of Sergipe. The fact is therefore that the concessionaire indicates that the lack of technology that ensures better monitoring of public water supply systems in cities that also do not have modern equipment for the actual measurement of water distributed and consumed. Thus, the work was constructed accounting for information and indicators from the National Sanitation Information System (SNIS) that reveal the situation of cities in Sergipe from 2008 to 2017. They revealed that incentives for more efficient maintenance are limited and, in general, water is treated as a free good, stimulating non-payment and uncontrolled use of it. This situation creates many problems for the maintenance of the concessionaire and service providers, such as the production of water, which in most cases is much higher than necessary, amplifying production costs and providing a significant loss of water production in the physical loss. This represents cost incurred, part of the water is not charged, resulting in losses of billing, that is, the consumer consumes, but does not pay, resulting in costs of production and distribution without inferring revenue.
Category: Economics and Finance

An Economic Examination of Collateralization in Different Financial Markets

Authors: Tim Xiao
Comments: 40 Pages.

ABSTRACT This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets.
Category: Economics and Finance

Is the Jump-Diffusion Model a Good Solution for Credit Risk Modeling? The Case of Convertible Bonds

Authors: Tim Xiao
Comments: 36 Pages. International Journal of Financial Markets and Derivatives, 4(1) 1-25, 2015

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price.
Category: Economics and Finance

An Efficient Lattice Algorithm for the Libor Market Model

Authors: Tim Xiao
Comments: 32 Pages. Journal of Derivatives, 19 (1), 25-40, 2011

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround.
Category: Economics and Finance

A Simple and Precise Method for Pricing Convertible Bond with Credit Risk

Authors: Tim Xiao
Comments: 30 Pages.

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price.
Category: Economics and Finance

An Accurate Solution for Credit Valuation Adjustment (CVA) and Wrong Way Risk

Authors: Tim Xiao
Comments: 25 Pages. Journal of Fixed Income, 25 (1) 84-95, 2015

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be positive or negative. Moreover, the model can naturally capture wrong or right way risk.
Category: Economics and Finance

A New Model for Pricing Collateralized OTC Derivatives

Authors: Tim Xiao
Comments: 26 Pages. Journal of Derivatives

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk.
Category: Economics and Finance

Process Delay Sedimentation – Aspects of Business Transactions Analogous to Physical Conservation Laws.

Authors: Tariq Khan
Comments: 2 Pages.

Sedimentation: noun, the process of settling or being deposited as a sediment. "Sedimentation occurs when the droplets sink to the bottom." Newton's Law of Universal Gravitation: … the force is proportional to the product of the two masses, and inversely proportional to the square of the distance between them.
Category: Economics and Finance

Of Recognizing the Trefoil Knots in a Price Chart of a Security in the Financial Markets

Authors: Han Do
Comments: 9 Pages. The article has send to U.S. Copyright Office

The Trefoil knots in a price chart of a security of financial markets are recognized. The paper also shows how to use the knots to be timing the financial markets.
Category: Economics and Finance

Quantum Theory of the Development of Science, Economic and Society.

Authors: Bezverkhniy Volodymyr Dmytrovych, Bezverkhniy Vitaliy Volodymyrovich.
Comments: 41 Pages.

This paper discusses the wave description in biology, chemistry and economics. Using quantum mechanics to study social processes, it was shown that the economic waves of N. Kondratiev are theoretically derived from the quantum theory of the development of science and society. The use of Heisenberg’s uncertainty principle for social phenomena shows that the development of society is conceptually probabilistic in nature and cannot be strictly predicted in principle (given the mathematical formula). The rejection of the “time arrow” at the quantum level leads to the conclusion that “time in our world” is a definite “averaging and transformation” of periodic quantum processes at the fundamental level. It also shows the impossibility of achieving technological singularity and the creation of artificial intelligence like human.
Category: Economics and Finance

Smart Transactions

Authors: Egger Mielberg
Comments: 13 Pages.

. Fully realized ACCP-based (Atomicity, Consistency, Concurrency, Permanency) online transactions would allow, first, to connect and manage all associative input transactions to a single output transaction, second, to eliminate any third party that is not a participant of transaction contract, third, to fully automate an execution of multi-steps contracts with a possibility to track them on every step, fourth, to promptly identify and extract any transaction data, and fifth, to dynamically scale a transaction network proportionally to the amount of its active participants. We propose a mechanism that allow every single participant of the transaction network to dynamically manage any transaction on his or her own economic way.
Category: Economics and Finance

Sphere - A Decentralized Economy-Based Electronic Currency

Authors: Egger Mielberg
Comments: 15 Pages.

. A decentralization of electronic currency would allow business activity and development of a single network to be independent of other different business networks. Cost of a decentralized currency of the network can become stable as long as participants of that network are still active. We propose a solution for such a big problem of traditional economy as a “direct dependency of local prices on global ones”. We also propose an innovative mechanism that allows participants of NCN to get any service of one business network for money (hours) earned in other network (‘s). The currency is implemented by usage of two innovative technologies, “Proof of Participation protocol” (PoP) [3] and “Smart Transactions” [2].
Category: Economics and Finance

Sphere Currency

Authors: Egger Mielberg
Comments: 7 Pages.

Decentralized nature of Sphere electronic currency introduces several new properties that the traditional one does not have. Here, we shortly review all functions and properties of real (fiat) money and propose new features that belong to Sphere.
Category: Economics and Finance

Digital Bank

Authors: Egger Mielberg
Comments: 17 Pages.

Decentralization of BANK services would allow its users, first, to primarily earn money, second, to extremely reduce document routines, third, to make their activity more transparent and secure. We propose a new concept of BANK, a digital BANK that never can be a bankrupt and has professional skills and degree of activity of its customers as a main capital.
Category: Economics and Finance

A Simple and Fairer System to Fund Social Security

Authors: Jabari Zakiya
Comments: 5 Pages. Minor corrections.

FICA withholding from wages is currently used to fund Social Security. It uses a Cap with no Floor system, which subjects the first dollar of wage earners salaries to FICA, up to a wage cap, after which FICA is no longer applied. What is shown here, is that a Floor with no Cap system is better, for the myriad of reasons provided herein, and should be adopted by Congress to replace the current system.
Category: Economics and Finance

Periphery of the Financial System (Outer Circuit)

Authors: Dmitrii V. Guryanov
Comments: 94 Pages.

Nowadays among various participants of the global financial interactions there is a certain need for having a reserve and settlement currency that is not fiat currency. This paper describes a way of how the international financial set of rules could look like when not based on fiat but rather based on commodity type of currency, crowned by a unified global currencyof the same type. This paper is a scientific approach to the problem which ultimately describes the methodology of the provided solution, having a full set of required equations and their annotations.
Category: Economics and Finance

Poverty-Reducing Economy via Bitcoin and One-Dollar-Store Model

Authors: Aleksey Vaneev
Comments: 2 Pages.

This proposal presents a transactional system, based on existing blockchain technology, that permits usage of digital currency ecosystem for reduction of general poverty.
Category: Economics and Finance

Poverty-Reducing Economy via Bitcoin and One-Dollar-Store Model

Authors: Aleksey Vaneev
Comments: 2 Pages.

This proposal presents a transactional system, based on existing blockchain technology, that permits usage of digital currency ecosystem for reduction of general poverty.
Category: Economics and Finance

Measuring Wealth and Remuneration Gaps

Authors: Ricardo Alvira
Comments: 24 Pages. License CC-BY-NC-ND

The paradigm that our societies should provide equal access to opportunities and a sufficient level of well-being to citizens regardless of their personal characteristics (gender, race, religion...) is one of the pillars, perhaps an axiom, of our political systems. And the link detected between the possession of income and wealth and access to opportunities means that the measurement of economic inequality (or gap) between different social groups is an indirect indicator to evaluate the degree of compliance with the previous axiom; that is, the degree to which said groups have equal access to opportunities and well-being.The mathematical characterization of the gap between groups is therefore key in this assessment. However, most proposals to assess economic gaps between groups use mathematical characterizations of the income or wealth of each group to be compared, whose inadequacy has already been demonstrated. Thus, to make progress on this issue, this text presents an alternative characterization of the income or wealth of the groups, based on the economic concept of equivalent average income, which states a relationship between average income, economic inequality, and generated welfare. This allows us to contrast the optimality of the different possible characterizations against the current axiomatic for inequality indexes. Likewise, the conceptualization itself implies the formulation of an inequality index which, compared to the most commonly used indexes (Gini, Pietra, Atkinson, Theil), provides the advantage of being able to compute zero or negative income or wealth values.
Category: Economics and Finance

Infinite Growth: A Curse or a Blessing?

Authors: Gennady Shkliarevsky
Comments: 43 Pages.

The article discusses the controversy over infinite growth. It analyzes the two dominant perspectives on economic growth and finds them based on a limited and subjective view of reality. An examination of the principal aspects of economic growth--economic activity, value, and value creation—helps to understand what fuels economic growth. The article also discusses the correlations between production, consumption, as well as resources and population dynamics. The article finds that infinite and exponential economic growth is essential for the survival (conservation) of our economy and civilization.
Category: Economics and Finance

Inner Price Theory

Authors: Chen Silin
Comments: 89 Pages.

Based on the calculation of the value of labor with reference to Morishima's linear equations, this article gives a calculation method for the value of complex labor and simple labor based on a more concise premise. This article follows the principle of axiomatization. After giving a set of underlying physical regulations close to common sense, based on the concepts of inner price and inner profit, it proves that the higher the total price of assets, the higher the internal profit rate of the entity, and according to the internal The level of profit rate classifies the subject into the proletariat, the micro-class, the bourgeoisie, and the big bourgeoisie. Based on the definition of production rights and regenerative property rights as derivative rights of ownership, this article demonstrates that the protection of the privatization of production rights and regenerative property rights will cause two positive feedback processes. As a result, the gap between the rich and the poor has widened.
Category: Economics and Finance

Inner Price Theory

Authors: Chen Silin
Comments: 85 Pages.

Based on the calculation of the value of labor with reference to Morishima's linear equations, this article gives a calculation method for the value of complex labor and simple labor based on a more concise premise. This article follows the principle of axiomatization. After giving a set of underlying physical regulations close to common sense, based on the concepts of inner price and inner profit, it proves that the higher the total price of assets, the higher the internal profit rate of the entity, and according to the internal The level of profit rate classifies the subject into the proletariat, the micro-class, the bourgeoisie, and the big bourgeoisie. Based on the definition of production rights and regenerative property rights as derivative rights of ownership, this article demonstrates that the protection of the privatization of production rights and regenerative property rights will cause two positive feedback processes. As a result, the gap between the rich and the poor has widened.
Category: Economics and Finance

Inner Price Theory

Authors: Silin Chen
Comments: 39 Pages.

Based on the calculation of the value of labor with reference to Morishima's linear equations, this article gives a calculation method for the value of complex labor and simple labor based on a more concise premise. This article follows the principle of axiomatization. After giving a set of underlying physical regulations close to common sense, based on the concepts of inner price and inner profit, it proves that the higher the total price of assets, the higher the internal profit rate of the entity, and according to the internal The level of profit rate classifies the subject into the proletariat, the micro-class, the bourgeoisie, and the big bourgeoisie. Based on the definition of production rights and regenerative property rights as derivative rights of ownership, this article demonstrates that the protection of the privatization of production rights and regenerative property rights will cause two positive feedback processes. As a result, the gap between the rich and the poor has widened.
Category: Economics and Finance

Через эмиссионное финансирование к безналоговому бюджету и высокоэффективной экономике
Obtaining a Tax-Free Budget and a Highly Efficient Economy Through Financing with Issue Money

Authors: I. Oskembekov
Comments: 19 Pages.

Обеспечение доходов бюджета является важной задачей государства, которую оно преимущественно решало и решает через налогообложение. Однако такой способ решения нельзя считать эффективным. В работе рассмотрены принципиальные недостатки налогообложения, которые отрицательно влияют на экономическое состояние государства. Они, определяя негативную сущность налогообложения, дают основание говорить о задаче обеспечения доходов бюджета, как о проблеме государства. Еще одной важной проблемой является низкая эффективность экономики. Она обусловлена зависимостью экономики от оборотных средств, которая определяет большую долю затрат в производстве продукции. Данные проблемы имеют общее решение, идея которого предложена в работе. Идея сводится к организации новой деятельности, способной полностью обеспечивать доходы бюджета, не прибегая к налогообложению, и способной превратить экономику государства в высокоэффективную систему. На примере государственного бюджета России и российской экономики дано обоснование проблем. Рассмотрен механизм реализации предлагаемой идеи. Дан прогноз показателей новой экономики и бюджета.

Providing budget revenues is an important task of the state, which it has always solved and solves through taxation. However, this solution cannot be considered effective. The paper discusses the fundamental shortcomings of taxation, which negatively affect the economic state of the state. They, defining the negative essence of taxation, give reason to talk about the task of ensuring budget revenues as a problem of the state. Another important problem is the low efficiency of the economy. It is due to the dependence of the economy on working capital, which determines a large share of costs in production. These two problems have a common solution, the idea of which is proposed in the work. The idea boils down to organizing new activities capable of fully providing budget revenues without resorting to taxation, and capable of transforming the state into a highly efficient economic system. The problems are substantiated by the example of the state budget of Russia and the Russian economy. The mechanism for the implementation of the proposed idea is considered. A forecast is given for the indicators of the new economy and budget.
Category: Economics and Finance

Oligopoly Games for Use in the Classroom and Laboratory

Authors: Ate Nieuwenhuis
Comments: Keywords: Bertrand, Cournot, Collusion, Oligopoly, Game theory, Vector maximisation. JEL: C61, C70, D21, D43, L11, L13. 17 Pages, 10 tables, 1 colour figure.

To illustrate that a Nash Equilibrium results from a flawed attempt to solve a game, this article studies two extensions of the classic oligopoly model of Cournot. The common cost function is quadratic, and the (still linear) inverse demand functions allow of differentiated goods. The industry has a maximal-profit set that is characterised by a constant profit-output ratio, independent of the number of firms and the slopes of the marginal-cost function and inverse demand functions. The maximal-profit set and the Pareto optimal set—which is the model’s solution—have a number of points in common, but in general do not coincide. The choice of parameters is discussed and six model variants are analysed numerically; in five of them, the incentives for merger according to noncooperative game theory are at odds with the rationale of economics. Some comments are made on the use of the model in experimental economics.
Category: Economics and Finance

Oligopoly Games for Use in the Classroom and Laboratory

Authors: Ate Nieuwenhuis
Comments: 14 Pages. Keywords: Bertrand, Cournot, Collusion, Oligopoly, Game theory, Vector maximisation. JEL: C61, C70, D21, D43, L11, L13. 10 tables, 1 colour figure

To illustrate that a Nash equilibrium results from a flawed attempt to solve a game, this article studies two extensions of the classic oligopoly model of Cournot. The common cost function is quadratic, and the (still linear) inverse demand functions allow of differentiated goods. The industry has a maximal-profit set that is characterised by a constant profit-output ratio, independent of the number of firms and the slopes of the marginal-cost function and inverse demand functions. The choice of parameters is discussed and six model variants are analysed numerically; in five of them, the incentives for merger according to noncooperative game theory are at odds with the rationale of economics. Some comments are made on the use of the model in experimental economics.
Category: Economics and Finance

Designing a Fair and Prosperous Economy for All Mankind and Designing a Safe and Secure World for All Mankind

Authors: David Martin Degner
Comments: 7 Pages.

Science spawns technology. Science, being just pure knowledge, sometimes simple and sometimes complex truth about nature, does not come with a moral prescription on how it should be used. Then technology, the application of science, can be used for good or for evil, the classical double-edged sword. This is particularly true today in the rapidly evolving fields of biotechnology, electrical engineering, and information technology.

The world is in economic crisis. There is a simple solution, but not too simple. The arrow of time in economics is an evolutionary process aimed at what I call eMaam, an acronym that stands for “efficient Market and asset manager”. eMaam is a computer program that can reduce the average work week for the common man from 40 hours to 30 hours. The key principle in implementing eMaam is fairness.

The world is in security crisis. There is a simple solution, but not too simple. The arrow of time in governance is an evolutionary process aimed at what I call Universal Peace, Justice, Freedom and Liberty (UPJF&L) that I can define succinctly as no armies, no weapons, no trade restrictions net of physical safety, including adult pornography, adult recreational drugs, adult gambling, and adult prostitution, no travel restrictions net of having a communicable disease, no borders, every last one of us live where we want to and can afford to and no involuntary transfers of wealth by governments from any individual or group of individuals to any other individual or group of individuals, no subsidies of any kind for businesses, no welfare of any kind net of for those truly in need, everyone able carries their own weight. UPJF&L can further reduce the work week for the common man to 24 hours a week.

Koinomics: Application of Trinitarian Economics Concept based on Luke 16:1-9 (Gospel of Luke)

Authors: Robby Igusti Chandra, Victor Christianto
Comments: 17 Pages. Paper presented at Euroasia Congress on Scientific Researches and Recent Trends-VII, held at Baku Eurasian University, Dec 6-8th, 2020. Conference web site : https://www.euroasiasummit.org/

The separation between the economic concept and moral values or theology occurs after the industrial age. Economic leaders who define the measurements in the macro-economic domain such as inflation rate, trade deficit, interest rate, gross domestic product (GDP), or debts do not include theological or moral concepts to their concerns. In daily business practices efficiency and effectivity in achieving net profits, brand image, and productivity becomes the success measurements. Thus, people accept the gap in wealth distribution as normalcy. Only in 2020 when humanity ends up being shaken by multiple crises such as COVID-19, social or political conflicts, global economic crises, people tend to evaluate such practices and the consequences. This article explores koinomics, a concept that combines economy and interrelational concerns with the theology about Christian view of Godhead as a proposed framework to deal with the wealth gap and economic success concerns. Thus, literature textual study becomes the main method. The study also analyses two communities as models that have been applying such a theological concept. As the result, the exploration on the relational dimensions of the Trinitarian God and the narrative in Luke 16 yields a finding that, there should be three main concerns and success measurements of business and economy: continuous creation process, inter-communal share and caring practices, added with mutual sustainable growth. The analysis on two models shows that they apply such idea successfully. Thus, the potentials of "koinomics" as a framework for business practices are affirmed, yet various challenges in business or economic contexts need to be answered from theological perspectives.
Category: Economics and Finance

The Mathematical Underpinnings of Utility Functions and their Broader Implications on Game Theory

Authors: Aryamoy Mitra
Comments: 6 Pages.

The predominating objective of this short paper is to lay forth a series of results derived from the optimization of canonical utility and indifference functions (insofar as they are used conventionally), and then analogizing them in the context of payoffs. It concerns the categorizations of utility functions, indifference curves and other analytical constraints. To commence, it draws a generalization as to how utilities change with regards to marginal rates of substitution. Following this, it invokes a series of arguments as to how they can be maximized in both univariate and multivariate states.
Category: Economics and Finance

Intuilytics Process in Art-Engineering Creations: Learning from Several Great Engineer-Scientist-Philosophers

Authors: Victor Christianto, Florentin Smarandache
Comments: 8 Pages. This paper has been submitted to IJNS journal. Your comments are welcome.

In previous article we coined a new word: intuilytics. In this article we discuss some examples of intuilytics process in art-engineering creations.
Category: Economics and Finance

A Review of Possible Implementation of Online Business Education for High School Students and Common People in Developing Countries

Authors: Victor Christianto
Comments: 10 Pages. This paper has not been submitted to any journal. Your comments are welcome.

Considering the persistence effect of recent covid-19, developing countries need to accelerate education for small business owners in order they can contribute better in national growth. In a recent paper, there is discussion on a validation process using the Neutrosophic Logic for the formation of the competence entrepreneurship in high education in Havana, Cuba confirmed its feasibility of use. Now, in this paper we will review possible implementation of online business education, which seems to be more favorable for millennial and Z generation who mostly prefer an easy and hassle-free forms of learning. More research and development are still needed.
Category: Economics and Finance

Some Options for Maintaining the Positive Effects of Trade and Addressing Negative Effects

Authors: Piero Benazzo
Comments: 21 Pages.

The analysis looks into how trade would act as a communicating vessel which diffuses positive effects of increase in productivity. In addition, this tends to communicate and diffuse dynamics of increased inequalities. Increase in inequalities would bring to a hidden effect due to a dual economy differential inflationary dynamics between the subsistence sector and the rest of the economy. These would hide an underestimation of inequality and would involute into further increase in inequalities. This would eventually decrease the market size for selling to a larger degree than the increase in market size thanks to improved productivity. A frame of solution proposed would be to keep the positive effects of trade and find a new deal for addressing its negative effects. This would mean decreasing inequality. One general frame for such deal in trade would be to impose duties commensurate to the differential inequality between importer and exporter’s country. In addition, to contribute reabsorbing inequality, the collected duties on imports could be sent back to the exporting countries, on the condition that they be used for decreasing inequalities.
Category: Economics and Finance

Money Supply, Velocity and Asset Prices: Evidence from US Economy

Authors: Romain Bocher
Comments: 9 Pages.

This paper revisits the equation of exchange from the quantity theory of money, expanding the definition of the purchasing power of money to capital and property investment. Based on this new equation, empirical data on US Economy from 2009 to 2019 enable to show that money velocity is the main determinant of asset transactions and prices. Finally, the concept of velocity is reexamined to integrate the marginal propensity of money to inflate prices, leading to a better understanding of economic distortions caused by monetary policy.
Category: Economics and Finance

Machine Learning in Asset Management—Part 2: Portfolio Construction—Weight Optimization

Authors: Derek Snow
Comments: 8 Pages.

This is the second in a series of articles dealing with machine learning in asset management. This article focuses on portfolio weighting using machine learning. Following from the previous article (Snow 2020), which looked at trading strategies, this article identifies different weight optimization methods for supervised, unsupervised, and reinforcement learning frameworks. In total, seven sub-methods are summarized with the code made available for further exploration.
Category: Economics and Finance

The Rest Mass Value of the Earth and the Moon

Authors: Espen Gaarder Haug
Comments: 2 Pages.

Here we will look at the value of the entire Earth if it is viewed simply as a form of rest-mass energy that theoretically could be extracted. However, as it would not be sensible to use our own planet (our only home at this time) as a form of energy, a better alternative would be to sell the Moon to aliens. So, we will calculate what the value of the Earth, the Moon, and other planets might be from an energy perspective. Of course, if advanced aliens ever do visit us, they might just look at the Earth as a clump of fuel; if they were sympathetic to human beings, they could pay us for it and let us keep the Moon, or even better, they could let us keep the Earth and they would pay for the Moon instead. On the surface, this is just an entertaining thought experiment, but there are deeper implications on valuation, energy forms, and negotiations within this story.
Category: Economics and Finance

The Value of the Earth and the Moon

Authors: Espen Gaarder Haug
Comments: 1 Page.

Here we will look at the value of the entire Earth if it is viewed simply as a form of rest-mass energy that theoretically could be extracted. However, as it would not be sensible to use our own planet (our only home at this time) as a form of energy, a better alternative would be to sell the Moon to aliens. So, we will calculate what the value of the Earth and the Moon from an energy perspective. Of course, if advanced aliens ever do visit us, they might just look at the Earth as a clump of fuel; if they were sympathetic to human beings, they could pay us for it and let us keep the Moon, or even better, they could let us keep the Earth and they would pay for the Moon instead. On the surface, this is just an entertaining thought experiment, but there are deeper implications on valuation, energy forms, and negotiations within this story.
Category: Economics and Finance

Rural Money or How to Make Rural Economies Effective

Authors: I. Oskembekov
Comments: 18 Pages.

The reality is that the village is a weak link in the state economy. Meanwhile, it has great potential. The village is capable of being an effective system. Moreover, it can become the locomotive of the entire economy of the state. What determines such opportunities for the village? How to reveal this? How does the economic fate of not only the village, but also the state, and even the world economy depend on this? The article attempts to answer these and other questions.
Category: Economics and Finance

Self-Organized Critical Markets: Implied Volatility and Avalanche Intensity

Authors: Romain Bocher
Comments: 5 Pages.

Assuming self-organized criticality to characterize capital markets, this paper seeks to explain why equity implied volatility is a relevant proxy for avalanche intensity. Historical data analysis of the CBOE Volatility Index (VIX) shows that implied volatility spikes are distributed following a power law, making financial stress similar to earthquakes as anticipated long ago by Bak.
Category: Economics and Finance

Self-Organized Critical Markets - Implied Volatility and Avalanche Intensity

Authors: Romain Bocher
Comments: 7 Pages.

Assuming self-organized criticality to characterize capital markets, this paper seeks to explain why equity implied volatility is a relevant proxy for avalanche intensity. Historical data analysis of the CBOE Volatility Index (VIX) shows that implied volatility spikes are distributed following a power law, making financial stress similar to earthquakes as anticipated long ago by Bak.
Category: Economics and Finance

Self-Organized Critical Markets - Implied Volatility and Avalanche Intensity

Authors: Romain Bocher
Comments: 7 Pages.

Assuming self-organized criticality to characterize capital markets, this paper seeks to explain why equity implied volatility is a relevant proxy for avalanche intensity. Historical data analysis of the CBOE Volatility Index (VIX) shows that implied volatility spikes are distributed following a power law, making financial stress similar to earthquakes as anticipated long ago by Bak.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 15 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 12 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 10 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 10 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 9 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 9 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 8 Pages.

Solution on how to get rid of money.
Category: Economics and Finance

How to Get Rid of a Debt Based Money System

Authors: Ivo Van Der Rijt
Comments: 6 Pages.

Solution on how to get rid of money.
Category: Economics and Finance