scholarly journals Some Cultural Foundations of Financial Macroeconomics

2021 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Amelia Correa ◽  
Romar Correa
Keyword(s):  
Private Sector ◽  
Real World ◽  
Structural Model ◽  
Empirical Studies ◽  
National Income ◽  
Substitution Effects ◽  
Unit Of Analysis ◽  
Cultural Foundations ◽  
Production And Consumption ◽  
Monetary Authorities

Mainstream economists concede that finance tests the deductive powers of the microfoundations model. Accordingly, we attempt to derive a structural model inductively through use of empirical studies and history. Culture is the means by which a task is set about. The term consists of the following elements. The unit of analysis is groups or classes as found in National Income accounts. The connection between them does not consist of substitution effects or conflict but complementarities and cooperation. Secondly, the economy is defined as the inseparable composite of the fiscal and the monetary authorities and the components of the private sector. Finally, finance eases the flow of production and consumption and investment. However, banks are beset with problems of asymmetric information and runs. Additionally, market finance is prone to bubbles and crashes. Elements of culture are required to hold fast during the interactions between the financial and the real world.

The Impossible Trinity» rule in the context of international experience

2019 ◽  
pp. 90-96
Author(s):  
M.P. Tskhovrebov ◽  
A.S. Tanasova
Keyword(s):  
Exchange Rate ◽  
Inflation Targeting ◽  
Empirical Studies ◽  
Theoretical Development ◽  
External Shocks ◽  
Cross Border ◽  
Relevant Today ◽  
Russian Economy ◽  
Monetary Authorities ◽  
Increased Sensitivity

The article is devoted to the «Trilemma» of the policy of the monetary authorities, or the «rule of impossible trinity». This policy compatibility rule, formulated more than 50 years ago, remains relevant today. Its reliability is generally confirmed by a number of empirical studies, although there are also suggestions on the need to adjust this economic and theoretical development. The corresponding discussion also affects the policy of the Bank of Russia (mega-regulator), which carries out inflation targeting in conditions of the free movement of cross-border capital and the use of a floating ruble exchange rate. Regarding the effectiveness of this policy, carried out in the presence of increased sensitivity of the Russian economy to external shocks, the authors express certain doubts.

Adjusting to Financial Instability in the Interwar Period

2018 ◽  
Author(s):  
Giandomenico Piluso
Keyword(s):  
Private Sector ◽  
Adaptive Strategy ◽  
World War ◽  
The Public ◽  
International Environment ◽  
The First World War ◽  
Monetary Authorities ◽  
The Public Sphere ◽  
Special Committees ◽  
First World

The chapter provides a reconstruction and analysis of adjustment processes in the Italian financial system after the major cleavage of the First World War. It considers how pressures exerted by external factors entailed a progressive adaptive strategy to a changing international environment. Financial and monetary instability called for a more intensive regulation reallocating responsibilities and powers from the private sector to the public sphere. Accordingly, financial elites changed their contours and boundaries. As the demand for technical competences and bargaining abilities rose, Italian governments and central monetary authorities tended to co-opt competent representatives from the private sector onto special committees at home, at international conferences, or in bilateral negotiations. A telling tale of such processes is represented by changes within the composition of the Italian delegations at major international economic and financial conferences from the Brussels Conference in 1920 to the London Economic and Monetary Conference in 1933.

How Spatially Concentrated Are Industrial Clusters?: A Meta-analysis

2021 ◽  
pp. 088541222110129
Author(s):  
Li Fang ◽  
Joshua Drucker
Keyword(s):  
Spatial Scale ◽  
Knowledge Spillovers ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Industrial Clusters ◽  
Policy Makers ◽  
Unit Of Analysis ◽  
Industry Sector

This study conducts a meta-analysis of empirical studies that have measured the spatial scale of industrial clustering. Two types of scales are examined: the peak scale (at which cluster effects are maximized) and the maximum reach (beyond which cluster effects are undetectable). We find that the scale varies significantly by the unit of analysis, industry sector, country of study, and the sources of cluster effects examined (e.g., knowledge spillovers, localization, and urbanization). Planners and policy makers should tailor the geographies embodied in cluster strategies to match the specific local needs and circumstances.

scholarly journals Friendship paradox in growth networks: analytical and empirical analysis

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Sergei P. Sidorov ◽  
Sergei V. Mironov ◽  
Alexey A. Grigoriev
Keyword(s):  
Real World ◽  
Preferential Attachment ◽  
Empirical Studies ◽  
Mean Field ◽  
Network Models ◽  
Average Degree ◽  
Closure Model ◽  
Triadic Closure ◽  
Attachment Mechanism ◽  
Over Time

AbstractMany empirical studies have shown that in social, citation, collaboration, and other types of networks in real world, the degree of almost every node is less than the average degree of its neighbors. This imbalance is well known in sociology as the friendship paradox and states that your friends are more popular than you on average. If we introduce a value equal to the ratio of the average degree of the neighbors for a certain node to the degree of this node (which is called the ‘friendship index’, FI), then the FI value of more than 1 for most nodes indicates the presence of the friendship paradox in the network. In this paper, we study the behavior of the FI over time for networks generated by growth network models. We will focus our analysis on two models based on the use of the preferential attachment mechanism: the Barabási–Albert model and the triadic closure model. Using the mean-field approach, we obtain differential equations describing the dynamics of changes in the FI over time, and accordingly, after obtaining their solutions, we find the expected values of this index over iterations. The results show that the values of FI are decreasing over time for all nodes in both models. However, for networks constructed in accordance with the triadic closure model, this decrease occurs at a much slower rate than for the Barabási–Albert graphs. In addition, we analyze several real-world networks and show that their FI distributions follow a power law. We show that both the Barabási–Albert and the triadic closure networks exhibit the same behavior. However, for networks based on the triadic closure model, the distributions of FI are more heavy-tailed and, in this sense, are closer to the distributions for real networks.

Rethinking the Catalytic Role of Private Sector for Inclusive Growth

2017 ◽  
Vol 3 (1) ◽  
pp. 41-54 ◽  
Author(s):  
Muhamed Zulkhibri
Keyword(s):  
Private Sector ◽  
Business Models ◽  
National Income ◽  
Vital Role ◽  
Inclusive Development ◽  
Private Firms ◽  
Productive Capacity ◽  
Inclusive Growth ◽  
Productive Potential ◽  
Growth Prospects

The paper argues that private firms play a vital role in enhancing inclusive growth prospects as investors, employers and creators of new and upgraded productive potential. Private sector activity matters for inclusive development as well as its quality, sustainability and inclusiveness. In most countries, the private sector is a major component of national income and the major employer and creator of jobs. The analysis suggests that private firms have the capacity to enhance inclusive growth prospects, given their ability to create new and higher value productive capacity. The capability of firms to launch new export products and raise product quality generates higher profitability and productive potential with spill over benefits to other firms and industries. However, private sector activity per se does not automatically result in equality of opportunity across individuals and firms. It has been very thoughtful to many countries to facilitate various actors to come together in public-private collaboration to build ‘Inclusive Business Models’ based on inclusive markets.

scholarly journals Human Capabilities and Instrumental Freedoms Relationship: An Empirical Investigation

2020 ◽  
pp. 12-21
Author(s):  
Nour Eddine Aguenane
Keyword(s):  
Latent Variables ◽  
Structural Model ◽  
Empirical Studies ◽  
Group Analysis ◽  
Human Capabilities ◽  
Indicator Method ◽  
Endogenous Variables ◽  
Social Opportunities ◽  
Political Freedoms ◽  
Instrumental Role

Purpose of the study: In Development as freedom, Amartya Sen confirmed the crucial "instrumental" role of five kinds of freedoms in the promotion of capabilities and therefore in the process of human development in general. These are political freedoms, economic facilities, transparency guarantees, social opportunities, and protective security. This paper has three empirical objectives: 1) to measure the effect of instrumental freedoms on capabilities, 2) to verify if this effect becomes stronger once instrumental freedoms are interconnected, and 3) to verify whether this relationship is moderated by the level of economic development achieved by each country. Methodology: To achieve these three objectives, this article confronts the second-order construct of "instrumental freedoms" (as an exogenous variable) with five first-order constructs (as endogenous variables). The five endogenous latent variables reflect the capabilities of health, education, housing, employment, and communication and mobility at the level of the sixty countries selected as the analysis samples. The estimation of the hierarchical structural model is done using the partial least squares approach and the repeated indicator method. Main Findings: This study highlights three major results: 1) The existence of a significant effect of instrumental freedoms on the five relevant capabilities selected. 2) When instrumental freedoms interconnect, they reinforce each other and their effect on human capabilities becomes stronger. 3) The multi-group analysis suggests that instrumental freedoms positively and significantly impact human capabilities in the same way in both developed and developing countries. Research implications: Freedom plays a "constitutive" and "instrumental" role in the development process. To provide people with the freedom to live according to their aspirations, public policies must be empowering. In other words, they should improve the instrumental perspective of at least three essential freedoms: political freedoms, economic facilities, and transparency guarantees. Novelty/Originality of this study: Apart from the works which attempted to operationalize Amartya Sen's capability approach, the relationship between instrumental freedoms and human capabilities has not been the subject of empirical studies. This paper is intended as a contribution to this field of investigation.

scholarly journals Individualism and collectivism in advertising – An overview

2022 ◽  
Vol 4 (1) ◽  
pp. 30-36
Author(s):  
TAM PHAM
Keyword(s):  
Cultural Values ◽  
Empirical Studies ◽  
Modern Society ◽  
Cultural Dimensions ◽  
Future Research ◽  
Production And Consumption ◽  
Individualism And Collectivism ◽  
The World

Advertising is increasingly important in every corner of the world.  It has become an indispensable part for both producers and consumers in modern society to boost the production and consumption of the products. To succeed in advertising, one component advertisers cannot ignore is cultural values because they are one of the determinants of customers’ behavior. Of the cultural dimensions, individualism and collectivism are considered the most important one. This study, therefore, sets the light on an overview of how individualism and collectivism is manifested in advertising in term of advertising themes, advertising creative tactics and linguistic advertising features in empirical studies. It then specifies what have and has not been done on the topic alike so that anyone interested in the field will find the gaps for their future research.

scholarly journals Trust Buffers Against Reduced Life Satisfaction When Faced With Financial Crisis

2021 ◽  
Vol 12 ◽  
Author(s):  
Jocelyne Clench-Aas ◽  
Ingrid Bergande ◽  
Ragnhild Bang Nes ◽  
Arne Holte
Keyword(s):  
Life Satisfaction ◽  
Financial Crisis ◽  
Structural Model ◽  
Negative Impact ◽  
National Level ◽  
National Income ◽  
Political Trust ◽  
European Social Survey ◽  
Global Crisis ◽  
Country Level

Background: In light of the coronavirus disease 2019 (COVID-19) pandemic and its large economic consequences, we used a three-layer nested structural model (individual, community, and country), each with a corresponding measure of income, trust, and satisfaction, to assess change in their interrelationships following a global crisis; which, in this study, is the 2008/2009 financial crisis.Methods: With multilevel techniques, we analyzed data from two waves (2006 and 2012) of the European Social Survey (ESS) in 19 countries (weighted N = 73,636) grouped according to their levels of trust.Results: In high trust countries, personal life satisfaction (LS) was not related to personal, community, or national income before or after the crisis. In contrast, in low trust countries, LS was strongly related to all three forms of income, especially after the crisis. In all country groups, personal, social, and political trust moderated their respective effects of income on LS (“the buffer hypothesis”). Political trust moderated the effects of income more strongly in low trust countries. The moderating effect of political trust increased sharply after the crisis. After the crisis, national-level factors (e.g., political trust, national income) increased their importance for LS more than the factors at the local and individual levels. However, the relative importance of all the three forms of income to LS increased after the crisis, to the detriment of trust.Conclusion: Economic crises seem to influence personal LS less in high trust countries compared with low trust countries. Hence, high trust at a national level appears to buffer the negative impact of a financial crisis on personal satisfaction. Overall, the factors at the national level increased their impact during the financial crisis. When facing a global crisis, the actions taken by institutions at the country level may, thus, become even more important than those taken before the crisis.

Glean

2021 ◽  
Vol 14 (6) ◽  
pp. 997-1005
Author(s):  
Sandeep Tata ◽  
Navneet Potti ◽  
James B. Wendt ◽  
Lauro Beltrão Costa ◽  
Marc Najork ◽  
...  
Keyword(s):  
Machine Learning ◽  
Data Management ◽  
Real World ◽  
Empirical Studies ◽  
Ground Truth ◽  
Training Data ◽  
Ground Truth Data ◽  
Document Type ◽  
Machine Learning Model ◽  
Structured Information

Extracting structured information from templatic documents is an important problem with the potential to automate many real-world business workflows such as payment, procurement, and payroll. The core challenge is that such documents can be laid out in virtually infinitely different ways. A good solution to this problem is one that generalizes well not only to known templates such as invoices from a known vendor, but also to unseen ones. We developed a system called Glean to tackle this problem. Given a target schema for a document type and some labeled documents of that type, Glean uses machine learning to automatically extract structured information from other documents of that type. In this paper, we describe the overall architecture of Glean, and discuss three key data management challenges : 1) managing the quality of ground truth data, 2) generating training data for the machine learning model using labeled documents, and 3) building tools that help a developer rapidly build and improve a model for a given document type. Through empirical studies on a real-world dataset, we show that these data management techniques allow us to train a model that is over 5 F1 points better than the exact same model architecture without the techniques we describe. We argue that for such information-extraction problems, designing abstractions that carefully manage the training data is at least as important as choosing a good model architecture.

Workhorse Models

2015 ◽  
Author(s):  
Pol Antràs
Keyword(s):  
International Trade ◽  
Intellectual History ◽  
Empirical Studies ◽  
Theoretical Work ◽  
Central Unit ◽  
Unit Of Analysis ◽  
Basic Understanding ◽  
History Of ◽  
Key Features ◽  
The Rich

This chapter provides a succinct account of the rich intellectual history of the field of international trade and offers an overview of its modern workhorse models. This field has experienced a true revolution in recent years. Firms rather than countries or industries are now the central unit of analysis. The workhorse trade models used by most researchers both in theoretical work as well as in guiding empirical studies were published in the 2000s. While these benchmark frameworks ignore contractual aspects, they constitute the backbone of the models developed later in this volume, so the chapter provides a basic understanding of their key features.

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