scholarly journals METHODOLOGY FOR THE ASSESSMENT OF REGULATION COSTS IN THE BANKING MARKET

2021 ◽  
Author(s):  
Kristaps FREIMANIS ◽  
Maija ŠENFELDE
Keyword(s):  
Government Intervention ◽  
Indirect Costs ◽  
General Rule ◽  
Deadweight Loss ◽  
Market Failures ◽  
Mathematical Methods ◽  
Banking Market ◽  
The Government ◽  
Intervention Costs ◽  
Regulation Costs

Purpose – In the field of the economics’ regulation researchers so far have built the conceptual framework showing how the deadweight loss of market failures decrease and costs of the government intervention increase with the increased level of the government intervention. In order to quantify relationships between the level of intervention, intervention costs and the deadweight loss with econometric models it is important to understand how to quantify the regulation costs as a part of intervention costs. The objective of the research presented in this paper is to find the appropriate methodology for the quantification of the regulation costs in the banking market. Research methodology – literature review (regarding theories), mathematical methods for quantification and econometric methods for validation purposes. Findings – research shows that in the assessment of regulation costs three main stakeholders should be included – microprudential regulator, macroprudential regulator and financial regulation’s policy maker. Research presents their cost assessment methodology. Its validation shows that in general methodology works as expected, i.e., higher government intervention levels lead to higher regulation costs, however this general rule has exceptions, which in authors’ view indicates that other factors have an impact on the cost levels. Research limitations – research shows how to assess the costs of main stakeholders based on the publicly available information. More precise view could be obtained if in the cooperation with authorities more details on certain cost items are received. Practical implications – research results will be used to assess all government intervention costs (other positions include compliance costs and other indirect costs) and finalize the quantification of the framework. Quantified framework could be used for more precise policy making regarding the regulation of the banking market. Originality/Value – research shows how to quantify the regulation costs of the banking market as currently there are only conceptual ideas.

scholarly journals Approach of scaling the level of government intervention in the financial market

2020 ◽  
Author(s):  
Kristaps Freimanis ◽  
Maija Šenfelde
Keyword(s):  
Conceptual Framework ◽  
Financial Market ◽  
Government Intervention ◽  
Econometric Models ◽  
Deadweight Loss ◽  
Market Failures ◽  
Data Points ◽  
The Government ◽  
Intervention Costs ◽  
Categorical Scale

In the field of the economics’ regulation researchers so far have built the conceptual framework showing how the deadweight loss of market failures decrease and costs of the government intervention in-crease with the increased level of the government intervention. In order to quantify relationships between the level of intervention, intervention costs and the deadweight loss with econometric models it is im-portant to understand how to apply coordinates for the data points to be included in the modelling. The main goal of the research presented in this paper is to find the unit measure for the asis of the independentvariable, i.e. to shape the categorical scale corresponding to the level of intervention.

The Role of Government in a Liberal Market Economy

2018 ◽  
pp. 53-61
Author(s):  
Claude Joseph
Keyword(s):  
Public Choice ◽  
Market Failure ◽  
Government Intervention ◽  
Rational Behavior ◽  
Market Failures ◽  
Role Of Government ◽  
Failure Theory ◽  
Theoretical Perspectives ◽  
The Government

This essay is a critical assessment of the market failure theory and public choice theory. While the market failure theory provides a justification for government intervention in the economy, the public choice theorists are very skeptical about the role of government as a corrector of market failures. Since government failures can be worse than market failures, the imperfections in the market process, they argue, do not necessarily call for government intervention. These two theoretical perspectives, notwithstanding their difference, do share something in common. Both assume that individuals are self-interested. This essay contends that a shift from rational self-interested behavior to bounded-rational behavior provides a less contested role for the government. With bounded-rational behavior, the state should no longer be viewed as a mere surrogate of the market, but as “a choice architect,” “an entrepreneur,” and “a manager of conflict.”

Bank competition, government intervention and SME debt financing

2017 ◽  
Vol 7 (4) ◽  
pp. 478-492 ◽  
Author(s):  
Jianhua Du ◽  
Chao Bian ◽  
Christopher Gan
Keyword(s):  
Government Intervention ◽  
Generalized Method Of Moments ◽  
External Debt ◽  
Ordinary Least Squares ◽  
Debt Financing ◽  
Bank Loans ◽  
Bank Competition ◽  
Firm Level ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effects of the government intervention and bank competition on small and medium enterprise (SME) external debt financing in Chinese capital market. Design/methodology/approach This study uses ordinary least squares with standard errors clustered at the firm level. In addition, the authors use the dynamic system generalized method of moments to address the possible endogeneity issue in the regressions. Findings Using a sample of 908 firms from 2000 to 2010, the authors found that SMEs are more likely to access bank loans only in regions with higher level of government intervention than median government intervention. Further, the result shows that the government is motivated to help SMEs to obtain more external debt in regions where the level of bank competition is lower than the median bank competition index. Last, the authors found evidence that firms with politically connected CEOs are likely to access bank loans. Research limitations/implications This paper highlights that government intervention enables the SMEs to secure more bank loans. Second, the authors’ results imply that the government is motivated to help SMEs to obtain more external debt in regions with low level of bank competition. Originality/value This study contributes to the current literature by revealing that government intervention is the driving force alleviating SMEs’ constraints in accessing external financing. Second, this study finds the evidence to supports the argument that government has a strong motive to help SMEs to secure long-term credits for political purpose (Fan et al., 2012), when the level of bank competition is low (Berger and Udell, 2006).

THE IMPACT OF GOVERNMENT INTERVENTION ON TECHNOLOGICAL REGIMES: THE SOURCING OF FINANCIAL INNOVATION

2018 ◽  
Vol 22 (03) ◽  
pp. 1850025
Author(s):  
PETER T. GIANIODIS ◽  
MATTHIAS THÜRER
Keyword(s):  
Government Intervention ◽  
Financial Innovation ◽  
Punctuated Equilibrium ◽  
Technological Regime ◽  
Knowledge Sourcing ◽  
Technological Regimes ◽  
Governmental Intervention ◽  
Disruptive Change ◽  
The Government ◽  
The Impact

Scholars and managers alike seek to better explain disruptive change and its effects on technological regimes. In this study, we apply two logics of change — Schumpeterian and punctuated equilibrium — and conduct a natural experiment to evaluate how a governmental intervention shock affected the sourcing of knowledge within an existing technological regime. In particular, we investigate the extent to which patterns of knowledge sourcing changed within the technological regime governing financial innovation. We find that patterns of knowledge sourcing change subsequent to the government intervention, but in more nuanced ways as predicted by Schumpeterian and punctuated equilibrium logic. Specifically, knowledge sourcing demonstrates an “accelerated” punctuated equilibrium change with knowledge convergence between incumbents and new entrants occurring under high levels of uncertainty, rather than when the regime stabilized. We discuss the implications on Schumpeter’s concept of creative destruction, as disruptive change may only undermine some aspects of an existing technological regime.

scholarly journals Economic impacts of craftsman statue on community based tourism development

2017 ◽  
Vol 1 (3) ◽  
pp. 59-73
Author(s):  
A.A. Gde Putra Pemayun ◽  
A.A. Istri Agung Maheswari
Keyword(s):  
Economic System ◽  
Small And Medium Enterprises ◽  
Tourism Development ◽  
Poverty Line ◽  
Market Failures ◽  
Economic Activities ◽  
Human Needs ◽  
Gary Becker ◽  
The Government ◽  
Medium Enterprises

This study examines the "Economic Impact of Craftsmen Statue on Community Base Tourism Development in Tohpati village Klungkung Bali". The core concept of economic problems is the imbalance between unlimited human needs and the means of satisfying the needs of a limited number. Economics should not be emphasized through the point, but it should be emphasized as an approach to explain human behavior (Gary Becker). The economic system is a means used to regulate all economic activities in society whether done by the government or private in order to achieve prosperity and prosperity together. The Economic system can be divided into three namely: a First capitalist economic system that is all economic activity submitted to the market. Second, the communist economic system is all things governed by the government. The third is a mixed economic system that is a combination of the two economic systems above (capitalist and communist). Indonesia should adopt a mixed economic system because firstly, Indonesia is an emerging country, where market failures often occur due to uneven information or accessibility to transportation and communication facilities. The second is that there are still many Indonesian people are below the poverty line. Thirdly most Indonesians have businesses that are still classified into small and medium enterprises that still can not compete perfectly with a bigger business.

scholarly journals POLICY ANALYSIS MATRIX FOR THE ESSENTIAL CEREAL CROPS VARIETIES (RICE BUHOOTH 1, AND CORN SYNTHETIC GENOTYPE BAGHDAD 3) (STUDY CASE) IN IRAQ FOR THE YEAR 2012

2017 ◽  
Vol 48 (3) ◽  
Author(s):  
Lateef & et al.
Keyword(s):  
Policy Analysis ◽  
Comparative Advantage ◽  
Government Intervention ◽  
Cereal Crops ◽  
Cost Coefficient ◽  
Governmental Support ◽  
Resource Cost ◽  
The Government ◽  
Domestic Producer ◽  
Policy Analysis Matrix

The objective of this research was to analyze the economic impact of government intervention in the essential cereal crops for (Rice Buhooth1, and Synthetic genotype Baghdad3) by comparing the social price and private prices through adopting policy analysis matrix approach PAM and the derived parameters from it .The research was divided into two chapters; the first chapter was about field counting for the policy analysis matrix PAM and measuring the implications of the government intervention on the Rice Buhooth1. The second chapter was about explaining the field counting for policy analysis matrix PAM and measuring the implications of the government intervention impact on the second synthetic genotype Baghdad3.The research found a set of results, the most important result showed that the value of profitability coefficient was about 3.69, this indicates that the rice crop production system for the Rice Buhooth 1  takes advantage of the adopted government policy in that year, which means that there is governmental support for the product. In addition, domestic resource cost coefficient value which was about 0.72 indicates that there is comparative advantage for the Rice Buhooth 1  for the year 2012. The values of the nominal and effective protection coefficient were about 1.74 and 1.59 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Regarding the Synthetic genotype Baghdad3, the value of profitability coefficient was about  1.75  which means that there is governmental support for the product. The domestic resource cost coefficient value was about 0.24 which indicates that there was comparative advantage for the mentioned above for the year 2012. The values of the nominal and effective protection coefficient were about 1.48 and 1.56 respectively; the value of the first factor indicates that there is governmental support for the domestic producer for the above, while the second factor indicates that the domestic producer will obtain greater returns in the investment of its resources in the existence of the government intervention from its absence. Finally, it is highly recommended that support should be increased for the varieties that the country has greater comparative advantage in order to improve the utilization of available resources and reduce wasted resources. Moreover, similar studies should be done in the future by other researchers to major cereal crops varieties at the country level in order to do comparison between them to set a mechanism for the government intervention policy in the main crop prices in the country which help both the local producer and agricultural investor in directing its resources properly.

scholarly journals Trashing Waste

2020 ◽  
Vol 14 (4) ◽  
Author(s):  
Hannnah Blumhardt
Keyword(s):  
Path Dependence ◽  
Intention To Use ◽  
Policy Tools ◽  
Market Failures ◽  
Recycling System ◽  
Waste Policy ◽  
Waste Minimisation ◽  
The Government ◽  
Policy Solutions

Ten years on from the enactment of the Waste Minimisation Act 2008, New Zealand’s waste policy remains sorely neglected. Successive governments have left the act largely unimplemented, allowing market failures, path dependence and fragmentation to deepen throughout New Zealand’s waste and recycling system. In 2017 a new minister assumed the waste portfolio, declaring an intention to use the Waste Minimisation Act to reverse New Zealand’s ‘rubbish record on waste’. This article outlines a range of policy solutions available to the government, analyses why these policy tools have been underutilised to date, and proffers a roadmap for overcoming the identified obstacles.

scholarly journals Integrative Teaching of Mathematics as a Means of a Forming Modern Economist

2020 ◽  
Vol 9 (26) ◽  
pp. 486-497
Author(s):  
Larisa P. Konnova ◽  
Alexander A. Rylov ◽  
Irina K. Stepanyan
Keyword(s):  
Educational Process ◽  
Integrative Model ◽  
Integrative Approach ◽  
Teaching Mathematics ◽  
Special Importance ◽  
Contextual Approach ◽  
Proximal Development ◽  
Mathematical Methods ◽  
Computer Technologies ◽  
The Government

Introduction: A modern specialist in practically any field should not only possess professional expertise but also have a good command of modern computer technologies and main mathematical methods of data modeling and processing. It is employers’ requirements and, at the same time, students’ demands to receive this exact type of education. The study examines various ideas of educator-researchers striving to change the educational process to match the new goals. Meanwhile, the authors place the main emphasis on teaching mathematics. Drawing on the experience of teaching at the Financial University under the Government of the Russian Federation, the authors propose an integrative model of teaching mathematics that utilizes the contextual approach and content-based teaching. Materials and Methods: The main methods of the study are the analysis of scientific works and pedagogical modeling based on the following methodological approaches: competency-based, integrative, activity-based, as well as the concept of the zone of proximal development. The authors place special importance on the contextual approach and content-based teaching. Results: The analysis of works confirms the significance and relevance of interdisciplinary courses. The necessary modernization of the educational process and its contents is based on the integrative approach. The contextual approach is increasingly used in higher education to reinforce professional orientation. As for content-based education, it is currently used only in foreign language teaching. Within this study, the authors propose an integrative model of teaching mathematics at economics universities. To enforce the focus on the application in basic student training, the contextual approach is utilized which allows giving professional substance to the content of an educational course. The second part of the model is content-based teaching. The authors enhance its potential uses and believe that studying interconnected subjects together allows one to show common patterns and makes the educational process more efficient, intensive and mindful. Discussion and Conclusions: The relevance of having command of mathematical methods and computer technologies for multidisciplinary specialists makes it possible to generalize the creative model by adding various professional contexts.

Saving the News

2021 ◽  
Author(s):  
Martha Minow
Keyword(s):  
First Amendment ◽  
The United States ◽  
Government Accountability ◽  
Market Failures ◽  
Truth Telling ◽  
Private Industry ◽  
Government Action ◽  
Digital Platforms ◽  
The Media ◽  
The Government

This book argues that US democracy presumes a news industry but that industry currently is failing. It focuses on the contributions of digital platforms and legal rules to the current situation and on the government's responsibilities for alleviating the problem. As the book shows, the First Amendment of the US Constitution assumes the existence and durability of a private industry. Despite some concerns that government action now is not permitted, nothing in the Constitution forecloses government action to regulate concentrated economic power, to require disclosure of who is financing communications, or to support news initiatives where there are market failures. Moreover, the federal government always been involved in shaping the media environment; it has contributed financial resources, laws, and regulations to develop and shape media in the United States. The government has subsidized development of the internet and crafted legal immunities for digital platforms; the government has crafted the direction and contours of America's media ecosystem. The shift of people’s attention to media platforms that borrow news stories without paying for them and spread misinformation jeopardizes journalism, reliable news sources, and the very respect for truth-telling. To maintain government accountability and inform a public as required in a democracy, The book outlines an array of reforms, including a new fairness doctrine, regulating digital platforms as public utilities, using antitrust authority to regulate the media, policing fraud, and more robust funding of public media. As the text stresses, such reforms are not merely plausible ideas; they are the kinds of initiatives needed if the First Amendment guarantee of freedom of the press continues to hold meaning in the twenty-first century.

The Government and the Shipping Industry

2012 ◽  
pp. 289-302
Author(s):  
Ralph Davis
Keyword(s):  
Eighteenth Century ◽  
Working Conditions ◽  
Government Intervention ◽  
Elizabeth I ◽  
Shipping Industry ◽  
British Government ◽  
Level Of Involvement ◽  
The Government ◽  
Navigation Acts ◽  
Law Making

This chapter explores the level of involvement of the British government in mercantile shipping during the seventeenth and eighteenth centuries. It provides the history behind the 1651 Navigation Act and the previous instances of British trade being restricted to British vessels, which date as far back as the fourteenth century and were also present during the reign of Elizabeth I. It then analyses the competition between British and Dutch shipping and the escalating tensions that caused the passing of the 1651 Navigation Act and the outbreak of the Dutch wars. It lists the Navigation Act provisions that applied to shipping, and attempts to answer what scope foreign ships had to trade with England as a result of its implementation. Though the bulk of the chapter discusses the Navigation Acts and their fallout, it also considers the increase of government intervention in maritime activity during the eighteenth century which included law-making efforts concerning the Navy, and investment in docks and ports. It concludes that government intervention, when present, was often beneficial to the industry, particularly when it came to employment issues and working conditions.

Sign in / Sign up

Export Citation Format

Share Document