Regulation of nature management with the application of fiscal methods

The purpose of the article is to develop and apply the concepts and mechanism of fiscalization to the processes of managing the collection of payments from business entities to the budget for environmental offenses. The research methodology - application of the resource approach to the defini- tion of concepts, abstract-logical, system-structural and comparative analysis, ranking. The scientific novelty. The mechanism of fiscal management of nature users for their environmental pollution is revealed; the peculiarities of the calculation of the ecological tax, the distribution of the amounts of the current tax between the state and local budgets are indicated; applied innovations are substantiated taking into account the factor of ownership of natural resources. Conclusions. The need for environmental fiscalization is due to the environmental situation in the country, the fiscal system, energy and industrial security, pricing policy, business activity, the country’s international obligations and other factors. Key words: management, fiscal, in the use of nature, property, people, waste, pollution, rates, natural objects.

Equity-linked security pricing and Greeks at arbitrary intermediate times using Brownian bridge

We develop a numerical algorithm for predicting prices and Greeks of equity-linked securities (ELS) with a knock-in barrier at any time over the total time period from issue date to maturity by using Monte Carlo simulation (MCS). The ELS is one of the most important financial derivatives in Korea. In the proposed algorithm, first we calculate the probability ( {0\leq p\leq 1} ) that underlying asset price never hits the knock-in barrier up to the intermediate evaluation date. Second, we compute two option prices {V_{nk}} and {V_{k}} , where {V_{nk}} is the option value which knock-in event does not occur and {V_{k}} is the option value which knock-in event occurs. Finally, we predict the option value with a weighted average. We apply the proposed algorithm to two- and three-asset ELS. We provide the pseudo-numerical algorithm and computational results to demonstrate the usefulness of the proposed method.

Market Segmentation and Software Security: Pricing Patching Rights

The patching approach to security in the software industry has been less effective than desired. One critical issue with the status quo is that the endowment of “patching rights” (the ability for a user to choose whether security updates are applied) lacks the incentive structure to induce better security-related decisions. However, producers can differentiate their products based on the provision of patching rights. By characterizing the price for these rights, the optimal discount provided to those who relinquish rights and have their systems automatically updated in a timely manner, and the consumption and protection strategies taken by users in equilibrium as they strategically interact because of the security externality associated with product vulnerabilities, it is shown that the optimal pricing of these rights can segment the market in a manner that leads to both greater security and greater profitability. This policy greatly reduces unpatched populations and has a relative hike in profitability that is increasing in the extent to which patches are bundled together. Social welfare may decrease when automated patching costs are small because strategic pricing contracts usage in the market and also incentivizes loss-inefficient choices. However, welfare benefits when the policy either (1) greatly expands automatic updating in cases in which it is minimally observed or (2) significantly reduces the patching process burden of those who most value the software. This paper was accepted by Anandhi Bharadwaj, information systems.

Non-Performing Loans

Based on the recent European regulatory policies on non-performing loans (NPL), the dissertation ‘Non-Performing Loans: Determinants—Default—Divestiture’ presents four stand-alone research papers on the determinants, default and divestiture of NPL, which explore the effectiveness of the proposed restructuring mechanisms. To begin with, determinants of the situation described by the term NPL are diligently examined, with the author employing a systematic literature review at the levels of macroeconomics, banks and loans. Subsequently, three empirical research studies are devoted to an analysis of security pricing in reaction to NPL divestiture activity in the European equity and debt capital market. The results offer the banking industry as well as the EU and its member states a nuanced idea of how to deal with large amounts of risky assets in times of constantly changing economic circumstances.