A Two-sided Matching Decision-making Approach based on PROMETHEE Under the Probabilistic Linguistic Environment

Matching problems in daily life can be effectively solved by two-sided matching decision-making (TSMDM) approaches. The involved matching intermediary is to match two sides of subjects. This paper proposes a TSMDM approach based on preference ranking organization method (PROMETHEE) under the probabilistic linguistic environment. The probabilistic linguistic evaluations are firstly normalized and transformed to the benefit types. Then, the preference degrees of a subject over other subjects from the same side are obtained by using six types of preference function. Afterwards, groups of preference degrees of a subject are aggregated to the preference indexes by considering the weights of criteria. Hereafter, the preference degrees of a subject over other subjects from the same side are aggregated to the outgoing flow, while the preference degrees of other subjects from the same side over this subject are aggregated to the incoming flow. Furthermore, the net-flows, which is recognized as the satisfaction degrees are calculated by using outgoing flows to minus incoming flows. On the basis of this, the multi-objectives TSMDM model is built by considering the matching aspirations. A model with respect to the matching aspirations is built and solved by using the Lagrange function. The multi-objectives TSMDM model is further transformed to the single-objective model, the solution of which is the matching scheme. A matching problem related to the intelligent technology intermediary is solved to verify the effectiveness and the feasibility of the proposed approach.

Use of a Managed Flow Pulse as Food Web Support for Estuarine Habitat

While freshwater inflow has been a major focus of resource management in estuaries, including the upper San Francisco Estuary, there is a growing interest in using focused flow actions to maximize benefits for specific regions, habitats, and species. As a test of this concept, in summer 2016, we used a managed flow pulse to target an ecologically important region: a freshwater tidal slough complex (Cache Slough Complex–CSC). Our goal was to improve estuarine habitat by increasing net flows through CSC to enhance downstream transport of lower trophic-level resources, an important driver for fishes such as the endangered Delta Smelt Hypomesus transpacificus. We used regional water infrastructure to direct 18.5 million m³ of Sacramento River flow into its adjacent Yolo Bypass floodplain, where the pulse continued through CSC. Simulations using a 3-D hydrodynamic model (UnTRIM) indicated that the managed flow pulse had a large effect on the net flow of water through Yolo Bypass, and between CSC and further downstream. Multiple water quality constituents (specific conductivity, dissolved oxygen, nutrients [NO₃ + NO₂, NH₄, PO₄]) varied across the study region, and showed a strong response to the flow pulse. In addition, the lower Sacramento River had increased phytoplankton biomass and improved food quality indices (estimated from long-chain essential fatty acids) after the flow pulse. The managed flow pulse resulted in increased densities of zooplankton (copepods, cladocerans) demonstrating potential advection from upper floodplain channels into the target CSC and Sacramento River regions. This study was conducted during a single year, which may have had unique characteristics; however, we believe that our study is an instructive example of how a relatively modest change in net flows can generate measurable changes in ecologically relevant metrics, and how an adaptive management action can help inform resource management.

Bayesian analysis of time-varying interactions between stock returns and foreign equity flows

This study discusses the trading behavior of foreign investors with respect to economic uncertainty in the South Korean stock market from a time-varying perspective. We employ a news-based measure of economic uncertainty along with the model of time-varying parameter vector autoregression with stochastic volatility. The empirical analysis reveals several new findings about foreign investors’ trading behaviors. First, we find evidence that positive feedback trading often appears during periods of high economic uncertainty, whereas negative feedback trading is exclusively observable during periods of low economic uncertainty. Second, the foreign investors’ feedback trading appears mostly to be well-timed and often leads the time-varying economic uncertainty except in periods of global crises. Third, lagged negative (positive) response of net flows to economic uncertainty is found to be coupled with lagged positive (negative) feedback trading. Fourth, the study documents an asymmetric response of foreign investors with regard to negative and positive shocks of economic uncertainty. Specifically, we find that they instantly turn to positive feedback trading after a negative contemporaneous response of net flows to shocks of economic uncertainty. In contrast, they move slowly toward negative feedback trading after a positive response of net flows to uncertainty shocks.

A Review of Main Strands on the Flow-Performance Relationship of Mutual Funds

This paper is a review of literature for findings on the flow–performance relationship of mutual funds. It is noted that the discussed issue has been examined virtually exclusively in developed countries. There are no or only fragmentary findings of this kind in developing economies. Based on a survey of empirical findings, it is possible to outline the main directions of research within the strands examined by contemporary researchers and explain the basic assumptions when formulating hypotheses. Moreover, the evaluation of the existing literature lets to offer several propositions for future research. It is a preliminary paper that systematises the analysed subject matter and an introduction to an empirical study dedicated to small European mutual fund markets. Keywords: mutual funds, performance, net flows, individual investors, behavioral finance

The Promethee II Method in Multi-Criteria Evaluation of Cryptocurrency Exchanges

Subject and purpose of work: The aim of this work is to present the application possibilities of ECONOMIC AND REGIONAL STUDIES STUDIA EKONOMICZNE I REGIONALNE ISSN 2083-3725 Volume 14, No. 2, 2021 ECREG STUDIES Vol. 14, No. 2, 2021 the weights of criteria is proposed, which maximizes the similarity of the final ranking to the other ones. Materials and methods: PROMETHEE II method and taxonomic measure were used to create rankings of exchanges. Hierarchical clustering combined with the k-means algorithm www.ers.edu.pl PDF OPEN ACCESS eISSN 2451-182X available data published on the Internet were analysed. Results: There was a high consistency in the ordering of exchanges when a multi-criteria and a multi-dimensional approach were used. Four groups of exchanges with a similar level of the values of net flows were identified. Exchanges in group one were characterized by the highest average net flows. Conclusions: The multi-criteria approach can be used as an alternative to the multi-dimensional assessment of cryptocurrency exchanges. The proposed simulation method for determining the weights of criteria can be helpful in case the researcher has no information about the importance of the criteria.

Sovereign Credit Quality and Violations of the Law of One Price

It is well-documented that government bonds with almost identical cash flows can trade at different prices. This paper analyzes the cross-section of bond spreads across developed European countries and documents a novel result. While a measure of the convenience yield of government bonds helps explain these spreads, it cannot explain the behavior of bond spreads in periods of widening credit risk. The paper documents bond spreads between new and old issues tighten for low quality sovereigns. In other words, the newer more liquid bonds become cheaper, not more expensive, relative to their older counterparts. We offer an explanation based on price pressure and provide empirical support using data on net flows of investors in sovereign bonds.

Financialization and unconventional monetary policy: a financial-network analysis

Over the last decades, both advanced and emerging economies have experienced the emergence of the phenomenon known as financialization, that, until some time ago, was generally considered beneficial for the economy. The 2007-2008 crisis and the severe post-crisis recession called into question the assumptions underlying the positive perception of the role played by financialization in the economy. In particular, the effects of financialization on financial stability and inequality are now widely recognized. A recent debate focused on the effectiveness of unconventional monetary policy tools in transferring their effects on the financial sphere to the economic sphere (e.g., via stimulating the transmission of resources from the banking system to the real economy). Among these unconventional policy measures, Quantitative Easing (QE) has been recently implemented by the European Central Bank (ECB). In this context, two questions deserve more attention in the literature. First, to what extent QE may generate net flows of additional resources to the real economy. Second, to what extent QE may also alter the pattern of intra-financial exposures among financial actors and what are the implications in terms of financialization. Here, we address these two questions by mapping and analyzing the euro area multilayer macro-network of financial exposures among institutional sectors across financial instruments (i.e., loans, bonds, equity, and insurance and pension schemes) and we illustrate our approach on recently available data. We then test the effect of the implementation of ECB’s QE on some novel measures of financialization that we derive from the time evolution of the financial linkages in the multilayer macro-network of the euro area.

Assessing the capabilities of the SWOT mission for large lake water surface elevation monitoring under different wind conditions

Lakes are important sources of freshwater and provide essential ecosystem services. Monitoring their spatial and temporal variability, as well as of their functions, is an important task within the development of sustainable water management strategies. The Surface Water and Ocean Topography (SWOT) mission will provide continuous information on the dynamics of continental (rivers, lakes, wetlands and reservoirs) and ocean water bodies. This work aims to contribute to the international effort evaluating the SWOT satellite (2022 launch) performance for water balance assessment over large lakes (e.g., > 100 km2). For this purpose, a hydrodynamic model was set up over Mamawi Lake, Canada, and different wind scenarios on lake hydrodynamics were simulated. The derived water surface elevations (WSE) were compared to synthetic elevations produced by the Jet Propulsion Laboratory (JPL) SWOT high resolution (SWOT-HR) simulator. Moreover, water storages and net flows were retrieved from different possible SWOT orbital configurations, as well as synthetic gauge measurements. In general, a good agreement was found between the WSE simulated from the model and those mimicked by the SWOT-HR simulator. Depending on the wind scenario, errors ranged between approximately −2 and 5 cm for mean error, and 30 to 70 cm root mean square error. Low spatial coverage of the lake was found to generate important biases in the retrievals of water volume or net flow between two satellite passes in the presence of local heterogeneities in WSE. However, the precision of retrievals was found to increase as spatial coverage increases, becoming more reliable than the retrievals from 3 synthetic gauges when spatial coverage approaches 100 %, demonstrating the capabilities of the future SWOT mission in monitoring dynamic WSE for large lakes across Canada.