REGULATION IN MANAGEMENT OF HIGH-TECH INDUSTRIES

The article analyzes the institutional provision of the regulatory functions of the state in such areas as artificial intelligence and robotics. The analysis is based on the Concept of the development of regulation of relations in the field of artificial intelligence and robotics technologies until 2024. Among the problematic areas of regulation are the restriction of competition, the loss of flexibility in economic relations and the market disequilibrium. It is shown that the solution of these problems requires an integrated approach. So, to implement the concept of “smart city”, it is necessary not only to weaken or remove regulatory barriers, but also to use additional tools that have already applied in the world practice. An opportunity of applying of theoretical and methodological base of quality economics is considered. The solution to a significant part of the problems of digitalization of the region’s economy is the use in the management of the development of the “smart city” the international standard “Sustainable cities and Communities – Indicators for smart cities”.

International reserves and domestic money market disequilibrium

Purpose The purpose of this paper is to examine the likely determinants of the demand for official international reserves (hereafter reserves) for India and China in the long run in a basic buffer stock model. The paper also examines the role of domestic money market disequilibrium in the short-run demand for official reserves for both the countries in a dynamic synthesis model. Design/methodology/approach The study used quarterly data for the time period 1993:Q1–2015:Q4. The long-run model is being estimated by following the Frenkel–Jovanovic (1981) buffer stock model and includes the determinants such as transaction motive variable (GDP or Imports), opportunity cost variable (domestic interest rate), precautionary motive variable (volatility of reserves) and exchange rate. The study also examined the role of domestic money market disequilibrium in addition to the above variables in the short-run reserve demand model. The money market disequilibrium term is expected to be negative and significant in the short run. The study employed autoregressive distributed lag bound testing approach to co-integration and unrestricted error-correction model (UECM) approach developed by Pesaran et al. (2001) for estimating the long-run and short-run models, respectively. Findings The co-integration test suggests the existence of long-run relationship between international reserves and its determinants. In the long run, all the variables are statistically significant with expected sign, except domestic interest rate variable for China. It is also found that, the money market disequilibrium term in the short run is negative and significant which validates that an excessive money demand (supply) induces an inflow (outflow) of international reserves for both India and China with a lag of four quarters. The recursive residual tests (CUSUM and CUSUMSQ) confirm the stability of both long-run and short-run reserve demand models. Practical implications The findings and policy implications of this study may be useful for the policy makers of the similar emerging economies for designing money and currency policies. Originality/value This paper is a comparative study which systematically analyzed the reserve demand behavior of the two emerging economies India and China. The study integrates the domestic money market with the international reserve demand behavior for these two economies.

Impact of Property Tax on Housing-Market Disequilibrium in Different Regions: Evidence from Taiwan for the period 1982–2016

Although Taiwan has had a unique property tax system for a long time, oversupply and increasing prices have persisted in the regional market during recent decades. In order to shed light on this problem, this study investigated the impact of property taxation on housing markets in different regions from a disequilibrium viewpoint based on the stock-flow model. The panel data of 20 counties or cities in Taiwan for the period from 1982 to 2016 was examined. The empirical findings verified that housing price was the most important factor for influencing the long-run housing supply and demand in regions both with and without oversupply. The low interest rate policy was an important factor driving the long-run housing demand, but only in over-supply regions. The current property tax system cannot impact the long-run housing demand, only the short-run demand in both regions. Moreover, the property tax cannot effectively disturb the supply behavior in the long-run in both regions. This study also confirmed that housing-market disequilibrium existed in regions both with and without oversupply, making up the gap. The property tax’s impact on the adjustment speed to long-run equilibrium in over-supply regions was weaker than under-supply regions.