Quantum Propensity in Economics

This paper describes an approach to economics that is inspired by quantum computing, and is motivated by the need to develop a consistent quantum mathematical framework for economics. The traditional neoclassical approach assumes that rational utility-optimisers drive market prices to a stable equilibrium, subject to external perturbations or market failures. While this approach has been highly influential, it has come under increasing criticism following the financial crisis of 2007/8. The quantum approach, in contrast, is inherently probabilistic and dynamic. Decision-makers are described, not by a utility function, but by a propensity function which specifies the probability of transacting. We show how a number of cognitive phenomena such as preference reversal and the disjunction effect can be modelled by using a simple quantum circuit to generate an appropriate propensity function. Conversely, a general propensity function can be quantized, via an entropic force, to incorporate effects such as interference and entanglement that characterise human decision-making. Applications to some common problems and topics in economics and finance, including the use of quantum artificial intelligence, are discussed.

North Macedonian crisis spurs move to renewable energy

Significance Electricity companies wanted a near-38% rise amid soaring international market prices, but the ERC wanted to avoid a price shock. In November, the government declared an ‘energy crisis’ at the ERC’s request, thanks to reduced domestic electricity supply and the global market situation, and extended it in December for six months. Impacts Investment in infrastructure and technologies should contribute to economic growth and create jobs. Care will have to be taken that closing established mines and power plants do not depress economies locally and raise unemployment. Rising domestic utility prices will inflict political damage on a fragile government. Phasing out coal will improve air quality and population health and well-being, with knock-ons for healthcare priorities and spending.

Bin Yang on the Global History of Cowries

Bin Yang correctly states that cowrie shells (250 species) and cowrie monies (two species mostly) deserve far more attention in global histories than they have received. He provides the most comprehensive view of the global history of cowries and cowrie monies to date. Multiple shell monies proliferated worldwide, but they did not concentrate within China (except Yunnan) nor within Europe. Why did specific cowries accumulate only in certain specific geographical locations? Yang establishes a general answer: cultural preferences for holding specific objects, including specific monies, determined where the shells were concentrated. He offers global evidence that, I argue, contradicts mainstream economic theory, which is based upon conceptual aggregation of diverse monies into amorphous stocks of (national or regional) money (singular). Yang demonstrates repeatedly that distinct market locations and distinct market prices existed for specific cowrie and other shell monies (plural) throughout global history. His evidence starkly demonstrates inadequacies of mainstream monetary theory (although he does not say as much). The relentless evidence of the existence of monetary disaggregation, evidence highlighted throughout Yang’s volume, demonstrates an urgent need for alternative monetary theories that portray prices and stocks of individual monies in conformity with empirical evidence provided by archival historians.

Pelatihan Akuntansi Biaya dan HPP pada UMKM Desa Wisata Ponggok

training in cost accounting and calculating the cost of goods sold (CoGS) for micro, small, and medium enterprises (MSMEs) in Ponggok Tourism Village was carried out to provide understanding and training in calculating CoGS. Based on the initial survey conducted by the community service team, information was obtained that seller in Ponggok Village did not calculate CoGS properly because they based their selling price on market prices. This is because MSMEs have a similar business, namely a culinary business. This unsuitable selling price determination will result in suboptimal profit achievement because each business has a different total cost. For this reason, this service carries out four training sessions to guide MSME players in deermining the appropriate selling price. The four sessions covered the delivery of concepts and materials, discussions, training in calculating CoGS, and evaluation. This community service is expected to increase understanding and skills in calculating CoGS so that optimal profit can be achieved. Keywords: cost accounting;cost of good sold; Ponggok Village Abstrak: pelatihan akuntansi biaya dan penghitungan Harga Pokok Penjualan (HPP) pada pelaku UMKM di Desa Wisata Ponggok dilaksanakan untuk memberikan pemahaman dan pelatihan penghitungan HPP. Berdasarkan survei awal yang dilakukan tim pengabdian, didapatkan informasi bahwa para pelaku UMKM di Desa Ponggok tidak melakukan penghitungan HPP karena mendasarkan harga jualnya sesuai harga pasar. Hal ini dikarenakan para pelaku UMKM memiliki usaha yang sejenis, yaitu usaha kuliner. Penentuan harga jual yang tidak sesuai ini akan menyebabkan pencapaian laba yang tidak optimal karena setiap usaha memiliki berbagai total biaya yang berbeda. Untuk itu, pengabdian ini melaksanakan empat sesi pelatihan untuk memandu para pelaku UMKM menentukan harga jual yang sesuai. Keempat sesi tersebut meliputi penyampaian konsep dan materi, diskusi, pelatihan penghitungan HPP, dan evaluasi. Pengabdian kepada masyarakat ini diharapkan dapat menambah pemahaman dan ketrampilan menghitung HPP sehingga laba yang optimal dapat tercapai.Kata kunci: akuntansi biaya, harga pokok penjualan, Desa Ponggok

Simulation of Four National CRDs' Operations

This chapter introduces simulations of how CRDs might have actually operated in the four different countries of Indonesia, Malaysia, Turkey, and Pakistan if they had been established in 2009. Two types of data are used, all from publicly accessible databases. The first is data on the annual quantity and cost of imports to each country for three or more years prior to the start of the simulation, from which each CRD's initial “Index” price for each commodity is calculated, as well as the size of the CRD's “Block” of reserves. The second type of data is quarterly market prices of each commodity, and the national exchange-rate where needed, through the period of the simulation, from which changes in the CRDs' reserves are calculated. For each country the level of reserves of the different commodities held by the CRD are clearly seen to automatically vary counter-cyclically as traders sell to or buy from the CRD at the prices in its price-schedule for each commodity.

Discussion of CRD Simulation Results

The results of the simulations shown in Chapter 10 clearly show the consistent pattern of operation of the Grondona system, buying and selling reserves of commodities in response to changes in market prices as reliably as under a gold standard. This has a range of direct and indirect effects which are discussed in this chapter, including the reliably counter-cyclical timing of changes in the quantity of the CRD's reserves, and the parallel changes in the national money supply, the system's contribution to resisting inflationary pressures, and the effect of a CRD's reserves of a commodity falling to zero. Some remaining uncertainties about the system's operation are also discussed, notably about the foreign exchange market's likely response to the system expanding the money supply when commodity prices are falling.

Valuation of construction work on architectural heritage and its influence on project implementation decision

The article deals with the description of the methodology for determining the prices of construction work used most often in the reconstruction of historic buildings. The procedure is based on parametric estimating of buildings and on traditional tools and principles of pricing. The historic building is divided into structural parts and technological units. Structural elements are individually valued at the unit price, which was created on the basis of sub-budget. Very strict rules are set for the financing of cultural monuments and the method of valuation is based on the price systems’ methodology. The research also included an analysis of market prices and a subsequent comparison with indicative prices. Proper estimate of historic buildings’ reconstruction cost is also an important input for the decision-making process regarding the actual implementation of the project, its method of execution and its life cycle cost determination.

Illustrating the Grondona System in Operation

While working in Japan during the 1990s, one of the authors took the opportunity to collect data on past Japanese commodity imports and recent commodity market prices and to use them to simulate how a CRD would have operated over the decade 1987 – 1996 using a computer spreadsheet. The graphs showing the results are easy to understand: the CRD would have bought reserves when Yen prices were falling and sold them when Yen prices were rising, thereby exerting a stabilizing influence on the prices and quantities of these imported commodities. In parallel, by expanding and contracting the money supply counter-cyclically, the system would have helped to stabilize the overall economy.

Impact of MAPs on improving the socio-economic situation of rural families in Kosovo

he medicinal and aromatic plants sector is considered a very important sector for the economy of Kosovo since it can provide employment, income, and export growth. Based on this, we assess the impact of the subsidy schemes from the Ministry of Agriculture, Forestry, and Rural Development (MAFRD) using a propensity score matching improving the farmers' gross income. The main purpose of the study was to assess whether subsidy schemes have an impact on the farmer's gross income by using a propensity score matching model to match beneficiaries to non-beneficiaries. Results showed that beneficiaries of subsidy schemes make 3,682.09 Euros more per year than non-beneficiaries (95% confidence interval 2,349.9 Euros to 5,012.90 Euros). Using logistic regression, we found that subsidy schemes, market prices, and reductions of unfair competition are the three most important factors affecting farmers' decisions to collect and cultivate MAPs.

Economic Analysis For Sustainable Utilization of Ethanol Production Residues From Grain and Inedible Plant Wastes

The global initiative to find alternative fuel sources to fossil fuels is an ongoing process. As such, bioethanol is used as a fuel blend with petrol. However, large number of solid wastes is produced from ethanol plants sourcing from grain and inedible plant wastes, for example, WDGS (wet distiller’s grain with soluble) and DDGS (dry distiller’s grain with soluble) produced from ethanol plants using corn. This study investigates alternative methods for using these co-products through combustion and anaerobic digestion. Process simulation and economic analysis were conducted using current market prices to evaluate the viability of the processes. Products in the form of energy are produced. Optimization of the corn ethanol plant was also explored for re-using the heat and electricity produced in those processes. The profits of combustion and anaerobic digestion were compared. It was found that these processes will supply more viable options to simply selling the grain as feed for livestock. The anaerobic digestion of WDGS to produce electricity scenario was found to have the biggest profit among the four scenarios which can bring the annual income of 14.1 million Australian dollar to the ethanol plant. An environmental analysis of the CO2 emissions was also conducted. Using the Australian state emission factor, the amount of CO2 offset through both combustion and anaerobic digestion can be seen. The anaerobic digestion of WDGS to supply heat to the plant was proved having the largest CO2 abatement with the value of 0.58 kg-CO2e/L-EtOH.