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Book part
Publication date: 19 June 2019

Santiago Ripoll

This paper explores the contested notion of what constitutes a fair price in the context of grain exchanges in a subsistence farming village in the highlands of Matagalpa. Using…

Abstract

This paper explores the contested notion of what constitutes a fair price in the context of grain exchanges in a subsistence farming village in the highlands of Matagalpa. Using ethnographic data, I show how Nicaraguan campesinos’ economic behavior plays out within a local moral universe of fairness: how much to produce and how much to sell in the market (or to give away); how prices and obligations vary depending on the social relation that binds the seller and the buyer (kinship, friendship, community, and so on); in what ways these notions of fair price are articulated and contested by different classes within a rural community; and lastly, what is expected of the State in terms of regulating food prices. Price emerges as the dialectic between the market in its abstract form and the specific social relationships and everyday politics that shape exchanges. What constitutes help (ayuda) and what constitutes exploitation in market exchanges and the determination of price is constantly contested, the moral economy is a discursive battlefield.

Details

The Politics and Ethics of the Just Price
Type: Book
ISBN: 978-1-78743-573-5

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Book part
Publication date: 26 April 2014

Petri Kuosmanen and Juuso Vataja

This paper examines the predictive content of financial variables above and beyond past GDP growth in a small open economy in the Eurozone. We aim to clarify potential differences…

Abstract

Purpose

This paper examines the predictive content of financial variables above and beyond past GDP growth in a small open economy in the Eurozone. We aim to clarify potential differences in forecasting economic activity during periods of steady growth and economic turbulence.

Design/methodology/approach

The out-of-sample forecasting analysis is conducted recursively for two different time periods: the steady growth period from 2004:1 to 2007:4 and the financial crisis period from 2008:1 to 2011:2.

Findings

Our results from Finland suggest that the proper choice of forecasting variables relates to general economic conditions. During steady economic growth, the preferable financial indicator is the short-term interest rate combined with past growth. However, during economic turbulence, the traditional term spread and stock returns are more important in forecasting GDP growth.

Research limitations/implications

The results highlight the importance of long-term interest rates in determining the level of the term spread when the central bank implements a zero interest rate policy. Moreover, during economic turbulence, stock markets are able to signal the expected effects of unconventional monetary policy on GDP growth.

Details

Macroeconomic Analysis and International Finance
Type: Book
ISBN: 978-1-78350-756-6

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Book part
Publication date: 19 October 2020

Andrija Mihoci, Michael Althof, Cathy Yi-Hsuan Chen and Wolfgang Karl Härdle

A systemic risk measure is proposed accounting for links and mutual dependencies between financial institutions utilizing tail event information. Financial Risk Meter (FRM) is…

Abstract

A systemic risk measure is proposed accounting for links and mutual dependencies between financial institutions utilizing tail event information. Financial Risk Meter (FRM) is based on least absolute shrinkage and selection operator quantile regression designed to capture tail event co-movements. The FRM focus lies on understanding active set data characteristics and the presentation of interdependencies in a network topology. Two FRM indices are presented, namely, FRM@Americas and FRM@Europe. The FRM indices detect systemic risk at selected areas and identify risk factors. In practice, FRM is applied to the return time series of selected financial institutions and macroeconomic risk factors. The authors identify companies exhibiting extreme “co-stress” as well as “activators” of stress. With the SRM@EuroArea, the authors extend to the government bond asset class, and to credit default swaps with FRM@iTraxx. FRM is a good predictor for recession probabilities, constituting the FRM-implied recession probabilities. Thereby, FRM indicates tail event behavior in a network of financial risk factors.

Details

The Econometrics of Networks
Type: Book
ISBN: 978-1-83867-576-9

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Book part
Publication date: 23 September 2014

Glenn Growe, Marinus DeBruine, John Y. Lee and José F. Tudón Maldonado

This paper examines the profitability and performance measurement of U.S. regional banks during the period 1994–2011, using the GMM estimator technique. Our study extends prior…

Abstract

Purpose

This paper examines the profitability and performance measurement of U.S. regional banks during the period 1994–2011, using the GMM estimator technique. Our study extends prior research by including several factors not previously considered using U.S. data.

Approach

We use bank-specific, industry-specific, and macroeconomic determinants of profitability contemporaneous with our performance indicators. We follow the accounting fundamental analysis path in explaining the bank performance.

Findings

Among the performance measures, the efficiency ratio and provisions for credit losses are negatively and equity scaled by assets is positively related to profitability. However, these relationships either reverse (efficiency ratio and provisions for credit losses) or become insignificant (equity scaled by assets) when the target becomes change in profitability. The level of nonperforming assets is negatively related to profitability across all measures of profitability used. Macroeconomic variables are largely unrelated to profitability during the year they are measured. However, they have a significant relationship with earnings change measures, suggesting they have a lagged effect on profitability. The slope of the yield curve is especially strong in this regard.

Originality

We use our determinants to model changes in bank profitability one year ahead, in addition to including several factors not previously considered, using the predictive focus of the fundamental analysis research.

Book part
Publication date: 13 December 2013

Bertrand Candelon, Elena-Ivona Dumitrescu, Christophe Hurlin and Franz C. Palm

In this article we propose a multivariate dynamic probit model. Our model can be viewed as a nonlinear VAR model for the latent variables associated with correlated binary…

Abstract

In this article we propose a multivariate dynamic probit model. Our model can be viewed as a nonlinear VAR model for the latent variables associated with correlated binary time-series data. To estimate it, we implement an exact maximum likelihood approach, hence providing a solution to the problem generally encountered in the formulation of multivariate probit models. Our framework allows us to study the predictive relationships among the binary processes under analysis. Finally, an empirical study of three financial crises is conducted.

Details

VAR Models in Macroeconomics – New Developments and Applications: Essays in Honor of Christopher A. Sims
Type: Book
ISBN: 978-1-78190-752-8

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Book part
Publication date: 9 November 2023

Ezra Valentino Purba and Zaäfri Ananto Husodo

This study aimed to know the effect of cross-sectional risk, which comprises business-specific risk and stock market volatility, as a variable for estimating macroeconomic risk in…

Abstract

This study aimed to know the effect of cross-sectional risk, which comprises business-specific risk and stock market volatility, as a variable for estimating macroeconomic risk in Indonesia. This study observes public companies in Indonesia and Indonesian macroeconomic data from 2004 to 2020. In this study, the author uses term spread as the dependent variable that reflects macroeconomic risk. The cross-sectional risk comprises financial friction (FF), cash flow (CF), debt–service ratio, and stock market volatility as independent variables. By using the Autoregressive Distributed Lag (ARDL) Model method, this study shows that business-specific and stock market risk can estimate macroeconomic risk, so that it becomes an early signal of economic shock, such as recession or high inflation, in the future. The model in this study also examines the cross-sectional risk relationship with other macroeconomic indicators, such as the Consumer Confidence Index (CCI), money supply (M0), and Indonesia’s trade balance (TB).

Details

Macroeconomic Risk and Growth in the Southeast Asian Countries: Insight from Indonesia
Type: Book
ISBN: 978-1-83797-043-8

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Book part
Publication date: 15 March 2022

Amy Yueh-Fang Ho, Wen-Chang Lin and Hung-Yuan Yu

Peer-to-Peer (P2P) lending, which makes borrowers and investors meet directly through online platforms bypassing traditional financial institutions, is an emerging financing…

Abstract

Peer-to-Peer (P2P) lending, which makes borrowers and investors meet directly through online platforms bypassing traditional financial institutions, is an emerging financing market after the traditional financial institutions crushed during the global financial crisis from 2007 to 2009. P2P lending platforms meet the credit demand more efficiently and play a vital role for the credit market and economic activity. This study sheds light on whether the credit spread of P2P lending is well predictive of economic activity compared to the bond credit spread which has been fully investigated in prior studies. Our findings show that the P2P credit spread performs similarly in predicting the economic activity as bond credit spread only during the financial crisis. However, the predictive power of P2P credit spread becomes inverse during the noncrisis periods since P2P lending platforms provide an alternative and easier financing channel to individuals who hardly borrow money for refinancing from traditional financial institutions. This study highlights the alternative role of P2P lending platform in financing and provides the evidence of different predictive powers of P2P credit spread on economic activity in different time periods.

Details

Advances in Pacific Basin Business, Economics and Finance
Type: Book
ISBN: 978-1-80117-313-1

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Book part
Publication date: 5 June 2017

Cueponcaxochitl D. Moreno Sandoval

In an age when computer science largely shapes the engagement of widely diverse populations with the world, the majority of computing professions are dominated by males, primarily…

Abstract

In an age when computer science largely shapes the engagement of widely diverse populations with the world, the majority of computing professions are dominated by males, primarily of European descent. This monolithic group exhibits hubris that needs to be mitigated by drawing upon diverse points of view. This chapter examines computer science production and its contribution to global climate change through e-waste, water usage, and technophilia. Examining Indigenous epistemologies and intersectional theory to address race, class, and gender issues in relation to global climate change, the chapter advocates for broadening computer science education as a culturally sustaining (Paris, D. (2012). Culturally sustaining pedagogy: A needed change in stance, terminology, and practice. Educational Researcher, 41(3), 93–97; Paris, D., & Alim, H. S. (2014). What are we seeking to sustain through culturally sustaining pedagogy? A loving critique forward. Harvard Educational Review, 84(1), 85–100) and revitalizing (McCarty & Lee, 2014) approach to nurturing a social and environmentally responsible movement in computer science education.

Book part
Publication date: 5 October 2018

Nasir Bedewi Siraj, Aminah Robinson Fayek and Mohamed M. G. Elbarkouky

Most decision-making problems in construction are complex and difficult to solve, as they involve multiple criteria and multiple decision makers in addition to subjective…

Abstract

Most decision-making problems in construction are complex and difficult to solve, as they involve multiple criteria and multiple decision makers in addition to subjective uncertainties, imprecisions and vagueness surrounding the decision-making process. In many instances, the decision-making process is based on linguistic terms rather than numerical values. Hence, structured fuzzy consensus-reaching processes and fuzzy aggregation methods are instrumental in multi-criteria group decision-making (MCGDM) problems for capturing the point of view of a group of experts. This chapter outlines different fuzzy consensus-reaching processes and fuzzy aggregation methods. It presents the background of the basic theory and formulation of these processes and methods, as well as numerical examples that illustrate their theory and formulation. Application areas of fuzzy consensus reaching and fuzzy aggregation in the construction domain are identified, and an overview of previously developed frameworks for fuzzy consensus reaching and fuzzy aggregation is provided. Finally, areas for future work are presented that highlight emerging trends and the imminent needs of fuzzy consensus reaching and fuzzy aggregation in the construction domain.

Details

Fuzzy Hybrid Computing in Construction Engineering and Management
Type: Book
ISBN: 978-1-78743-868-2

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