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1 – 10 of over 3000Since the core issue of Chinese economics is to elucidate the logical relationship between socialism and the market economy, it necessitates a robust foundation for microeconomic…
Abstract
Purpose
Since the core issue of Chinese economics is to elucidate the logical relationship between socialism and the market economy, it necessitates a robust foundation for microeconomic analysis to uncover the behavioral patterns and characteristics of microeconomic agents in a socialist market economy and identify the conditions and methods for the functioning of market mechanisms.
Design/methodology/approach
The core issue of microeconomics with Chinese characteristics is to identify the economic logic of how market mechanisms play a decisive role in resource allocation under the basic socialist economic system based on China's reform.
Findings
The core issue in building the foundation of microeconomic analysis of Chinese economics is addressing the compatibility issue between SOEs and a market economy.
Originality/value
In the author’s view, this can be achieved under the logic of classified reform so as to build the microeconomic foundation for the effective functioning of a socialist market economy.
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The purpose of this paper is to propose a microeconomic-based approach to support fund-allocation decisions for a large number of assets. Under the prevailing financial…
Abstract
Purpose
The purpose of this paper is to propose a microeconomic-based approach to support fund-allocation decisions for a large number of assets. Under the prevailing financial constraints and rapid deterioration of facilities, arriving at optimum fund allocation for capital renewal projects has become very challenging. Due to the complexity of modeling multi-year life cycle cost analysis, existing fund-allocation methods have serious drawbacks when handling a large portfolio of assets, and their results are difficult to justify.
Design/methodology/approach
This paper adopts well-established theories from microeconomics and proposes a new microeconomic-based decision support framework that has two novel components: a heuristic procedure to optimize and justify fund-allocation decisions by balancing the funding among the different asset categories; and a visual what-if analysis approach inspired by the economic indifference maps.
Findings
Applying the proposed framework on a real case study of 800 building components proved that optimum decisions can be achieved through an equilibrium state at which fair and equitable allocations are made such that the utility per dollar is balanced for all asset categories. The visual what-if analysis approach presented a powerful graphical tool to visualize decisions, along with their costs and benefits, and facilitate sensitivity analysis under changes in budget levels.
Originality/value
This paper, using the proposed microeconomic framework, sheds a new light on how fund-allocation optimization problems can be simplified, from an economic perspective, to arrive at accurate and justifiable decisions for a large portfolio of facilities.
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The main argument of this paper is that the accounting profession in Canada exercises hegemonic leadership over the development of tax education in terms of cadence and direction…
Abstract
The main argument of this paper is that the accounting profession in Canada exercises hegemonic leadership over the development of tax education in terms of cadence and direction of reforms. To support this argument, the paper uses the development of the microeconomic approach to teaching taxation and the correlation between the numbers of tax courses taught in undergraduate programs and exemptions provided by the provincial institutes of the Canadian Chartered Accountants to students joining them. It uses arguments from institutional isomorphism to elucidate expected resistance to adopting new developments, such as the microeconomic approach, in the accounting field. The paper also builds on Gramsci’s theory of hegemony to imply that business schools have given their consent to the Canadian Institute of Chartered Accountants by closely linking their curriculum, at least the taxation courses, to that of the institute.
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Tobias Burggraf, Toan Luu Duc Huynh, Markus Rudolf and Mei Wang
This study examines the prediction power of investor sentiment on Bitcoin return.
Abstract
Purpose
This study examines the prediction power of investor sentiment on Bitcoin return.
Design/methodology/approach
We construct a Financial and Economic Attitudes Revealed by Search (FEARS) index using search volume from Google's search engine to reveal household-level (“bankruptcy”, “unemployment”, “job search”, etc.) and market-level sentiment (“bankruptcy”, “unemployment”, “job search”, etc.).
Findings
Using a variety of quantitative methodologies such as the transfer entropy model as well as threshold regression and OLS, GLS and 2SLS estimations, we find that (1) investor sentiment has strong predictive power on Bitcoin, (2) household-level sentiment has larger effects than market-level sentiment and (3) the impact of sentiment is greater in low sentiment regimes than in high sentiment regimes. Based on these information, we build a hypothetical trading strategy that outperforms a simple buy-and-hold strategy both on an absolute and risk-adjusted basis. The results are consistent across cryptocurrencies and regions.
Research limitations/implications
The findings contribute to the ongoing debate in the literature on the efficiency of cryptocurrency markets. The results reveal that the Bitcoin market is not efficient in the sense of the efficient market hypothesis – asset prices do not fully reflect all available information and we were able to “beat the market”. In addition, it sheds further light on the debate whether Bitcoin can be considered a medium of exchange, i.e. a currency or an investment product. Because investors are reallocating their Bitcoin holdings during times of increased market sentiment due to liquidity needs, they obviously consider bitcoin an investment product rather than a currency.
Originality/value
This study is the first to examine the impact of investor sentiment measured by FEARS on Bitcoin return.
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James L. Swofford, Lena Birkelof, Joshua R. Caldwell and John E. Filer
Carol Bray, Scott Farrow and Tim Guinane
Benefit–cost and cost-effectiveness analyses form the core of microeconomic performance measures by which to evaluate federal programs and policies. The current uses of such…
Abstract
Benefit–cost and cost-effectiveness analyses form the core of microeconomic performance measures by which to evaluate federal programs and policies. The current uses of such measures in the federal government are summarized and opportunities for their expanded application, sources of generally accepted analytical principles and opportunities to improve the consistency and credibility of microeconomic performance measures are discussed.
Improving the energy efficiency of the existing residential building stock has been identified as a key policy aim in many countries. The purpose of this paper is to review the…
Abstract
Purpose
Improving the energy efficiency of the existing residential building stock has been identified as a key policy aim in many countries. The purpose of this paper is to review the extant literature on investment decisions in domestic energy efficiency and presents a model that is both grounded in microeconomic theory and empirically tractable.
Design/methodology/approach
This study develops a modified and extended version of an existing microeconomic model to embed the retrofit investment decision in a residential property market context, taking into account tenants’ willingness to pay and cost-reducing synergies. A simple empirical test of the link between energy efficiency measures and housing market dynamics is then conducted.
Findings
The empirical data analysis for England indicates that where house prices are low, energy efficiency measures tend to increase the value of a house more in relative terms compared to higher-priced regions. Second, where housing markets are tight, landlords and sellers will be successful even without investing in energy efficiency measures. Third, where wages and incomes are low, the potential gains from energy savings make up a larger proportion of those incomes compared to more affluent regions. This, in turn, acts as a further incentive for an energy retrofit. Finally, the UK government has been operating a subsidy scheme which allows all households below a certain income threshold to have certain energy efficiency measures carried out for free. In regions, where a larger proportion of households are eligible for these subsidies,the authors also expect a larger uptake.
Originality/value
While the financial metrics of retrofit measures are by now well understood, most of the existing studies tend to view these investments in isolation, not as part of a larger bundle of considerations by landlords and owners of how energy retrofits might influence a property’s rent, price and appreciation rate. In this paper, the authors argue that establishing this link is crucial for a better understanding of the retrofit investment decision.
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The purpose of this paper is to establish the theory of the fraud star and the formulation of its microeconomic model, based on the behavioural sciences.
Abstract
Purpose
The purpose of this paper is to establish the theory of the fraud star and the formulation of its microeconomic model, based on the behavioural sciences.
Design/methodology/approach
The methodology is a practical exploration, first in the convergence of the economics of fraud and the behavioural sciences, based on these tools, formulating the new theory of the star of fraud and formulating its microeconomic model.
Findings
The paper concludes with a new model of the fraud star theory and its microeconomic modelling. Take into account the new theory of the fraud star of this article.
Research limitations/implications
There are no limitations in the model.
Practical implications
The practical implications are to apply the new fraud star theory and calculate your income, in different scenarios.
Social implications
The social implication is to know the income for the crime of fraud, according to the level of regulations, control and effective punishment.
Originality/value
The present work is original; there is no new theory of the fraud star, nor its microeconomic model, and it does not exist in the academic field, only in this work.
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While Christian social principles harmonize with certain premissesof microeconomic theory, private property and freedom of behaviour forinstance, deep‐rooted differences call for…
Abstract
While Christian social principles harmonize with certain premisses of microeconomic theory, private property and freedom of behaviour for instance, deep‐rooted differences call for recasting certain foundations and pieces of analysis. Broad dissent concerns positive versus normative approach, the holistic character of Christian thought, and the latter′s view of human behaviour as flawed and often sinful. Discusses six more specific areas of dissent: consumer behaviour; the firm; income distribution; welfare economics; market failure and government, and public choice. The Christian mind requires revision of conventional treatments, since present microeconomic discussion is subversive of a religious interpretation of life.
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The purpose of the research is to analyse the theoretical foundations of the balanced scorecard (BSC) with the aid of a microeconomic model and to illustrate the results in an…
Abstract
Purpose
The purpose of the research is to analyse the theoretical foundations of the balanced scorecard (BSC) with the aid of a microeconomic model and to illustrate the results in an empirical case.
Design/methodology/approach
The model includes demand, production, and objective functions. Demand is presented as a function of price and customer relationship management (CRM) costs. Production depends on labour, capital, and development and learning (D&L) costs. The strategy is depicted by objective function based on profit and net sales. The output variables are classified as four perspectives of BSC. Shadow prices and performance measures are analysed. The theoretical model is applied to the annual financial statement data from Nokia Corporation. Simulation is used to find appropriate estimates for the parameters of the model.
Findings
It is shown that a shift in the objective function (strategy) towards revenue maximization may alter the importance order of the BSC perspectives. Non‐financial and financial performance ratios may change into opposite directions, when the strategy is shifted. The figures extracted from the data of Nokia Corporation give support to these interpretations.
Research limitations/implications
The theoretical model is based on the traditional assumptions of microeconomic analysis. Empirical analysis is only based on a naive estimation methods. The sensitivity of the results with respect to the assumptions should be analysed in further studies. The parameters should be estimated with more advanced statistical methods.
Practical implications
The focus of the BSC should be elastic and react to changes in the strategy. When evaluating the causal relationships between non‐financial and financial performance measures, attention should be paid to potential shifts in the strategy. The present model for example in a worksheet version would be useful in analysing the optimal behaviour of a firm and the causal relationships within the firm. It would be useful also in teaching the BSC and in general the behaviour of the firm to university students and managers. The model offers a platform for teaching and learning how the market (demand) and production (technology) environments affect the performance measures in the BSC.
Originality/value
There is a lack of theoretical modelling and analysis of the BSC. The present mathematical model is discussed earlier in Managerial Finance. However, this paper throws light to modelling the approach in a real‐life case of the Nokia Corporation and shows the value of the approach in interpreting the BSC in practice.
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