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Pharmaceutical companies are faced with identifying development compounds for their Drug Development Processes (DDPs) that will not only gain approval for sale by the regulatory agencies, such as the Food and Drug Administration (FDA), but also establish a sustainable and profitable market presence. This identification of compounds for the DDP includes projection of objective criteria, such as ability to generate revenue and profitability (Financial) and safety and efficacy (Clinical), as well as more subjective criteria, such as determination of insurance coverage by payers, such as the Centers for Medicare and Medicaid Services and pricing (Reimbursement), ability to produce a product of consistent quality (Manufacturing), and attain approval for sale in a timely manner (Registration). The Analytical Hierarchy Process (AHP) is a multi-criteria decision model that can integrate both objective and subjective information. This study applies the AHP methodology to the identification of compounds resulting in a dynamic application of the model that can be used by pharmaceutical companies to determine the best compounds to put in the DDP, at a time when the cost of conducting clinical evaluations for development compounds is very high and global market conditions are evolving.

Despite all the attempts developed so far to measure corporate social performance in the last decades, a standard metric for it is still missing. In this work, the author tries to understand why is this the case. To do so, the author has reviewed 69 relevant metrics developed in the literature since the 1970s until today, covering approaches based on social, reputational, and environmental ratings, as well as several others constructed ad hoc by reputated scholars. The author analyzes each of them through a double optics, checking if they meet the minimum requirements to be considered standard and truly social. The research reveals that the main factor that prevents such a standard is the lack of truly social orientation of the existing metrics.

The role of money and monetary policy of the central bank in pursuing macroeconomic stability has significantly changed over the period since the end of World War II. Globalization, liberalization, integration, and transition processes generally shaped the crucial milestones of the macroeconomic development and substantial features of economic policy and its framework in Europe. Policy-driven changes together with variety of exogenous shocks significantly affected the key features of macroeconomic environment on the European continent that fashioned the framework and design of monetary policies.

This chapter examines the key basis of the central bank’s monetary policy on its way to pursue and preserve the internal and external stability of the purchasing power of money. Substantial elements of the monetary policy like objectives and strategies are not only generally introduced but also critically discussed according to their accuracy, suitability, and reliability in the changing macroeconomic conditions. Brief overview of the Eurozone common monetary policy milestones and the past Eastern bloc countries’ experience with a variety of exchange rate regimes provides interesting empirical evidence on origins and implications of vital changes in the monetary policy conduction in Europe and the Eurozone.

The purpose of the work is to verify the offered hypothesis and to evaluate the potential of the modern Russian entrepreneurship in economy’s informatization.

A specially developed proprietary method of evaluation of entrepreneurship’s potential in economy’s informatization and the level of its opening is used, which is created on the basis of the classical method of effectiveness evaluation. The information and analytical basis of studying the entrepreneurship’s potential in economy’s informatization is the materials of the report “The Global Information Technology Report 2016. Innovating in the Digital Economy”, prepared and presented by INSEAD, JOHNSON (Cornell University) and World Economic Forum. The offered proprietary method envisages evaluation of entrepreneurship’s potential in economy’s informatization and the level of its opening on the basis of statistical data according to four criteria: business and innovational environment, business ICT infrastructure, usage of new ICT in business, and economic consequences of using new ICT in business.

The author evaluates the entrepreneurship’s potential in economy’s informatization in modern Russia in 2016 and concludes that entrepreneurship’s potential in modern Russia is rather high, due to which high value of the index of information economy’s formation in Russia is achieved. That is, large entrepreneurship’s potential in economy’s informatization should be viewed as a precondition for information economy’s formation in modern Russia.

The author proves that entrepreneurship’s potential in economy’s informatization is an important component of the process of information economy’s formation in the economic system and can stimulate successful and quick implementation of this process or, quite on the contrary, slow down it rated, based on which it should be paid more attention.

In this chapter, we define the “inflation forward rates” based on arbitrage arguments and develop a dynamic model for the term structure of inflation forward rates. This new model can serve as a framework for specific no-arbitrage models, including the popular practitioners’ market model and all models based on “foreign currency analogy.” With our rebuilt market model, we can price inflation caplets, floorlets, and swaptions with the Black formula for displaced-diffusion processes, and thus can quote these derivatives using “implied Black's volatilities.” The rebuilt market model also serves as a proper platform for developing models to manage volatility smile risks.

Through this chapter, we hope to correct two major flaws in existing models or with the current practices. First, a consumer price index has no volatility, so models based on the diffusion of the index are essentially wrong. Second, the differentiation of models based on zero-coupon inflation-indexed swaps and models based on year-on-year inflation-indexed swaps is unnecessary, and the use of “convexity adjustment,” a common practice to bridge models that are based on the two kinds of swaps, is redundant.

From the early 1980s until the late 1990s the term structure of interest rates in Chile was usually downward sloping, particularly for long maturities. We postulate that the explanation is behind liquidity premium of the term structure of interest rates. Based upon a parsimonious theoretical model, we show that the sign of liquidity premium depends on both expected return and risk.

For our sample period 1983–1999, investors were willing to hold long-term assets even though their return was relatively lower. This appears to be a consequence of indexation, which reduced risk of long-term bonds as their return was linked to past inflation.

For the past decades, issues concerning the impact of economic integration on financial integration, especially exchange rate integration, has been criticized among several regions such as ASEAN. This chapter intends to: (i) test for the exchange rate integration among the ASEAN-5, including Indonesia, Philippines, Malaysia, Singapore, and Thailand, using panel data techniques; and (ii) determine the impact of economic integration on the level of exchange rate integration among the ASEAN-5 countries. The purchasing power parity (PPP) is tested using panel unit root tests on monthly data. The results confirm the PPP among the ASEAN-5 countries due to lower transaction costs from ASEAN agreements. The chapter applies Multivariate GARCH (M-GARCH) models using daily data to determine the level of exchange rate integration among the ASEAN-3, including Malaysia, Singapore, and Thailand. The results of panel cointegration tests using quarterly data of economic integration and exchange rate integration confirm the impact of international trade openness on exchange rate integration. With free trade agreements leading to lower trade barriers, lower transaction costs, and low transportation costs, the economic integration among ASEAN countries practically leads to a higher degree of exchange rate integration. The findings imply that trade liberalization has the strongest effect on the real exchange rate. As such, regulators of ASEAN countries should pay more attention to the exchange rate policies of each other because of the interdependence of their exchange rates.