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Article
Publication date: 4 July 2022

Christophe Schinckus, Marta Gasparin and William Green

This paper aims to contribute to recent debates about financial knowledge by opening the black box of its algorithmization to understand how information systems can…

Abstract

Purpose

This paper aims to contribute to recent debates about financial knowledge by opening the black box of its algorithmization to understand how information systems can address the major challenges related to interactions between algorithmic trading and financial markets.

Design/methodology/approach

The paper analyses financial algorithms in three steps. First, the authors introduce the phenomenon of flash crash; second, the authors conduct an epistemological analysis of algorithmization and identify three epistemological regimes – epistemic, operational and authority – which differ in terms of how they deal with financial information. Third, the authors demonstrate that a flash crash emerges when there is a disconnection between these three regimes.

Findings

The authors open the black box of financial algorithms to understand why flash crashes occur and how information technology research can address the problem. A flash crash is a very rapid and deep fall in security prices in a very short time due to an algorithmic misunderstanding of the market. Thus, the authors investigate the problem and propose an interdisciplinary approach to clarify the scope of algorithmization of financial markets.

Originality/value

To manage the misalignment of information and potential disconnection between the three regimes, the authors suggest that information technology can embrace the complexity of the algorithmization of financial knowledge by diversifying its implementation through the development of a multi-sensorial platform. The authors propose sonification as a new mechanism for capturing and understanding financial information. This approach is then presented as a new research area that can contribute to the way financial innovations interact with information technology.

Details

Journal of Systems and Information Technology, vol. 24 no. 3
Type: Research Article
ISSN: 1328-7265

Keywords

Article
Publication date: 24 May 2013

Amit Ghosh

Exchange rate regime decisively impacts key policy objectives such as financial stability, inflation control, etc. The purpose of this paper is to overview the evolution…

Abstract

Purpose

Exchange rate regime decisively impacts key policy objectives such as financial stability, inflation control, etc. The purpose of this paper is to overview the evolution of exchange rate regimes spanning 12 nations in the Latin American region over the last two decades and estimate the degrees of influence of other major currencies on each nation.

Design/methodology/approach

Using the methodology developed by Frankel and Wei, the de facto extent of exchange rate flexibility is discerned for these nations and put into perspective with that of the IMF exchange rate regime classifications.

Findings

An increase in flexibility is found from the 1990s to the 2000s, especially for inflation targeting nations. However, the results reveal these nations adopt a policy of “guarded caution” and follow more of a de facto managed floating regime that is far from pure floats. The smaller economies of the region still pursue more fixed regimes. While the results correlate, to an extent, with the IMF's classifications, several areas of discrepancy are noted. The findings are robust to several sensitivity analyses.

Originality/value

A discrepancy between the IMF regime categorization and the true regime a country actually follows may cause IMF financial assistance programs to be less effective. Do countries follow regimes they are classified into? The present study gleans deeper into the issue and discerns this. The comparative analysis includes the relatively larger economies of the region as well as the seldom researched smaller ones.

Article
Publication date: 22 March 2013

Kun‐Huang Huarng and Tiffany Hui‐Kuang Yu

This paper aims to propose a novel model to forecast regime switches in a time series to assist decision making.

1159

Abstract

Purpose

This paper aims to propose a novel model to forecast regime switches in a time series to assist decision making.

Design/methodology/approach

The authors apply the clustering technique to group the data into five states. Then, a model is proposed to formulate the relationships from in‐sample observations, including regime switch relationships. Afterwards, the model uses the relationships to forecast the regime switches in out‐sample observations.

Findings

The study uses daily Taiwan Stock Exchange Capitalization Weighted Stock Index as the forecasting target. Regime switches in in‐sample observations are identified. And a regime switch is successfully forecasted by the proposed model.

Research limitations/implications

The proposed model identifies a regime switch which matches the real event. It implies that the proposed model can be applied to other time series, such as Dow Jones or NASDAQ.

Originality/value

Previous studies contribute to the forecasting of regime switches. The forecasting results are validated with the real event. One of the forecasted regime switches matches the event of Lehman Brothers' declaring of bankruptcy.

Details

Management Decision, vol. 51 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 23 June 2022

Sofia Alexopoulou, Joachim Åström and Martin Karlsson

Technology access, digital skills, and digital services are increasingly prerequisites for public life and accessing public services. The digital divide in contemporary…

Abstract

Purpose

Technology access, digital skills, and digital services are increasingly prerequisites for public life and accessing public services. The digital divide in contemporary societies matters for efforts to digitalize the welfare state. Research has already mapped individual determinants of digital exclusion and the existence of an age-related digital divide. However, far less attention has been paid to variations in digital inclusion between countries and to their potential explanations related to political systems. This study explores the influence of variations in welfare regimes on the digital divide among seniors (aged 65+) in Europe.

Design/methodology/approach

This article presents time-series cross-sectional analyses of the relationship between welfare state regimes and digital inclusion among seniors in European countries. The analyses are based on data from Eurostat, the World Bank, and the UN E-Government Survey.

Findings

The authors find extensive variation in the digital inclusion of citizens between welfare regimes and argue that considering regime differences improves the understanding of these variations. The findings indicate that the age-related digital divide seems to be least evident in countries with more universalistic welfare regimes and most evident in countries where seniors rely more on their families.

Originality/value

This is the first comparative study of the association between welfare state regimes and digital inclusion among seniors.

Details

Information Technology & People, vol. 35 no. 8
Type: Research Article
ISSN: 0959-3845

Keywords

Open Access
Article
Publication date: 16 June 2022

Fatma Mathlouthi and Slah Bahloul

This paper aims at examining the co-movement dependent regime and causality relationships between conventional and Islamic returns for emerging, frontier and developed…

Abstract

Purpose

This paper aims at examining the co-movement dependent regime and causality relationships between conventional and Islamic returns for emerging, frontier and developed markets from November 2008 to August 2020.

Design/methodology/approach

First, the authors used the Markov-switching autoregression (MS–AR) model to capture the regime-switching behavior in the stock market returns. Second, the authors applied the Markov-switching regression and vector autoregression (MS-VAR) models in order to study, respectively, the co-movement and causality relationship between returns of conventional and Islamic indexes across market states.

Findings

Results show the presence of two different regimes for the three studied markets, namely, stability and crisis periods. Also, the authors found evidence of a co-movement relationship between the conventional and Islamic indexes for the three studied markets whatever the regime. For the Granger causality, it is proved only for emerging and developed markets and only during the stability regime. Finally, the authors conclude that Islamic indexes can act as diversifiers, or safe-haven assets are not strongly supported.

Originality/value

This paper is the first study that examines the co-movement and the causal relationship between conventional and Islamic indexes not only across different financial markets' regimes but also during the COVID-19 period. The findings may help investors in making educated decisions about whether or not to add Islamic indexes to their portfolios especially during the recent outbreak.

Details

Journal of Capital Markets Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-4774

Keywords

Article
Publication date: 7 June 2022

Filip Chybalski, Agnes Orosz and Radosław Kurach

The article examines the interplay between welfare state regimes and the distribution of welfare between generations.

Abstract

Purpose

The article examines the interplay between welfare state regimes and the distribution of welfare between generations.

Design/methodology/approach

Using data from 2017 for 24 European countries on six standard of living dimensions, the authors investigate the intergenerational welfare distribution in a two-stage procedure: (1) the authors compare the intergenerational welfare distribution across welfare state regimes using their existing typologies and find a moderate nexus. Therefore, (2) the authors employ clustering procedure to look for a new classification that would better reflect the cross-country variation in the intergenerational welfare division.

Findings

The authors find a complex relationship between the welfare state model and welfare distribution across generations and identify the policy patterns that shape it. Continental and liberal regimes are quite similar in these terms and favour the elderly generation. Social-democratic and CEE regimes seem to be a bit more balanced. COVID-19 pandemic will probably increase the intergenerational imbalance in terms of welfare distribution in favour of the elderly.

Originality/value

In contrast to the majority of previous studies, which employ inputs (social expenditures) or outputs (benefits, incomes), the authors use intergenerational balance indicators reflecting living conditions of a given generation as compared to the reference point defined as an average situation of all generations.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 19 September 2012

John A. Gould and Edward Moe

We examine the rational utility and social–psychological approaches to develop fresh insights into nonviolent civil resistance. Rational utility models provide a useful…

Abstract

We examine the rational utility and social–psychological approaches to develop fresh insights into nonviolent civil resistance. Rational utility models provide a useful, even essential, starting point for understanding what movement organizers must do if they are to overcome their movements’ collective action problems. However, the model's spare definition of agency excludes an investigation of regime legitimacy, how it is constructed and the role it plays in regime continuity. Employing a social psychological approach, we introduce the concept of “ideational assault” in which movement organizers challenge the ideas that justify voluntary civic cooperation with the ruling order. Ideational assault seeks “rhetorical coercion” in which the regime is stripped of credible arguments in its own defense and must increasingly rule by sanctions alone. Ideational assaults employ frames that delegitimize the prevailing order and mobilize people to act against it. By examining several frame forms, including, calls to action, symbolic jiu-jitsu, humor, and moral appeal, we cast new light on the ideational battle that rages alongside the fight for control of the streets. We conclude by arguing that students of nonviolent civil resistance should consult both the rational and social–psychological approaches in their analysis.

Book part
Publication date: 12 August 2009

Jannis Kallinikos and Hans Hasselbladh

This chapter claims technology to be a principal mode of regulation in formal organizations alongside social structure and culture. Such a claim breaks with the…

Abstract

This chapter claims technology to be a principal mode of regulation in formal organizations alongside social structure and culture. Such a claim breaks with the conventional neo-institutional outlook that considers technology outside the object of institutional analysis of organizations. The distinctive regulative logic of computational technology is manifested in the increasing entanglement of domain-specific practices and their underlying cognitive and normative order with the decontextualized principles and methods that have traditionally been deployed in the management and control of work operations. Such entanglement and the effects it generates reflect the reshuffling of the regulative reach of technology, social structure and culture under the pressures exercised by the dynamics of current technological change and the impressive involvement of computational systems and artefacts in human affairs.

Details

Institutions and Ideology
Type: Book
ISBN: 978-1-84855-867-0

Book part
Publication date: 18 January 2013

Suchit Arora

The Epidemiologic Transition can help us understand a fundamental puzzle about aging. The puzzle stems from two seemingly contradictory facts. The first fact is that death…

Abstract

The Epidemiologic Transition can help us understand a fundamental puzzle about aging. The puzzle stems from two seemingly contradictory facts. The first fact is that death rates from noninfectious degenerative maladies – the so-called diseases of aging – increase as people age. It seems to be at odds with the historical fact that for nearly a century in which people were aging more than ever before, the aggregate rates of such diseases have been decreasing. In what sense can both be true? Crucial to resolving the puzzle are the age-profiles of such diseases in cohorts that grew up in the different regimes of the Transition. For each cohort, noninfectious diseases had increased with age, resulting in an upward-sloping age profile, which affirms the first fact. As the regimes were transitioning from the Malthusian to the modern one, however, the profiles of successive cohorts had been shifting downward: death rates from noninfectious diseases were shrinking at each age, signifying the newer cohorts’ greater aging potentials. The shifting profiles had been renewing the cohort mix of the population, shaping the century-long descent of such diseases in aggregate, giving rise to the historical fact. The profiles had shifted early in the cohorts’ adult years, associating closely with the newer epidemiologic conditions in childhood. Those conditions appear to be a circumstance under which aging potentials of cohorts could be misgauged, including in one troubling episode in the first half of the nineteenth century when the potentials had reversed.

Details

Research in Economic History
Type: Book
ISBN: 978-1-78190-557-9

Keywords

Book part
Publication date: 29 February 2008

Massimo Guidolin and Carrie Fangzhou Na

We address an interesting case – the predictability of excess US asset returns from macroeconomic factors within a flexible regime-switching VAR framework – in which the…

Abstract

We address an interesting case – the predictability of excess US asset returns from macroeconomic factors within a flexible regime-switching VAR framework – in which the presence of regimes may lead to superior forecasting performance from forecast combinations. After documenting that forecast combinations provide gains in predictive accuracy and that these gains are statistically significant, we show that forecast combinations may substantially improve portfolio selection. We find that the best-performing forecast combinations are those that either avoid estimating the pooling weights or that minimize the need for estimation. In practice, we report that the best-performing combination schemes are based on the principle of relative past forecasting performance. The economic gains from combining forecasts in portfolio management applications appear to be large, stable over time, and robust to the introduction of realistic transaction costs.

Details

Forecasting in the Presence of Structural Breaks and Model Uncertainty
Type: Book
ISBN: 978-1-84950-540-6

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