Active Market Participants Research Articles

The influence of income tax incentives on small and low-profit enterprises’ production factor investment

Small and low-profit enterprises (SLEs) are critical and active market participants throughout the economy and wider society. To help SLEs thrive, China continues to expand the scope of its tax incentives. This study investigates the influence of a particular tax incentive – the Income Tax Incentive on Small and Low-profit Enterprises – to identify the impact of tax incentives on investment in labor input and fixed assets. Using a staggered difference-in-differences estimation strategy, we found that tax incentives significantly increase investments in labor input and fixed assets. The impact was stronger for state-owned, non-technology-intensive, and manufacturing enterprises.

The long-term memory of stock markets: unveiling patterns and predictability

The efficient market hypothesis assumes that financial markets fully incorporate all available information, rendering past information irrelevant for predicting future prices. However, numerous studies challenge this notion and suggest the presence of long-term memory in market dynamics. Understanding long-term memory in financial markets has important implications for investors and policymakers. The aim of this study was to empirically investigate long term memory in financial markets. This study employed a Hurst model for a sample of 5 financial markets from June 1, 2018, to June 1, 2023. The findings revealed that four out of the five sampled financial market exhibits long term memory which challenges the efficient market hypothesis concept. Therefore, portfolio managers and active market participants can utilize long-term memory to optimize asset allocation decisions by considering the persistent effects of past returns and adjust portfolio weights to take advantage of potential return predictability and manage risk.

Do price trajectory data increase the efficiency of market impact estimation?

Market impact is an important problem faced by large institutional investors and active market participants. In this paper, we rigorously investigate whether price trajectory data from the metaorder increases the efficiency of estimation, from the view of the Fisher information, which is directly related to the asymptotic efficiency of statistical estimation. We show that, for popular market impact models, estimation methods based on partial price trajectory data, especially those containing early trade prices, can outperform established estimation methods (e.g. VWAP-based) asymptotically. We discuss theoretical and empirical implications of such phenomenon, and how they could be readily incorporated into practice.

De‐risking at the Limit? State‐owned Enterprises and the Politics of Financialized Infrastructure Development in Indonesia

ABSTRACTThe need for emerging economies to develop infrastructure in order to drive catch‐up growth has become a common refrain in policy circuits. The dominant norm promulgated and disseminated by global development institutions to countries facing infrastructure deficits is the public–private partnership (PPP) model of project finance, a market‐based model that seeks to transform infrastructure into a financial asset. Institutionalizing this model requires the deepening of market rationality in governance and the establishment of markets for infrastructure projects and infrastructure debt, underpinned by regulatory and institutional changes aimed at de‐risking global investments. However, this model is neither overriding nor monolithic. It is contested, modified and augmented by alternative state‐led models, rationalities and practices, animated by developmental politics. The article examines the embeddedness of the PPP model in Indonesia, where it is selectively appropriated by politicians and bureaucrats in line with state development objectives by mobilizing state‐owned enterprises (SOEs) as developers, insurers and financiers of infrastructure projects. Beyond establishing the conditions for market exchange and de‐risking capital, the state, through SOEs, is an active market participant, competing and partnering with private sector actors, while advancing state‐led alternatives where the market‐based model fails to address development needs. This case highlights the potential for developmental politics to shape the broad use of capital in the face of disciplinary pressure from global finance.

Empirical Analysis of Stock Markets That Are More Prone To Losses: A Standard Coverage Test Approach

Stock market losses have been a recurring phenomenon in financial markets with far reaching implications for investors as it directly impacts the value of their portfolios and potentially jeopardizing retirement savings leading to a loss of income. Identifying stock markets that may realise less returns on investments has been critical area for portfolio managers and active market participants. Therefore, the aim of this study was to empirically investigate financial markets that are prone to losses in order to safeguard and protect investments. A standard coverage test analysis was applied in five selected markets for a sample period from June 7, 2018 to June 7, 2023. This coverage test was used to identify stock markets that breached their generalised indicators and expected losses. The findings revealed that stock market losses are significantly higher in the CAC 40 and Nikkei 225. This was evident in the significant risk violations from their expected levels. By implication, investors willing to invest in the CAC 40 and Nikkei 225 are advised to use sector diversification strategies, stop-loss orders and long term investment strategy to mitigate some of these losses.

Does ICTs Usage Facilitate Access to Market? An Empirical Evidence of Market Gardeners in Benin

ABSTRACT Imperfect information is a major obstacle for agricultural businesses in developing countries. The resulting information asymmetry increases transaction costs and affects the behavior of market stakeholders. In Benin, market gardeners’ participation is limited by geographical isolation and poor communication and transport infrastructures. Information and communication technologies (ICTs) now offer a fast and less costly means of accessing and disseminating information for more active market participation. The aim of this article is to measure the contribution of ICTs to market participation by testing whether they improve participation. Using a recursive bivariate probit model, our results indicate that market gardeners who use ICT to access information have a higher frequency of market participation than those who do not. Cell phones, radios, and televisions lead to a 35.3%, 25.6% and 8% higher probability of market participation respectively than those who don’t use them. These results suggest that a platform for disseminating knowledge via ICT could be set up to increase market participation.

Investigating mean reversion in financial markets using Hurst Model

In the dynamic world of financial markets, the prices of assets can exhibit dramatic fluctuations, sometimes soaring to dizzying heights or plummeting to alarming lows. However, amidst the chaos, a fascinating phenomenon emerges: a tendency for prices to revert back to their long-term average or mean level. This concept known as mean reversion has intrigued traders, investors, and researchers for decades. Understanding mean reversion provides valuable insights into market dynamics, investor behavior, and the potential for profitable trading strategies. The aim of this study was to empirically investigate mean reversion in financial markets. This study employed a Hurst model for a sample of five financial markets from June 1, 2018 to June 1, 2023. The findings revealed that four out of the five sampled financial markets exhibit mean reversion, which challenges the efficient market hypothesis concept. Therefore, portfolio managers and active market participants can utilize long-term memory to optimize asset allocation decisions by considering the persistent effects of past returns and adjusting portfolio weights to take advantage of potential return predictability and manage risk.

Smallholder's Market Participation, Characteristics, Tractor Use Implication and Determinants in Nigeria

ABSTRACT: The smallholders' transformation from the passive nature of farming using crude implements into active and rewarding market participation remains problematic. Over the years, smallholder farming and market have been associated with trails of many middlemen, farm gate sales, and consumption. However, there is a lack of information on the recent changes that have occurred due to government intervention, globalization, and the fourth industrial revolution in Nigeria and many other developing countries. Hence, this study investigates the smallholders' market participation, level of participation, determinants of the smallholders' market participation, driving force behind the smallholder farming, tractor-use, and tractor-use impact on the smallholders' market participation. A multistage sampling technique was applied to select 280 smallholder farmers for the research. Descriptive statistics and propensity score matching (PMS) were used to analyze the data. The findings revealed that the smallholders' market participation level is low. Most smallholders (62 percent) could not sell up to 50 percent of their products. The study showed that smallholders participate in the market at different output sales levels, with most tractor-users participating in the market at a high output sales level. In contrast, many non-tractor users participated at low output sales, indicating poor market participation. Most smallholders sell their produce at the farm gate to date. Smallholder tractor use remains low. Only 28 percent of the total respondents used tractors. The PSM analysis revealed that tractor-use significantly impacts the smallholders' market participants alongside the education level, area cultivated, and access to information on farming activities such as market information. The smallholders' involvement in another occupation negatively impacts their market participation. The year(s) of farming experience did not positively impact the smallholder's market participation, which could be due to poor adoption of technology. The farming and market participation seems unchanged, with most individuals, not collective smallholders, not frequently producing for the market. Their market participation has not experienced meaningful progress despite income generation forming the major motive behind their farming. It is true that some smallholders mainly produce for consumption, but the sole purpose of ensuring households' food security is the least reason many households embark on farming. Positive transformation of the smallholder into active and mainstream market participation is possible if technology, including tractor, and suitable approaches are adopted, as evidenced by this research among smallholders who used tractors. It was recommended that the smallholders' tractor-use issue be prioritized in all policies addressing the smallholders' market participation. Smallholders should not be viewed as farmers who only went into farming for consumption.

Are farmers willing to enter the forestry property market? Evidence from collective forest areas in southern China

The Chinese government encourages farmers to enter the forestry property market for forestry property trading and promotes the standardization of the forestry property trading market. Unfortunately, the development of the forestry property market is still very slow. Farmers are the most important subject of mountain and forest management and the micro foundation of forestry property market operation, and their active market participation is the key to the healthy development of forestry property market. Based on the theory of planned behavior, this paper used the survey data of farmers in collective forest areas in three southern provinces of China to reveal the psychological decision-making process of farmers entering the forestry property market by structural equation model (SEM). The research results show that: (1) Farmers’ behavioral attitudes (AB), subjective norms (SN) and perceptual behavioral control (PBC) positively influence farmers’ willingness to enter the forestry property market. (2) An important reason why farmers’ intentions are largely not effectively translated into behavior is the constraint of PBC. (3) Reducing the risk of transfer and maintaining the interests of both parties constitute the main factors of AB, and the greatest external pressure on farmers’ willingness to enter the forestry property market comes from the opinions of village collectives. (4) PBC has a significant impact on behavior, where unfamiliarity with the forestry property market is the main factor affecting farmers’ PBC. Therefore, the government should further strengthen the propaganda of forestry property right market, improve the market service system, reduce the transaction cost, introduce specific encouragement policies and measures, and effectively consider farmers’ interest demands on forestry property trading; in addition, the power of grassroots organizations should be emphasized when formulating forestry property trading policies.

국내거주 MZ세대 외국인의 투자선호 특성

This study aims to examine the investment preference characteristics of MZ generation foreigners in Korea through empirical analysis. The survey period was conducted online and offline for about 60 days from March 01, 2022 to April 30, 2022. For the analysis of the collected data, descriptive statistics and logistic regression analysis were performed using the SPSS 23.0, and the results are as follows. First they preferred residential and Seoul areas the most when investing in Korean real estate. Second, they tended to invest in real estate in the area where they lived.Second, they highly tended to invest in the area where they live. Third, it was found that the longer they lived in Korea, the more they acquired residential real estate beyond the restrictions, such as understanding the language and systems in Korea. Fourth, they will become active market participants in real estate investment in Korea once they have extra funds for investment. It is hoped that the results of this study will be used as basic data for the efficient development of foreign-related industries by the government and local governments as well as the preparation of balanced policies for Koreans and foreigners in line with the changes of the times.

Place and immigrant labour market integration: A sequence analysis approach

Although the process of integrating immigrants into the labor market unfolds over many years, it is often modeled as outcomes (e.g. employment) at specific points in time. We contribute to the literature by providing empirical evidence of the sequence of events leading to active labor market participation of East African and EU15 immigrants to Sweden, whom we follow for up to 28 years. By combining the method of sequence analysis with binomial logit estimation, we can explain why individuals are sorted into different representative labor market sequences. A further contribution is that along the usual initial conditions (individual and geographic), we employ longitudinal micro data to find (1) representative sequences of movements between various types of neighborhoods and (2) an empirical estimate of individual ability, which turns out to be a strong predictor for immigrants entering an active labor market trajectory. Our results show that East Africans tend to reside in neighborhoods with a high degree of socioeconomic and ethnic segregation. Despite this, their labor market activity seems to be less influenced by neighborhood trajectories than EU15 immigrants. The labor market activity of EU15 immigrants and female East African immigrants is positively related to residing in less ethnically segregated and socioeconomically stronger neighborhoods. Our results are relevant to policy development since they point to the importance of the initial location of immigrants and their subsequent residential mobility.

Social investment, labour market participation and public debt sustainability: An empirical analysis of European countries

AbstractThis article explores the role of SI Stock, Flow and Buffer policies by shedding light on their relationships with active labour market participation and public debt sustainability for a panel of 22 European countries from 1997 to 2018. We find SI Stock, Flow and Buffer to be positively correlated with labour market participation and more sustainable public debt. When disaggregating the components of SI, we detect a small degree of heterogeneity, with Active Labour Market Policies (ALMPs) negatively associated with the activity rate and positively associated with the employment rate. This result is coherent with the idea that ALMPs make a significant contribution to increasing opportunities for those already in the labour market rather than creating new jobs for those excluded from the labour market, that is, inactive individuals. In this case, our findings indicate that measures to fight social exclusion and out‐of‐work expenditure (Buffer), as well as in‐kind family benefits, are significantly associated with employability for those excluded from the labour market.

An agent-based modelling framework for the simulation of large-scale consumer participation in electricity market ecosystems

The role of consumers as price-sensitive participants in electricity markets is considered essential to ensure efficient and secure operations of electricity systems. Yet the uncertain or unknown consequences of active market participation remain a large barrier for active consumer-side market participation. Simulations are a powerful tool to reduce this uncertainty by giving consumers an insight on the potential benefits and costs of market participation. However, the simulation setup must be adapted to each market context and each consumer market participation strategy. To simplify the simulation development process and improve the comparability of simulation results, this paper proposes a modular yet systematic electricity market modelling framework. The framework applies object-oriented programming concepts for business ecosystem modelling presented in previous works to develop an agent-based model of a consumer-centric electricity market ecosystem. The market ecosystem is represented by a multitude of interacting submarkets with their own logic. Within submarkets, context-independent and context-dependent elements are distinguished to provide model abstraction which can be adapted to different contexts. This framework is illustrated by applying it to three different submarkets in the Western Danish electricity market context: the Nordpool day-ahead market, the Nordpool intraday market, and the Frequency Containment Reserve market. The submarket role abstractions allow to benefit from the commonalities between the analysed submarkets during model implementation, while the role parametrisations allow to quickly adapt the roles to each market context. The implementation of the modelling framework in the Nordic context highlights the benefits of a modular approach in a liberalised and unbundled market context.

Membangun Jiwa Kreatifitas Pelaku UMKM Di Desa Jatisura, Cikedung, Indramayu, Jawa Barat

The role of Indonesia in realizing nationalism is that the Indonesian people fill it by being an active marketparticipant in global competition. For this reason, business actors are needed who have ideas that are realized increativity products. the goal of the service is how to open the behavior pattern of the local community to be productive,(Creating creative ideas into products that can compete in the business world. departing from the hope of the servantto be able to help UMKM business actors to improve their standard of living. The target that the servant wants toachieve is the actors Businesses can open patterns of behavior to be productive and their creative spirit grows amongUMKM business actors. Implementation Method, The population is all PKK mothers who are active in Jatisuravillage, while the sample is PKK mothers who are active in their business activities (Business Actor) 17 business actorparticipants In this service qualitative data collection, tools or instruments Media counseling and training of PKKwomen are active business actors In this service using descriptive quantitative methods, the results obtained are thatthe results of distributing pre and posttest questionnaires for village business actors Jatisura , Cikedung, Indraayutaken According to the pre test, the pre test results were 7.933 and the post-test was 8, 133, there was an increase inthe Creative Mindset Ability of business actors. Suggestions Village officials are expected to provide adequatefacilities and infrastructure to improve the villages of Jatisura, Cikedung, Indramayu.

Spatial Aggregation of Local Flexibility – Horizon2020 project experiences

With the growth of renewables, the increased interconnection of European grids, the development of local energy initiatives, and the specific requirements on TSO–DSO cooperation as set forth in the different Network Codes and Guidelines, TSOs and DSOs face new challenges that will require greater coordination. The aforementioned measures encourage procurement of services at both the transmission and the distribution level, recognizing that this will enable more efficient and effective network management and will increase the level of demand response and the capacity of renewable generation. Digitalization is a key driver for coordination and active system management in the electricity grid, enabling TSOs and DSOs to optimize the use of distributed resources and ensure a costeffective and secure supply of electricity. It also empowers endusers to become active market participants, supporting selfgeneration and providing demand flexibility. To support the transformation, the INTERRFACE project, started in 2019, will design, develop and exploit an Interoperable pan-European Grid Services Architecture (IEGSA) to act as the interface between the power system (TSO and DSO – transmission system operator, distribution system operator) and the customers, and allow the seamless and coordinated operation of all stakeholders to use and procure common services. This paper describes the approach of one INTERRFACE demonstration, the spatial aggregation of local flexibility and its realization that contributes providing a clear market approach to include local constraints into the already well-established and working wholesale energy market solutions

To sell, not to sell, or to quit: Exploring milk producers’ approaches after a supply chain disruption in Northwest Cameroon

• Overlapping circumstances in Bamenda, Cameroon, caused a supply chain disruption in the dairy sector. • Producers continued selling milk (Sellers), stopped selling milk but kept the cattle (Non-Sellers), or sold all their dairy animals (Quitters). • Sedentary and pastoral milk producers’ approaches are analyzed separately to avoid one-size-fits-all policies. • Pastoral Sellers are associated with greater access to production factors and sedentary Sellers with livestock diversity and land titles. • Dairy-focused trainings offered within functional cooperatives could help both groups maintain their livelihood post-disruption. The Northwest is the second largest milk producing region of Cameroon. In Bamenda, the region’s capital, the shutdown of the only milk processing plant in mid-2016 and political unrest later that year disrupted its dairy supply chain. Producers had to decide whether to continue selling milk, to momentarily stop selling milk, or to quit the dairy business entirely. We investigate the approaches considered by producers in response to the supply chain disruption using household survey data from 2017 with 320 active and inactive dairy market participants. By means of binary and multinomial logit models, we examine household characteristics, farm resources, and institutional factors that may have driven producers’ responses one year after the disruption. Our analysis reveals that pastoral and sedentary milk producers should be examined separately. Results show that livestock diversity, land titles, and dairy-focused trainings are helpful to sedentary producers to continue milk sales, whereas pastoral sellers are encouraged by greater access to production factors, and by being members of cooperatives. Generally, younger producers in non-urban areas are most likely to remain milk sellers, regardless of production system. This study sheds light on producers’ different approaches after supply chain disruptions and highlights farm-level factors that help them stabilize and maintain their livelihoods. This knowledge can contribute to the design of more appropriate mitigation strategies against the repercussions of such events in the future, particularly for cattle and dairy development programs.

Comparison of Support Programs for the Development of Photovoltaics in Poland: My Electricity Program and the RES Auction System

Poland has great potential for the development of renewable energy sources. The implementation of support systems dedicated to renewable sources has resulted in the installation of over 10,500 MW of installed capacity. At present, with high electricity prices, stimulated by the costs of CO2 emissions and the costs of fuel purchase, renewable energy sources are of particular importance in the transformation of the Polish power industry. The RES auction system and the My Electricity Program contributed to the growth of entrepreneurship and the development of the economy. Energy consumers, from passive ones, have become active market participants—prosumers. The RES auction system alone contributed to the creation of approx. 5 GWp of installed capacity of photovoltaics (PV) sources in 2016–2021, while the My Electricity Program contributed to the creation of approx. 2 GWp of installed capacity in PV installations in 2019–2021. The aim of the study is to compare the economic and social costs of two photovoltaic development programs, My Electricity and the RES auction system, from the point of view of the country (in support distribution costs—subsidies) and investors, renewable energy installations operators and prosumers to which these programs are targeted, namely, individuals and enterprises.

Проблемы функционирования и перспективы развития сертификации в строительстве

The article presents an overview of the state of the market of mandatory and voluntary certification in construction on the territory of the Russian Federation. The key unresolved problems of the existing conformity assessment systems are identified. Based on the analysis carried out, there are proposed some mechanisms and ways of solving these problems, which would help restoring trust in voluntary certification systems among both active market participants and ordinary consumers of certification objects.

Smart Sampling for Reduced and Representative Power System Scenario Selection

With increasing penetration of renewable energy and active market participation, power system operation scenarios and patterns have increased exponentially. This has led to challenges in identifying a good subset of scenarios for routine planning, operation, and emerging machine learning applications. To address these challenges, we develop an approach integrating comprehensive exploratory data analyses and smart sampling techniques to identify and select a small subset of representative power system scenarios that maintain the coverage of system scenarios and operation envelope, therefore, leading to very efficient, yet representative studies and analysis. We propose a hierarchical Latin Hypercube Sampling (LHS) technique for smart sampling, which allows free-form distributions of system load and considers generator commitment status along with generation levels. A set of performance metrics are also defined for systematic evaluation of the adequacy and efficiency of the sampled cases. The developed approach and metrics are demonstrated using the Texas 2000 bus system in this paper and will be extended to the more complex real world systems such as Western Interconnect System.

Endogenous Stock Market Participation and Wealth Accumulation: A Life-Cycle Model Perspective

We propose a life-cycle model, where individuals facing uninsurable labor income risks choose whether to participate the stock market and make decisions on home-ownership, in an environment with social safety net and the retirement savings system. The model is motivated by the empirical finding that active stock market participation is associated with higher level of education and employment experience in the finance sector. The model exhibits good fit on portfolio choice, home-ownership, consumption pattern in the cross- section and through life-cycle. We find that the lack of stock market access, proxied by a fixed entry cost and variable costs, plays a key role in generating heterogeneous outcome in agent’s wealth accumulation, and therefore, increases wealth inequality.