Daily Market Research Articles

Coordination design of the coal-electricity supply chain contract for difference based on prospect theory

Purpose Long-term contract is an important developing direction of China's coal industry coordination. This paper aims to discuss how to use contract for difference (CFD) to avoid risk and effectively increase the benefit of both coal and thermal power plants in the coal-electricity supply chain. Design/methodology/approach Based on prospect theory, this paper takes the risks and benefits of the coal and coal-fired power plants in the coal supply chain under CFD into balanced consideration to construct the contract coordination mechanism. In this mechanism, the coal demand in the coal supply chain equilibrium under centralized decision-making is regarded as the total annual volume of transactions needed to design the contract coordination mechanism and solve double marginalization. Then, based on prospect theory, in the construction of CFD, this paper takes the income of power and coal enterprises when they are in equilibrium under Stackelberg non-cooperative game as the reference point. In addition, considering that coal demand is a random variable, the CFD with a one-year trading session can be designed. Findings The research derives the coal price of the contract for difference, contract trading volume and its proportion of the total trading volume. A numerical example shows that the model above can be used to effectively avoid the risk of both coal and electricity sides. Originality/value To solve the conflict between coal enterprises and thermal power plants, let the coal-electricity supply chain be converted from non-cooperative game to cooperative game. Based on the prospect theory, this paper takes the income of the non-cooperative game of coal and thermal power plants as a reference point and considers how to design the coordination mechanism, the contract for difference, so as to make the two parties cooperate to solve the double marginal utility of the non-cooperative game in a chain supply. The main innovation of the work lies in the following: first, the coal demand when the coal-electrical supply chain is in balance under centralized decision-making is taken as the total annual trading volume needed to design the contract coordination mechanism and solve double marginalization. Second, based on prospect theory, in the construction of CFD, the benefits of coal-fired power plants and coal enterprises when both sides are in equilibrium under the Stackelberg non-cooperative game are taken as the reference points, and coal demand is taken as a random variable to design the CFD with a one-year transaction period. The price of coal that is not traded through CFD is calculated according to the daily market price. Third, this paper proposes the prospect M-V criterion of the risk-benefit equilibrium of both power and coal enterprises, which means that the risk-benefit equilibrium of both sides is the prospect variance effect of both sides relative to the reference point benefit divided by the prospect expectation effect.

Expressões da Cultura Alimentar Pernambucana no Mercado da Boa Vista em Recife/PE

O texto tem como objetivo discutir sobre a importância do Mercado da Boa Vista, na cidade do Recife/PE para a cultura alimentar pernambucana. Deste modo a partir da observação participante no cotidiano do mercado e das entrevistas com comerciantes e frequentadores, observamos que a sensação de pertencimento, tanto em comerciantes quanto em frequentadores, está relacionada a comensalidade e as comidas comercializadas nesses lugares. Nesse sentido, percebemos que o Mercado da Boa Vista se apresenta como um potente espaço de expressão da identidade e tradição na cultura alimentar pernambucana.

OPTIMIZATION OF KOTO JAYA DAILY MARKET PRODUCTION IN MUKOMUKO

This study aims to identify internal and external factors faced by the Koto Jaya Daily Market in Mukomuko, determine the optimization strategy of the market utilization. The data used in this study are primary data obtained from traders at the Koto Jaya Daily Market in Mukomuko in 2018 using a SWOT analysis tool.The results of the SWOT analysis can be concluded that internal factors in optimizing the utilization of the Koto Jaya Daily Market in Mukomuko are; 1) Strength Factors (land availability, location, supporting facilities, trader organizations, merchant composition, infrastructure, price information); 2) Weakness factors (rental prices, utilities, location access, market conditions, budget constraints, trader awareness), for external factors in optimizing the utilization of the Koto Jaya Daily Market in Mukomuko are; 1) Opportunity factors (population, community response, government support, technological development); 2) Threat factors (other market competitors, natural disasters, thuggery, government policies, economic crisis). The strategy that must be applied in this condition is the WT (Weaknesses-Threats) strategy, namely; 1) Implement a kiosk and booth rental price strategy; 2) Improve the quality and service quality of the Koto Jaya Mukomuko Market; 3) Optimizing existing facilities and infrastructure; 4) Maintain market security and comfort

Wage Rate: Is this Return to Education or Return to Physical Capability? Evidence from Rural India

This paper estimates the wage function for daily labor market participants in Semi-Arid Tropics of rural India within a traditional agrarian framework. Village level data on 18 villages for 2009–2010 and 2012–2013 have been used for this study. Three-years balanced panel estimation has also been conducted to test the time invariance of the findings from the cross-sectional study. A modified Mincerian earning equation is estimated for different types of workers—regressing upon a set of human capital measures, socioeconomic factors and, demand influences after correcting for potential sample selection bias. The study finds differential impacts of education and physical ability to determine wages for male and female workers. It reveals the greater importance of education in explaining wages of male laborers while for females, nutritional status playing a significant role than education in wage determination process. Among the other factors, drought works as a major exogenous shock and hence impacts wages badly. Working in the non-farm sector has a significant impact on wages. Also, the wage–participation relationship has found more operative in the lower section of the society.

Crypto Governance: Analysing and Comparing Platforms for Crypto Assets Trading

The annualised volume of Crypto Exchange markets reaches the trillion dollars threshold. Due to the disperse and decentralised nature of this market, in which each Crypto Asset Trading Platform works as an independent darkpool, official statistics unavailable and there is little private research data. The objective of this paper is to present a brief overview of the global Crypto Exchanges market, providing an inventory of the available Crypto Exchanges, as of the end of 2018, and compare the most relevant in both quantitative and qualitative terms. From a sample representing 99% of a daily global market share, measured by trading volume, a Key Performance Indicator system is proposed and tested to evaluate the level of corporate governance (or ‘crypto governance’) observed at each Crypto Exchange. The outputs are compared with average fees and individual market shares. The results obtained from current market data provide evidence that most of the volume is traded at Crypto Exchanges with lower governance scores, while those ranked with higher governance scores charge, on average, higher trading fees.

Forecasting volatility with time-varying leverage and volatility of volatility effects

Predicting volatility is of primary importance for business applications in risk management, asset allocation, and the pricing of derivative instruments. This paper proposes a measurement model that considers the possibly time-varying interaction of realized volatility and asset returns according to a bivariate model to capture its major characteristics: (i) the long-term memory of the volatility process, (ii) the heavy-tailedness of the distribution of returns, and (iii) the negative dependence of volatility and daily market returns. We assess the relevance of the effects of “the volatility of volatility” and time-varying “leverage” to the out-of-sample forecasting performance of the model, and evaluate the density of forecasts of market volatility. Empirical results show that our specification can outperform the benchmark HAR–GARCH model in terms of both point and density forecasts.

A novel joint bidding technique for fuel cell wind turbine photovoltaic storage unit and demand response considering prediction models analysis Effect's

The stake of distributed generation resources like fuel cell in daily market is proved to be a major uncertain problem. The volatile character of market price together with the unbalanced nature of power can take hold of economic advancement of distributed generation resources which in turn can culminate in diversion retribution while the market is being struck. This study introduces a market participation model in share conditions to improve the profit for Fuel Cell/wind turbine/storage/photovoltaic and demand response. To solve the mentioned problem, an accurate prediction model is presented in this paper. This model is based on complete ensemble empirical mode decomposition, and multiple artificial neural network which is coupled with Broyden water cycle algorithm. By this algorithm, the prediction accuracy of proposed forecast engine is enhanced and could get the better results. A sure-footed stochastic optimization approach was deployed in order to take prices of markets and distributed generation resources into account. In the generation of distributed generation resources, forecasting error database in everyday, modified, and depressed market was drawn on to induce probabilistic scenario. Improbable variables were discarded by a neuro-fuzzy model. Eventually, to illustrate the joint model strategy suggested in the study, a testing system contains fuel cell/wind turbine/storage unit/photovoltaic and demand response was utilized and the attained results were calculated in two different periods.

Functioning of foreign exchange markets in modern conditions

In the article the author considers the dynamics of average daily foreign exchange market turnover. It is revealed that the evolution of foreign exchange trading volumes continues to be dominated mostly by fi nancial institutions’ motives as opposed to needs arising directly from real economic activity. Geographical distribution and structure of average daily foreign exchange market turnover by foreign exchange instrument, counterparty, currency, currency pairs, location of transactions are analyzed. At end of the article, the author concludes that the process of internationalization of world economic relations is slowing down.

Energy Storage as a Service: Optimal Pricing for Transmission Congestion Relief

This paper focuses on pricing Energy Storage as a Service (ESaaS) for Transmission congestion relief (TCR). We consider a merchant storage facility that competes in an electricity market to trade energy and ancillary services on a day-to-day basis. The facility also has the opportunity to provide a firm TCR service to a regional network operator under a long-term contract. Providing the additional TCR service would impose limitations on the facility's ability to fully harvest daily market trade opportunities. Thus, we model the opportunity costs associated with the TCR service and use it in a hybrid cost-value customized pricing technique to determine the risk-constrained optimal price of ESaaS for TCR. Given the long-term nature of the commitment to provide the TCR service, we use the Conditional Value at Risk (CVaR) metric to mitigate the long-term financial risks faced by the facility. The proposed pricing strategy enables the storage owner to estimate the additional financial gains and the associated risks that would likely result from adding the new service to its operation. Numerical simulations are provided to support the proposed methodology.

Food Safety Problems in China: Based on the Illegally Waste Cooking Oil

The illegal oil (coming from the waste cooking oil and animals’ fat, etc.) is being processed as daily edible oil by a series of processing programs in China. It contains enormous toxic carcinogenic substances such as aflatoxin, dioxins, and polychlorinated biphenyls (PCBs), etc. In China, 22 million tons of cooking oil is approximately consumed each year, however, 2-3 million tons (account for 10%) of the illegal oil is circulated back to the daily market finally. This research aims to analyze four parts among the illegal oil. It combines the Chinese food safety legal loophole with the treatments of other developed countries to solve China’s illegal oil problem. What’s more, carrying out a field survey is conducted to understand the source of the illegal oil and have a clear understanding of consumers’ usage. Next, the main reason for the spread of the illegal oil which is from the street stalls and restaurants is revealed. The new technique is also used to transform the illegal oil into biodiesel fuel (BDF), however, the material (the illegal oil) cannot be easily obtained due to many barriers and challenges in China. Based on the field survey results, setting up a specific feedback mechanism for restaurants/hotels and the other policy implications are proposed to China’s governments for solving the illegal oil issue in China.

What Is Missing in Food Loss and Waste Analyses? A Close Look at Fruit and Vegetable Wholesale Markets

Food loss and waste (FLW) has been the subject of significant research, with recent empirical evidence analyzing the determinants of FLW in many different countries. Much of this literature examines FLW at the farm, food processing, and consumer level. However, to the best of our knowledge, no study thus far has addressed this issue at food wholesale markets. This paper fills this knowledge gap by examining food loss at fruit and vegetable wholesale markets. Using a dataset with individual auction transactions from Taiwan, we examine the extent to which average daily market prices, product quality, and disaster shocks are associated with food loss. Results point to a negative effect of daily market prices on food loss. Furthermore, disaster shocks can lead to greater food loss, particularly typhoons. These effects are heterogeneous across the distribution for the weight of food loss.

Evaluation of forecasting methods from selected stock market returns

Forecasting stock market returns is one of the most effective tools for risk management and portfolio diversification. There are several forecasting techniques in the literature for obtaining accurate forecasts for investment decision making. Numerous empirical studies have employed such methods to investigate the returns of different individual stock indices. However, there have been very few studies of groups of stock markets or indices. The findings of previous studies indicate that there is no single method that can be applied uniformly to all markets. In this context, this study aimed to examine the predictive performance of linear, nonlinear, artificial intelligence, frequency domain, and hybrid models to find an appropriate model to forecast the stock returns of developed, emerging, and frontier markets. We considered the daily stock market returns of selected indices from developed, emerging, and frontier markets for the period 2000–2018 to evaluate the predictive performance of the above models. The results showed that no single model out of the five models could be applied uniformly to all markets. However, traditional linear and nonlinear models outperformed artificial intelligence and frequency domain models in providing accurate forecasts.

Market Reaction to Buyback Announcement: Evidences from Select Indian Manufacturing Companies

Buyback of shares is the company’s strategic move to decrease the outstanding shares in the market by buying its own shares from their own shareholders. This study is an effort to analyse the effect of share buyback announcement by manufacturing companies in India, considering 182 events from both the tender offer and open market method from financial year 2000-01 to 2018-19. The event study methodology from the market model has been considered to attain the Abnormal returns (AR). Stock return and market return both are calculated from the daily market data of BSE. BSE S&P SENSEX is considered as benchmark index for the calculation of market return. The market reaction to buyback offers are positive in India according to most of the previous studies, the same is observed even in this study on select manufacturing companies.

Risk-based optimal bidding patterns in the deregulated power market using extended Markowitz model

Deregulation of power industry has entailed important changes in the energy market. With the power industry being restructured, a generation company (GenCo) sells energy through auctions in a daily market, and submission of the appropriate amount of electricity with the right bidding price is important for a GenCo to maximize their profits and minimize the acceptance risk. The objective of this paper is to propose a novel approach for determination of the optimal biding patterns among GenCos in the deregulated power market using a hybrid of Markowitz Model and Genetic Algorithm (GA). While Markowitz Model as an optimization model considers the risk premium for biding patterns and GA as a search engine, considering the acceptance risk in deregulated market. A case study is used to examine the findings of the proposed approach. Also, to compare the proposed model, neural network by back propagation learning algorithm and real proposed pattern were considered. The numerical results indicate that the proposed model is statistically efficient and offers effective curves and biding patterns by lesser risk and equal profitability in day-ahead market as it is able to achieve better results compared to the neural network.

Migrants and Informal Casual Labour Markets

Internal migration in India is estimated to be at around 100 million people and short-term seasonal migration for work is estimated to vary between 80 and 140 million. Employers may benefit from the increase in the supply of labour, and middle-class households may benefit from the lower price of household services provided by the migrants and their families. Local residents with comparable skills to those of migrants may find that they have to compete for jobs in the labour market. Many regions implicitly differentially prioritize the interests of local residents and of migrants whilst filling vacant jobs, resulting in a tradeoff between welfare rights and openness to migration. Migrants take into account the tradeoffs of poor working conditions and unwritten and unenforceable contracts, with the higher income in the destination region, and all considered migrate. We provide a framework for understanding this socio-economic outcome. In many urban contexts, migrants and other low-skilled workers gather at some focal point such as a busy market place or crossroad in the morning and meet with potential employers who negotiate the type of work to be performed, the wage, and the number of hours that the worker has to work. Surprisingly, there has been a paucity of research on the employer–employee match in the daily urban casual labour market. Working days are usually long—between 12 and 14 h in many instances—and the wage and working conditions are usually negotiated. The market wherein the bargain takes place is a flexible labour market where workers can be replaced by the employer at a minimal cost to the employer. In most of such contracts workers report that they have been cheated and face harassment. The requirements for complete contracting are severe in this market. It is difficult ex ante to specify what constitutes a satisfactory performance of the contract (as it is difficult to record and measure performance), and accordingly, it is difficult to enforce the contract via a third party. This leads to opportunism as the employer holds up the worker by requiring further responsibilities such as longer hours of work to be undertaken that were not negotiated in the first place. We postulate a bargaining approach to unearth the role of regulation and the determination of wages and work conditions in the informal casual labour market.

MARKET EFFICIENCY, FINANCIAL INTEGRATION, AND SHOCK TRANSMISSION (EMPIRICAL EVIDENCE FROM D-8 ECONOMIES)

The specific purpose of the Developing-8 economies is to integrate the endeavours of each member countries to excel economic cooperation and facilitation among the Islamic countries to enhance the investment opportunities and not to put pressure on the geopolitical environment of the world. The purpose of this study is to visualize the market efficiency, financial integration, and shock transmission process in the D-8 Economies for the period from Jan 2011 to Dec 2016. Daily market data is taken for KSE, DSE, TSE, JCI, KLCI, ISE, EGX, and NSE equity markets. Unit Root Test, Serial Correlation Test, Runs Test, and Variance Ratio Test are used to test the market efficiency whereas Johansen Cointegration Test, Granger Causality Test, Vector Error Correction Model, and Impulse Response Test are used to test the financial integration and shock transmission. The performance of the Tehran stock market remained excellent during this study period. Mixed evidence is concluded regarding the market efficiency of D-8 equity markets. It is concluded that there exists a long-run relationship between KSE and DSE. Short-run relationship indicates that KSE has a significant positive short-run relationship with JCI and have a negative relationship with KLCI. Negative asymmetric behaviour is more influential in the negatively skewed markets and negative shocks have a greater effect than the positive shocks. Hence it is concluded that investors can get benefit from the arbitrage process due to market inefficiencies and through the short selling process. There is a need to establish economic equilibrium through the arbitrage process where investors may enjoy the opportunities to excel more economic stream of benefits by noise and market reverting behaviour. The economic integration will increase the cooperation among these economies to establish more growth opportunities in the trade and corporate investments. The implication of the studies suggests and directs to enhance mutual interface and co-operation including Banking and Finance, Human and Social Development, Energy Sector, Development of Rural Population, Science and Technology, Health and Environment, and Agriculture Sector. Moreover, there is a dire need for restructuring the economic and financial bylaws that may ease the financial liberalization and to enhance the dynamics of trading actives among the D-8 economies.

Blockchain for tracking serial numbers in money exchanges

SummaryMoney exchange is one of the most common day‐to‐day activities performed by humans in the daily market. This paper presents an approach to money tracking through a blockchain. The proposed approach consists of three main components: serial number localization, serial number recognition, and a blockchain to store all transactions and ownership transfers. The approach was tested with a total of 110 banknotes of different currency types and achieved an average accuracy of 91.17%. We conducted a user study in real‐time with 21 users, and the mean accuracy across all users was 86.42%. Each user gave us feedback on the proposed approach, and most of them welcomed the idea.

Online Auctions of New Product Before and After Its Official Launch

This study investigates the online auction market of Xbox 360 consoles before and after its official launch. Among nine measures of online auctions, all except for one are significantly differed between online auctions before and after the official launch. The principal component analysis further visualizes the differences. By using auto-regression to analyze the relationship among success count, success rate, and winning price in time series, we find that success count and success rate can be predicted with its own past values in (t-1) and (t-2) periods. The winning price can be predicted with its own past value in (t-1) period. We find that the preannouncement and launch events do affect the stock price, trading volume, daily price range, price change, and market volatility. We also investigate the correlation coefficients between the online auction market and the stock market. We find various significant correlation coefficients among the measures of both markets in the concurrent and one-time lag scenarios. The managerial implications of the findings are also discussed.

BUYING AND DISTRIBUTION ANALYSIS OF GOODS FOR KITCHEN BY THE PURCHASHING PART (Case Study at Kuta Central Park Hotel)

This study aims to determine the application of goods and distribution purchases for kitchen by purchasing department at Kuta Central Park Hotel. Data was collected by interview, observation, and documentation with the help of note-taking techniques. Furthermore, the data was analyzed by qualitative descriptive analysis method. The results showed that the purchase of goods for the kitchen at Central Park Kuta Hotel uses two ways. First, through the daily market list. Purchasing goods through this process is a type of item that does not last long enough and requires special storage areas, such as: dairy products, meat and poultry, herbs and spice, seafood, vegetables and fruits, ice cream, process meat, pastry and bakery, syrup, juice food, and also groceries. Second, namely through purchase requisition submitted by the storekeeper section for inventory at the general store. The type of goods purchased through this process is a type of groceries that can last more than one year. The flow of goods distribution from the general store to the kitchen starts with using the form store requisition made by the kitchen, then submitted to the storekeeper. The storekeeper issues the item in accordance with the request and a copy of the form is given to the kitchen staff who receive the item for review.

Young people’s daily activity in a globalized world: a cross-national comparison using time use data

ABSTRACT How much do young people’s daily activities differ according to where they live? As a global generation, young people are disproportionally subject to the risks and insecurity of globalization. However, countries differ in their support for young people’s inclusion through economic and social participation. Using time use surveys from Australia, Italy, Finland, France, Korea, Spain, the UK and the USA (n = 23,271), this paper investigates national differences in the amount of time young people (20–34 years) spend on paid and unpaid work, study and leisure in each country. Gender gaps in market work and non-market work were widest in the Anglo and southern European countries. In France and Finland, gender differences in daily market and non-market activity were narrower. Young women spent more daily time in study than young men in all countries except Korea, where study time was highest. Young men and young women in social democratic Finland had more leisure time than young people elsewhere. Results suggest that young people’s experience of the consequences of globalization is not universal, but that nation-states remain relevant in determining their welfare.