Economic Literature Research Articles

“What is going on in global goals projects, is agenda filled?” Highlighting circular economy literature within sustainable development goals–review-based

“What is going on in global goals projects, is agenda filled?” Highlighting circular economy literature within sustainable development goals–review-based

APPROACHES TO ASSESSING THE IMPACT OF TURNOVER ON THE FINANCIAL POSITION OF THE ORGANIZATION

Analysis of business activity is one of the most important areas of comprehensive analysis of a company's activities. In the economic literature, the category of turnover is often identified with the business activity of an organization. However, in our opinion, business activity is a broader concept, and turnover is the most important component of an organization’s business activity. The article examines the economic content of the categories “business activity” and “turnover,” as well as approaches to assessing the impact of turnover on the financial position of an organization.

SME representation in chambers of commerce bodies – a model perspective

Background: The research analyzes the formal representation of micro, small, and medium-sized enterprises (SMEs) in the bodies of chambers of commerce in a model-based approach. Research purpose: Chambers of commerce are managed by their bodies (board, general assembly, etc.). Their composition is most often chosen by members in elections. It should reflect the structure of the associated enterprises – at least in terms of industry and size classes. The division of mandates affects the operational activity of the organization – including the content of positions developed in consultation processes and services provided to entrepreneurs. The aim of the study is to verify whether in the countries selected for analysis (representing different models of functioning of chambers of commerce) there are regulations securing the formal representation of SMEs in the bodies of chambers. And if they do exist, what form do they take? In addition to determining the actual situation, the advisability and possible way of regulating the SME parity in several model scenarios is analyzed. Methods: Using the deductive method and critical analysis, the study analyzes the statutes of chambers of commerce in selected countries and reviews sociological, economic and legal literature. Conclusions: The findings indicate that there are only a few examples of regulations protecting the representation of SMEs in chambers’ bodies. It was also found that the rules for representing different sized enterprises in the bodies and task groups of chambers of commerce are closely linked to the model of these organizations. In the Anglo-Saxon private law model, business owners primarily participate voluntarily in selected organizations. However, in countries with a single chamber per region, free choice of organization does not in fact exist. In the continental public law model, where membership is universal by operation of law, statutes focus primarily on mapping the structure of dominant industries in a region and usually omit other criteria. The sectoral model offers the greatest potential for balancing the representation of every size of industry and enterprise.

EPID-15. INPATIENT CARE COSTS AND ASSOCIATED REIMBURSEMENTS FOR PATIENTS WITH LEPTOMENINGEAL DISEASE: A REAL-WORLD ANALYSIS

Abstract INTRODUCTION Leptomeningeal disease (LMD) is an increasingly significant cause of cancer-related morbidity, mortality, and economic burden. While healthcare costs associated with brain metastases (BMs) have been well-described, minimal economic literature exists for LMD. This study sought to evaluate inpatient care costs (IPCCs) and reimbursements for LMD patients using a contemporary US claims database. METHODS This retrospective study, reported following STROBE guidelines, included adult LMD patients (aged 18-65 years) receiving inpatient care during January 2016 to December 2021 in TruvenHealth MarketScan Commercial Claims and Encounters Database, currently the largest US commercial insurance database. Patient selection using ICD-10 codes, data management, and statistical analyses were performed in Stata/SE18.0. Demographic, clinical, and financial attributes were summarized through descriptive statistics. IPCC measures were adjusted using 2023 Consumer Price Index Medical Care component. Primary study outcome was adjusted gross total payments (total IPCC). Given skewness in IPCC, log-transformation was carried out, followed by multivariable linear regression using socio-demographic, clinical and insurance-related characteristics to identify significant covariates. RESULTS A total of 1047 inpatient admissions across 1010 LMD patients were included. 43.8% (N=442) had brain metastases (BM) concomitantly present while 56.2% (N=568) did not. Primary tumor associated with LMD comprised of: lung and/or lower respiratory tract cancer (18%), breast cancer (6.6%), and melanoma (6.1%). 54.8% (N=554) did not have any bone metastases and 78.6% (N=794) did not have any liver metastases. Per inpatient admission, median adjusted values of gross total payments were $32603.6 (IQR $19967-64960) and gross payments to principal physician $1119.26 (IQR $532.41-2919.78), being 3.4% of total payments. Covariates associated with significantly higher total IPCC included age, male sex, length -of-stay, whole brain radiotherapy, and admission year, while cancer from lung and melanoma, medical and psychiatric admission (versus surgical), and drug claims capture were associated with significantly lower IPCC. CONCLUSIONS Contemporary IPCCs for LMD patients in US are substantial but driven minimally by payments to principal physician for services rendered.

From awareness to practice: Insights from the managers of Finnish circular economy pioneering companies

In recent years, research on circular economy has increased tremendously, as well as gained attention from governments and business practitioners. However, the knowledge of effective and efficient transition from a linear business model to circular economy remains limited. Therefore, the objective of this research is to explore the awareness and current practices of managers from companies implementing circular business models. The required data for this research were collected from 22 managers, whose companies belong to the list of "41 pioneering Finnish circular economy companies". Methodologically, the study adopts a qualitative approach, following content analysis. The collected data is analyzed rigorously to uncover insights regarding managers’ awareness to circular economy, experienced barriers, drivers, and indicators of circular economy. Key research results show that 66.7% of responses represent circular economy as a core activity, with 68% having already integrated circular economy principles into the supply chain. Main barriers include lack of knowledge and technology (21.4%), while strategies to address the barriers focus on promoting technology innovation (33.3%) and improving education and communication (31.3%). Besides, circular economy performance is measured primarily through recycled materials used (21.7%). Additionally, the study investigates the approaches companies employ to develop circular economy implementation strategies, an area often overlooked in circular economy literature. The findings indicate that process-led and market-led management strategies are commonly practiced, accounting for 32% and 21%, respectively. Overall, this study sheds light on the current state of circular economy implementation at the micro level and provides valuable insights for policymakers, practitioners, and researchers aiming to promote the transition towards a circular economy.

Climate change and economic growth: Some critical reflections

Global warming may affect the economic development and, thus, the welfare of people around the world. Therefore, the economic effects of a changing climate should be known in order to be able to design appropriate policy responses. In the economics literature, one research field empirically analyzes the growth effects of global warming. But often those studies do not account for economic variables that have turned out to be significant in explaining economic growth. In addition, they frequently fail to check for the robustness of their outcomes. This can give rise to biased results regarding the growth process and, therefore, does not necessarily reflect the true data-generating process. Hence, the question comes up: how valid and reliable the results are. Therefore, economic analyses should be undertaken that study the robustness of the results as regards the integration of fundamental economic variables. When policy recommendations are made on how to deal with global warming, we argue that they should be based on robust results only. If that does not hold, economic policy risks being inadequate, giving rise to substantial welfare losses.

The relationship between minimum wage and employment. A synthetic control method approach

Abstract Spain increased its minimum wage (MW) by 22% in 2019. Given the intense debate in the economic literature on the impact of MW increases on the labour market, we conduct an impact assessment of this policy. The synthetic control method will be used to replicate the Spanish labour market by means of a pool of European countries that, in the absence of other reliable measures, simulates the evolution of Spanish employment. This will allow us to identify the causal effect from the increase in the MW. After applying the technique, the increase in the MW is found to have no effect on employment. The results have been subjected to robustness tests such as leave one out or segmentation by gender or age.

AN EMPIRICAL ANALYSIS OF CAUSATIVE EFFECT OF LINGERING NAIRA DEVALUATION ON NIGERIAN ECONOMY

This study focused on the effect of the inflationary trend caused by persistent loss of value of Naira on the Economic growth and foreign exchange market in Nigeria. The study adopted quantitative research design. Data for this study were of secondary sources obtained from the Statistical Bulletin of Central Bank of Nigeria. Data collected were analysed using multiple regression. The result of the study revealed that inflation negatively affects the GDP. The loan cost on the other hand positively affects the GDP. Also, exchange receptiveness negatively affects the GDP. The study affirmed economic literature; highlighted the link between the exchange rate volatility and economic performance in Nigeria considering gross domestic product as an exponent of economic performance, thus the need to quantify the link between gross domestic product and exchange rate volatility emerges. The study suggests further diversification of the economy: an expansion in non-oil exports, adoption of measures to stimulate domestic production of essential household goods, and also encourage export of primary commodities in which the country has comparative advantage. A strong demand management of exchange rates through restrictive monetary and fiscal policies to ensure that growth of aggregate demand is compatible with a low and stable inflation is recommended. The study also recommended an adoption of a realistic exchange rate policy for naira best capable of restricting excessive demand for foreign exchange.

Bagehot’s giant bubble failure

Modern economic history literature has extensive coverage of the Overend, Gurney crash of 1866 and the associated Lender of Last Resort operations of the Bank of England. But it basically ignores the giant British investment mania of the 1860s that led to that crisis and to the crisis of 1867 that followed. Yet that mania has many other interesting features that are relevant for dealing with bubbles. In particular, that historical episode shows that high interest rates may not suffice to deflate a bubble. It also demonstrates the dangers of “financial innovation,” which flowered in that period and enabled promoters to mislead and ruin investors in novel ways, while producing a rapid expansion of the railway system that escaped public notice. Even some of the most sophisticated contemporary observers, such as Walter Bagehot, who were bothered by the market anomalies they saw, were deceived by that pioneering “financial engineering” which has strong similarities to the one that led to the Global Financial Crisis of 2008. This paper points out some of the many neglected aspects of that mania. Those include an illustration of the evolution of economic thought towards ignoring underlying causes of financial crises and concentrating just on the panics in which they culminate.

Handbook of the circular economy: Transitions and transformation : Book review

[Alexander, A., Pascucci, S. & Charnley, F. (eds., 2023). Handbook of the circular economy: Transitions and transformation. De Gruyter, Berlin/Boston. 504 pp. ISBN 978-3-11-072322-9] Since the term “circular economy” emerged in the economic and environ-mental literature at the beginning of the 2010’s, an ever-growing number of articles, papers, reports and books have been published on this new concept that aims at the ending of the so-called linear economy and ushering into a new economic paradigm. The circular economy’s foundations lay on several schools of thought of the past almost sixty years which pro-mote closed-loop systems and nature-inspired metabolisms in the econ-omy, starting from Boulding’s seminal work “The Economics of the Com-ing Spaceship Earth” (1966) through Stahel’s “Product-Life Factor” (1982) and Pearce and Turner’s “Economics of Natural Resources and the Environment” (1994), until McDonough and Braungart’s „Cradle to Cradle” (2002) or Gradel and Allenby’s “Industrial Ecology” (2003) – just to name a few. Since the term “circular economy” was born in the past dec-ade, this concept has been a popular subject of the economic, business, environmental, technical and even popular literature (Freed & Ritchie, 2021).

Emergence of information aggregation to rational expectations equilibria in markets populated by biased heuristic traders

Information aggregation is a key economic function of markets. We report results of a computational experiment with markets populated by simple algorithmic traders who follow two heuristics usually thought of as leading to biased information processing in behavioral economics literature (anchor-and-adjust, and representativeness). Outcomes of these markets either tend to cluster around (or fail to do so) rational expectations equilibria under specific conditions, consistent with markets populated by profit-motivated human traders. Algorithmic trader convergence is slower and noisier than that of human traders. Our results illustrate the emergence of rational expectations equilibria through complex interactions among actions of biased heuristic traders with limited information processing capabilities.

A new look at the finance–environment nexus: How yield spread affects environmental quality in the United States

AbstractEnhancing environmental quality is currently a key focus for policymakers. Furthermore, researchers are also prioritizing the investigation of novel variables that can influence environmental quality. The yield spread is commonly used as a leading indicator for business cycles in the macro‐finance literature, providing information about future expectations regarding business cycles. The yield spread also presents information about the borrowing costs of firms. None of the existing studies in the environmental economics literature has tested the impact of the yield spread on environmental quality, implying the level of the yield spread has not been considered a variable that can influence environmental quality. This study aims to fill this gap by providing evidence on the effect of yield spread (between 2‐ and 10‐year government bonds) on environmental quality in the United States from June 1976 to September 2023. The results indicate that an increase in the yield spread leads to a rise in environmental destruction. These results suggest two considerable consequences. First, optimistic expectations today lead to the overuse of resources and environmental destruction. Second, firms' higher borrowing costs may be forcing them to use less environmentally friendly production methods to offset more expensive financing costs and increase their profits. This study asserts that companies should enhance their environmental sensitivity, and policymakers should adopt a more proactive stance, based on the results of this study and other research that demonstrates the detrimental impacts of environmental regulation violations and poor environmental performances on companies' stock prices and financial performances.

Соціальний захист: термінологічне визначення, основи та засоби управління

Changes in social and economic relations that are rapidly occurring under the influence of various types of risks are causing the emergence of new challenges in the relations of the population with state and public entities. The importance of social institutions that are designed to provide material and psychological assistance to segments of the population different in age, gender and professional level is increasing. In the conditions of partial or sometimes complete loss of income by the citizens of the country, narrowing of the sphere of employment and consumption of socially important services, considerable attention is paid to the social protection of the population. The main purpose of this institution is to promote the maximum possible support of the quality of life, especially for the least protected sections of the population. At the same time, from an economic point of view, the importance of social protection is inseparable from its role in achieving an effective balance between the social and economic components of society, which imposes a certain responsibility on its social obligations and, therefore, an adequate understanding of functional boundaries. However, in the economic literature and in practice, social protection appears to be very simplified and, as a rule, is characterized by parametric indicators of assistance to the population. At the same time, the functional content of social protection as a systemic category, its connection with other social categories, in particular with social security, as well as with the budgetary, financial and economic instruments of society, escape the attention of researchers. In this regard, it should be considered relevant to specify the system of functions of the modern multi-subject management model and its inherent implementation mechanisms. The purpose of the paper is to determine the categorical essence of social protection of the population, its functional features among other segments of state social policy; substantiating the feasibility of using a multi-subject form of managing social processes that are important for the life of citizens. Novelty of the article lies in the classical understanding of the concept of social protection of the population. Its connection with the category of social security and the general process of social development of the population is revealed. The concept of multisubject management is structured as a system of interrelated measures to determine “centers of influence” on priorities, goals and fulfillment of tasks of social development of the population in the face of the onset of corresponding risks.

A methodological guide for implementing and interpreting results of probabilistic analysis.

Probabilistic analysis, also referred to as probabilistic sensitivity analysis (PSA), is used extensively in cost-effectiveness evaluations of health technologies. We present methodological guidance for implementing probabilistic analysis and interpreting its results for policy and decision-making. We review the methodological issues related to common practices in probabilistic analysis, explore aspects that are currently not widely addressed in the health economics literature, and provide an overview of recent methodological developments. We use examples to highlight the advantages and disadvantages of common tools used for presenting probabilistic analysis results, including the cost-effectiveness acceptability curve (CEAC), cost-effectiveness acceptability frontier (CEAF), and value of information (VOI) analysis. We raise and address issues related to using Monte Carlo standard error to determine the number of iterations required, the implications of large uncertainty, and the credibility and meaningfulness of small differences in quality-adjusted life-years (QALYs). We then discuss evolving methods in probabilistic analysis, cautious uses of probabilistic analysis, and factors impacting parameter uncertainty. A deeper understanding of probabilistic analysis methods enables health economists and decision-makers to more effectively address and interpret parameter uncertainty in health economic evaluations, which is essential for making informed policy decisions.

The effects of climate change‐related risks on banks: A literature review

AbstractThis literature review describes the recent empirical literature in economics and finance focusing on how climate change‐related risks affect banks, with a particular emphasis on microeconomic evidence. The comparison of empirical estimates shows that many studies project limited estimates of damages for banks. For both loan and bond spreads, most estimates of the effect of climate change are below 50 bp. In comparison, studies on stock markets document responses that are more substantial. In real estate markets, there is evidence of price effects notably for flood risks associated with sea level rise. However, some studies indicate that climate risks could be underestimated. We note challenges related to the measurement of adaptation potential, non‐linear changes in hazards and responses, and the aggregation of effects across studies, markets, and bank portfolios.

How Does Innovation-Collaboration Network Structure Influence Regional Economic Resilience?

This paper examines whether different structures of co-patenting networks affect regional economic adaptation and adaptability in divergent ways. Adaptation differentiates from adaptability by recovering in a pre-shock growth path, while adaptability entails forging a new growth path. Focusing on computer, electronic, and electrical equipment manufacturing industries in U.S. metropolitan and micropolitan areas from 1990 to 2012, the study reveals that complete networks, characterized by closely connected nodes, promote adaptation but weaken adaptability. In contrast, coalitional networks, featuring loosely connected subgroups, enhance adaptability but hurt adaptation. The study contributes to regional economic resilience literature by empirically demonstrating the trade-off relationship between adaptation and adaptability from network structures’ perspective. Practically, the study helps policy makers to effectively allocate stimuli, such as grants and tax incentives, to develop targeted co-patenting networks to improve adaptation or adaptability.

EXPLORING THE EMERGING AREAS OF CORPORATE DISCLOSURES: A BIBLIOMETRIC ANALYSIS

In the current Indian scenario of the financial reporting regime, stakeholders are increasingly looking at the disclosure practices of the companies. Therefore, higher level of transparency is required which implies that there is need of higher level of disclosure. In the present era, the sources of information are not only restricted to annual reports for stakeholders to take decisions. Hence, it is very crucial to have encyclopaedic study on corporate disclosures. The main objective of this paper is to determine the current state of research on corporate disclosure practices across the world. In the present study, literature in subject areas business, management, accounting, economics, econometrics, and finance has been retrieved from Scopus Database and analysed for 15 years between 2009 & 2023. The bibliometric analysis has been conducted using VOS Viewer. This study highlights the trend of publication across two decades, countries and journals along with most cited papers, top journals, most influential authors. Finally, through co-occurrence analysis of keywords, least explored areas have been identified. This paper highlights the gap in the available literature and make recommendations for future research in emerging areas.

The Ambiguity Box: A new tool to generate ambiguity in the lab

The Ambiguity Box is a software tool that visualizes uncertainty in laboratory experiments. It is a dynamic frame composed of squares that randomly change colours, creating an uncertain and ambiguous environment. This encourages participants to infer the probabilities of each colour. The tool contributes to the economic literature by introducing a new layer of uncertainty, overcoming limitations of traditional tools like the Bingo Blower. The Ambiguity Box is more practical as it is software-based and can be used with any electronic device. It is flexible, allowing experimenters to predetermine the number of squares of each colour, making it adaptable to various experimental designs. It is easily scalable, suitable for use in different contexts, and allows for the exploration of decision-making under ambiguity in diverse settings, dealing also with extremely low probabilities.

Assessing research needs for informing pet food industry decisions

Abstract The global pet food industry continues to grow being fueled by increased pet ownership, higher disposable income of pet owners, and a growing demand for premium products. While this growth has attracted increased interest of researchers in animal nutrition and product formulation, the overall body of management and economic literature to guide product innovation and marketing strategies in the pet food industry is still limited. This study aims to identify and highlight the most important, relevant, and current research needs for informing product and marketing decisions in pet food. The methods include a quantitative analysis of primary data from a survey of 76 pet food decision makers involved in the procurement of raw material, production, and marketing. The findings suggest the need for extensive research in various areas pertaining to the quality and availability of raw materials, processing methods, and forecasting consumer preferences. The findings also emphasize high value research areas such as identifying alternative protein sources, enhancing nutrient retention during the extrusion process, identifying opportunities for product innovation that align with customer preferences, and accurately predicting consumer demand.

PRODUCTION AND DISTRIBUTION FROM ISLAMIC ECONOMIC PERSPECTIVE

In Islamic economics, production and distribution are the main pillars for achieving happiness, Islam bases production on the purpose of utilization, that production is a springboard for achieving value benefits and a more collective utilization goal that touches all groups. The presence of this paper is to examine the inherent (close relationship) of the concept of production and distribution based on an Islamic view. The results of this study will become a new discourse in Islamic economics literature as a contribution in the theoretical field for the perfection of the results of future studies. The type of research used is library research by referring to the written content of relevant research and then elaborating it with current phenomena. The conclusion states that Islam is a religion of rahmatan lil -' alamin which implies the distribution of goodness and benefit to every creature created by Allah SWT on earth, therefore this is a principle that is absorbed in Islamic economics so that it wards off all forms of production and distribution activities that are not in harmony with it. So that all human economic activities as caliphs must be verified based on Islamic normative values. Between the concepts of production and distribution, according to Islam, both are not a separate entity, but are a fragment. The main motive that must precede production is distribution, that someone who works has no other motive than himself and to ensure the fulfillment of the needs of others for the sake of realizing prosperity, economic justice and a balanced standard of living among all elements of society .