Economic Methodology Research Articles

Leveraging Behavioral Economics to Decision Architecture

Modern economic theory has been dominated by neoclassical economics since the 1970s. Like any theory, neoclassical economics also has a series of assumptions underpinning it. These assumptions have been criticized and challenged on various grounds in the past several decades. The most serious assumption is the assumption of rational economic agents who aim to maximize their utility by analyzing the costs and benefits of every decision. The presence of “homo economicus” is very rare in our society. In fact, it is practically and psychologically impossible to be rational even most of the times. Empirical and experimental research heavily corroborates this fact. Despite such massive evidence, nearly all economic models and public policies use this distorting assumption in analysis and research. The result has been catastrophic, as can be seen in the Global Financial Crisis of 2008, the Dot-Com bust and numerous financial market crashes before that. Furthermore, the theory of rationality also reduces the effectiveness of government policies in achieving their objectives. Behavioral economics has emerged to address these fallacies of modern neoclassical economics and complement it to improve economic theory, methodologies and forecasting. Behavioral economics has mainly two branchesmacro theory which aims to design macro-economic models incorporating behavioral concepts and micro theory which explains the various biases that individuals, groups and institutions exhibit in economic and even social decision-making. This research is focused on micro-behavioral economic theory. While a colossal magnitude of research has been done in identifying, testing and explaining the plethora of behavioral biases, there is a dearth of research on systematically reducing these biases. This research aims to fill this gap by conducting research on private and public sector employees of 30 to 40 years age and testing for a significant difference in level of biases revealed between the two groups of employees. The research found that there is a significant level of difference in the rational decision-making behavior of the two groups of employees. It also discusses the applications of the findings and the further scope for research.

Methodology for planning short-term urban bike lane networks; an example of downtown Gijón

Recently there has been increasing interest in the construction of bike lanes in cities due to their enormous positive effects; however, in some places society is resistant to these infrastructures and it is difficult to break a dynamic defined as the vicious circle of cycling mobility. In view of this, there is the option of proposing temporary bike lanes to evaluate the social response and, if successful, to make them permanent. This option is called temporary or tactical urbanism and has been widely used in the field of bicycle infrastructure during the coronavirus disease 2019 pandemic. The problem is that there is no quick and low-cost method to determine a comprehensive and well-connected scheme of bike lanes in the whole of a city; therefore, sometimes design mistakes are made and as a consequence temporary infrastructures, far from becoming permanent, disappear. This research study proposes an agile and economical methodology to establish which streets, within those that define the urban grid as a whole, can accommodate a temporary bike lane without altering the motorised traffic grid. The method is based on the use of quantum geographic information system and on a quick and easy data collection. The method was applied to downtown Gijón, Spain.

The Optimal Transportation Option in an Underground Hard Coal Mine: A Multi-Criteria Cost Analysis

The issue of transport in underground hard coal mines is very rarely described in the literature. The financial aspects of this issue are even less often analyzed. Publications in this area focus on technical issues and the safety of mining crews. More attention is paid to transport in open-pit mines. The above premises and practical needs imply the need to conduct economic analyses of transport systems in underground hard coal mines. This paper is a scientific communication, which presents the concept of a multi-criteria cost analysis as a tool to support the selection of the optimal transportation option in an underground hard coal mine. Considerations in this area have not been carried out in the relevant literature, and the problem of selecting a transportation option is a complex and necessary issue in the practice of underground mines with extensive mine workings. The methodology presented includes five cost criteria (costs of carrying out the transportation task; route expansion costs; rolling stock maintenance costs; depreciation costs; and additional personnel costs). The simultaneous application of criteria relating to utility properties in addition to cost criteria makes it possible to adopt a specific technical and organizational model of the transportation system based on the indication of the optimal solution, resulting from the mathematical construction of functions of objectives relating to utility and cost. The optimal variant of the designed system and configuration of the material transportation system in underground workings takes into consideration the following: (1) seven utility criteria (KU1—transportation task completion time; KU2—compatibility of transportation systems; KU3—continuous connectivity; KU4—co-use with other transportation tasks; KU5—safety; KU6—inconvenience; KU7—operation under overplanning conditions) and (2) five cost criteria (KK1—costs of implementing the transportation task; KK2—costs of route expansion; KK3—rolling stock maintenance costs; KK4—depreciation costs; KK5—additional personnel costs). Based on the aforementioned criteria, two objective functions are built for each option: utility and cost. They present divergent goals; therefore, they are non-cooperative functions. Both utility and costs strive for the maximum. In the developed methodology, an ideal point is usually a fictitious solution representing a set of maximum values among all the achievable values in a set of solutions, but it is impossible to achieve this simultaneously based on all the criteria. This point illustrates the maximum utility and lowest cost among the alternatives considered, which is obviously impossible for any of the variants to meet at the same time, although it indicates the possibilities of the technique and the range of costs. For the developed method, a so-called “PND” nadir point is also determined, representing the least-preferred level of achievement of all goals simultaneously, determined from the set of optimal points in the Pareto sense. The originality of the conceptual considerations undertaken stems from: filling the gap in the economic methodology of complex transportation systems evaluation; embedding considerations in the trend concerning complex transportation systems of underground mines; and focusing considerations on the pre-investment phase, making it possible to optimize costs before expenditures are incurred.

Relations between Keynes's theory and F. D. Roosevelt's economic policy in the environment of the Great Economic Depression of 1929 - 1933

Purpose of the study: The aim of the article is to show possible relations between economic theory and economic policy using the example of the interactions between the Great Economic Crisis, Keynes' theory, and Roosevelt's economic policy.
 Methodology: The methods used include literature studies and critical analysis of the literature, which are important for the development of a given scientific discipline. The subject of research determines the need to use the historical method. In addition, induction and deduction were used, as well as analysis and synthesis.
 Main Findings: Roosevelt's New Deal program is not a perfect reflection of Keynes's theory. In economic policy, such a model approach seems impossible. Both solutions occur parallel to each other. There are points of great similarity, but there are also visible differences. Adopting the thesis about Roosevelt's independence points to the weakness of orthodox economic theory in the face of economic challenges.
 Applications of the study: importance in the teaching of economic sciences. The teaching of economic sciences plays a key role in shaping the direction and level of economic knowledge in society. Currently, in addition to economic orthodoxy, a heterodox approach plays an important role in this respect. Therefore, it constitutes the basis for independent analysis in this area. The way of presenting issues within the so-called theoretical subjects, such as the history of economic thought,. For a critical analysis of economic phenomena, it seems important to enrich economic theory with pragmatic aspects. The article aims to interest economics students in the relationship between economic theory and economic practice.
 Novelty/Originality of the study: In the context of economic, financial and pandemic crises, considerations regarding the role and importance of economic theory and the scientific discipline itself are important. This is an attempt to answer the question to what extent the achievements of scientists in the field of economics allow us to effectively "get out of the crisis" and to what extent these are ad hoc actions. This is particularly important in the context of changing economic methodology and the relationship between heterodoxy and orthodoxy and the economy in times of uncertainty.

Entrained flow gasification-based biomass-to-X processes: A techno-economic assessment

In the pursuit of a successful energy transition, synthetic basic chemicals and fuels, alongside renewable energies, play pivotal roles. This study focuses on the utilization of biomass as a carbon source to replace conventional fossil feedstocks, conducting detailed process simulations and techno-economic analyses for various biomass-to-x pathways. Six key products—Methanol, Dimethyl Ether, Methane (SNG), Fischer-Tropsch syncrude, Hydrogen, and Ammonia—derived from entrained flow gasification of a representative biomass are systematically compared. The uniformity of simulation detail and economic methodology enables a direct and comprehensive comparison of these products. Notably, carbon-based products exhibit up to 34% lower average investment costs compared to their hydrogen-based counterparts, namely ammonia and hydrogen. This cost discrepancy is reflected in the levelized costs of manufacturing, with hydrogen-based products emerging as the most energy-expensive. The analysis identifies variable costs as the primary contributor to overall costs with around 50%, followed by fixed investment. The study underscores the critical impact of full load hours, plant lifetime, and feedstock costs on results. This emphasise the importance of detailed planning if alternative feedstock is used to balance fuel costs and enhance plant availability. Among the evaluated products, methanol emerges as the most promising across the evaluated KPIs with costs of 283.48 € MWh−1. However, regarding hydrogen-based products, it is suggested that, especially in the context of CO2 abatement costs, a comprehensive consideration of the long-term system effects is essential to prevent misinvestments during the early stages of the energy transition. This emphasizes the need for strategic planning to ensure a sustainable and economically viable shift towards biomass-derived synthetic fuels.

Health economics in nursing research: what you need to know to include economic evaluation methodology in your research.

Due to limited resources and constant, ever-changing healthcare challenges, health economics is essential to support healthcare decisions while improving health outcomes. Economic evaluation methodology facilitates informed decision-making related to the efficient allocation of resources while positively impacting clinical practice. In this paper, we provide an overview of economic evaluation methods and a real-world example applying one method of economic evaluation (cost-utility analysis) in nursing research.

ТЕОРЕТИЧЕСКИЕ АСПЕКТЫ ВЛИЯНИЯ ТЕХНОЛОГИЧЕСКИХ ИННОВАЦИЙ НА КАЧЕСТВО ЖИЗНИ

Technological changes in any sphere of life: industrial, social, management or any other – invariably have an impact on the quality of life. The conducted research is relevant in connection with the need to set a scientific task, within the framework of which a theoretical basis for the study of this influence is being created. The impact of technological changes on the quality of life is taken as the object of research, the subject of the study is the possibilities of economic analysis and the economics of quality to reduce the level of uncertainty when making strategically important decisions. The study was conducted on the basis of a monographic method, methods of systematic and comparative analysis and other general scientific methods, as well as the methodology of quality economics, were applied. The information base consists of the works of domestic and foreign scientists. In the article, based on the concept of "Industry 4.0", the most significant characteristics of technological transformation are highlighted. The authors describe the technical content of modern transformation and its accompanying social effects. Based on the analysis of the patterns accompanying technological development and growth, a number of features inherent in the labor market and associated with the suppression of the negative effects of economic aging are highlighted. In the context of modern transformations, the perception of the problem of quality of life is revealed using the methodology of quality economics. The study presents an approach to innovation management from the point of view of improving the quality of life, and concludes that further detailed study of the problems caused by the possible influence of concomitant effects of technological development and the search for ways to overcome their possible consequences is necessary.

The Methodology of Behavioural Economics

The Methodology of Behavioural Economics

The Methodology of Third Generation Islamic Economics

The Methodology of Third Generation Islamic Economics

Актуализация методики прогнозирования финансовой устойчивости с учётом ликвидационной стоимости основных средств

The article is devoted to the development of scientific and methodological foundations of economic analysis and theoretical basis formation of its modern direction. Formation of methods that take into account innovative development of accounting support is an urgent methodological task, which is important for scientific substantiation of instrumental and analytical base of tactical and strategic forecasting in order to obtain the necessary effect at all stages of economic entity development. The purpose of the study is to update economic analysis methodology and financial stability forecasting in the context of changing accounting legislation. The set of applied methods includes the following: general scientific research methods (monographic, materials generalization, and system research) and special methods of economic science (comparison, analysis, synthesis, and modeling). The article assesses the changes in fixed assets accounting, which are introduced by the Federal Accounting Standard 6/2020 "Fixed assets". The analytical value of this document, connected with liquidating value accounting of fixed assets, is proved. It can have a significant impact on relevant cash flows when assessing the level of financial stability. The interrelation of cost indicators forming the book value and expenditure component (loss-making) of fixed assets and cash flows in the context of accounting (financial) reporting forms is determined. The model of analytical tools to control fixed assets in forecasting financial stability is substantiated, the construction of which is based on the connecting elements of the balance sheet characterizing the type and level of financial stability.

A Predictive Framework for Photovoltaic Waste Quantities and Recovery Values: Insights and Application to the Italian Context

Abstract The global surge in photovoltaic (PV) panel deployment since the 2000s has contributed to advancing the renewable energy sector. However, this proliferation raises concerns about the increasing number of PV modules that will end their operational life in the coming years, necessitating effective planning for their decommissioning and recovery. This paper addresses this imminent challenge by presenting a predictive model to estimate the volume of decommissioned PV modules from existing installations. To consider the variability associated with the operational life duration of PV panels, two different scenarios were considered: early loss and regular loss, both modelled through the Weibull function. Furthermore, the article proposes a methodology for the economic valorization of materials recovered from decommissioned PV modules, according to the different technologies employed. This approach encourages sustainable practices by assigning an economic value to recovered materials and promoting a circular economy in the renewable energy sector. The economic valuation methodology adds practicality to dismantling, emphasising responsible waste management’s potential economic benefits. To illustrate the applicability of the model, the study focuses on the Italian case, providing a detailed regional breakdown. The regional analysis not only improves the accuracy of the predictive model but also offers insights into localised PV module disposal patterns. By adapting the methodology to the individual Italian regions, the article serves as a concrete and valuable resource during the programming and planning phases, facilitating the implementation of a strategy to efficiently recover PV modules and minimising the environmental impact associated with decommissioning activities.

МЕТОДОЛОГИЯ НРАВСТВЕННОЙ И СОЦИОКУЛЬТУРНОЙ ЭКОНОМИКИ

Recognition of the role of culture and values for the development of the economy requires a revision of economic methodology. Geopolitical crisis and the aggravation of social and moral problems actualized the topic. The article is devoted to the analysis of the evolution of economic knowledge about socio-cultural capital, the formation of a positive and normative approach, the current state of moral and socio-cultural economics, their theoretical and methodological basis and the demarcation of boundaries between them. The article makes an important contribution to the development of economic theory and the formation of a new paradigm.

Biocatalytic reductive aminations with NAD(P)H-dependent enzymes: enzyme discovery, engineering and synthetic applications.

Chiral amines are pivotal building blocks for the pharmaceutical industry. Asymmetric reductive amination is one of the most efficient and atom economic methodologies for the synthesis of optically active amines. Among the various strategies available, NAD(P)H-dependent amine dehydrogenases (AmDHs) and imine reductases (IREDs) are robust enzymes that are available from various sources and capable of utilizing a broad range of substrates with high activities and stereoselectivities. AmDHs and IREDs operate via similar mechanisms, both involving a carbinolamine intermediate followed by hydride transfer from the co-factor. In addition, both groups catalyze the formation of primary and secondary amines utilizing both organic and inorganic amine donors. In this review, we discuss advances in developing AmDHs and IREDs as biocatalysts and focus on evolutionary history, substrate scope and applications of the enzymes to provide an outlook on emerging industrial biotechnologies of chiral amine production.

An Economic Model of Media Ethics

Ethics and economic profits are considered to be trade-offs to one another. Akin to other disciplines, private media face the same dilemma. Pursuing more economic profit through increased viewership, advertising rates, or other practices usually comes at the cost of diminished ethical compliance. However, many studies highlight the importance of ethical guidelines in increasing revenues and profits in media organizations. This article aims to reconcile previous scholarship on the subject and develop an economic model of media ethics. The model is based on the literature and methodology of public economics, particularly that of public goods and externalities. It predicts that private media firms, when left to the perfectly competitive market, produce a greater quantity of news that may not be socially desirable and is of low quality and poor ethical compliance. When the social cost of producing ethical and quality media products is considered, the revenue of the private firms decreases, thereby suggesting an inverse relationship between ethical compliance and profits. This demands a case for libertarian paternalism, nudges, or incentives to restore private firms to the socially optimal equilibrium to ensure independent, ethical, free, and sustainable media.

Прогноз мировых цен нефти на основе монетарной политики Соединённых Штатов Америки

This study explores the critical realm of forecasting oil prices within the global energy resources market. The research is particularly timely as it provides new insights into the future growth prospects of Brent crude oil prices, which are increasingly influenced by the indicators of the monetary policy set forth by the USA Federal Reserve. The primary objective of this scientific endeavor is to predict Brent crude oil prices in response to shifts in the indicators of the US Federal Reserve's monetary policy. To fulfill this objective, the study systematically tackled several key tasks. These tasks encompassed a thorough examination of the theoretical foundations underpinning oil price forecasting, the meticulous compilation of statistical data related to the target indicators, and the application of specialized economic methodologies. Mul[1]tiple linear regression equations were formulated to establish the relationship be[1]tween Brent crude oil prices and the indicators of the US Federal Reserve's monetary policy. Furthermore, the study ventured into the prediction of these Federal Reserve indicators and arrived at substantive conclusions. The research methodology employed a range of general and specialized scientific techniques, encompassing analysis, synthesis, and statistical analysis. Notably, the scientific innovation of this study lies in the construction of multiple linear regres[1]sion equations to forecast Brent crude oil prices, hinging on key indicators of the USA Federal Reserve's monetary policy, including the effective federal funds rate, the M2 monetary aggregate, the US dollar index, the core personal consumption expenditure price index, and the US unemployment rate. Additionally, this study cal[1]culated an increasing trend equation for the M2 monetary aggregate in the United States. The practical implications of this research are profound, offering valuable insights for investors looking to craft effective trading strategies within the global energy resources market.

A greener RP-HPTLC-densitometry method for the quantification of apremilast in nanoformulations and commercial tablets: Greenness assessment by analytical eco-scale, ChlorTox, and AGREE methods

The greener “high-performance thin-layer chromatography (HPTLC)” methods for apremilast (APM) analysis in pharmaceutical products and biological fluids are not currently available in the literature. Accordingly, this study involves the development and validation of a rapid, simple, economical, and greener reversed-phase HPTLC methodology for the estimation of APM in prepared nanoparticles (NPs), nanoemulsion, and marketed tablets. The estimation of APM was conducted using “RP-18 silica gel 60 F254S HPTLC plates” as the stationary phase. The combination of ethanol/water (65:35, v/v) was used as the greener mobile phase for APM analysis. The greenness of the method was predicted using three different approaches, namely Analytical Eco-Score (AES), ChlorTox, and the Analytical GREENness (AGREE) approaches. The λmax = 238 nm was used for the APM detection. By contrasting its single band at Rf = 0.61 ± 0.01 with those of pure APM, the HPTLC peaks for APM in an prepared NP formulation, nanoemulsion, and marketed tablets were identified. In the concentration range of 100–700 ng/band, the proposed analytical methodology was linear. The values of AES, ChlorTox, and AGREE were determined to be 93, 0.66 g, and 0.89, respectively, demonstrated an outstanding greener profile for the existing method. The amount of APM in the tablet, NP formulation, and nanoemulsion was found to be 98.40, 101.60, and 99.37 %, respectively. According to the findings of validation tests and pharmaceutical analysis, the suggested analytical technique could be successfully applied for the routine examination of APM in marketed tablets and laboratory generated nanoformulations.

Research Translation and Impact of a Program of Work to Support Carers of a Person with Depressive or Anxiety Symptoms

In 2018, Every Mind responded to a lack of research into supports for carers of a person with depressive or anxiety symptoms, by designing, piloting, and implementing an online support program targeting these carers. Previous publications have documented several benefits of this research, such as the program’s feasibility, acceptability, and trends in efficacy. Although these results are promising, a deeper examination of the societal and economic significance of the research is warranted. The present study utilised the Framework to Assess the Impact from Translational Health Research (FAIT) and examined program documentation to retrospectively assess the benefits, costs and lessons learned from the Minds Together research. The results revealed that the benefits were widespread, particularly in capacity building. The economic analysis found a return on investment of over $80,000 AUD 2022. The study also emphasised the role of research centre staff in communicating and disseminating research findings. The retrospective application of FAIT to the Minds Together program proved feasible and has provided valuable insights. The present study highlights the comprehensive benefits of Minds Together beyond the trial outcomes reported in previous studies and emphasises the advantages of using health economics methodologies to examine the impacts of research targeting informal carers.

Integration of Artificial Intelligence and Macro-Economic Analysis: A Novel Approach with Distributed Information Systems

INTRODUCTION: This study introduces a groundbreaking approach that integrates Artificial Intelligence (AI) with macro-economic analysis to address a critical gap in existing economic forecasting methodologies. By leveraging diverse economic data sources, the study aims to transcend traditional analytical boundaries and provide a more comprehensive understanding of macroeconomic trends.
 OBJECTIVE: The primary objective is to pioneer a scalable framework for economic data analysis by combining AI with macroeconomic analysis. The study aims to utilize advanced machine learning algorithms to analyze and synthesize macroeconomic indicators, offering enhanced accuracy and predictive power. A key focus is on dynamically incorporating real-time data to adapt to evolving economic landscapes.
 METHODS: The research employs advanced machine learning algorithms to analyze and synthesize macroeconomic indicators. The integration of AI allows for a more nuanced understanding of complex economic dynamics. The methodology uniquely adapts to real-time data, providing a scalable framework for economic data analysis.
 RESULTS: The findings demonstrate the model's efficacy in predicting economic trends, surpassing conventional models in both precision and reliability. The study showcases the potential of AI-driven economic analysis to offer insights into economic dynamics with unprecedented accuracy.
 CONCLUSION: This study significantly contributes to the fields of AI and economics by proposing a transformative approach to macroeconomic analysis. The integration of technology and economics sets a new precedent, paving the way for future innovations in economic forecasting. The research also explores the implications of AI-driven economic analysis for policy-making, emphasizing its potential to inform more effective economic strategies.

Natural resource efficiency and green economy: Key takeaways on clean energy, globalization, and innovations in BRICS countries

Over the past few years, natural resource efficiency and the green economy have gained increasing attention. BRICS countries face challenges in natural resource efficiency and a green economy. These challenges include limited access to financing for green initiatives, insufficient infrastructure and technology, and competing priorities for economic development. This paper examines whether natural resource efficiency affects green growth under financial development, renewable energy, research and development, and globalization in BRICS countries from 1990 to 2021. Our empirical estimates are based on advanced economic methodologies, including slope heterogeneity, LM Bootstrap panel cointegration, and continuously updated fully modified (CUP-FM) and bias-corrected (CUP-BC) estimators. The result explains that sustainably transforming consumption and production patterns is supported to facilitate multi-stakeholder partnerships to encourage a green economy. Moreover, green fields' risk and return profiles differ from traditional industries under existing private financing mechanisms. Policymakers in the BRICS countries are suggested to promote the efficient use of natural resources, renewable energy sources, sustainable land use practices, sustainable urbanization, and adopting green technologies to ensure sustainable development through green growth.

Building upcycling or building reconstruction? The ‘Global Benefit’ perspective to support investment decisions for sustainable cities

Investment decisions on demolition and reconstruction vs. refurbishment of the existing building stock can extend beyond financial and economic criteria. However, they must involve energy savings, environmental preservation, material consumption, and waste management for sustainable cities. The regulatory framework used in the past decades and the correlated research seem more unbalanced toward the containment of building energy consumption than toward embodied energy (EE) management in production processes and environmental impact management. Foreshadowing the perspective of a more restrictive regulatory framework on EE, such as prohibiting the displacement of materials with residual energy potential, such as waste in landfills, some challenging frontier issues are involved when facing the limits of the economic evaluation methodologies for transformation projects. Thus, this study aimed to propose a reasoning and an operative modality to support urban governance policies and investment decisions involving private and public subjects in the construction sector. Circular economy and life cycle thinking principles, through life cycle costing (LCC) and life cycle assessment (LCA), are assumed and harmonized with the discounted cash-flow analysis (DCFA): (1) monetizing and modeling into the DCFA the EE and the embodied carbon (EC); (2) internalizing the Global Cost and the new ‘Global Benefit’ into the net present value (NPV) calculation; and (3) focusing on the residual end-of-life value calculation from the early design and investment decision stages. The reasoning can be extended to single buildings, the urban scale, or even entire portions of existing buildings in urban areas concerning typological sub-segments. The operative modality is yet to be explored in a concrete application for orienting urban governance policies and sustainable public–private partnerships, including environmental and, thus, social externalities even in the private real estate investment decision process, in the scope of evolving regulations.