Fair Return Research Articles

Did Banks Pay Fair Returns to Taxpayers on TARP?

ABSTRACTFinancial institutions received investments under the Troubled Asset Relief Program in a bad state of the world but repaid them in a relatively good state. We show that the recipients paid considerably lower returns to taxpayers compared to private‐market securities with similar risk over the same investment horizon, resulting in a subsidy of over $50 billion on the preferred equity investment by the government. Ex‐post renegotiation of contract terms limited the upside gains received by taxpayers in good times and contributed to the subsidy. These findings have important implications for the design and implementation of future bailouts. Our simple methodology for calculating the subsidy can be applied to evaluate the financial costs of other bailouts.

Royalty Wars: The Dark Side to Raising the Minimum Royalty Rate for Oil and Gas Leasing on Federal Land

In 2022, the Inflation Reduction Act took marked steps toward changing the course of the oil and gas industry for the first time in over 100 years, requiring that all federal oil and gas leases issued for the following decade have a minimum royalty rate of 16.67%. This paved the way for a major adjustment in the oil and gas industry, which has seen a 12.5% minimum royalty for the past century. In 2023, the Department of the Interior proposed to permanently codify these changes, citing purposes of ensuring a fair return to taxpayers and protecting the environment. This Article argues that the royalty provision in DOI’s proposal, if passed through Congress, will lead to harmful effects on the economy and production while failing to fulfill its purpose of protecting the environment. Instead of raising the minimum royalty, which will inevitably stunt the growth of the domestic oil and gas industry, agencies should regulate strategically to both promote domestic production and reduce the industry’s emissions footprint on the environment

Pricing of medicines as a factor influencing access to treatment

The article is devoted to the topic of access to treatment, and the issue of pricing as one of the factors that significantly affect the ability of the population to access treatment through the purchase of medicines, including expensive branded medicines that are not covered by government programs that provide such medicines free of charge. High medication costs can pose substantial barriers, particularly for those not covered by state programs, exacerbating health inequalities and hindering widespread access to necessary treatments.
 The article focuses on the existence of two pricing systems in the pharmaceutical market, namely, the state and market pricing. The aforementioned pricing systems are among the mechanisms for providing pharmaceutical care to the population in Ukraine. It is also argued that pricing is based on demand, cost, supply, and commodity and money circulation.
 The article presents the US experience of pricing and the problems of consumers who face the need to overpay for branded medicines by a significant number of times compared to European consumers.
 This dynamic reflects the delicate balance between the pharmaceutical industry’s need for fair returns on innovation investments and the imperative to make essential treatments financially accessible to the broader population.
 It is noted that the high price of medicines is due to the influence of numerous factors, including increased demand, insufficient supply of cheaper generic drugs on the pharmaceutical market, patent protection, and significant investment in the development and research of new medicines. At the same time, it is argued that the use of managed access agreements, along with both state and market pricing, can be a deterrent to the growth of prices for branded innovative medicines.

Robust Collaborative Scheduling Strategy for Multi-Microgrids of Renewable Energy Based on a Non-Cooperative Game and Profit Allocation Mechanism

The Multiple Microgrid System (MMG) facilitates synergistic complementarity among various energy sources, reduces carbon emissions, and promotes the integration of renewable energy generation. In this context, we propose a two-stage robust cooperative scheduling model for MMGs based on non-cooperative game theory and a benefit allocation mechanism. In the first stage, considering electricity price fluctuations and uncertainties in wind and solar power outputs, a robust optimization approach is applied to establish an electric energy management model for MMGs. This model enables point-to-point energy sharing among microgrids. In the second stage, addressing the benefit allocation problem for shared electric energy, we introduce a Cost Reduction Ratio Distribution (CRRD) model based on non-cooperative game theory. The generalized Nash equilibrium is utilized to determine the benefit distribution for shared electric energy. Finally, through case studies, the proposed model is validated, ensuring fair returns for each microgrid. The results indicate that the proposed model optimizes the operational states of individual microgrids, reduces operational costs for each microgrid, and lowers the overall total operational costs of the MMG system. Additionally, an investigation is conducted into the impact of electricity price uncertainty coefficients and confidence levels of wind and solar uncertainties on the operational costs of microgrids.

Budgetary operating balances in the assessment of the financial aspects of European integration

The aim of the study was to assess whether the presentation of financial flows between states and the EU budget provides constructive information, since the literature on the subject emphasizes that the assessment of the benefits and costs of integration has a much broader and more complex scope resulting from the free movement of people, services, goods and capital. In the paper it was used data from 2019 taking into consideration the last year of the UK's full membership in the European Union and a year before COVID-19 pandemic which also has influenced EU finance. In addition, the current operating balances of the member states are presented based on the latest data from 2022 referring to the author’s modified algorithm for calculating operating budgetary balances according to the guidelines of the European Commission. Findings resulting from the conducted research are as follows: referring to the formulated hypotheses it should be stated that there are no grounds to reject them. Correction mechanisms on the revenue side of the European Union budget affect the operating balance of a given country, although they do not have to cause a change in the operating balance from negative to positive or vice versa. In addition operating budgetary balances do not provide a true picture of the benefits and costs of European integration. Providing the value of budget balances for member states in relation to the EU budget should be considered a strictly accounting procedure. The wider use of operating budgetary balances can be considered a denial of the essence of European added value, because they refer to the idea of "fair return" as the expectation of a certain adequacy between the amounts paid and the funds received from the budget.

Returning personalized, genetic health test results to individuals of African descent or ancestry in precision medicine research.

Today, many epidemiological studies and biobanks are offering to disclose individual genetic results to their participants, including the National Institutes of Health's All of Us Research Program. Returning hereditary disease risks and pharmacogenetic test results to study participants from racial/ethnic groups that are historically underrepresented in biomedical research poses specific challenges to those participants and the health system writ large. For example, individuals of African descent are underrepresented in research about drug-gene interactions and have a relatively higher proportion of variants of unknown significance, affecting their ability to take clinical action following return of results. In this brief report, we summarize studies published to date concerning the perspectives and/or attitudes of African Americans engaged in genetic research programs to anticipate factors in disclosure protocols that would minimize risks and maximize benefits. A thematic analysis of studies identified (n = 6) lends to themes centered on motivations to engage or disengage in the return of results and integrating research and care. Actionable strategies determined in reaction to these themes center on ensuring adequate system and health education support for participants and personalizing the process for participants engaging in return of results. Overall, we offer these themes and actionable strategies as early guidance to research programs, and provide recommendations to policy makers focused on fair and equitable return of genetic research results to underrepresented research participants.

Asymmetric Effects of Cereal Crops on Agriculture Economic Growth: Case Study of Pakistan

Agricultural marketing includes all activities which add value to agricultural products as they move from areas of agricultural production to ultimate consumption points. An effective and efficient marketing system is required in order to ensure fair returns to stakeholders but unfortunately little attention was paid to this sector in Pakistan. This resulted in welfare risk to stakeholders as price variation and values are common phenomena in the country. Public and private sectors jointly run agricultural marketing system in the country, as public sector is responsible for framing and implementing rules and regulation whereas private sector operates the system. Agricultural markets are governed under the Agricultural Produce Markets Ordinance 1978 which needs to be updated Due to poor post-harvest management practices, almost 25-40% produce is wasted which caused considerable value losses. In this chapter, an effort has been made to describe theoretical foundation of agricultural marketing along with highlighting the marketing system of major and minor agricultural commodities in Pakistan and the role of various institutions and regulations. Marketing efficiency is often understood in terms of marketing margins, physical losses and state of market competition. These indicators are also discussed in this chapter. Further, a section is devoted to identify major agricultural marketing problems with their possible solutions

Mutual Fund Schemes in India and its Types (Large Cap, Mid Cap, Small Cap)

One of the newest investment instruments on the financial market is mutual fund investing. Concerns about fair returns from various mutual fund schemes are very prevalent among investors. The current study examines the absolute returns of diversified equity funds' large-cap and mid-cap funds over various time periods. 59 large-cap funds and 40 mid-cap funds from various financial institutions have been compiled for various time periods, including 1 day, 1 week, 2 weeks, 1 month, 3 months, and 6 months. Institutions that manage mutual funds are vital to a nation's economic growth. In many industrialised countries, a thriving mutual fund market is the primary driver of economic expansion. India opens its market to various investments in order to offer a wide range of financial products. The performance analysis of mutual funds undertaken by Sharekhan Ltd. is the foundation of this study. In order to invest in bonds, equities, or other sorts of investments, mutual funds use the money from investors. They aid in lowering the investors' transaction costs.Investors don't need to pay attention to the previous performance of mutual funds because it doesn't predict how well they will perform in the future.

Kinerja PT Bank Pembiayaan Rakyat Syariah (BPRS) Amanah Bangsa Berdasarkan Maqashid Sharia Index (MSI)

The research aims to explain and analyze about PT BPRS Amanah Bangsa performance based on Maqashid Sharia Index. This research used quantitative descriptive approach with secondary data obtained from Sharia Rural Bank financial report that was published by OJK in ojk.go.id website period 2018 – 2020. Data analysis technique that was used in this research is Simpel Additive Weighting method with Multiple Attribute Decision Making approach. The research used three concepts, namely educating individual, establishing justice, and promoting welfare. MSI element that was used in this research, such as education grant, research, training, publicity, fair returns, functional distribution, interest free product, profit ratios, personal income, and investment ratios in real sector. The result of this research showed that PT BPRS Amanah Bangsa hasn’t been maximized because there’re some indicators of MSI hasn’t been implemented by the Sharia Rural Bank. The MSI average value of PT BPRS Amanah Bangsa is 0.0629.

Performance Analysis of Bank Syariah Indonesia and Bank Muamalat Indonesia during the COVID-19 Pandemic Reviewed from Maqashid Syariah: Maqashid Sharia Approach Index

The goal of this research is to measure the capability of Islamic banking in Indonesia during the Covid-19 pandemic using the Maqashid Syariah Index approach and using the measurement of three performance indicators, namely educating individuals, establishing justice, and public interest/maslahah). This research is a type of quantitative descriptive research. Bank Syariah Indonesia and Bank Muamalat Indonesia were used as objects of research. This research uses secondary data that comes from the 2020 and 2021 annual reports sourced from the official website. The maqashid sharia index approach used in data analysis is to calculate the variable performance ratio of the maqashid sharia index which comes from the dimensions of educational grants, research, training, publicity, fair returns, functional distribution, interest-free income, profit ratios, personal income, and investment. in the real sector. The results of this study indicate that overall Indonesian Sharia Banks have the highest score, with advantages compared to using Bank Muamalat in implementing the maqashid sharia aspect and the potential for green finance development

Designing Demand Driven Price Sensitive Supply Chain Model for Indian Farmers

Small and marginal farmers (SMFs) in developing countries, perennially struggle with low marketable surplus, inadequate storage facilities, poor market access and logistical constraints that in turn leave them with distressed sales of their produce to exploitative middlemen in the agricultural supply chain. Addressing such pressing concerns, the present study aims at proposing a market-facilitating demand-centric agricultural supply chain model where the income of the farmers is directly linked with risk-adjusted actual market movement. The price-sensitive model, being a facilitator for direct marketing, makes farm produce marketable by designing a cost-effective and scientifically managed shared warehouse, and minimizing market volatility risk through diversification among a group of contributing farmers. Empirical validation of this simulation-based modelling was tested on three essential year-round food staples – Tomato, Onion and Potato (TOP) – against the prevailing market settings. Interestingly, instead of immediately selling agricultural produce to market intermediaries due to a lack of storage options, if farmers shared the associated storage cost among themselves and distributed the market returns by proportionate crop sales to fulfil the demand, they could not only realize better returns during the season but also could turn off-season market unpredictability into their favour. The model is focused on enhancing SMFs’ income in the emerging economy context, and its empirical approach for risk minimization strategy is indeed proposed for the first time in the available literature. The finding, demonstrably, substantiates that the policy implication of the proposed model for SMFs in the fruits and vegetables (F&V) segment could improve market access and derive fair returns.

Lies, Damn Lies, and Benchmarks: An Injunction for Trustees

Most institutional investors, such as public pension funds and endowments, report their performance using biased benchmarks. The benchmarks are biased downwardly, meaning their returns tend to be less than a fair return for the market exposures and risk exhibited by the institutions’ portfolios. Significant samples of both fund types exhibit benchmark bias in the range of 1.4 to 1.7 percentage points per year. This bias enables a sizable majority of both types of funds to report outperforming their chosen benchmarks when, in fact, most <i>under</i>perform an appropriate passive-management benchmark by a wide margin. Benchmark bias masks serious agency problems in the management of institutional funds. For example, fund staff and consultants have strong incentives to justify complex, costly, multi-asset-class portfolios, for which they themselves are the benchmarkers. Trustees may feel they have no choice but to accept the benchmarking and reporting by staff and consultants, but this only perpetuates the problem. At the very least, investment trustees should step up and take control of benchmarking and performance reporting. For <i>they</i> are the ones charged with watching the watchmen.

Antecedents and consequences of islamic bank performance based on the maqashid sharia index

This study aims to obtain empirical evidence regarding the antecedents and consequences of performance based on the maqashid sharia index in Islamic banks in Indonesia. The maqashid sharia index in the literature and previous empirical research is limited to its use in the aspect of performance measurement only. This study seeks new insights into the antecedents and consequences of Islamic bank performance based on the Islamic maqashid index. The antecedent studied is the characteristics of the sharia supervisory board, while the consequences studied are Islamic social reporting. This study examines the effect of the sharia supervisory board on the maqashid sharia index in Islamic banks in Indonesia. In addition, this study also examines the effect of the maqashid sharia index on Islamic social reporting. The research sample is 11 Islamic banks in Indonesia within four years (2015-2018). This study found that the characteristics of the sharia supervisory board had a significant effect on the maqashid sharia index. The better the characteristics of the sharia supervisory board the higher the maqashid sharia index is. In addition, the maqashid sharia index has a significant effect on Islamic social reporting, meaning that the higher the maqashid sharia index, the better Islamic social reporting. The first implication is that it requires Islamic banks to pay attention to fair returns, avoid prohibited products and services, and eliminate harmful elements that result in injustice. The second implication is that it requires Islamic banks to seek to increase their profitability, redistribution of profits and welfare, and investment in the real sector.

Key problems in medical research and development and proposals for changes to improve the efficiency of the current system

Background: The pharmaceutical system is failing in its role of responding to public health needs. The current R&amp;D model is driven by profits rather than the public interest. As a result, while the public funds the highest-risk research and incentivises the industry’s involvement in the public health sector, the gap between the R&amp;D agenda and medical needs is growing, new medicines are unaffordable for health systems and patients, and global access to new therapies is vastly unequal.&#x0D; Research purpose: The article looks into the root causes of this situation and the problems with the status quo to suggest potential solutions – from straightforward choices that are applicable within the existing system to transformative options that can bring back the balance between public and private interests.&#x0D; Methods: The reflections and recommendations presented in the article are based on scientific literature, materials developed by governmental and non-governmental organisations and discussions with experts.&#x0D; Conclusions: The article concludes that the most important factor is the increased involvement of the public sector, which should take greater responsibility for pharmaceutical R&amp;D rather than leaving innovation, access, availability and pricing of pharmaceuticals to be driven solely by profit-maximisation strategies. At a minimum, the public sector must ensure that R&amp;D is aligned with public needs, the end products are affordable and equally accessible, and the public gets a fair return on its investment. Structural and profound changes include altering the governance of private companies operating in the pharmaceutical sector as well as expanding the role of public institutes and companies in the system. Existing inefficiencies are not the result of scientific limitations or technical barriers, but of political choices. Ultimately, improving the pharmaceutical system comes down to choosing the public interest over private profits.

The New Contributory Pension Scheme and the Investment of Pension Fund for Improved Benefits

The study examined the new contributory pension scheme and the investment of pension fund for improved benefits. Descriptive statistics was used in analyzing the responses elicited through questionnaire, from the sampled population. Data gathered from in-depth interview were analyzed qualitatively in other to test the hypothesis. It was found that the investment of pension funds has not led to fair returns in retirees Retirement savings accounts (RSA) balance. The study suggests diversification of the portfolio and modes of investment of pension funds by the PFAs to include greater emphasis on the real estate and infrastructures, a part from government secured bonds. It is also suggested that Pen Com as the regulator should ensure adequate supervision of the activities of the PFAs so they can declare fair returns.

The Effect of Excluding Interest, in an Islamic Economy, on the Rate of Growth of Output and Achieving a Fair Return for Monetary Capital

The Effect of Excluding Interest, in an Islamic Economy, on the Rate of Growth of Output and Achieving a Fair Return for Monetary Capital

The income bond puzzle

The income bond puzzle

Children's dynamic use of face- and behavior-based cues in an economic trust game.

Who do children trust? We investigated the extent to which children use face-based versus behavior-based cues when deciding whom to trust in a multiturn economic trust game. Children's (N = 42; aged 8 to 10 years; 31 females; predominantly White) trust decisions were informed by an interaction between face-based and behavior-based cues to trustworthiness, similarly to those of adults (N = 41; aged 17 to 48 years; 23 females; predominantly White). Facial trustworthiness guided children's investment decisions initially, such that they invested highly with trustworthy-looking partners and less with untrustworthy-looking partners. However, by the end of the trust game, after children had experienced game partners' fair or unfair return behavior, they overcame this bias and instead used partners' previous behavior to guide their trust decisions. Using partners' return behavior to guide decisions was the most rational strategy, because partners' facial trustworthiness was not an accurate cue to their actual trustworthiness. This dynamic use of different cues to trustworthiness suggests sophisticated levels of social cognition in children, which may reflect the social importance of trust impressions. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

The Legitimation of Rewards to Education

Abstract Everywhere, education is well rewarded, roughly 5% to 15% for each additional year of university, hence a major source of income inequality. Why do ordinary people see income rewards to education as legitimate? Two key theories: (1) their moral views might align with classical equity arguments asserting a moral entitlement to rewards in proportion to contributions. (2) Alternatively, they might see rewards to education as fair returns on investment, a morally infused folk version of human capital. These share almost all their predictions, but they differ if an employer fully finances the education. Analysis of a large representative Australian sample reveals that the public’s ideal returns to education match equity justifications (~80%), not economists’ fair return on investments (~10%).

Article: Space Dispute Settlement in Asia in the Context of the Belt &amp; Road Initiative: An Appraisal from China’s Perspective

Conducting a space cooperation program in the context of the Belt &amp;amp; Road (B&amp;amp;R) initiative provides China opportunities to further extend the scale of space cooperation in Asia and break through the current predicament of the Asia-Pacific Space Cooperation Organization (APSCO). A more comprehensive mechanism to address the potential state-to-state and commercial space disputes is essential. To efficiently avoid and resolve disputes among the Member States, APSCO needs to improve the ‘fair return’ principle and the dispute settlement arrangement contained in its Convention. As to conflicts between APSCO and the non-Member States, dispute settlement clauses are obliged to be reached between APSCO and China. For commercial disputes, China should establish a specialized arbitration branch as a constituent of the B&amp;amp;R comprehensive dispute settlement mechanism. Disputes arising in space infrastructure investments need to be treated separately. For this reason, a special branch for settling investor-state disputes should be created under the Asian Infrastructure Investment Bank (AIIB) as advocated in this article. B&amp;R Initiative, B&amp;R-SIC, Space Disputes in Asia, Asian Space Cooperation, APSCO, Commercial Space Activities