Industrial Prices Research Articles

The Evolution of Commodity Trios Prices and Causality Equation: In Structural Break Perspective

This paper aims to examine the evolution of the commodity trios prices and relation among in structural break perspective for the period of 1991-2020. We used factor analysis, linearity, structural break, unit-root, cointegration tests and causality method were applied. Bai-Perron (2003) test results show industrial materials, energy and food price have one break at 2003, 2004, and 2005, respectively. To catch changing causality equation parameters clearly, it was used the moving sub-break range as 2003-2008. In post-break range, equation parameters obviously differed. In pre-break range, energy and food price have a in-directional effect on materials price, but, directional in post-break range. Lastly, in post-break range, the link among commodity trios have bi-directional relation between all commodity duos unlike pre-break range.

Potential Applications of Explainable Artificial Intelligence to Actuarial Problems

Explainable artificial intelligence (XAI) is a group of techniques and evaluations that allows users to understand artificial intelligence knowledge and increase the reliability of the results produced using artificial intelligence. XAI can assist actuaries in achieving better estimations and decisions. This study reviews the current literature to summarize XAI in common actuarial problems. We proposed a research process based on understanding the type of AI used in actuarial practice in the financial industry and insurance pricing and then researched XAI implementation. This study systematically reviews the literature on the need for implementation options and the current use of explanatory artificial intelligence (XAI) techniques for actuarial problems. The study begins with a contextual introduction outlining the use of artificial intelligence techniques and their potential limitations, followed by the definition of the search equations used in the research process, the analysis of the results, and the identification of the main potential fields for exploitation in actuarial problems, as well as pointers for potential future work in this area.

Monetary policy and overshooting of agricultural prices in China: in a supply chain perspective

PurposeThe purpose of this paper is to test the overshooting effects of monetary expansion on prices of agricultural products at farm production, processing and circulation stages in China, and to investigate the heterogeneity of the overshooting mechanisms in these three links.Design/methodology/approachEmpirical results are obtained through the vector error correction model and the overshooting framework proposed by Saghaian et al. (2002b). Specifically, we first apply the Dickey–Fuller generalized least squares (DF-GLS) method to test the stationarity of the key variables, and then use the Johansen’s (1991) method to conduct the cointegration test. Finally, the vector error correction model is employed to examine the overshooting hypotheses in the three stages of China’s agricultural sector.FindingsEmpirical results indicate that overshooting of prices relative to monetary expansion in China’s agricultural sector is a common phenomenon, but with significant heterogeneity. Firstly, at the stage of agricultural production, the overshooting degree and restoration rate of material price are greater than those of agricultural products price. Secondly, at the processing stage of agricultural products, both the purchase price of agricultural products and industrial producer price have an overshooting effect, but the overshooting effect of the former is more significant than the latter. Thirdly, at the circulation stage of agricultural products, the overshooting coefficient of the wholesale price index of agricultural products is the most significant, while that of the retail and purchase price of agricultural products is not significant.Originality/valueThe paper contributes to proposing a comprehensive framework on testing the overshooting effects for three main stages of agricultural sector in China and empirically investigating the heterogeneity of the overshooting mechanisms in different stages with time series methods.

Governmental responses and firm resilience during the COVID-19 pandemic: The role of culture and politics

Using data from 180 countries and 24,833 publicly traded firms worldwide, this study examines how cultural and political factors influence the stringency of a government’s response to the COVID-19 pandemic and, in turn, the stock prices of firms and industries operating in a given country. Existing research demonstrates that government behavior during a pandemic can directly or indirectly affect stock prices. This study explores twelve political and cultural characteristics that might influence government policies. Interestingly, our results indicate that democratic and less long-term-oriented countries employ stricter responses to the pandemic. Furthermore, countries with higher individualism, coalition governments, and governments not battling for re-election appear to employ a smoothing strategy: although they implement stringent responses early on, they tend to react less aggressively when the number of COVID-19 cases increases. This study finds that increased stringency has a negative impact on corporate abnormal returns, especially during the early stages of the pandemic. Our study has important policy implications and offers valuable insights to investors: stock price reactions depend on political and cultural factors, industry, and firm characteristics. Most importantly, larger firms with more cash operating in collectivist and politically stable countries are more resilient.

Industry price guarantees for publicly funded medicines: learning from Project NextGen for pandemics and beyond.

The affordability of publicly funded medicines has been a longstanding concern. In 2023, the Biden administration took several steps on this front, including incorporation of a price constraint in an agreement between the US Biomedical Advanced Research and Development Authority (BARDA) and Regeneron Pharmaceuticals, Inc. to develop a new COVID-19 monoclonal antibody. The agreement included a 'Most Favored Nation' (MFN) clause in which Regeneron agreed that the US commercial list price of certain products developed using BARDA funding would not exceed their retail price in comparable global markets. The Administration for Strategic Preparedness and Response (ASPR) included similar language in subsequent agreements, with a promise that this would become a new standard. Even beyond the preparedness context, government funders and purchasers might consider incorporating similar clauses in future contracts, especially given that the Regeneron agreement and its progeny have been praised as 'groundbreaking.' Yet a closer look reveals cause for skepticism. Regeneron's MFN clause includes several loopholes related to covered purchasers and reference countries, prices, and conditions. We describe agreement terms that can make the difference between legally meaningful price constraints and mere window dressing. Our critical analysis offers important lessons for future efforts to improve the affordability of medical technology developed with public funds.

Design and optimization of the U-shaped well geothermal systems for heat production performance: A case study from Huangling, China

U-shaped well geothermal systems have obvious advantages in deep geothermal development due to the long heat exchange distance and no fluid leakage. Well layout is a primary optimization target to enhance the heat production performance. However, there is a lack of studies for well location selection and installation configuration considering regional groundwater flow. In this study, a coupled thermo-hydro model considering 1D U-shaped well and 3D reservoirs groundwater flow is proposed for the optimization of U-well geothermal systems. The proposed model is calibrated by the field test of U-shaped well in Huangling, China. First, the U-shaped well geothermal system with multiple injection wells is designed. The feasibility is comprehensively evaluated from the aspects of heat production performance and levelized cost of electricity. Subsequently, the influence of groundwater flow on heat production performance is analyzed in detail, including flow velocity, porosity, aquifer thickness and flow direction. Finally, sensitivity studies of thermal conductivity of cement, wellbore diameter, and injection flow rate are investigated to provide reference for production operations. The results show that the heat production performance of the U-shaped well geothermal system with multiple injection wells are significantly better than the single U-shaped well. And the levelized cost of energy can be reduced by 0.0288 $/kWh compared to the average industrial electricity price in China. The groundwater flow velocity remarkably affects the heat production performance. The large aquifer thickness and porosity contribute to the improvement of the heat production performance of the U-shaped well geothermal system. The U-shaped well with injection wells located in the lower reaches of groundwater flow field has better heat production performance. The research results can provide references for design and optimization of the U-shaped well geothermal systems.

The Impact of the Macroeconomic Factors on the Bucharest Stock Exchange During the Latest Crisis

The purpose of the paper is to observe and analyze how the dynamics of macroeconomic factors impact the evolution of the Bucharest Stock Exchange (BVB) during the latest crisis (Covid-19 pandemic and the Ukrainian war), through the lens of various market stock indices (BET, BetPlus, BET-FI and BETNG). After the monthly values of both the macroeconomic factors (inflation rate, unemployment rate, RONEURO exchange rates, industrial production index, average salary, money supply, interest rate and oil price) and Bucharest Stock Exchange indices were collected, during the period January 2020- June 2023, the descriptive statistics was used to describe all the observed data (mean value, standard deviation, minimum/ maximum value). Finally, the multiple regression was used to see exactly how the Romanian stock market indices are influenced by any changes of macroeconomic factors.

Technological innovation and its influence on energy risk management: Unpacking China’s energy consumption structure optimisation amidst climate change

In the context of intensifying climate challenges, adept energy risk management is more pertinent than ever. This research pioneers an in-depth exploration into China’s pronounced reliance on high-polluting fossil fuels, utilising a decade’s worth of provincial data (2010–2020) to shed light on the intricate dynamics between technological innovation and energy consumption structure refinement. Notably, our findings unveil that technological advancements act as catalysts in streamlining energy consumption structures, serving as a bulwark against emergent climate-related risks. Yet, this positive trajectory is not immune to disruptions: volatility in crude oil futures prices has the potential to dampen these benefits, ushering in heightened financial risks. Our work further underscores pronounced regional variances; technological innovation yields diminished returns in the central and western regions compared to their eastern counterparts. An intriguing observation is the resilience exhibited by coal-dependent provinces to technological evolution, pointing towards entrenched energy infrastructure challenges. Crucially, this study is among the first to identify the dual roles of industrial structure evolution and energy pricing dynamics as mediators in energy risk management. Drawing from these insights, we advocate for a proactive harnessing of technological innovation, not merely as a tool, but as an imperative to drive China’s energy transformation, foster sustainable consumption, and lay the foundation for a fortified green and low-carbon technological ecosystem.

Energy shock, industrial transformation and macroeconomic fluctuations

This paper analyzes the impact of coal shock and oil shock on China's macro economy by constructing SVAR model, and clarifies the impact mechanism of the two shocks and corresponding countermeasures by constructing a small open DSGE model. We find that: 1) The impact of exogenous coal impact mainly affects the total output by influencing thermal power generation. Due to the incomplete release of power price in China, under the impact of exogenous coal, the rise of thermal power generation cost will lead to the decline of thermal power generation, which will lead to the shortage of power supply for industrial production and the decline of output. 2) Exogenous oil shock mainly affects total output by influencing monetary policy. Different from coal, oil is widely used and its price rise has a significant impact on industrial product prices, which will lead to a certain degree of monetary policy contraction and total output decline. 3) According to the counterfactual analysis and welfare analysis, we find that the exogenous coal shock can be mitigated by reducing the external dependence of coal and industrial green transformation. At the same time, the exogenous oil shock can be mitigated by establishing strategic cooperation and industrial green transformation with oil-rich countries. This paper has certain policy implications for Chinese government departments to promote industrial green transformation and improve energy security.

Monopolistic Behavior Analysis and Anti-Monopoly Strategy Research based on Cola Drinks Industry --Take the Comparative Analysis of Coca-Cola and Pepsi as an Example

This research explores monopolistic behavior and anti-monopoly strategies within the soft drinks industry, focusing on a comparative analysis of Coca-Cola and Pepsi. The study highlights how duopoly dynamics impact pricing and competitiveness in the market. It delves into historical competition between these industry giants, particularly during World War II, shedding light on Coca-Colas strategic dominance. The paper emphasizes the influence of brand promotion on pricing, revealing the potential for higher costs in the industry. Additionally, it underscores the significance of examining the effects of duopoly on cola drink prices for antitrust considerations. The research offers practical suggestions to address these challenges. Recommendations include fostering product innovation, building strong brands, establishing strategic partnerships, implementing pricing strategies, and emphasizing cost control. These measures aim to enhance overall industry pricing and competitiveness. Moreover, the study addresses the difficulties newcomers face entering the soft drinks industry and suggests policy incentives, collaborative efforts, engagement with industry associations, and regional focus as solutions to mitigate barriers to entry. Lastly, the research advocates for regulatory oversight, competition promotion, consumer education, price transparency, diversified supply chains, and support for collaboration and innovation to safeguard consumer interests. These measures aim to maintain a fair and diverse soft drinks market.

Analysis of China's Electricity Price and Electricity Burden of Basic Industries Under the Carbon Peak Target Before 2030

Analysis of China's Electricity Price and Electricity Burden of Basic Industries Under the Carbon Peak Target Before 2030

Exploring the development of niche music in the digital age

The purpose of this paper was to look into the challenges and opportunities that niche music artists face in the digital age, with a particular focus on Universal Music Group and its subsidiary, Spinnup. It examined the transition from physical to digital music and the implications for niche music artists critically. It explicitly addressed pricing and promotion issues in the digital music industry, drawing on marketing mix theory. According to the paper, platforms such as Spinnup have made it easier for niche artists to distribute their music globally, but they frequently require assistance in generating sufficient revenue due to high release fees and insufficient promotion. To address these issues, the paper proposed two major solutions: a pricing model revision and the provision of marketing and promotional tools. The proposed solutions aimed to foster a more welcoming environment for niche artists by providing them with the tools they need to effectively reach their audiences and thrive in the digital music industry. The findings provided insights into the music industry’s digital transformation and suggested strategies for promoting the growth and sustainability of niche music.

Industry Price Guarantees for Publicly Funded Medicines: Learning from Project Next Gen for Pandemics and Beyond

Industry Price Guarantees for Publicly Funded Medicines: Learning from Project Next Gen for Pandemics and Beyond

Pendekatan Fuzzy Logic dalam Perhitungan Harga Rental Truck Crane

Calculating rental prices in the crane rental industry is essential in achieving competitiveness and optimal profits amidst increasingly tight business competition. Applying fuzzy logic, especially the Fuzzy Mamdani method, in calculating truck crane rental prices by Standard Operational Decision Procedures (SPOK) can significantly contribute to overcoming penetration and subjectivity that may be associated with factors that influence truck crane rental prices. The advantage of fuzzy logic, especially the Fuzzy Mamdani method, and its contribution to the crane rental industry lies in its ability to handle ambiguity in data and decision problems. The Fuzzy Mamdani method was chosen because of its high flexibility and ability to handle data tolerance values well. This research shows that applying fuzzy logic can help carry out optimal calculations to determine crane rental prices. Using input variables such as a distance of 40 km and a weight capacity of 25 tons, the calculation results show that the rental price is in the medium category. This reflects the synchronization of calculation results in determining crane rental prices, which can be adjusted to certain conditions and variables.

Beyond the Balance Sheet: Analyzing the Relationship between Corporate Governance, Financial Performance, and Stock Prices in Pakistan's Non-Bank Financial Industry

This study explores the complex relationship among corporate governance, financial performance, and stock prices in Pakistan's non-bank financial industry from 2017 to 2021. Employing panel least squares and generalized method of moments for empirical analysis, our research highlights the substantial and positive correlation between stock prices and earnings per share, emphasizing the significance of profits per share. Corporate governance factors, such as board meetings, board size, and board independence, exhibit shaded impacts on stock prices. Board meetings transition from insignificance in static analysis to a negative, substantial association in dynamic analysis. Conversely, board size and board independence remain insignificant, suggesting a limited influence on stock price fluctuations. Institutional ownership emerges as a robust driver, displaying a positive impact in both static and dynamic analyses. In contrast, managerial ownership yields mixed impacts, with static analysis revealing a nonsignificant negative relationship and dynamic analysis unveiling a significant negative association. The study underlines the need to consider both static and dynamic perspectives when evaluating these relationships, highlighting the temporal dynamics and lagged effects in assessing the influence of managerial ownership on stock prices. Additionally, return on assets demonstrates an insignificant impact on stock prices in Pakistan's non-bank financial industry, consistent across both static and dynamic analyses.

Research on Industrial Economic Development and Electricity Price Adjustment Strategy Based on Multi-Agent Game

With the deepening of the electricity market reform and the accelerating transformation of the new power system, the number of new electricity customers in the market with local development characteristics has increased. The local industrial and economic development have been affected by the ability to guide electricity prices. In this paper, using the multi-agent game based on exploring the impact of electricity price on the industrial economy, the specific optimization scheme of electricity price adjustment is proposed with the aim of improving the overall efficiency of the power grid and reducing the cost of electricity for industrial users. After the game, the overall efficiency of the electricity supplier will be increased by about 3.06 percent, and the cost of electricity used by various special industries will be reduced by about 6.86 percent to 4.48 percent. The win-win situation of the electricity suppliers’ income and the featured industries’ development can be achieved by the optimization results. As well as the cost of electricity consumption in featured industries can be reduced, and the comprehensive benefits of electricity suppliers can be improved by using the electricity price adjustment scheme after game interaction, which promotes the rational use of energy and meets the current social requirements for the green and sustainable development of the electricity industry.

A Predictive Model for POP Cement Prices in the Nigerian Construction Industry

This study was aimed at formulating a model to predict the price of Plaster of Paris (POP) cement using a multiple linear regression modelling technique. The prices of POP cement were predicted between the fiscal years 2024 and 2030, given the prices between the fiscal years 2017 and 2023. Secondary data were obtained for the Interest Rates, Inflation Rates, Naira exchange rates against the US Dollar, Population growth rates, and Gross Domestic Product (GDP) growth rates between 2017 and 2023. Primary data were obtained to investigate the prices at which POP was sold between the fiscal years 2017 and 2023. Exponential trends forecasting was used to forecast the above decision variables or factors affecting the price of POP cement between 2024 and 2030. A multiple linear regression model was derived for the prediction of the POP cement prices between the said years. The model was found fit, adequate, and of a high predictive attribute with an R2 value of 0.99. This study will help in the proactive planning of effective cost management for building construction projects in which POP cement was used. It will reduce problems and challenges of cost overrun on construction projects in the Nigerian construction industry.

Empirical analysis of the relationship between carbon trading price and stock price of high carbon emitting firms based on VAR model - evidence from Chinese listed companies.

At the United Nations General Assembly, the Chinese government promised to reach the peak of carbon dioxide emissions by 2030 and achieve a relative balance between carbon dioxide production and offsetting by 2060. The research aims to explore the relationship between carbon trading prices and stock prices in various high emission industries in China and analyze the attitudes and behaviors of enterprises towards carbon trading. From a market perspective, this topic has important theoretical significance and practical value for promoting energy transformation, encouraging enterprises to reduce emissions, and controlling greenhouse gas emissions. In addition, understanding the behavior and attitude of enterprises in the carbon market is also of great significance for formulating policies and measures to develop the carbon trading market. The study used the VAR model to empirically analyze the relationship between carbon trading prices and stock prices. Granger causality test, impulse response analysis, and variance decomposition analysis are used for analysis. The research results indicate that the contribution rate of carbon trading prices in the first phase is 100%, which gradually decreases to the lowest value of 98.27% in the eighth phase. The stock price contribution rates of the water, electricity, and gas supply industries reach a peak of 0.74% in the second period and gradually decrease to 5.2% in the eighth period. The contribution rate of stock prices in other industries has gradually increased. At present, the carbon trading market in China is still in the development stage, and it is necessary for the government to adopt various policies to regulate it, including encouraging enterprises in high emission industries to increase investment in emission reduction, strengthening the supervision of the carbon trading market, providing technical support and green innovation incentives, strengthening enterprise emission reduction awareness and information disclosure.

Impact analysis of mergers and acquisitions on the performance of China's new energy industries

The development of new energy industries is crucial to a nation's energy transition to carbon neutrality, while photovoltaic, wind power, lithium battery, and new energy vehicles industries have been active in the capital markets. We choose mergers and acquisitions (M&A) activities in such industries in China to investigate how they affect firms' short-run market performance and long-run innovation. Using data gathered from 2012 to 2020, we evaluate the degree of stock price volatility with the Carhart four-factor model combined with event study analysis. Changes in innovation after M&A activity has occurred are evaluated using the PSM-DID model. Empirical analysis shows that M&A could have a positive, short-run impact on stock prices of new energy industries, while the impact of technology M&A on sub-industries is not consistent. The cumulative average abnormal returns (CAAR) of the wind power and photovoltaic industries turn from negative to positive, and the correlative new energy vehicles and lithium battery industries reach the highest returns in a window period with similar trend lines. Furthermore, technology M&A positively affects the innovation performance of new energy firms, and this effect lasts three to four years. In contrast to prior industry-wide and conclusion-inconsistent M&A studies, we concentrate on new energy industries and prove the definite positive effect of technology M&A for the firms.

An analysis of cost and revenue of Bakery Industry in Dharan

The research paper aims to analyse the cost and revenue of bakery industry in Dharan. This research is based on primary data. To achieve the objective, quantitative and qualitative research designs have been used. Bakery industry is the emerging business industry in Dharan. Bakery industry is a huge business that caters to people's weaknesses for tasty breads, cakes, pies and sweet rolls. It is revealed that the cost and revenue of bakery products have highest mean values whereas location is least important than other dimensions. There is various bakery industry in Dharan, which produce different types of Bakery products and it provides various job opportunities. Lack of skilled manpower, scarcity of water, sufficient amount of food product are major problems of bakery industry and high price of raw material is another major problem of bakery industry in Dharan.