Market Initiative Research Articles

Financial stability and European union allowances: a tale of jumps and regime shifts

ABSTRACT Using an event-study methodology, we investigate the impact of European Union Allowances (EUA) on measures of systemic risks for financial institutions. We analyse daily data on all banks listed on European exchanges. We find statistically significant abnormal changes in systemic risk measures around days when prices of allowances either jumped or shifted regimes. The paper also documents reduced systemic risk around positive jumps and regime shifts of allowances and increased systemic risk throughout negative jumps and regime shifts. Our contribution to the literature consists in producing evidence that financial stability supports the European carbon market initiative to mitigate climate change. These results have significant implications for policymakers and financial institutions.

The Center for Indigenous Innovation and Health Equity: The Osage Nation's Mobile Market.

Over the last decade, the Osage Nation has actively worked to build Tribal food sovereignty within the reservation where rates of chronic disease and food insecurity are higher than the United States general population. In 2013, the Nation repurposed land toward the development of a Tribal farm with the aim of providing healthy foods to Osage citizens. Produce from the farm is distributed to elders groups, at Tribal Head Starts and schools, and to support the tribal food distribution program. These efforts have led to improved vegetable intake among Osage children, contributing to improved food security, but there is concern that tribal members who live in more remote areas of the Nation or have transportation or mobility issues are not able to access farm production. In partnership with the Center for Indigenous Health Equity (CIIHE), Osage Nation engaged in a community-based participatory research study to assess reservation areas with the greatest barriers to healthy foods and to identify community priorities for intervention. Guided by the principles of food sovereignty, which assert that intervention efforts must address the underlying structural issues of inequality, Osage has designed a mobile market initiative to expand the reach of the Harvest Land farm and deliver healthy, tribally produced meats, herbs, and fresh vegetables to areas with the highest rates of food insecurity. We describe the participatory research efforts and evaluation strategies that center Osage priorities for food security and food sovereignty.

ОСОБЛИВОСТІ РЕГУЛЮВАННЯ СФЕРИ ІНФОРМАЦІЙНО-КОМУНІКАЦІЙНИХ ТЕХНОЛОГІЙ ДЛЯ ПОДОЛАННЯ ЕКОНОМІЧНОЇ НЕРІВНОСТІ КРАЇН В МЕЖАХ ЄС

The article examines the uneven distribution of access to data, which leads to the emergence of inequality, which is based on information and communication technologies. It was determined that the rapid aging of telecommunications means is indicative of a growing digital divide, both within the country and between countries. The current trends in global digital inequality are characterized. It is noted that international unified regulation of the field of information and communication technologies can be one of the ways to reduce both economic inequality and the "digital divide". The main principles of supranational regulation are described on the example of the European Union. International cooperation in the field of protecting the privacy of cross-border data, the flows of which are growing, is considered. Features of the new "Digital Europe" program are revealed, which will be crucial for the availability of artificial intelligence technology for small and medium-sized enterprises in all member states with the help of digital innovation centers, enhanced testing facilities, experiments and training programs. The strategic priorities of the European Union have been determined to be the implementation of the Single Digital Market initiative, which will ensure the free movement of people, services and capital, uninterrupted access and conduct of activities on the Internet under conditions of fair competition, as well as guaranteed protection of personal data. Proposals regarding a set of measures to ensure high-quality access to the Internet on the territory of the EU were considered. The main goal on the path to creating a single digital market in Europe is the implementation of the European cloud initiative, which provides for the provision of world-class data infrastructure to industry, government bodies and science. The proposals of the European Commission regarding the implementation of the Digital Compass for the realization of the digital ambitions of the EU by 2030 are presented. It was determined that the ICT regulation system is effective and aimed at leveling individual inequalities in the economic development of countries within the EU, creating equal opportunities for access to ICT and achieving leadership in the field of digital technologies in the future.

ЗАРУБІЖНИЙ ДОСВІД УПРАВЛІННЯ НОВОВВЕДЕННЯМИ В ОРГАНІЗАЦІЇ СФЕРИ ОХОРОНИ ЗДОРОВ’Я

The article examines the foreign experience of innovation management on the example of EU and OECD countries. The relevance of this problem is due to the fact that the state of the country's economy depends on the quality level of its productive forces, the main component of which are people who need to receive highquality medical services. In this regard, it is necessary to apply managerial approaches to the formation of favourable conditions for achieving a balanced development of a holistic innovative system of health care institutions. Emphasis is placed on the fact that the current managerial approaches to innovations do not allow overcoming innovative passivity and fully implementing and using innovations of various types. The use of information and communication technologies in health care institutions of the countries of the world is considered. One of the main points of the "anticipatory market initiative" of the EU regarding electronic medicine is: determination of the volume of products and services of the electronic medicine market; recommendations for a new approach to policy coordination based on improving the balance between supply and demand both between EU member states and within these countries in specific target areas of e-medicine; elements of evaluation by external stakeholders. It is noted that in the OECD countries considerable attention is paid to the mechanism of evaluation of innovative medical technologies. The development of the health care system of the OECD countries is characterized by a shift in priority from saving costs for the provision of medical services to the implementation and use of the most effective methods of resource allocation. One of the methods of solving this task is the creation of restrictive lists of medical services, drugs and products, the costs of which are reimbursed from the health care budgets of different levels. The leading element of the assessment is the clinical and economic analysis. This assessment involves the selection of optimal technologies and products that provide the maximum benefit for the health of the population at a given level of costs. The key directions for the further development of the innovation management system in domestic health care institutions have been identified, including: the total transition of the entire field of health care and infrastructural organizations of the medical services market to electronic document management with legal confirmation of its priority in the collection, processing, storage and transmission of data of a medical nature; creation, promotion and development of electronic services and medical services; increasing the digital literacy of medical personnel, followed by the provision of the necessary equipment; reduction of the number of personal visits of patients in medical institutions for the implementation of simple, typical and repetitive actions, and others.

Penguatan Kerjasama ASEAN Plus Three (APT) untuk Penanganan dan Mitigasi Dampak Negatif Ekonomi dari Pandemi Covid-19

This study will discuss efforts to strengthen ASEAN Plus Three (APT) cooperation in dealing with the mitigation of negative economic impacts resulting from the Covid-19 pandemic which will be explained using the concept of Economic Regionalism. The scope of this research is limited to the policies carried out by ASEAN Plus Three (APT) to help maintain economic and financial stability, as well as new breakthroughs in the digital economy in the Southeast Asia region. The results of this study are that the policies undertaken by APT in dealing with negative economic impacts are divided into three, namely the Chiang Mai Initiative Multilateralization (CMIM), Macroeconomic Research Office (AMRO), and the Asian Bond Market Initiative (ABMI). The strengthening of regional cooperation has had a positive impact on efforts to recover the economy in the Southeast Asia region.

"Something Fun to Look Forward to": Lessons From Implementing the Prescription for Health Farmers' Market Initiative in Rural Upper Michigan.

Fruit and vegetable (FV) prescription programs are an increasingly popular community-based approach to addressing food insecurity and improving nutrition by connecting local health care and food systems. The Prescription for Health farmers' market FV prescription program was piloted in a rural, low-access low-income Michigan community in 2017. The program enrolled 33 adult participants with chronic disease and provided weekly farmers' market FV vouchers, educational nutrition handouts, and seasonal healthy recipes over 10 weeks. Weight, blood pressure, and the following self-rated variables were assessed pre- and post program: dietary habits, food literacy, physical health, and mental health. While most metrics remained generally unchanged, one of the strongest findings from our data included significant improvement in quality of life. Increased social interaction as a result of the attending the farmers' market was a prominent theme from informal open-ended participant feedback. Given the ongoing public health crisis of loneliness and social isolation, this finding led us to consider the farmers' market as an avenue for creating opportunities for meaningful social connection among participants and farmers. To this end, we discuss health outcomes of the Prescription for Health pilot program, reflect on unique aspects of implementing this program in a rural area, and explore future opportunities for farmers' market prescription programs as an innovative form of nature-based social prescribing.

Network analysis of local currency Asian government bond markets: Assessments of the ABFI and the ABMI

The purpose of this paper is to assess local currency (LCY) Asian government bond markets using network analysis during the period 2001–2017. In particular, we (i) assess how the network of the markets is connected (integrated), (ii) assess how the risks over the network diverge following a risk shock in one market, and (iii) determine under what conditions rapid reconvergence occurs. We found that the network of LCY Asian government bond markets is fully connected by the Asian Bond Fund Initiative and the Asian Bond Market Initiative, and thus, risk can reach further out faster in the web of stronger relationships in the post-2008 period. The quarantine of and assistance for risks in the center market lead to rapid reconvergence compared with other markets. These findings suggest the success of LCY Asian government bond financing promoted by ABFI and ABMI, triggering LCY Asian corporate bond financing.

Social Justice as an Incentive and a Brake on Economic Development: The Contradictions of the USSR as Challenges for the Future

The article examines the experience of the USSR in the field of solving the problem of correlation between social justice and economic efficiency. The characteristics of those aspects of Soviet experience in the sphere of implementation of social justice principles in the sphere of labor and distribution, which have potential for application in the conditions of modern capitalism to respond to the current challenges, are outlined. Firstly, it is noted that social justice is not reduced to inequality of income and distribution of wealth but is considered in connection with the human factor of economic development. In an expanded understanding, social justice includes a measure of access to basic resources such as labour, housing, education, health and other areas of human development. The experience of the USSR is characterised by the fact that, on the one hand, the universal availability and security of these basic resources (public goods) created the grounds for stimulating human development. On the other hand, the violation of these declared principles in practice (due to the development of bureaucratic privileges and benefits, the shadow economy, etc.) caused serious negative incentives, which became one of the elements in the system of reasons for the departure of “real socialism” from the historical scene. Secondly, the article points out that the Soviet system of income generation based on the principles of labour distribution was a combination of planned-normative and market-capitalist principles designed to create economic “egoistic” incentives. To the extent that this system was implemented, it succeeded in stimulating productivity and labour (but not market) initiative. But the manifestation, and in later stages of the USSR's development – in some cases the predominance, of bureaucratic-voluntarist foundations in the system created rather negative incentives. Relations of alienation in the sphere of appropriation and disposal of public property undermined socialist incentives to work and social innovation. The author concludes that some of the achievements of the Soviet system in the realisation of social justice are possible and effective in meeting the challenge of sustainable development in the 21st century. In particular, practices that were developed in the Soviet system, such as the provision of basic goods that are publicly available and free to users, the use of forms of work organisation based on a combination of competition, solidarity and self-government, etc., remain important.

Multi-agent Deep Reinforcement Learning for Distributed Energy Management and Strategy Optimization of Microgrid Market

With the increasing demands for autonomous decision, market initiative, and privacy protection, a distributed energy management and strategy-making framework is more appropriate for the future microgrid. Besides, the integration of various distributed generations (DGs) and load facilities with high randomness poses challenges to traditional model-free microgrid market management approaches. Therefore, this paper concentrates on the distributed energy management and strategy optimization for a regional microgrid from the following aspects. First, a multi-agent reinforcement learning (MARL) framework is applied to generate independent real-time market decisions and to keep the benefits balance during agents’ interactive learning. Moreover, to solve the defects of traditional RL in the microgrid case of continuous state inputs, a multi-agent deep Q-network (MADQN) is adopted as the approximation of value function. Finally, an optimal equilibrium selection (OES) mechanism is proposed to calculate the collective update objective for promoting learning efficiency and to ensure benefits equilibrium. Combining theoretical analysis and simulation results, the proposed MARL framework can improve the microgrid operation performance from economy, independence, and benefit balance among microgrid participants.

Network Analysis of Local Currency Asian Government Bond Markets: Assessments of the Abfi and the Abmi

The purpose of this paper is to assess local currency (LCY) Asian government bond markets using network analysis during the period 2001–2017. In particular, we (i) assess how the network of the markets is connected (integrated), (ii) assess how the risks over the network diverge following a risk shock in one market, and (iii) determine under what conditions rapid reconvergence occurs. We found that the network of LCY Asian government bond markets is fully connected by the Asian Bond Fund Initiative and the Asian Bond Market Initiative, and thus, risk can reach further out faster in the web of stronger relationships in the post-2008 period. The quarantine of and assistance for risks in the center market lead to rapid reconvergence compared with other markets. These findings suggest the success of LCY Asian government bond financing promoted by ABFI and ABMI, triggering LCY Asian corporate bond financing.

Market initiative and central planning: A study of the Moscow bus network

The dichotomy of the market initiative and central planning is considered to be one of the main issues in the governance of public transport provision. It relates to the rights of either the operators or authorities to design public transport services. The advantages and disadvantages of these models can motivate the reforms of public transport governance. Such reforms usually result in significant changes in the technical specifications of the public transport services. In this paper, we attempt to study the changes in the Moscow bus network introduced within the reform of public transport governance, the so-called ‘new model of partnership with private operators’ scheme. In 2016, all market-initiated minibus routes were replaced by those directly designed by the Moscow authorities. Since then, the private branch of the Moscow bus system came under a central planning regime with no room for market initiative. The large changes in the network in 2016 opened up a discussion on the impact of public transport governance on the network structure. This paper provides an analysis of the land passenger transport network of 2015 and 2016. It can be useful to describe the paths of network development under different regulatory regimes.

Promoting Local Currency Usage in the Region

This paper focuses on policies to promote the greater use of regional currencies in intra-regional trade and investment. This will reduce the dominance of the U.S. dollar and lessen the region's exposure to U.S. monetary conditions and monetary policy. A key focus in this paper is on policies to help set up efficient currency exchange markets to reduce currency exchange transaction costs. This is fundamental, as high currency exchange spreads between local currencies discourage local currency usage for trade and investment. China's policy to internationalize the RMB and set up offshore direct foreign exchange markets between the RMB and other currencies is also highlighted. Other important issues include the Local Currency Settlement Framework, the Asian Bond Market Initiative, and Asian Bond Funds.

Comments on Promoting Local Currency Usage in the Region

June 01 2020 Comments on Promoting Local Currency Usage in the Region Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2020 by the Asian Economic Panel and the Massachusetts Institute of Technology2020Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2020) 19 (2): 18–20. https://doi.org/10.1162/asep_a_00770 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on Promoting Local Currency Usage in the Region. Asian Economic Papers 2020; 19 (2): 18–20. doi: https://doi.org/10.1162/asep_a_00770 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Tao Liu, Central University of Finance and Economics: This paper provides a detailed and systematic analysis on polices trying to promote local currency usage. This topic attracted wide attention in the wake of the 2008–09 global financial crisis. The safety and sustainability of the international monetary system's currency centering around the U.S. dollar has been severely questioned. Many countries therefore seek to promote internationalization of their domestic currency. One example is the Chinese Renminbi, which officially joined the Special Drawing Right currency basket in 2016. Following this trend of currency internationalization, the author discusses (1) policies on the currency exchange market; (2) China's policy to promote RMB internationalization; (3) the Local Currency Settlement Framework (LCSF); and (4) the Asian Bond Market Initiative (ABMI) and Asian Bond Fund (ABF). The author's rich experience and expertise in this field make his arguments convincing and insightful. Here I provide some complementary thinking and... You do not currently have access to this content.

Perfect Match? The Practice Ecology of a Labor Market Initiative for Refugees

The article investigates the case of a Danish labor market initiative for refugees with a professional engineering background. The ambition is to identify the causes and contextual elements that are active in shaping labor market initiatives directed at groups of refugees. Contemporary theories of practice are used to investigate the structures that enable, constrain, and channel the activities related to the initiative. The discussion focuses on the practice of the initiative in order to analyze ways in which activities are organized in the site. Furthermore, it sets out to investigate how the practices exist and are interconnected in ecological arrangements where practice architectures hold one another in place. The theoretical conceptualization in terms of practice, practices, practice architectures, and practice ecologies helps to explain how a seemingly ideal initiative turned out to have a little impact in bringing the refugee engineers closer to employment on the Danish labor market.

Workshop 3 report: Market initiative regimes in bus, coach and rail: Recent developments, threats, developing paradigms and regulatory needs

This paper synthesizes evidence from Workshop 3 ‘Market initiative regimes: experience and measures to improve performance’ of the 15th International Conference on Competition and Ownership in Land Passenger Transport. This workshop discussed the growing importance of market initiative regimes in public transport focussing on the market and regulatory developments in three sectors: local and regional bus, long-distance coach and passenger train services. The comparison of these sectors illustrated impressive but also very substantial differences between countries in terms of market potentials, success of market initiative, regulatory paths taken and resulting performance.Various observations were made. The size and stratification of passenger transports markets in most countries or regions studied seemed to leave little room for direct intramodal competition, while there was more trust in the viability of intermodal competition. The lack of data was perceived to be a major issue, not only for research but also for market transparency and well-functioning. The development of new intermediaries for information and ticketing purposes seems to point at a possible gradual replacement of the ‘old’ public transport integration dogma with some new paradigm. There is still a lack of academic studies focussing on the process leading to demand and supply of regulation of market initiative regimes and of studies looking subsequently at the factors leading to the uptake of such regulatory tools or at the practical requirements for such specific regulations to function.

Commercial services in German local public transport

Since 1996 German local public transport by road has been organised as a hybrid regime. This regime allows for market-initiated services as well as contracted public services initiated by competent authorities. The legal regime prioritises market-initiated services. In 2012 the legal framework was amended, but the general setting of a hybrid regime was kept together with the priority of market initiatives. The new law came into force in 2013. It was expected that conflicting initiatives might possibly concern regional services but not city networks, because of the high level of subsidies that are typically necessary for the operation of such networks. Surprisingly, in 2015 a market initiative competed successfully against the authority’s intention to tender the urban bus network in Pforzheim. As of December 2016 a daughter company of Deutsche Bahn operates these services without any contractual compensation. The company formerly operating the services in Pforzheim had to be shut down. The paper gives an overview of the regulation of the German road-based local public transport and describes the procedure by which commercial operators may gain access to the market. It provides a closer look at the Pforzheim case and concludes with an outlook on the (political) consequences.

A Regional Repo Market Initiative for Global Financial Stability

The prevailing international monetary system suffers from a shortage of good collateral for nonbank secured lending. Given that the global financial crisis was mainly triggered by the collapse of the collateral pool for dealer-based credit intermediation, there is a need for reforms to prevent it from happening again. This would be possible with a better use of U.S. Treasuries that are kept in silos and a broader recognition of an emerging market sovereign collateral pool. The inclusion of new collateral into the existing nonbank credit intermediation facilities of core countries would be expected to stabilize global capital flows and improve financial stability. The market-driven, risk-mitigating regional repo market initiative would also bring balance to an increasingly market-driven financial ecosystem and mitigate the global shortage of safe assets. Given the geopolitical constraints, developing a regional repo market in Asia is a viable option to take care of long-term rebalancing needs via market development as well as mitigating financial instabilities caused by increasingly collateral-based integration of the dollar-centric international monetary system.

A Regional Repo Market Initiative for Global Financial Stability

A Regional Repo Market Initiative for Global Financial Stability

Workshop 7 report: Market initiative: Regulatory design, implementation and performance

This workshop reviewed recent good and bad practice with respect to market initiatives in public transport, with consideration of express coach, rail, local bus and unconventional modes. The options for market-led initiatives, and the associated regulatory requirements, were re-assessed with a new model posited, inspired by the ski-lift industry. It is recommended that more pro-active development (by operators, authorities and third parties) of new measures is required, particularly to permit service coordination and fare, ticketing and information integration.

Challenging Varieties of Capitalism's Account of Business Interests: The New Social Market Initiative and German Employers' Quest for Liberalization, 2000-2014

English Abstract: Do employers in coordinated market economies (CME’s) actively defend the non-liberal, market-constraining institutions upon which their strategic coordination and competitive success depends? This paper revisits the debate over firms’ employer preferences with an in-depth examination of employers in Germany – a paradigmatic CME and crucial “test case” for Varieties of Capitalism. It is based on interviews with key officials and an in-depth examination of a large-scale campaign – the New Social Market Initiative or INMS – founded and funded by German metalworking employers to shape public opinion. The paper argues that German employers have a strong preference for liberalization: they have pushed hard for the liberalization of labor markets, the reduction of government expenditures, the expansion of market-oriented freedoms, and cuts to social protection, employment protection and benefit entitlements. I find no empirical support for the claim that the INSM is an attempt to appease discontented firms within employers’ associations. On the contrary: for many employers, the Agenda 2010 reforms did not go far enough. Following the discrediting of the Anglo-American model in the financial crisis, far-reaching concessions by employees, and the unexpected revitalization of the German economy, employers have moderated their demands – but liberalization remains their default preference. This paper also addresses the role of ideas and the conditions under which employer campaigns can influence policy. German Abstract: Verteidigen Arbeitgeber in koordinierten Marktwirtschaften aktiv die nichtliberalen, marktbeschrankenden Institutionen, von denen ihre Moglichkeiten zur strategischen Koordination und ihr Erfolg im Wettbewerb abhangen? Mit einer umfassenden Untersuchung der Praferenzen von Arbeitgebern in Deutschland, das als typisches Beispiel einer koordinierten Marktwirtschaft und wegweisender “Testfall” fur die Theorie uber Spielarten des Kapitalismus gilt, greift dieses Discussion Paper die Debatte uber die Praferenzen von Unternehmen in ihrer Eigenschaft als Arbeitgeber auf. Es basiert auf Interviews mit fuhrenden Arbeitgeberfunktionaren sowie einer detaillierten Untersuchung der Initiative Neue Soziale Marktwirtschaft (INSM): einer gros angelegten, von deutschen Metallarbeitgebern initiierten und finanzierten Kampagne zur offentlichen Meinungsbildung. Der Beitrag belegt eine deutliche Praferenz deutscher Arbeitgeber fur die Liberalisierung. Mit Nachdruck haben sie sich fur eine Liberalisierung der Arbeitsmarkte, eine Senkung der Staatsausgaben und eine Ausweitung marktorientierter Gestaltungsfreiheiten ebenso eingesetzt wie fur Einschnitte bei der sozialen Sicherung, dem Kundigungsschutz und den Versorgungsanspruchen. Die Behauptung, die INSM sei ein Versuch, unzufriedene Unternehmen innerhalb der Arbeitgeberverbande zu beschwichtigen, lasst sich durch die empirischen Befunde nicht stutzen. Im Gegenteil: Vielen Arbeitgebern gingen die Reformen im Zuge der Agenda 2010 nicht weit genug. Zwar haben die deutschen Arbeitgeber nach der Diskreditierung des angloamerikanischen Modells wahrend der Finanzkrise, weitreichenden Zugestandnissen seitens der Arbeitnehmer sowie der unerwarteten Wiederbelebung der deutschen Wirtschaft ihre Forderungen gemasigt – doch bleibt ihre grundlegende Praferenz fur die Liberalisierung bestehen. Dieser Beitrag befasst sich auserdem mit der Rolle von Ideen sowie den Bedingungen, unter denen Arbeitgeberkampagnen politische Masnahmen beeinflussen konnen.