Nominal Price Research Articles

The role of finance in production and international trade

We introduce finance in a neo-classical general equilibrium model of production and international trade to integrate the core microeconomic theory with the theory of finance. The stock of credit, as past savings, finances employment and the acquisition of machines or capital goods. The availability of finance or international financial flows does not affect production or trade patterns, except for nominal factor prices, in undistorted competitive structures. However, distortions such as unemployment, imperfect credit markets, and factor mobility do affect real outcomes and trade. Our results are consistent with contemporary empirical evidence and have policy implications for financial development and institutional quality. Numerical illustrations provide further insights.

Nominal price illusion, return skewness, and momentum

We document a significantly negative association between the nominal price measure of Birru and Wang (2015) and the profit of the stock momentum strategy. The negative relationship is driven by the underperformance of loser stocks with high nominal price illusions. Further analysis shows that the previously documented positive correlations between return skewness measures and momentum profit are subsumed by the effect of nominal price on momentum profit.

Multidisciplinary Design Optimization of Active Debris Removal Mission via Electric Propulsion

A design optimization framework for an active orbital debris removal mission to minimize the life cycle cost and mission time is presented. The general concept of operations consists of spacecraft capable of deorbiting 22 identical high-priority debris from sun-synchronous orbit via continuous low thrust from electrostatic thrusters. This modular subsystem framework is proposed and investigated with a fractional factorial design of experiments approach as preliminary analysis in order to inform effects of design variables as well as identify the scope of possible design and output space. The single-objective optimization minimizes the life cycle cost of the mission through a heuristic-based genetic algorithm, resulting in a 4.12-year, $354 million mission using 5.34 kW xenon Hall thrusters. Pareto fronts generated by a multiobjective weighted-sum genetic algorithm are presented to highlight the cost and time objective space for both a nominal and expensive xenon price per kilogram to show design space fluctuations with xenon price volatility. High-power 8 kW xenon Hall thrusters are proven to be in closest proximity to the utopia of the multiobjective design space with a cost of $687 million and mission time of 1 year. High-power krypton Hall thrusters prove to offer a comparable alternative to xenon systems.

Signaling through timing of stock splits

We develop a dynamic structural model of stock splits, in which managers signal their private information through the timing of the split decisions. Our approach is consistent with the empirical evidence which shows that the majority of stock splits have a 2:1 ratio of old-to-new shares, but are announced at various pre-split price levels. Moreover, it explains why split announcement returns are decreasing with the pre-split price. In addition, by matching the model to the data, we estimate the nominal share price preferences of investors and decompose the split announcement return into the value of new information and the signaling cost.

Inflation expectations and risk premia in emerging bond markets: Evidence from Mexico

To study inflation expectations and associated risk premia in emerging bond markets, we provide estimates for Mexico based on an arbitrage-free dynamic term structure model of nominal and real bond prices that accounts for their liquidity risk. Beyond documenting the existence of large and weakly correlated liquidity premia in nominal and real bond prices, our results indicate that long-term inflation expectations in Mexico are well anchored close to the Bank of Mexico’s inflation target. Furthermore, Mexican inflation risk premia are larger and more volatile than those in Canada and the United States.

Research and Development of E-commerce Website

Abstract: Once upon a time, we were going to market to buy or sell our essentials or household items at a very nominal price. The market was organized once or twice a week. After this era, when we needed something, we would go to the shop and buy anything that we needed. And now, the internet has already been discovered. This has changed the life of every individual on this planet. After the coming of the internet, every year, some new technologies are coming with new innovative features that fulfill our requirements easily and make us more comfortable. Web development is one of them. By using this technology, e-commerce websites are designed. E-commerce has grabbed the economical market of shopping. Through these websites, buyers can buy or sellers can sell anything at very fair prices that they will buy or sell accordingly. This research paper includes introduction, literature survey, definition, system design, management, implementing steps, payment procedure, problems and many more about e-commerce.

Quantitative Easing, Bond Risk Premia and the Exchange Rate in a Small Open Economy

We assess the impact of large-scale asset purchases, commonly known as quantitative easing (QE), conducted by Sveriges Riksbank and the European Central Bank (ECB) on bond risk premia in the Swedish government bond market. Using a novel arbitrage-free dynamic term structure model of nominal and real bond prices that accounts for bond-specific safety premia, we find that Sveriges Riksbank’s bond purchases raised inflation and short-rate expectations, lowered nominal and real term premia and inflation risk premia, and increased nominal bond safety premia, suggestive of signaling, portfolio rebalance, and safe asset scarcity effects. Furthermore, we document spillover effects of ECB’s QE programs on Swedish bond markets that are similar to the Swedish QE effects only after controlling for exchange rate fluctuations, highlighting the importance of exchange rate dynamics in the transmission of QE spillover effects.

Quality adjustment and analysis of human resource prices in China: Based on a hedonic price model.

The competition in the world has shifted from natural resources and capital resources to human resources. The human resources have become the real power source of the economic growth. Firstly, the price of human resources in China is calculated. Secondly, in order to measure the human resources quality adjustment index, the indicators system is constructed. Third, the Hedonic method is used to calculate the human resources "pure price" of 31 provinces (autonomous regions and municipalities directly under the Central Government) in China. The "pure price" has no the factor of human resources quality. Lastly, comparing the price of human resources before and after quality adjustment. The results show that: first, the number of human resources in China increased continuously during 1995-2015 and decreased during 2016-2020. Second, the price of nominal human resources in China keeps rising. In 2020, the nominal price is 39,087 yuan per person which is 15.44 times as many as in 1995. Thirdly, after the quality adjustment, the price of human resources has decreased significantly. The multiple between the actual and nominal price of human resources is between 1.75 and 2.12. Fourthly, the province with high human resource quality adjustment index generally have high quality human resource level or quantity. Fifth, the top five provinces of actual human resource prices are Shanghai, Beijing, Guangdong, Tianjin, Zhejiang, the bottom five provinces are Guizhou, Yunnan, Henan, Xizang, Gansu. Finally, the paper puts forward some policy recommendations: Improving the data collection mechanism of human resources accounting to provide a basic guarantee for the accurate accounting of human resources. Improving the price of human resources in the central and western regions to attract the talents to transfer to the central and western regions. Enhancing the skills training of human resources to improve the quality of human resources in the western region.

Sectoral Heterogeneity in Nominal Price Rigidity and the Origin of Aggregate Fluctuations

We study the role of heterogeneity in nominal price rigidity for aggregate fluctuations in a model with sectoral productivity shocks. Theoretically, sectoral heterogeneity in the pricing friction has an ambiguous effect on GDP and aggregate price volatility. Quantitatively, (i) GDP volatility is amplified when the friction is heterogeneous rather than homogeneous; (ii) sectoral shocks can jointly rationalize the volatility of sectoral prices, aggregate prices, and GDP, unlike aggregate shocks; and (iii) shocks to the largest or most central sectors may not matter in the aggregate as heterogeneous pricing frictions may alter the identity of the most important sectors for aggregate fluctuations. (JEL E12, E23, E31, E32)

Hedging with physical or cash settlement under transient multiplicative price impact

We solve the superhedging problem for European options in an illiquid extension of the Black–Scholes model, in which transactions have transient price impact and the costs and strategies for hedging are affected by physical or cash settlement requirements at maturity. Our analysis is based on a convenient choice of reduced effective coordinates of magnitudes at liquidation for geometric dynamic programming. The price impact is transient over time and multiplicative, ensuring nonnegativity of underlying asset prices while maintaining an arbitrage-free model. The basic (log-)linear example is a Black–Scholes model with a relative price impact proportional to the volume of shares traded, where the transience for impact on log-prices is modelled like in Obizhaeva and Wang (J. Financ. Mark. 16:1–32, 2013) for nominal prices. More generally, we allow nonlinear price impact and resilience functions. The viscosity solutions describing the minimal superhedging price are governed by the transient character of the price impact and by the physical or cash settlement specifications. The pricing equations under illiquidity extend no-arbitrage pricing à la Black–Scholes for complete markets in a non-paradoxical way (cf. Çetin et al. (Finance Stoch. 14:317–341, 2010)) even without additional frictions, and can recover it in base cases.

Evaluating Oil Price Forecasts: A Meta-analysis

Oil price forecasts have traditionally attracted the interest of both the empirical literature and policy makers, although research efforts have been intensified in the last 15 years. The present study investigates the forecasting characteristics that have the greatest impact on the accuracy level of such forecasts. To achieve this, we employ a meta-analysis approach of more than 6,000 observations of relative root mean squared errors (RRMSEs) which are pooled within a Bayesian Model Averaging (BMA) method. The findings indicate that forecasting frameworks such as MIDAS and combined forecasts tend to report significantly lower forecast errors. In addition, the choice of the oil price benchmark is an important factor, with the Brent price to offer lower forecast errors. Furthermore, the short-run horizons tend to produce more accurate forecasts and the same holds for the real, instead of the nominal oil prices. A number of robustness tests confirms the validity of these results. Overall, the findings of this study serve as a guide for future oil price forecasting exercises.

Decomposition of medical imaging spending growth between 2010 and 2021 in the US employer-insured population.

Medical imaging, identified as a potential driver of unsustainable US health care spending growth, was subject to policies to reduce prices and use in low-value settings. Meanwhile, the Affordable Care Act increased access to preventive services-many involving imaging-for employer-sponsored insurance (ESI) beneficiaries. We used a large insurance claims database to examine imaging spending trends in the ESI population between 2010 and 2021-a period of considerable policy and benefits changes. Nominal spending on imaging increased 35.9% between 2010 and 2021, but as a share of total health care spending fell from 10.5% to 8.9%. The 22.5% growth of nominal imaging prices was below inflation, 24.3%, as measured by the Consumer Price Index. Other key contributors to imaging spending growth were increased use (7.4 percentage points [pp]), shifts toward advanced modalities (4.0 pp), and demographic changes (3.5 pp). Shifts in care settings and provider network participation resulted in 2.5-pp and 0.3-pp imaging spending decreases, respectively. In sum, imaging spending decreased as a share of all health care spending and relative to inflation, as intended by concurrent cost-containment policies.

Optimisasi Sistem Manajemen Transaksi Pada Stasiun Pengisian Listrik Berbasis Website

The growth in the use of electric vehicles has become a significant trend in recent years, supported by the establishment of several electric charging stations in urban areas. The reliability of transaction system management at electric charging stations is one of the main focuses. Therefore, research is needed to create a transaction system at a simple electric charging station that utilizes a website-based platform. The aim of this research is to optimize transaction system management at electric charging stations. Based on the results obtained in this research, the tool is capable of charging from an AC source which is converted to DC by a 12V 5A power adapter. Charging is carried out using a 12V 3.5Ah battery with a nominal price option of 5,000 to 25,000. When the top-up reaches the nominal value filled in, the top-up will be cut off by the relay and the transaction receipt will automatically come out. The receipt data that comes out will be stored on the website. Operators and users can monitor transaction data via the STARIK website.

The transmission of monetary policy shocks through the markets for reserves and money

This paper identifies supply and demand curves for bank reserves and a Divisia aggregate of monetary services within a structural vector autoregressive time-series model. Estimated over four sample periods spanning 1967 through 2020, the model illustrates how monetary policy actions can be interpreted with reference to their initial impact on bank reserves and the federal funds rate and their subsequent effects on Divisia money, nominal consumption spending, the aggregate nominal price level, and the unemployment rate. Model estimates attribute strong inflationary effects to monetary policy in the late 1960s and 1970s and also show that changes in the supply of reserves associated with the Fed's large-scale asset purchases since 2008 worked, as intended, to offset deflationary pressures and reduce unemployment. The model describes a much richer monetary policy process than one focused on interest rates alone.

The roles of price points and menu costs in price rigidity

Macroeconomic models often generate nominal price rigidity via menu costs. In scanner databases, (1) price points, embodied in nine-ending prices, account for two-thirds of prices; (2) at the conclusion of sales, post-sale prices return to their pre-sale levels more than three-fourths of the time; and (3) such memory around sales is stronger if the pre-sale price was a price point. Extending a canonical menu cost model to allow for price points, I estimate an incentive to set nine-ending prices two orders of magnitude larger than the menu costs. The choice of a mechanism for price rigidity matters for aggregate dynamics.

Revisiting international house price convergence using house price level data

The literature on house price convergence largely relies on house price indices, based in an arbitrary year, rather than on actual price levels. This is essentially due to the scarcity of comparable house price level data. However, this severely constrains the analysis. In particular, it often forces to discard a large part of the data sample, which leads to a great loss of information and hampers analysis on sub-periods. In this paper, we combine the price level estimates produced by Bricongne et al. (2019) with long OECD house price series to analyse long-run house price convergence across 18 OECD countries. Applying the Phillips and Sul (2007) procedure, we find convergence in OECD nominal house prices, but two separate convergence clubs in real house prices. We find some convergence in euro area real house prices, but no evidence of strengthening after the introduction of the euro. β-convergence regressions (linking changes in house prices to their initial levels) point to conditional convergence, related to the evolution of gaps in real GDP per capita, long-term interest rates and population growth across countries.

Investment Decision Analysis of Ritail Government Securities

The purpose of this study is to analyze the characteristics, identify and evaluate risk factors in retail SBN bonds ORI023 and ORI024 series in influencing the achievement of individual investment goals. this research method is qualitative and data collection techniques, data analysis techniques regarding the research conducted. The data collection techniques used in this research are documentation and literature studies sourced from relevant secondary data to be studied, namely in the form of stock market price data on the official yahoo finance web, scientific journals, and so on. The findings of this study indicate that the market value of ORI023 in the secondary market is Rp.998,289 and the initial market value of ORI024 is Rp. 1,000,000 which is the same as its nominal price.

Fenomena Pasar Tradisiaonal Rao, Pasaman

The market is a collection of traders and buyers who meet each other, interact, link each other and create nominal goods or prices in the market. This rao traditional market is also known by people outside of the rao sub-district and even people from the Penyabungan area (North Sumatra) also take the time to come to sell and buy in this market. This market is very crowded especially on Saturdays, because Saturday is a weekday at the market. The rao traditional market is not only known for that, it is also known for providing complete needs for the community. This market is open every day from 06:00 WIB to 18:00 WIB, various types of merchandise that the community needs are in this market, ranging from clothing to food needs available in this market, in a market that certainly has a variety of activities and of course must have a complex space so that activities in the market can run smoothly. This market still has a close bond with the community, the closeness can be seen by traders and buyers who look very familiar, like relatives and even like family.This research aims to find out the attachment of people and places based on experience and explore the phenomena that occur in traditional markets. The method used is a descriptive qualitative method by identifying with interviews, observations. The research uses David Seamon's theory of Phenomenological Perspectives on Place, Lifeworld, and Live Emplacement, the elements examined in the research are Place, Lifeworld and Home.The results of the analysis show that in Rao traditional markets that make them still very much needed by the community because they are able to understand and provide what is needed by customers or the community, the most important thing where in traditional markets prices can be negotiated and have family values. That way people become interested in coming back to the market.

Consumers’ willingness to pay for local rice: Empirical evidence from Central Java, Indonesia

This study examines Indonesian consumers’ willingness to pay for local rice products as against commercial imports. We aimed to determine the consumer preference factors for local rice through a questionnaire survey and experimental auction in Surakarta and Sleman, two areas in the top rice-producing region of Central Java. The bidding price results of the three rounds of auction to determine the increasing nominal price for the local rice type, after information and tasting sessions, show the participants, as major rice consumers, confirming the highest interest in local rice, while displaying relatively less knowledge of the different rice varieties available in the markets. Most consumers evaluated both cooked and uncooked rice based on swelling and variety. The findings suggest the need to pay greater policy attention to local rice production and varieties, based on the preferences and attributes of the consumers.

Sale to list ratio, for-sale inventory, sale count, and housing value

PurposeThe purpose of the paper is twofold: first, to observe the relationship between sale to list ratio (SLR)/ for-sale inventory (FSI)/ sale count nowcast (SCN) and real/nominal housing value, and second, to produce a handbook of empirical evidence that can serve as a foundation for future research on this topic.Design/methodology/approachThis paper broadly compiles empirical evidence, using three of the most common causality tests in the field of housing economics. The analysis methods include lagged Pearson correlation test, Granger causality test and cointegration test.FindingsCausal relationships were observed between SLR/FSI/SCN and both nominal and real housing values. SLR and SCN showed positive long-term correlations with housing value, whereas FSI had a negative correlation. Adjusting the housing value with the Consumer Price Index (CPI) to derive real housing values could potentially alter the direction of the causal relationships. It is crucial to distinguish the long-term relationship from temporal dynamics, as FSI displayed a positive immediate impulse–response relationship with nominal housing price despite the negative long-term correlation.Originality/valueSLR/FSI/SCN are housing market parameters that have only recently begun to be documented and have seen little use in research. So far, housing market research has revolved around traditional macroeconomic indicators such as unemployment rate. To the best of the authors’ knowledge, this study is one of the first studies that introduce these three parameters into housing market research.