Market Regulation Policy Research Articles

Multidimensional Impact Analysis of Public Policies on the European Economy: Taking EU Member States as an Example

Since modern times, with the close trade relations between European countries, they have begun the process of integration in order to strengthen economic cooperation and political unity. In the process of integration, problems such as economic inequality, political differences, and external interference continue to emerge. In the process of solving these problems, public policy plays a crucial role. The European Union promotes cooperation and coordination among member states by formulating and implementing a series of public policies, and promotes the deep development of European integration. This enables European countries to smoothly navigate through various crises. This article mainly discusses the impact of European public policies on the Eurozone economy, including problems in the European economic governance system, exploration and analysis of fiscal integration implementation, policies proposed in response to the rigidity of the Italian labor market, the impact of EU data privacy and financial market regulation policies, and future prospects.

The Impact of Housing Market Regulation Policies on the Housing Choice Behavior of Urban Residents

Abstract Housing is a social and developmental issue of public concern, which is related to the personal interests of every household and the people’s “living in a home”. The article quantifies the housing choice behavior of urban residents by the ring index of residential housing purchase price, and solves the problem of sample selection error by using the propensity to match score to match the experimental group and the control group. A double difference model is used to analyze the net effect of the implementation of housing market regulation policies on urban residents’ housing choice behavior. Parallel trend test in the experimental and control groups before and after the implementation of housing market regulation policies in 2018 shows significant differences, the ATT value of HSB after propensity score matching is positive, and the sample mean of the control group is 0.452 lower than that of the experimental group. The coefficient of the effect of housing market regulation policies on the behavior of urban residents’ housing choices is 0.351 and shows significance at the 1% level. The active implementation of housing market regulation policy can help optimize the housing purchase price index, which in turn stimulates the housing choice behavior of urban residents and promotes the stable and healthy development of the housing market.

Counteraction of Russian Finance Market Against External Sanctions Pressure

The article shows the impact of external economic sanctions on the Russian financial market. Special attention is paid to the currency, commodity and derivative markets of the Moscow Stock Exchange. The main focus of the work is the analysis of changes in market dynamics and pricing under the influence of political and economic constraints. Methodologically, the study is based on a comprehensive analysis of trade session data, including statistical processing and modeling of market reactions. The use of actual analytical methods made it possible to identify nonlinear dependencies and hidden patterns of behavior of market participants. The results of the study demonstrate that sanctions have had a significant impact on volatility, liquidity and market structure. The authors show the influence of political factors on financial instruments in a crisis, as well as develop new methodological approaches to analyzing financial market data. The results of the work can be used to coordinate trading strategies, develop market regulation policies and assess risks in conditions of political instability. The study also provides a basis for further analysis of the consequences of economic sanctions and the development of strategies to adapt to changing market conditions.

Microeconomic analysis of ridesourcing market regulation policies

We develop a microeconomic model of competition between ridesourcing, public transport, and cruising taxis to analyse how alternative ridesourcing regulation policies affect not only the ridesourcing service but also other modes of transport. To maximise social welfare in a framework with congestion externalities, we analyse three alternative regulation policies (i) a charge as a percentage of the ridesourcing trip fare (ii) a fixed charge per ridesourcing trip, and (iii) a fixed charge per ridesourcing vehicle. A randomised search algorithm is programmed and simulations are performed considering the base case of the Metropolitan Region of Santiago de Chile. We find that for the case of speeds below 9 km/h, the market power of the platform is dominated by the congestion externality effect, which leads to an optimum where the regulator charges a tax to the platform. In turn, waiting time for ridesourcing increases, but congestion decreases. Lower congestion scenarios lead to a ridesourcing subsidy, in which the regulation policy increases the number of ridesourcing drivers and reduces waiting time, at the cost of increasing congestion. For a given scenario (either low-congestion or high-congestion), we find that the profits of the agents involved (ridesourcing platform and drivers, taxi drivers, and bus operator) are sensitive to the type of regulation applied, however the total social benefit and consumer surplus are largely insensitive to the regulation adopted, therefore policymakers could take into account, for instance, the effects on the financial situation of the public transport sector when deciding which type of regulation instrument to apply to the ridesourcing sector.

The European Union's Ecodesign Directive – Analysis of Carbon Footprint Assessment Methodology and Implications for Photovoltaic Module Manufacturers

With an increasing shift away from fossil fuels toward renewable energy sources within the European Union (EU), photovoltaics (PV) are projected to see substantial growth with estimates of nearly 600 GWp of capacity by 2030. As the use of PV technology continues to expand, the European Commission has introduced various policy instruments, enabling consumers to make informed choices. Among those, the Ecodesign directive 2009/125/EC sets a carbon footprint threshold as a minimum qualification for the European market to cut out the least sustainable PV modules. For this directive, the methodological guidelines for the complex carbon footprint calculation of PV modules are under development. To this end, this analysis compares the two methodologies, namely Electronic Product Environmental Assessment Tool (EPEAT) and the Ecodesign adaptation of Product Environmental Footprint Category Rules (PEFCR), emphasizing the implications of choosing one over the other for the PV industry. This study illustrates how varying parameters, like module lifetime, degradation rate, and purchased renewable electricity certificate allowance limit, stemming from the differing methodological approaches can influence the carbon footprint calculation. Apart from the strengths and weaknesses of each methodology, this article emphasizes the need for globally harmonized standards to ensure consistency in evaluating the carbon footprint of PV modules. The observations made in this study should be considered not just for Ecodesign directive but for any such market regulation policy like the recently passed EU Net Zero Industry Act or the EU Ecolabel for PV modules. It underlines the significance of choosing a transparent and fair approach to ensure the credibility of carbon footprint labels and meet the EU's decarbonization objectives successfully, propelling the transition toward a more sustainable energy landscape.

Regulation of the insurance market

Since the insurance sector is of great importance for economic stability and financial support of citizens and businesses, the issue of regulation of the insurance market remains relevant. Research in this field can focus on various aspects of regulation, such as setting financial soundness standards for insurance companies, consumer protection, risk resolution mechanisms, risks and ensuring market stability. Research may include an analysis of the effectiveness of existing regulatory mechanisms, an assessment of their impact on the development of insurance markets and the ability to ensure the protection of the interests of all stakeholders. Given the rapid changes in business and technology, continuous monitoring and analysis of regulatory approaches is a key challenge to ensure the stability and efficiency of insurance markets. Regulation of the insurance market is necessary to protect consumer rights, ensure market stability and stimulate its development. However, it is important to find a balance between protection and incentives, control and innovation, bureaucracy and efficiency. For this regulation should be transparent, clear, flexible, and fair. It is also important that regulators cooperate with insurance companies, take their opinion into account, and stimulate innovation. In Ukraine, the insurance market regulation system is constantly developing and improving. However, there are certain problems that need to be solved. It is necessary to reduce bureaucracy, increase the effectiveness of supervision, and stimulate the development of new types of insurance. Effective regulation of the insurance market is a guarantee of its stable development, protection of consumer rights, and growth of trust in insurance companies. The insurance market needs proper regulation to ensure stability, protect the interests of policyholders, and ensure financial security. Regulators should ensure a balance between stimulating innovation in insurance and protecting the rights and interests of consumers. Regulators should actively monitor the financial stability of insurance companies and market risks to prevent possible crisis situations. Regulators should ensure a balance between stimulating innovation in insurance and protecting the rights and interests of consumers, actively monitoring the financial stability of insurance companies and market risks to prevent possible crisis situations.

Differentiation factors of levels of regional insurance market development in Russian conditions

Subject. The article investigates causes of interregional disproportions in the level of insurance market development in modern Russian conditions. Objectives. The aim is to review the effect of economic, social, demographic, and geographical factors on the development of insurance in current realities. Methods. The study employs the regression analysis of panel data to estimate the effect of factors determining the differentiation of the levels of regional insurance markets development. Insurance premiums per capita and the ratio of insurance premiums to gross regional product in the context of various types of insurance serve as explained variables. Results. The most favorable conditions for insurance development are formed in the largest urban agglomerations with high population density, primarily, Moscow and St. Petersburg. The main driver for regional insurance markets development in Russia is the development of the banking system, which stimulates demand for insurance services from borrowers and expands channels for the sale of other insurance products. An increase in the level of education of the population is accompanied by higher risk appetite, and does not lead to increased demand for insurance services. Stable relationship between crime rate and the level of insurance market development is not revealed, which is consistent with results obtained for Eastern Europe. Conclusions. Increasing the role of insurance in the system of economic growth factors requires implementation of measures to improve the financial and insurance literacy of Russian citizens, and additional tax incentives for policyholders' expenses for insurance protection of life and property.

Development of economic and mathematical models of dynamics and analysis of insurance markets in the regions of the Volga federal district

: Insurance is an integral part of the financial system of any state. As of October 1, 2022, there were 143 insurance companies, 57 insurance brokers and 19 mutual insurance companies operating in the Russian Federation. The insurance market of the Russian Federation is characterized by the dominance of large insurers with an extensive network throughout the country. Regional insurance companies are represented by a small number of organizations due to the high requirements for insurers and the difficulty of competing with the leaders of the insurance market. The insurance market of the state and individual territories has developed gradually in an evolutionary way under the influence of market mechanisms and regulatory documents that establish requirements for insurance companies. The regions of the Volga Federal District, which are the object of analysis of this article, are diverse in terms of territorial location, GRP volume and its structure, and differ in dominant sectors of the economy. The analysis of insurance markets presented in the article revealed a stable composition of regions leading in terms of collected insurance premiums. In the regions of the Volga Federal District, there are no significant differences in the structure of collected insurance premiums by type of insurance, which indicates that there is no direct dependence of demand for insurance services on the GRP structure. The leaders of the insurance markets in the regions under consideration have been identified the TOP 5 insurers are companies registered in Moscow. Among the leaders are such companies as JSC Sogaz, PJSC IC Rosgosstrakh, CAO VSK, LLC IC Sberbank Life Insurance, SPAO Ingosstrakh, JSC Alfa Insurance. The competitive advantages of large insurance companies allow them to occupy more than 50% of the regional insurance market. The concentration of the markets of the VFD regions, estimated using the Herfindahl-Hirschman index, ranges from 0.235 to 0.367, which indicates a high concentration of markets. The dynamics of collected insurance premiums in the analyzed regions has a different growth rate for the period under review from 2004 to 2020 and is described using exponential and linear trend functions. The analysis of the unprofitability of the insurance markets of the regions made it possible to determine the most unattractive for insurers, as well as to identify differences in the unprofitability of various types of insurance in the regions of the Volga federal district.

RESEARCH ON INFLUENCING FACTORS AND PREDICTIONS OF INSURANCE DEVELOPMENT IN UZBEKISTAN

This thesis presents the results of research on the analysis of the regional insurance markets of Uzbekistan and the modeling of the insurance market. Factors influencing the development of insurance markets were identified and a model was created based on panel data. Regional insurance markets in Uzbekistan were analyzed and a development model was created. For the forecast, a forecast of the volume of insurance premiums for 2023-2026 regions is given, using panel data consisting of the volume of accumulated insurance premiums in the regions, gross regional product, investment, average income of the population, and indicators of the population in the regions. KEYWORDS: regional insurance market, panel data, econometric model, insurance potential, insurance premium, GDP, population income, random effect, fixed effect model

Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review

Electricity generation using distributed renewable energy systems is becoming increasingly common due to the significant increase in energy demand and the high operation of conventional power systems with fossil fuels. The introduction of distributed renewable energy systems in the electric grid is crucial for delivering future zero-emissions energy systems and is cost-effective for promoting and facilitating large-scale generation for prosumers. However, these deployments are forcing changes in traditional energy markets, with growing attention given to transactive energy networks that enable energy trading between prosumers and consumers for more significant benefits in the cluster mode. This change raises operational and market challenges. In recent years, extensive research has been conducted on developing different local energy market models that enable energy trading and provide the opportunity to minimize the operational costs of the distributed energy resources by promoting localized market management. Local energy markets provide a stepping stone toward fully transactive energy systems that bring adequate flexibility by reducing users’ demand and reflecting the energy price in the grid. Designing a stable regulatory framework for local electricity markets is one of the major concerns in the electricity market regulation policies for the efficient and reliable delivery of electric power, maximizing social welfare, and decreasing electric infrastructure expenditure. This depends on the changing needs of the power system, objectives, and constraints. Generally, the optimal design of the local market requires both short-term efficiencies in the optimal operation of the distributed energy resources and long-term efficiency investment for high quality. In this paper, a comprehensive literature review of the main layers of microgrids is introduced, highlighting the role of the market layer. Critical aspects of the energy market are systematically presented and discussed, including market design, market mechanism, market player, and pricing mechanism. We also intend to investigate the role and application of distributed ledger technologies in energy trading. In the end, we illuminate the mathematical foundation of objective functions, optimization approaches, and constraints in the energy market, along with a brief overview of the solver tools to formulate and solve the optimization problem.

Exploration of the regional correlation and network structure characteristics of land prices: A case study of Hebei, China

It is important to explore the correlation characteristics of land markets among cities in order to promote coordinated developments. Based on the residential land prices in 168 counties in Hebei Province, this study used spatial econometric models and social network analysis to analyze the regional correlation effect and network structure evolution characteristics of residential land prices. The results indicated that: 1) the regional residential land price level has significant global spatial autocorrelation and local autocorrelation. High-High clusters were concentrated in cities around Beijing and Tianjin and provincial capitals, while Low-Low clusters were mostly distributed in central and southern Hebei. 2) The direct effect and spillover effect of influencing factors of residential land price were significantly different. The residents’ purchasing power, the socioeconomic level, and the land resources had significant impacts on the residential land price of the county itself, while the level of infrastructure and the policy environment had significant impacts on the residential land price of neighboring counties. 3) The degree centrality and betweenness centrality of residential land price in central counties of Hebei Province was generally high, showing a trend of agglomeration. However, the peripheral cities of Hebei Province lacked important central nodes in the network structure. From 2013 to 2020, increasing numbers of counties had shown the transmission function of “bridge,” and the balance of land price in the whole region had been constantly improved. The study found that the regional residential land price itself had spatial autocorrelation, and the spillover effect of its related factors was also the driving force that affects the transmission and diffusion of land price between counties. The change in the spatial network of county residential land price was primarily manifested in the transmission process starting from the central cities. The tightness of the spatial network was related to the number and distribution of central nodes. Hebei Province should focus on cultivating urban central nodes with development potential in marginal areas, create more land market growth poles according to local conditions, and accelerate the integration of land factor markets in Beijing, Tianjin, and Hebei to achieve healthy and balanced development of residential land prices. This study made up for the shortcomings of previous studies on land price correlations. The combination of correlation feature analysis and spatial network structure analysis was more helpful to reveal the characteristics of regional land price development, and the results could provide a reference for the formulation of urban land market regulation policies.

Characteristic features of the operation of the insurance market of Ukraine in the conditions of martial law

The purpose of the article is to analyze the current state of the insurance market of Ukraine and highlight the peculiarities of its functioning. The relevance of the research is driven by the changes in the structure and functioning mechanisms of this market, associated with the introduction of a new model of its regulation.
 The article defines the essence of the insurance market and its main functions. The current state of the insurance market of Ukraine was reviewed, the main indicators of its development were analyzed with the determination of the reasons for their changes for the period 2019­2022. The most significant trends in the market of insurance services were characterized, among which the follo wing are highlighted: a decrease in the volume of gross insurance premiums; reduction of the number of insurers; increase in the level of insurance payments; decrease in the insurance penetration rate.
 Market problems were identified, the main ones being the low solvency and liquidity of insurers; imperfection of insurers’ business models; lack of market transparency andproblems in corporate governance; lack of a mechanism for guaranteeing insurance payments under long-term life insurance contracts; low demand for insurance services due to distrust in the opaque insurance market and low solvency of the population.
 The peculiarities of the insurance market of Ukraine related to the change of the regulator and the beginning of reform are characterized. The main elements of the new insurance market regulation model, built on the principles of the International Association of Insurance Supervisors (IAIS) and the provisions of the European Union directives, are reviewed.
 The basic norms of the new Law of Ukraine “On Insurance”, which will come into effect on January 1, 2024, have been considered. It was concluded that the preparation of the law took into account numerous proposals of scientists to increase the efficiency of the functioning of the insurance market. It was emphasized that the introduction of a new model of regulation and supervision of the insurance market and improvement of the legislative support for reforms will allow solving a number of existing problems in domestic insurance.

Digital Markets Act (DMA) and Digital Services Act (DSA): New Rules for the EU Digital Environment

The Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (known as DMA – “Digital Market Act”) sets clear rules for large online platforms. It aims to ensure that no large online platform that is in a “gatekeeper” position - to many users - abuses that position to the detriment of businesses wishing to access those users. The most innovative elements are the introduction of the legal figure of the “gatekeeper” and the provision of specific duties imposed on the same. The Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (known as DSA “Digital Services Act”) introduces a common set of rules on intermediaries’ obligations and accountability across the single market, aiming to ensure a high level of protection to all users. This paper aims to analyse the new provisions introduced by the Digital Service Package in the framework of market regulation policies. Keywords: Digital markets; Intermediary service; Online platforms; Online search engines; Market regulation; EU policies Ombudsman; Constitutional Institution; Unwillingness of Bureaucrats

Real estate price forecasting based on fundamental analysis

Real estate economy is an important pillar of China's economy, where the real estate prices are the key factors influencing the economic development of real estate. Based on the analysis of real estate price changes, this study digs into the elements of real estate economic fluctuations and predict the factors of housing prices. Based on the evaluations, it will have a positive role for the government, enterprises, individuals to formulate regulation measures, adjust the investment strategy. According to the analysis, real estate prices have varying dramatically owing to various factors, e.g., policies, population and family size, consumer psychological needs, war, social and environmental factors. It is demonstrated by estimation that the prices of real estate can be controlled in a reasonable range by making scientific and reasonable real estate market regulation policy, so as to ensure the security of real estate finance. These results shed light on guiding further exploration of real restate regulation.

Ways of preserving investment activity of insurance companies during martime

The article analyzes the key indicators of domestic insurance companies and assesses the state of the insurance market in Ukraine in the pre-war period. An analysis of innovations in the insurance market regulation system of Ukraine was carried out, namely the adoption of the Law of Ukraine "On Amendments to Certain Legislative Acts to Improve Functions on State Regulation of Financial Services Markets" and the Law of Ukraine "On Insurance". The dynamics of insurance companies' activity in the insurance market of Ukraine in the pre-war period and during the war is studied. The analysis of directions of placement of assets and reserves of insurance companies is carried out. The interaction of the insurance market with the regulator of the non-banking services market by the National Bank of Ukraine during the imposition of martial law in the country is analyzed. The risk standards for the placement of insurance assets and reserves by insurance companies in Ukraine in the pre-war period have been studied and recommendations for regulatory changes during martial law have been developed. The mechanism of state regulation of investment activity of insurance companies by the Solvency II directive is analyzed, the problems of the Ukrainian approach are outlined and the methods of regulation of investment activity during martial law are offered. Measures to stabilize the national insurance market and preserve the investment activity of Ukrainian insurance companies are proposed. It is concluded that the use of SCR (Solvency Capital Requirement) for investment activities of insurers in Ukraine, in particular, when calculating investment risks on several models, the main of which is the so-called “Standard formula” given the correlation between investments types.

Why Most European Wine comes from Companies with a Bad Reputation: Cooperative Wineries in Spain and Beyond

Cooperative wineries are one of the cornerstones of the wine industry in Europe today. To understand how they reached this condition, I use the case of Spain and pay special attention to the period in which they took off in the country, namely, during the Franco dictatorship (1939-75). Wine economists often believe that cooperatives produce mediocre wines because they cannot avoid the opportunistic behavior of their members. I argue that they can and that the poor quality of their wine in some regions was the result of the perverse stimuli provided by a badly designed wine market regulation policy.

Government regulation and wages: Evidence from continuing coverage mandates

We examine the wage effects of health insurance market regulations that compel private insurers to offer continuing coverage to beneficiaries in the United States. We model wages at various points across the career as a function of the mandated number of months of continuing coverage at labor market entrance. More generous mandated continuing coverage at labor market entrance causes an initial wage decline of 1% that reverses after five years in the labor market, leading to higher wages later in the career. In particular, wage increases are observable up to 30 years after labor market entrance. We provide suggestive evidence that increased job mobility early in the career is a mechanism for observed wage effects.

Vertical or horizontal: optimal integration strategy under separation of ownership and control

This study proposes a framework to analyze the strategic value of integration, when separation of ownership and control is considered. According to this framework, we investigate the optimal integration strategy in different control distribution and discuss how external market influences the best strategic choice. Beside theoretical analysis, we also provide evidence from Chinese listed firms to validate our research. The key results of our study show that first, unintegrated strategy works best, if the level of control-ownership disparity is extremely high. Second, in general, vertical strategy is more appropriate for substitute markets, while horizontal strategy may bring more benefits in a highly complementary market. Third, the impact of integration strategy on a firm’s performance is negatively moderated by control-ownership disparity. However, this moderate effect may be weakened by market structure. Our results provide a new and comprehensive perspective for understanding the inconsistent results from previous studies. Moreover, the analysis in this study also highlights a firm’s strategic decision and market regulation policy.

Шляхи збереження інвестиційної активності страхових компаній під час воєнного стану

The article analyzes the key indicators of domestic insurance companies and assesses the state of the insurance market in Ukraine in the pre-war period. An analysis of innovations in the insurance market regulation system of Ukraine was carried out, namely the adoption of the Law of Ukraine "On Amendments to Certain Legislative Acts to Improve Functions on State Regulation of Financial Services Markets" and the Law of Ukraine "On Insurance". The dynamics of insurance companies' activity in the insurance market of Ukraine in the pre-war period and during the war is studied. The analysis of directions of placement of assets and reserves of insurance companies is carried out. The interaction of the insurance market with the regulator of the non-banking services market by the National Bank of Ukraine during the imposition of martial law in the country is analyzed. The risk standards for the placement of insurance assets and reserves by insurance companies in Ukraine in the pre-war period have been studied and recommendations for regulatory changes during martial law have been developed. The mechanism of state regulation of investment activity of insurance companies by the Solvency II directive is analyzed, the problems of the Ukrainian approach are outlined and the methods of regulation of investment activity during martial law are offered. Measures to stabilize the national insurance market and preserve the investment activity of Ukrainian insurance companies are proposed. It is concluded that the use of SCR (Solvency Capital Requirement) for investment activities of insurers in Ukraine, in particular, when calculating investment risks on several models, the main of which is the so-called “Standard formula” given the correlation between investments types.

SPATIAL EFFECT OF MARKET SENTIMENT ON HOUSING PRICE: EVIDENCE FROM SOCIAL MEDIA DATA IN CHINA

Market sentiment has become more easily spread between cities through social media. This study investigates the spatial effect of market sentiment on housing price in a social media environment. In order to extract home-buyer sentiment from social media, we use text sentiment analysis techniques and build a novel housing market sentiment index. A spatial econometric model of housing price volatility is subsequently constructed and the housing market sentiment index is included as an independent variable in the model. Using panel data from 30 large and medium-sized cities in China for 20 quarters from 2016 to 2020, the spatial effect of market sentiment on housing price is empirically analyzed by calculating direct and indirect effects. The results show that market sentiment had a significant positive effect on housing prices in the local and neighboring cities over the research period. However, the impact of market sentiment on housing price was heterogeneous in terms of geographical region; the direct effect was stronger in the eastern region than in the central and western regions, and the indirect effect was significant only in the eastern region. These findings can provide references for government to formulate housing market regulation policies and measures based on market sentiment.