Stock Of Assets Research Articles

The Twin Deficits and the New Cambridge Approach: estimating the private expenditure equation for Brazil (2001-2018)

The twin deficit hypothesis is a theoretical proposition that seeks to establish the causal relationship between the public budget and the external sector’s balance, the current account balance. Empirical studies try to gauge the causal relationship between the two balances, but the evidence does not form a consensus. This paper provides a critique of the methodology of such estimations, which do not elaborate on empirical, theoretical and methodological arguments to construct the econometric models for estimations. Conversely, we provide an alternative approach based on the modern New Cambridge approach, which does not assume the private sector as constant over time, to estimate a private expenditure equation for Brazil using quarterly data from 2001 to 2018. Results found agree with the critique to not assume the private sector as constant when constructing econometric models for Brazil in attempting to gauge at the causal relationship between the public budget and the current account balance. The private sector expenditure proves statistically significant with the stock of financial assets, stable relationship between private expenditure and private disposable income of the New Cambridge hypothesis, and that the housing sector is important in explaining private expenditure in the long run for Brazil.

Network analysis of aggregated money flows in stock markets

We introduce the formation of a network of money flows between assets in stock markets, which captures directed relations between assets in terms of how investors have re-allocated money in the stock exchange. Our approach is based on identifying a directed link, or money flow, that occurs when an investor funds a purchase of an asset by selling another asset(s). We extract investor-level money flow networks on daily basis from shareholder registration data, which are then aggregated for both financial institutional and retail investors. Overall, we have a time series of 877 daily networks from 2006 to 2009, which is exceptionally long data on temporal networks. Through our analysis of non-reciprocated triadic patterns in the aggregated money-flow networks, we find that these patterns are both recurrent and significant. However, they are not related to the 2008 financial crisis. Additionally, we observe that the counts on different triadic motifs exhibit not only an autoregressive process but are also interconnected contemporaneously and dynamically. These findings suggest the need for further research using sophisticated network models to provide a comprehensive representation of money flows in stock markets.

Looming Large or Seeming Small? Attitudes Towards Losses in a Representative Sample

Abstract We measure individual-level loss aversion using three incentivized, representative surveys of the U.S. population (combined N=3,000). We find that around 50% of the U.S. population is loss tolerant—they are willing to accept negative-expected-value gambles that contain a loss. This is counter to expert predictions and earlier findings—which mostly come from laboratory/student samples—that 70–90% of participants are loss averse. Consistent with the different findings in our study versus the prior literature, loss aversion is more prevalent in people with high cognitive ability. Further, our measure of gain–loss attitudes exhibits similar temporal stability and better predictive power outside our survey than measures of risk aversion. Loss-tolerant individuals are more likely to report recent gambling, investing a higher percentage of their assets in stocks, and experiencing financial shocks. These results support the general hypothesis that individuals value gains and losses differently, and that gain–loss attitudes are an important economic preference. However, the tendency in a large proportion of the population to emphasize gains over losses is an overlooked behavioural phenomenon.

Accounting for the value of ecosystem assets: from value judgments to management needs—take Yancheng City as an example

Ecosystem assets form a significant portion of natural resource assets. Accounting for natural resource assets accurately interprets the theory of 'lucid waters and lush mountains are invaluable assets'. This facilitates effective and unified management of ‘mountains, water, forests, farmlands, lakes, grasslands and desert ecosystem’ and serves as a crucial bridge from qualitative understanding to the valuation of the theory of ecosystem services and from theoretical discussion to management practice. Yancheng is the only coastal ecological wetland city with world natural heritage on China’s 10,000-mile coastline integrating three green genes and biodiversity of ocean, forest, and wetland. Yancheng, selected as a study case, is an important ecological barrier and a treasure trove of ecological resources in the eastern coastal areas of China. The ecosystem service value of Yancheng City from 2019 to 2021 was calculated respectively. The income-capitalization method was used to divide the annual ecosystem service value by the bank loan interest rate in the same period to obtain the ecosystem asset stock value of the past 3 years. The value of ecosystem services in Yancheng City are classified to three parts based on their value attributes: first, ecological products with use value attributes that have already been realized; second, the value of those with use value attributes but have not yet been realized; and third, the value of support services with nonuse value attributes. By comparing the value components of supply, regulation, and cultural ecological products in Yancheng, the intensity of existing development and the potential for future growth of Yancheng ecosystem services are assessed. The Yancheng case shows that ecosystem asset value accounting is an practical assessment tool that transitions from value judgment to service management needs, which can provide a scientific basis for ecological environment management.

Does retirement make people more risk averse?

We investigate whether retirement makes people more risk averse. Using a nationally representative household survey dataset from urban China, we adopt a local randomization regression discontinuity design to estimate the causal effect of retirement on risk attitudes. We find that males become more risk averse after they have retired while females do not; consistently, households tend to participate less in the stock market and invest a lower fraction of financial assets in stocks when their male heads retire but exhibit no such patterns when female heads retire. Therefore, the impact of retirement on risk attitudes exhibits significant gender heterogeneity. Pathway analyses suggest that the decrease in risk taking is largely driven by the decline in income flow after retirement.

A risk assessment for the remote ocean: the case of the South East Atlantic

Degradation of the natural world and associated ecosystem services is attributed to a historical failure to include its ‘value’ in decision-making. Uncertainty in the quantification of the relationship between natural capital ‘assets’ that give rise to critical societal benefits and people is one reason for the omission of these values from natural resource management. As this uncertainty increases in marine systems and further still with distance from the coast, the connection between society and natural capital assets is less likely to be included adequately in decision-making. Natural capital assets of Areas Beyond National Jurisdiction (ABNJ), including those of the deep sea, are distant but are known to generate many benefits for society, from the diffuse and broad-scale benefits of climate regulation to the provision of wild fish for food. While our understanding of the precise relationships (the status of asset stocks, ecosystem functions and processes) that control the availability of ecosystem services and the flows of benefits is limited, this does not preclude opening a discourse on how these natural capital assets could best be managed to continue to benefit society. Here we apply a natural capital approach to the South East Atlantic ABNJ, one of the least scientifically understood regions of the planet, and develop a framework for risk assessment. We do this by describing the benefit flows from the natural capital assets of the region, appraising how activities are creating pressures on these flows and whether the controls for these pressures protect them. Our risk register highlights how governance currently favours the protection of direct (extractive) benefit flows from natural capital assets of the region, which are primarily targeted for financial benefit. Without a systems-based framework that can account for the cumulative pressures on natural capital assets their status, associated ecosystem services and benefits are at risk. Such an approach is essential to capture and protect the foundational and often diffuse connections between marine natural capital and global society.

Spillovers in the U.S.-China Stock Markets - A Study of Returns and Volatility under Full Sample Periods and Multi-Special Periods

This paper adopts the ARMA-GARCH model and selects the S&P500 and the SSEC to study the return rate and volatility spillover effect of the US stock market(USM) and the Chinese stock market(CSM) in the full sample period, the Chinese stock market crash in 2015 and the duration when coronavirus spread. In both the full sample period and the two specific periods, it is discovered that the USM significantly increases the return on the CSM. While the CSM barely has any impact on the USM. Although the impact is favorable over the whole sample, it is less pronounced during the The pandemic caused by the novel coronavirus and the China's 2015 stock market debacle. In the whole sample, the S&P500 is unaffected by the SSEC's volatility, whereas the SSEC is significantly harmed by the S&P500's volatility. The S&P500's volatility will have a major beneficial influence on the SSEC, but it won't be communicated from the SSEC to the S&P500 during the global spread of COVID-19. Both of the fluctuation transmission to each other were negligible during the 2015 stock market turmoil. For risk management and stock asset allocation, this study can offer important information to financial institutions, everyday individuals, and governments.

Interlinkages between Bitcoin, green financial assets, oil, and emerging stock markets

<abstract> <p>In this article, we describe the novel properties of Bitcoin and green financial assets and empirically examine the connectedness between Bitcoin and two green financial assets (i.e., carbon emissions, green bonds) and two representative markets of conventional assets (i.e., oil and emerging stock). This study also analyzes whether Bitcoin, carbon, green bonds, oil, and emerging stock assets can hedge against any market turbulence. From observed findings, Bitcoin was not an effective substitute for green bond assets. Thus, Bitcoin is not a valuable hedge instrument to substitute green bonds to mitigate climate risks. More precisely, the findings of the study show that carbon assets outperform emerging stock assets amidst the COVID-19 crisis, while the stock markets incurred significant losses. Crucially, the innovative findings also played an important role for policymakers interested in decarbonizing the crypto-assets.</p> </abstract>

Food Security and its Connection With Environmental Economics and Accounting: A Bibliometric Analysis

Objective: Map and present the state of the scientific art on food security and its connection with Economics and Environmental Accounting. Theoretical framework: The limits of economic use of ecosystem services were extrapolated, the evidence of which lies in climate change and subsequent heterogeneous food availability. From this perspective, the accounting and economic impacts of environmental changes are apparently underestimated by industrial chains that exploit natural capital. Method: A bibliometric analysis of scientific publications was carried out, that were prospected in the Scopus database. 377 scientific publications published between 1986 and 2023 were retrieved. The mining and analysis of the correlation between Economics and Accounting with food security was carried out based on of the co-occurrence of keywords indicated by the authors of the retrieved documents, using the VantagePoint® software. Results: The results of the bibliometric search show greater progress in research in environmental economics. Conversely, the gaps in the valuation of environmental assets, the absence of validated indicators for the inclusion of natural capital in national accounting systems and the voluntary nature of the disclosure of accounting, financial and socio-environmental data may be the explanations for the lack of connection between food safety and environmental accounting. Research implications: Scientific advances in the calculation of the Green Gross Domestic Product and/or in the adaptation of the SEEA (System of Environmental-Economic Accounts) methodology can generate accounting and economic data from the organization of stocks of environmental assets and favor the availability of food.

Analysis of REITs in the Post-epidemic Era: Evidence from Boshi Shekou Industrial Park

Under the influence of the COVID-19 pandemic, the production and business activities of enterprises have stagnated, and the real economy has been seriously affected negatively. In order to revitalize stock assets and complete high-quality economic transformation, China has introduced REITs as financial instruments, and the development of REITs in China is still in the exploratory stage, which has a wide range of development space. This study will take the REITs of Boshi Shekou Industrial Park as the analysis object. Based on the analysis of the market value and the causes of almost complete, Chinese REITs got failure and entered the state of grinding the bottom from 2023. Subsequently, we will estimate the risks which it may face in the future. According to the estimated results, this study will put forward feasible suggestions in terms of institutional policies and future innovation to facilitate the recovery and sustainable development of China's economy in the post-epidemic era.

COMPARISON BETWEEN VALUE AT RISK AND ADJUSTED EXPECTED SHORTFALL: A NUMERICAL ANALYSIS

Loss risk is one of the variable that always appears in every kind of investment. On stock asset investments, the characteristics of the risk of loss is uncertain, this means that losses can occur at any time with a value that cannot be determined certainly. From this condition, investors must manage the loss risk appropriately in order to retain investment stability and get optimal profits. One of the important processes in risk management is loss risk forecast. Risk forecast can be done using risk measures. In stock investment, Value at Risk (VaR) is the most widely used risk measure because has a simple model and can be applied to many types of stocks. However, VaR does not satisfy the axiom of subadditivity, thus VaR is not a coherent risk measure. Another risk measure that is coherent and can be used as an alternative to predict loss risk is the Adjusted-Expected Shortfall (Adj-ES). This study aims to compare VaR and Adj-ES through numerical analysis and backtesting test. So we can get reference to conclude the best risk measure for predicting losses on stock investments. The data used in this study are 2022 IDX blue chip i. e EXCL.JK and ICBP.JK from 09/01/21 to 09/09/22. Based on the backtesting test, the violation ratio value for Adj-ES in every violation probability is less than 1 is less than 1. Then, for VaR at 1% violation probability, the violation ratio value is > 1.

Determinants of Capital Formation in Agriculture: A Case Study of Dimapur District of Nagaland, India

"The formation of capital through investment in agriculture helps build up the stock of capital assets and resources that enable the farmers to utilize their resources, particularly land and labour, more efficiently. The present study includes a total sample of 200 farm households consisting of marginal, small, medium, and large farmers from Dimapur District of Nagaland, selected through a three-stage stratified sampling technique for the year 2020-21. Using multiple regression technique assessed the factors that affect the capital investment at the farm level. The coefficient of determinant (R2) value reveals that the model as good fit. Many factors influence the formation of capital in agriculture, among which family income (in `), working members (in number), and cropping intensity (in %) have positive influence. Unlike popular studies, the operational holding (in acres) has shown negative influence. Further, the age and education of the head of a family show no influence. There is a pressing need for fundamental change in the strategy to raise the resources and income of the farmer and accordingly accelerate the pace of capital formation in agriculture through targeting investment in irrigation, land development, and other infrastructure development."

Life cycle costs and asset management for protective structures against natural hazards

AbstractWith increasing risks from natural hazards in alpine regions in Austria OEBB‐Infra and Hoffmann‐Consult have developed a consistent methodology for condition assessment, prediction, and life cycle optimization of protective structures. Based on a thorough assessment of the asset stock standardized life cycles for key structures like rockfall and avalanche protection structures have been derived. The developed life cycle models allow a generalized assessment of asset condition, residual service life, and remaining asset value. In contrast to typical transport assets, protective structures are both subject to natural aging processes and random events with a certain occurrence rate. Beyond standardized life cycles on network level an adjustment to project level is necessary to account for actual condition development and asset specific events. The paper provides an overview on the developed generic life cycle with application to rockfall protection structures with prices 2022 in Austria.

Intelligent portfolio construction via news sentiment analysis

In this study, we apply deep learning and natural language processing methods to construct the view distribution in the Black–Litterman model. We implement this approach for portfolio allocation and perform statistical analysis to assess portfolio performance. The empirical analysis yields two main results. For the three deep learning models, we use mean square error to compare the model prediction results. The gated recurrent unit (GRU) model outperforms the other two models in the price prediction of seven stock assets. Moreover, it is more effective in capturing future trends and stock prices. The long short-term memory (LSTM) model outperforms the recurrent neural network (RNN) model. Moreover, in the comparison of the portfolio models, the Black–Litterman model, constructed by using Google’s Bidirectional Encoder Representations from Transformers (BERT) to measure news sentiment and by using the GRU model to predict stock prices, yields the highest annualized return rate of 46.6%. In addition, it has the highest Sharpe and Sortino ratios of 13.0% and 17.9%, respectively, which means that under a certain degree of risk, the Black–Litterman model still outperforms other constructed portfolios.

Buddha's grace illuminates all: Temple destruction, school construction and modernization in 20th century China

AbstractThis paper studies how modern human capital emerged in early 20th century China. We document a novel historical episode known as the ‘Temple Destruction Movement’ (TDM), in which Chinese local governments appropriated huge amounts of Buddhist and Taoist temple assets to support the modernization of local schooling. We find that before the TDM, the initial stock of temple assets was uncorrelated with the levels and trends of human capital development; after the TDM was intensified, regions with higher initial stocks of temple assets suddenly constructed more modern schools, enrolled more students in modern educational programmes, and produced more modern elites. A back of the envelope calculation suggests that the TDM could account for nearly 70% of China's modern school construction in the early 20th century, which is consistent with historical records collected from numerous county gazetteers. Further analysis shows that the TDM was most effective in the presence of both a strong government and a powerful civil society, as the former made it easier to appropriate assets from the religious sector, while the latter helped to prevent the confiscated religious assets from being captured by local officials.

LIQUIDITY OF A COMMERCIAL BANK: THEORETICAL ASPECT

The relevance of the research topic is justified by the fact that the liquidity of a commercial bank is the main basis for ensuring its financial stability and reliability. The bank’s liquidity is a guarantee of the normal functioning of the national banking system and a high level of trust in it on the part of the population and business entities. The article examines the approaches to defining the concept of “bank liquidity” existing in the scientific literature. To date, science has formed three approaches to determining bank liquidity, namely: as a bank’s ability to fulfill its obligations, as a ratio between the relevant groups of assets and liabilities of banking institutions, and as a process of converting assets into means for repaying own obligations. Both at the legislative level and in scientific literature, the first approach gained the most popularity. Some researchers believe that when studying bank liquidity, it is also necessary to determine the liquidity of the banking system, the liquidity of the bank’s balance sheet, and the liquidity of the bank’s assets and liabilities. It was determined that the world banking practice provides for a separate consideration of the bank’s liquidity as a “reserve” and as a “flow”. The first approach involves comparing asset stocks with the need for liquid assets. The second approach involves taking into account the bank’s ability to attract liquid resources in case of need. The essence of determining bank liquidity was studied by comparing appropriately grouped assets with liabilities. It was determined that bank liquidity is under the constant influence of external and internal factors, which must be taken into account during its management. The essence of the main problem of bank liquidity is summarized. Bank management must constantly make a choice between ensuring a stock of liquid assets and reducing their profitability, or increasing the bank’s profitability with a decrease in the stock of liquid assets. The topic of further research will be the modern methodology of liquidity management of commercial banks.

Transmission Mechanism of Monetary Policy Through Asset Price and Exchange Rate Channel in Indonesia

Many studies have been related to monetary policy transmission toward economic growth targets. However, research on monetary policy transmission by including bond yields as a channel has never been done in Indonesia. Therefore, this study will analyze the effectiveness of monetary policy transmission through bond yields compared to monetary policy transmission through asset price and exchange rate channels. This study uses secondary data obtained from the Central Bureau of Statistics (BPS), the Indonesia Stock Exchange (IDX), the Indonesian Economic and Financial Statistics (SEKI) of Bank Indonesia, and the website investing.com. The analysis technique used in this study is Vector Autoregression (VARs). Based on research results, a relatively effective monetary policy transmission channel is the stock asset price channel. It is because the variables in the channel of stock asset prices only take one month to respond permanently to monetary policy, but the contribution between variables is still low. In the bond yield and exchange rate channel, the response shown is only temporary, and the contribution between variables is still weak, so the two channels are ineffective in transmitting monetary policy with the target of economic growth in Indonesia.

Rainfall Shocks, Livelihood Diversification and Welfare: Evidence from Rural Togo

Abstract Theory suggests that rural farm households exposed to greater risk should diversify their income portfolios to reduce variation in welfare caused by adverse events such as rainfall shocks. Rainfall shocks, however, can also degrade asset stocks and make diversification more costly. Using a panel dataset of small-scale cattle farmers from rural Togo and long-term historical rainfall data, we first examine whether and in what direction rural portfolio diversification is related to historical rainfall shocks. Second, we test whether diversification is associated with stabilised welfare in the face of recent rainfall shocks. Our results show that historical rainfall shock exposure reduces income diversification. In terms of mitigation, we find that diversification is generally not effective in insulating against welfare losses. We conclude that there is a need to stimulate rural diversification as a means of building resilient livelihoods to cope with increasing weather variability by strengthening credit, agricultural and market institutions.

National Wealth as an Economic Category

National wealth is one of the most general economic categories and an integral indicator for assessing and comparing the economic potential and capabilities of different countries. The calculation of such important macroeconomic quantities is based on the system of national accounts. In the economic literature, the term wealth refers to the sum of certain elements. In the economic literature, the term "wealth" refers to the sum of certain elements. In this sense, "wealth" is the object of economic science and statistical research. Country, nation, people, social wealth - these categories emerged with the formation of economic science. The first mention of the category "national wealth" in foreign literature is associated with the works of the classical economist W. Petty. In his search for the source of wealth, the author quantified the economic events of his time. In 1664 the scholar calculated the national wealth of England. Two concepts have emerged: national wealth is regarded as a certain fund held by a country in a certain period of time, or as recurrent income, a certain flow of products processed and used by the state, of the country over a certain period of time. The second concept dominated 19th century science. In our view, the definition of national wealth as a certain flow over a certain period of time is more characteristic of the concept of national income or gross product. For a scientifically sound and legitimate characterization of the concept of national wealth it is necessary to combine these two approaches. Only from the middle of the 20th century onwards. National wealth is identified with the accumulated stock of tangible and intangible assets. All elements of national wealth have a material composition, i.e. represent the material wealth of society. But on the wave of scientific and technological progress, information played a big role, in the mid-twentieth century the economy transformed from industrial to neo-industrial, and intangible elements were included in national wealth: human capital and information. If we compare countries by the level of national wealth, it is known that natural resources prevail in the structure of national wealth of low-income countries, and human potential prevails in high-income ones. In order to achieve a certain level of socio-economic well-being, most researchers believe that forms of international division of labor and organization are necessary to enable less developed countries to change the proportions of national wealth. and increase the proportion of human potential. Keywords: Wealth, national wealth, national wealth as an economic category.

Organization of effective management of the stock market on the basis of researching the processes of formation of the value of shares of the issuer companies

The global economic crisis and the socio-economic consequences of the COVID-19 pandemic have a significant impact on the increase in volatility and risks of manipulation of stock asset quotes. The subject of the study is the organization of management of the investment fund process, taking into account non-market mechanisms for manipulating the value of shares of issuing companies. The purpose of the article is to improve the efficiency of managing the stock process based on the stock market model and procedures for fuzzy valuation of the value of shares of issuing companies within this model. The research methodology is based on the application of methods for analyzing economic phenomena and processes, a systematic approach to studying the development of issuing companies and stock markets. Modeling of fund processes is based on fuzzy logic theory and efficiency theory. The principles of stock market idealization and the principles of stock market management in a manipulated information environment are formulated. A model of the stock market is presented, which includes: an ideal model of the stock market, a model of fundamental disturbing factors and a model of stock market manipulation. Within the framework of the stock market model, an economic and mathematical model for estimating the value of shares of issuing companies has been developed, in which the uncertainty of parameters is described by fuzzy numbers. The novelty of the research lies in the formulated concept of factor psychodynamics (including a list of factors, functions of factors, the strength of factors and inertia of factors), which serves as the basis for the stock market model; as well as in the developed methodology for fuzzy valuation of shares of issuing companies. Participants of the stock market, potential investors, owners and acquirers of companies on the basis of the presented model of the stock market have the opportunity to obtain additional information about ongoing stock processes. Fuzzy procedures for estimating the value of shares of issuer companies make it possible to calculate the value of their shares in accordance with various forecast scenarios for the development of companies.