Use Of Economic Analysis Research Articles

THE THEORY OF WELFARE ECONOMICS AND TAX REGULATIONS: AN EMPIRICAL EXAMPLE OF PIGOUVIAN TAXES

The aim of this paper is to present the impact of the economic theories and empirical studies on the contemporary tax laws and regulations in numerous jurisdictions, based on a case study of the economic concept of Pigouvian taxes which stems from the neoclassical theory of welfare economics. The author presents the theoretical concept of the Pigouvian taxation and its econometric verification and tries to demonstrate that the empirical examples of the implementation of such fiscal instruments have proved to be effective based on the quantitative assessment. However, serious deficiencies in the methodology of empirical studies on this phenomenon can also be identified, which affects the possibility of assessing the potential practical implications of introducing such mechanisms. Nevertheless, as the author demonstrates by referring to the World Bank data, the discussed concept significantly influences contemporary tax law in many countries and is a source of inspiration for many tax jurisdictions. The analysis carried out in this paper indicates that not every implementation and post-hoc evaluation of economic theory implemented into tax systems can be effectively studied with the use of economic analysis of law; when analysing regulations introduced to influence the behaviour of individuals, it is also necessary to take into account the research in other disciplines, for example psychology and sociology, even if the inspiration for the regulations in question was well-grounded and developed in economic theories. For this reason, it can be argued that economic analysis of law, also referred to as law and economics, although a valuable cognitive approach, should never be the only basis of analysis, even if a regulation in question has a strictly economic origin.

A systematic literature review on business cycle approaches: Measurement, nature, duration

Research background: The business cycle (BC) approaches have found extensive use in economic analysis and forecasting. Especially in the last 40 years, various modern BC models have been proposed and have experienced rapid development. However, there are no recent studies that provide a systematic review of the publications on this topic. Purpose of the article: This paper aims to comprehensively review publications of BC approaches based on the cause, nature and methods of measurement BC, with the goal of identifying the current research states, research gaps and future trends of BC approaches. Methods: A systematic literature review of BC approaches is conducted by qualitatively introducing the cause and the nature of BCs and quantitatively analyzing the methods of measurement BCs. We selected 206 articles related to BC approaches from the WoS Core Collection and Google Scholar database, spanning the years 1946 to 2022, for comprehensive statistical and content analysis. The statistical analysis presents the distribution of publication years, the most popular journals and the highly cited publications. The content analysis classifies the selected publications into 6 categories based on methods of measurement BCs, and the theory, technique and applications of each category are analyzed in detail. Findings & value added: The analysis results indicate that BC approaches have progressively evolved in sophistication and have found widespread application in decomposing trends within economic time series, quantifying the nature of business cycles, and elucidating the causes and transmission mechanisms underlying them. This review paper provides current states, research challenges and future directions in effectively employing BC approaches for empirical study.

Wim Decock. Le marche du merite: Penser le droit et l'economie avec Leonard Lessius (Brussels: Zones Sensibles, 2019), 248

Leonard Lessius was one of the most accomplished philosophers of the Salamanca School whose great contribution to the study of law lies in the use of economic analysis to study legal institutes. The book, which is the subject to the present review, gives account of his scientific achievements. Among many other questions tackled by Lessius, the review discusses the evolution of the pacta sunt servanda principle, the morality and legality of interest, price mechanism, competition as well as the economic aspects of the salvation of one's soul. Attention is also paid to influence of Lessius on contemporary and later authors and timelessness of some of his theories.

Public real estate resource – A burden or a source of income? A study of municipal land management in Poland

Real estate and land management tend to be highly complex sector and therefore challenging for local governments. An ineffective real estate management has been observed in many countries and more detailed analysis are needed especially in post-socialist countries. That is why the article raises the issue of effective management of public areas in Polish municipalities. The purposes of the study are: (i) to compare resource management methods in individual communes with the use of economic analysis, (ii) to determine whether the activities of municipalities regarding their resources are consistent with their directions of development and the priority of balancing the local budget, (iii) to identify possible disparities between real estate management in rural, urban and urban-rural municipalities and (iv) to create main guidelines for more effective and efficient resource use planning. This study has been conducted with the use of data from selected Polish municipalities identified as proper representatives of post-socialist local governments. Therefore, data relating to real estate management were selected from: (a) municipal budgets as well as from reports on their implementation (b) resource use plans that support real estate management on a local level (c) property reports. The study uses empirical methods such as: comparative analysis, qualitative analysis, case study analysis, ratio analysis and a reference to good governance principles. The study has shown that local government uses a limited number of instruments dedicated to real estate resource management and in their current form they seem to be of little use for effective management. That is why their content should be modified, also because there is potential to introduce universal indicators and efficiency measures.

Application of Economic and Quantitative Tools for Merger Analysis in India

This article assesses how the use of economic analysis and quantitative tools has evolved in merger assessments in India and draws a comparison with practices in two of the advanced jurisdictions, the United States and the European Union. In addition, this article identifies the trends and the gaps that still persist in India, in terms of the adoption of analytical approaches in merger analysis.

ЕКОНОМІЧНИЙ АНАЛІЗ ЯК ОСНОВНИЙ СКЛАДНИК У СИСТЕМІ ПРИЙНЯТТЯ ОБҐРУНТОВАНОГО УПРАВЛІНСЬКОГО РІШЕННЯ НА ПІДПРИЄМСТВІ (НА ПРИКЛАДІ ПРАТ «КОНЦЕРН ХЛІБПРОМ»)

The paper proposes the use of economic analysis as the main component in the system of making informed management decisions in the management of a modern enterprise. The main features of the tools of economic analysis, which are the use of a system of indicators that characterize the relevant economic phenomenon; establishing causal links between indicators that describe a particular economic phenomenon and their impact on the resulting indicator; application of the principle of systemicity, which provides for the presence of a mandatory relationship between the indicators that affect the result, as well as the ability to measure the magnitude of such a relationship. It is determined that today economic analysis is a powerful system of scientific knowledge and methodological techniques that provide a comprehensive study of financial and economic processes occurring in the enterprise, and most importantly - to establish causal relationships between groups of factors that influenced the receipt of a other financial result. Also, modern economic analysis uses a reasonable system of theoretical and cognitive categories, principles, methods and special research techniques that ensure the adoption of sound management decisions and based on the laws of dialectics. The authors also show the algorithm of the process of economic analysis of a particular economic phenomenon. The use of economic analysis in the system of determining further strategic decisions on enterprise management is shown on the example of ”Hlibprom”. A system of indicators was chosen for the analysis, which is able to fully describe the object of study. That is to reflect the main economic and financial indicators of the enterprise, balance sheet indicators, indicators of profitability, liquidity and solvency. The main causal relationships between the factors that influenced the results of financial and economic activities of the enterprise are investigated by building a deterministic factor model, which is the optimal method of economic analysis, and allows to determine trends in the impact of factors on the resulting indicator. The analysis of the factor model was performed using the method of relative values.

ФІНАНСОВА ЗВІТНІСТЬ В КОНТЕКСТІ МОДЕРНІЗАЦІЇ БУХГАЛТЕРСЬКОГО ОБЛІКУ В ДЕРЖАВНОМУ СЕКТОРІ

Ukraine’s aspirations to the European community and long-term cooperation with international financial funds, foreign government agencies contributed to the beginning of the entire accounting system of the public sector. The process of transformation of the public sector accounting system has been complex and ambiguous. The efforts of reformers: government, academics, accountants-practitioners are aimed at adapting to international accounting standards. Accounting reform in the public sector continues today. The implementation of international accounting standards should result in harmonized financial reporting of budgetary institutions, prepared in accordance with current standards. The main requirements for quality reporting of budgetary institutions: the information context of reporting forms, effective use in economic analysis and inspections, as well as the provision of information for management decisions. The purpose of the article is to reveal the practical importance of modernized financial statements for its users and to identify areas for effective use of financial statements for timely management decisions in the budgetary institution. The methodological and informational basis of the work is scientific works, materials of periodicals, Internet resources. Scientific methods of analysis, synthesis, comparison and generalization were used in the study. The article examines the results and implementation of national accounting standards in the public sector, which are relevant to the formation of financial statements: International Public Sector Accounting Standards 101, 124, 135. The results of the study formulated differences that arise during the formation of financial and budgetary reporting, which as a result of compilation must be agreed in the institution. The shortcomings of methodological nature that cause differences in the interpretation of the articles of the financial statements and the current chart of accounts are analyzed. The article summarizes the results of a study on the theoretical and methodological foundations of modernization of accounting in the public sector. As a result of the research, the practical importance of forming financial statements according to the current accounting standards for budgetary institutions was revealed. Modernized financial reporting allows budgetary institutions to improve the quality of information for external and internal users, to be full participants in the processes in the international economic space. The article analyzes the problematic issues of modernized reporting of budgetary institutions, the main of which is the difficulty in agreeing between financial statements according to current standards and budget reporting of the public sector. It is proposed, as a supplement to the reporting of budgetary institutions, the gradual introduction of non-financial reporting on current indicators in the world: environmental and social. Proposed as a direction for further research, the use of management reporting. It is recommended to develop and implement management reporting, especially in the field of public finance, which requires constant analysis of financial indicators and operational management decisions at various levels of budgetary institutions.

Economic analysis of data protection in systems with complex architecture using neural network methods

Introduction. In the United States, Europe, and Asia, there have been spikes in cyber attacks on protected and confidential information (including bank data, personal data, and confidential business information) over the period 2000-2020. Data protection in systems with complex architectures is a complex and non-trivial solution, which is suitable for flexible self-tuning and self-learning tools, such as neural networks as state modern studies. The described above state of things stipulates the importance and topicality of the direction of our research. Our research raises the question about the economic study of the data but attempts to create a mathematical apparatus to cause a loss of data in digital form, not made before The purpose of the study is to propose and test the calculation of the economic value of the data loss and economic benefit from data protection with multi-level neural networks. Results. Nowadays, almost every business that has access to the Internet has a threat of losing protected data, including banking data. To prevent this, the company must comply with the data protection management regulations. As an example, we studied the process of neural network reaction to an attack and its detection, when two types of attacks are threatened: botnet and UDP flood. Due to the result of a quick response to detect suspicious activity, neural network methods are excellent for use in economic analysis, because the neural network logs every event for every millisecond. Conclusions. As a result of using neural network tools for economic analysis of data protection in modern systems with complex architecture, we were able to obtain stable results of responding to an emerging attack in order to obtain protected data. Such protection is a preventive measure for the possibility of reducing business losses in the event of data loss. As we can see, the management of protection of systems with complex architecture is necessary for each company with the specified data level.

Estimating EQ-5D utilities based on the Short-Form Long Term Conditions Questionnaire (LTCQ-8)

PurposeThe aim of this work was to develop a mapping algorithm for estimating EuroQoL 5 Dimension (EQ-5D) utilities from responses to the Long-Term Conditions Questionnaire (LTCQ), thus increasing LTCQ’s potential as a comprehensive outcome measure for evaluating integrated care initiatives.MethodsWe combined data from three studies to give a total sample of 1334 responses. In each of the three datasets, we randomly selected 75% of the sample and combined the selected random samples to generate the estimation dataset, which consisted of 1001 patients. The unselected 25% observations from each dataset were combined to generate an internal validation dataset of 333 patients. We used direct mapping models by regressing responses to the LTCQ-8 directly onto EQ-5D-5L and EQ-5D-3L utilities as well as response (or indirect) mapping to predict the response level that patients selected for each of the five EQ-5D-5L domains. Several models were proposed and compared on mean squared error and mean absolute error.ResultsA two-part model with OLS was the best performing based on the mean squared error (0.038) and mean absolute error (0.147) when estimating the EQ-5D-5L utilities. A multinomial response mapping model using LTCQ-8 responses was used to predict EQ-5D-5L responses levels.ConclusionsThis study provides a mapping algorithm for estimating EQ-5D utilities from LTCQ responses. The results from this study can help broaden the applicability of the LTCQ by producing utility values for use in economic analyses.

A virtual laboratory to support chemical reaction engineering courses using real-life problems and industrial software

A virtual laboratory has been developed to support chemical reaction engineering courses. Real-life engineering challenges that are difficult to address in a university laboratory give the opportunity to illustrate basic concepts of chemical reaction engineering such as the relationship between temperature and reaction rate, space time and conversion, and inert concentration and selectivity. Six virtual experiments covering topics from petroleum refining, diesel combustion, nanoparticle growth, and hydrogen combustion form the basis of the virtual laboratory. The characteristics embedded in the experiments include the use of economic analysis to give closure to open-ended problems, the solution of engineering problems with high environmental relevance and finally, the ability to solve complex engineering problems related to state-of-the-art technologies, for example the synthesis of functionalized nanoparticles. Trial tests with senior students, with continual feedback and freedom in terms of the delivery date were used to evaluate and improve the experiments. Subsequently, a classroom test with 45 undergraduate students with a fixed deadline was performed. The challenges and opportunities to use virtual experiments supported by industrial software to teach real-life problems to undergraduate students have been critically assessed.

INNOVATIONS IN IRRIGATION SYSTEMS IN AFRICA†

INNOVATIONS IN IRRIGATION SYSTEMS IN AFRICA^†

Reporting on water productivity and economic performance at the water-food nexus

It is imperative that there be consistent and unambiguous terminology when reporting on irrigation water use, and that the metrics of water productivity and economic benefits be clearly defined. We encourage our readers to study closely the following paper by our colleagues on the definitions and uses of various water-use indicators, along with their use in economic analyses.

Organic Vegetable Cultivation Reduces Resource and Environmental Costs While Increasing Farmers’ Income in the North China Plain

Organic cultivation has been promoted in recent years as a possible alternative to conventional cultivation in order to reduce environmental burdens and nonrenewable resource use. However, a comprehensive assessment of the sustainability of different vegetable cultivation modes is currently lacking. In this study, a combined use of economic analysis (ECA), emergy analysis (EMA), and lifecycle assessment (LCA) was conducted to evaluate the economic performance, resource use, and environmental impacts of three greenhouse eggplant production modes, namely conventional (CON), low-input (LOW), and organic (ORG) cultivation. ECA results showed that the economic profit and value to cost ratio of ORG increased by 14%–17% and 36%–41% compared with CON and LOW, respectively. EMA results showed that ORG had higher resource use efficiency. The unit emergy value and emergy sustainability index of ORG increased by 37%–49% and 45%–65% than those of CON and LOW, respectively. LCA results revealed lower potential environmental impacts for ORG, and its total potential environment impact index was 80%–91% lower than that of CON and LOW. These results showed that organic vegetable cultivation reduced resource and environmental costs while increasing farmers’ income, which is the most sustainable vegetable production mode in the North China Plain.

The economics of dams

Abstract Dams provide a host of benefits to societies, helping to balance variability in water availability with demand for multiple uses, allowing power generation, providing and enhancing recreation opportunities, and offering protection against damaging floods. Yet dams are often controversial due to their high investment requirements, unequal distributional effects, and concerns over the irreparable harm they may cause to free-flowing rivers and ecosystems. This paper considers the economic case for such projects, organized around a review of what we know about their value and impacts. Though heterogeneity across contexts is a common feature of interventions in many sectors, we argue that it is particularly acute in the case of dams, and that this creates difficulties for drawing general conclusions about their social value. Still, evidence suggests that investment in additional surface water storage may not always be the best solution for addressing water scarcity. Furthermore, a number of biases and blind spots exist in economic frameworks used to evaluate dams, and these often challenge analysts’ ability to correctly identify which projects will be most attractive. Perhaps due to some of these perceived deficiencies, policy-makers do not appear to make much use of economic analyses for decision-making about dams. If progress is to be made in avoiding costly mistakes related to construction and removal of such infrastructures in the future, economists need to improve the realism and methods underlying their analyses of the value of dams, and offer more useful interpretations of the results that these approaches produce.

LCA analysis of food waste co-digestion

The i-REXFO LIFE project designs an innovative business model with the objective of reducing significantly the amount of landfilled food waste. Given the availability of supermarket food waste in the Umbria region (Italy), the logistics is optimized using a Vehicle Routing Problem Solver, mass and energy balances of the biogas plant are partly calculated and partly measured from a real biogas plant. The data obtained from food waste transport and anaerobic co-digestion process are used as input for LCA analysis. The aim of the methodology is to assess the environmental and economic benefit of the substitution of energy crops (like corn silage) with food waste in anaerobic digestion. Two approaches are adopted: consequential LCA and attributional LCA. Only one impact category is taken into account: climate change. This decision has been taken to focus on two decision making criteria (economic feasibility and GHG emissions reduction). The results show that a reduction of 42% in the carbon footprint of the electricity produced from the biogas plant can be obtained by substituting about 9900 t of corn silage with 6600 t of food waste. Through the combined use of economic analysis and consequential LCA it has been possible to identify an optimized scenario in which: food waste produced from food industries is collected and used to produce energy in Expired Food Energy chains (EFE), while the food obtained from supermarkets is used to promote charity initiatives in actions aiming at the Reduction of Expired Food waste (REF).

Occurrences in Czech Railway Infrastructure and their Relation to the Economic Efficiency of Investments

The paper focuses on the evaluation of impacts of occurrences in the Czech railway transport system on social and economic benefits and financial efficiency of investment projects in railway infrastructure. The evaluation of financial and economic efficiency of investment projects financed from the funds of the European Union is based on the Guide to Cost-Benefit Analysis of Investment Projects by European Commission from 2014. In the Czech Republic, this Guide has been complemented, for the purposes of economic and financial evaluation of projects in transport infrastructure, by the Departmental Guideline for the Evaluation of Economic Effectiveness of Transport Construction Projects by the Ministry of Transport of the Czech Republic which specifies economic evaluation of projects of roads and highways, railways and waterways important for traffic. The Departmental Guideline defines benefits which can be included into the economic evaluation, e.g. savings in the operation costs, the decrease in costs connected with accidents, the decrease in costs connected with the travel time or negative externalities usually related to impacts on the environment. However, in the case of the railway infrastructure, benefits connected to the increase in safety and fluency of the transport due to introducing security and information systems are not taken into account, even if these investments form a standard part of most railway infrastructure investment projects. The objective of the paper is to identify both the number and the structure of railways occurrences, which can influence effective functioning of railway transport for the purpose of their subsequent research in order to take into account decrease in their use in economic analysis. The methodology of the research is based on detailed analysis of individual occurrences which happened on Czech railways during past three years. The output of this paper provides a detailed statistic of occurrences including damage caused and propose recommendations for the next steps which should lead to the quantification of relevant benefits.

Public administrators’ roles in the policy adaptation of transport directives: How knowledge is created and reproduced

The European Union (EU), as well as many national governments, has adopted directives intended to reduce the environmental impact of transport. For example, the EU's clean fuel strategy requires member states to develop national policy frameworks for the market development of alternative fuels and their infrastructure. Given these directives, policy solutions must be formulated and proposed by member states. This paper focuses on the policy adaptation phase of a policy process, specifically on administrators' knowledge-making when constructing policy proposals. The paper combines policy theory with planning theory and provides a theoretical framework for studying policy adaptation, specifically, administrators' construction of knowledge in such processes. The empirical study is based on two cases, both situated in the Swedish context. It concludes that administrators use several sources of knowledge: process knowledge, project knowledge, and context knowledge. New policy solutions are constructed by reusing data from existing reports and policy proposals. There has been a specific focus on the use of economic analysis as an instrument for evaluating solutions. The paper shows that, in the policy adaptation phase, no new analyses are conducted and that decoupling strategies are used when dealing with economic analysis.

IGITALIZATION AND USING OF FINANCIAL RESOURCES OF THE COMPANY (by the example of Air Astana JSC)

The article is devoted to the actual problem of the method of analyzing the state, security and efficiency of the use of financial resources of an enterprise under digitalization conditions. The article provides a classification of indicators characterizing the state and efficiency of using own and borrowed funds, the method of their definition and use in economic analysis. The purpose of the article is to analyze the factors influencing the development of resources, as well as the sources of financial resources of entrepreneurs. The scientific and practical significance of the work is due to the fact that at the moment enterprises are forced to pay more attention to the problems associated with the formation and improvement of the efficiency of their financial resources and to intensify the search for ways to improve their financial condition. In the research methodology, the principle of comprehensive analysis of indicators was chosen, which comprehensively characterize the efficiency of the formation and use of financial resources. Summing up the main results, analysis and conclusions of the research work, it should be emphasized that the digitization of financial resources in an enterprise, which is the basis for ensuring its financial sustainability, will help to create all possibilities for further financial and economic activity with positive results. The theoretical and practical significance of the study lies in the fact that its conclusions and suggestions can be used in the formulation of the task of analysis and planning and the development of appropriate software by specialists of financial management companies, as well as in the educational process in preparing and lecturing for students of the specialty «Finance».

The Use of Economic Analysis of Law in the Context of Environmental Regulations

Abstract One of the recent developments in comprehending the effects and complexities of environmental regulations are by building environmental models. These models play various functional roles in environmental regulations ranging from assisting in policy making, in formulating new laws and resolving legal disputes to being used as a tool for collaborative negotiations between multiple set of parties. One such methodology for developing models in the context of environmental regulations is the economic analysis of law (EAL). This paper looks into how the EAL could be used in formulating environmental regulation models. This paper is an attempt to help policy makers, lawyers and environmental professionals, in general to understand how EAL could be used as an empirical tool to identify how regulatory quality could reduce pollution levels successfully and also how other variables (such as public participation, Ngo′s etc) could help reinforce the existing regulatory quality. In addition, to understand how this methodology can aid in devising models for examining the effectiveness of the regulatory quality, it also looks at EAL′s historical origins and how it has developed over time and its use (both advantages and disadvantages) in understanding regulation.

Integrated assessment of economic and environmental consequences of shifting cropping system from wheat-maize to monocropped maize in the North China Plain

Abstract Monocropped maize is being discussed as a possible alternative to the conventional wheat-maize cropping system in order to conserve water in the North China Plain. To evaluate the economic and environmental consequences of converting cropping systems, wheat-maize, monocropped maize systems with and without irrigation are compared through a joint use of economic analysis, emergy evaluation and life cycle assessment in this study. According to the economic analysis results, the wheat-maize system has higher grain yield and levels of economic profit but a lower ratio of income to costs compared to monocropped maize systems with and without irrigation. The emergy evaluation results show that monocropped maize systems have higher levels of sustainability. Their environmental loading ratios are 8.16%–26.7% lower and the emergy sustainability indexes are 10.20%–30.52% higher than those of wheat-maize system, respectively. The life cycle assessment results reveal lower potential environmental impacts for monocropped maize systems and their total potential environment impact indexes are 39.59%–40.30% lower than that of wheat-maize system. These results indicate monocropped maize will be an effective measure to resolve the current issue of environmental pressures caused by the conventional wheat-maize system in the North China Plain.