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Economics: Principles and Policy

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... labour, capital and other inputs), and is a key determinant of countries' wealth and standards of living (Krugman, 1990;Porter & Ketels, 2003). According to Blinder and Baumol (1993), even small positive changes in the levels of productivity significantly translate into an increase in the wealth of a given society in the long term (Blinder & Baumol, 1993). The same applies to interest rates which -like productivity -exert a significant impact on countries' wealth. ...
... labour, capital and other inputs), and is a key determinant of countries' wealth and standards of living (Krugman, 1990;Porter & Ketels, 2003). According to Blinder and Baumol (1993), even small positive changes in the levels of productivity significantly translate into an increase in the wealth of a given society in the long term (Blinder & Baumol, 1993). The same applies to interest rates which -like productivity -exert a significant impact on countries' wealth. ...
... Considering that the common low interest rate policy adopted by central banks around the world increases poverty of whole societies and causes social stratification -which manifests itself in the shrinkage of the middle class -the emphasis on productivity as a factor that mitigates the process of impoverishment of societies becomes even more important (Schwab, 2016). Blinder and Baumol (1993) argue that increasing productivity not only reduces poverty, but typically also improves the states' ability to finance education, health care, and environmental protection. Labour productivity can be expressed as the total value of production and services provided in relation to the total number of persons employed or total hours worked. ...
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Objective: : The objective of this article is to use the most recent national-level data (reflecting heterogeneity) to explore determinants of total factor productivity (TFP) growth. Research Design & Methods: The article examines the performance of a number of potential TFP growth determinants , relying on the Bayesian modelling analysis (BMA) methodology, which allows for isolating key regressors and assessing their actual contribution in relation to the phenomenon under study. As a scientific methodology, BMA is deeply rooted in statistical theory and directly results in posterior and predictive inferences. Moreover, BMA makes it easier to determine the relative impact of examined processes, while taking into account the uncertainty that accompanies the entire regressors' selection procedure (Raftery, Madigan, Findings: We indicate a number of determinants driving TFP growth, e.g. inequality measured by the Gini coefficient, the growth of information and communications technology (ICT) assets, logistics performance, the quality of logistics services, and migration.
... According to Onoh (2007) [31] and Central Bank of Nigeria (2011) [11] Nigeria has used these instruments at different stages of the country's development. Baumol and Blinder (1979) [8] , Wonnacott and Wonnacott (1979), Jingan (2007), Gordan (1981) [22] believe that the effective use of the monetary policy instruments depend on a number of factors, including the level of development of the money markets. The situation is worse in developing economies, Jingan (2007) asserted and corroborated by Akujuobi, (2010) [5] Iyaji et al. ...
... According to Onoh (2007) [31] and Central Bank of Nigeria (2011) [11] Nigeria has used these instruments at different stages of the country's development. Baumol and Blinder (1979) [8] , Wonnacott and Wonnacott (1979), Jingan (2007), Gordan (1981) [22] believe that the effective use of the monetary policy instruments depend on a number of factors, including the level of development of the money markets. The situation is worse in developing economies, Jingan (2007) asserted and corroborated by Akujuobi, (2010) [5] Iyaji et al. ...
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Nigeria has over the years been controlling her economy through various macroeconomic policies of which monetary policy is among using some monetary policy instruments in efforts to drive along the desired path. This study empirically reassessed the impact of monetary policy on economic growth of Nigeria adopting the Error Correction Model approach. It utilized time series secondary data spanning between 1981 and 2018. The result showed that a unit increase in Cash Reserve Ratio (CRR) led to approximately seven units increase in economic growth in Nigeria. The result was in consonance with economic literature as monetary policy among other objectives is geared towards achieving the macroeconomic objectives of sustained economic growth and price stability. Therefore, the study recommends that monetary authorities should give priority attention to CRR monetary policy tool as it will produce a more desired result in terms of economic stabilization. And also some combination of fiscal policy measures are needed to attain the complementary balance required to drive an economy towards desired goals.
... Generally speaking, one of major reasons for regulation is economies of scale, usually as an antitrust policy, to prevent big firms from engaging in "anti-95 competitive" practices (Baumol and Blinder, 2011). Regarding the sharing economy and Taxi regulation in particular (Wyman, 2017), some praise self-regulation Sundararajan (2016) arguing that it is capable of solving market problems 100 (Koopman et al., 2014) and that regulation may throttle innovation (Schneider, 2017) ...
... The introduction of regulation is expected to raise the cost of the service (Baumol and Blinder, 2011). But is should be a fixed fee to retain the gained equilibrium discussed in section 1.3. ...
... For our research, this value has been established based on the concept of the so-called opportunity cost. The opportunity cost can be defined as "the value of the next best alternative that the decision forces the decision-maker to forgo [38]". Therefore, the price of not meeting the demand (i.e., for load shedding) can be considered a cost of an opportunistic planning strategy. ...
... have been based on the concept of the so-called opportunity cost. The opportunity cost can be defined as "the value of the next best alternative that the decision forces the decision-maker to forgo" [38]. Therefore, the price of not meeting the demand (i.e., for load shedding) can be considered a cost of an opportunistic planning strategy. ...
Article
Demand-Response (DR) has emerged as a valuable resource option for balancing electricity supply and demand. However, traditional power system models have neglected to include DR within long-term expansion problems. We can summarize our scientific contributions in the following aspects: (i) design of a new integrated co-optimization planning model for supply and demand coordination; (ii) assessment of the technical and economic impact of DR for systems with a high share of Renewable Energy Sources (RES) and (iii) proposal of the ‘opportunity cost’ concept for computing the price of not meeting the demand. Findings of this research support the hypothesis that DR scenarios reveal a high potential for delaying future investments in power capacity compared to scenario BAU (Business as Usual). However, it was found a limited potential of DR to integrate additional renewable plants. This research has provided further evidence concerning the potential of DR to decrease the levels of CO2 emissions that is strictly related to the reduced need for fossil fuel thermal power plants. Given the high RES share, uncertainties related to future weather conditions must be however highlighted. This study concludes on the importance of DR for power systems planning and lays the groundwork for future research.
... When looked Graph-1, it can be seen that two events can change the budget line [10] : It can be examined the income and substitution effects based on the changes in the price of one good. They can be defined as follows [11] : ...
... Whenever the phenomenon of production is broached, two elements come into the mind: judicious use of scarce resources and maximum productivity. Thiswas the core essence why Standish (2010) observed that production efficiency is the activity that encompasses the objective use of resources and exploiting of the full available potential. Supporting this, Samuelson and Nordhaus (2005) asserted that production efficiency is actually the use of economic resources to produce the minimum level of satisfaction possible with given input and technology. ...
... When looked Graph-1, it can be seen that two events can change the budget line [10] : It can be examined the income and substitution effects based on the changes in the price of one good. They can be defined as follows [11] : ...
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In economics literature, it is accepted that all people are rational and they try to maximize their utilities as possible as they can. In addition, economic theories are formed with the assumptions not suitable to real life. For instance, indifference curves are drawn with the assumptions that there are two goods, people are rational, more is preferred to less and so on. Hence, the consumer behaviors are guessed according to this analysis. Nevertheless, these are invalid in real life. And this inconsistencey are examined by behavioral economics and neuroeconomics. Behavioral economics claims that people can behave what they are not expected since people can be irrational, their willpower is limited and altruistic behaviors can be seen and they can give more value to what they own. As a result of these, consumer behaviors become more different than that of economic theory. In addition to behavioral economics, neuroeconomics also examines consumer behaviors more differently than mainstream economic theory. It emphasizes the people using prefrontial cortex of the brain are more rational than the people using hippocampus of the brain. Therefore, people can make illogical choices compared to economic theory. In these cases, levying taxes such as personal income tax or value added tax can be ineffective or effective. In other words, the effect becomes ambigious. Hence,the hypothesis that if government desires to levy personal income tax or value added tax, it makes a detailed research in terms of productivity of taxes forms the fundamental of this study.
... The traditional SID perspective aims to economically rationalise SIDs. Rationality is defined in economics as characterizing those tools and procedures that are most effective in helping the decision-makers achieve their own objectives (Baumol & Blinder, 1985). However, Burgos, Kittler, and Walsh (2020) highlight that budgeting and investing decisions are not only carried under conditions of bounded rationality but also, they suggest a major role of context to understand how bounded rationality is implemented differently towards SIDs. ...
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There is a stream of research that has introduced strategic investment decision-making (SIDM) through case studies and organisation-based fieldwork. However, a systematic theorisation around SIDM processes and practices still under-presented in the literature. This research aims to show how strong structuration theory (SST) could be used as an appropriate theoretical lens to explore how SIDM studies are theorised and conducted. Through employing the parameters and the concepts of SST within the SIDM context, we found that SID is a judgemental decision that is constructed by various influences. SIDs are not isolated from the social, political, and economic aspects. Subjective judgements and the decision-makers’ intuition are crucial throughout the process of SIDM. Therefore, SIDs cannot be abstracted as an objective decision-based on applying investment appraisal technical methods. The theoretical lens presented in this paper will enable researchers to drill down into the ‘ontic’ level to empirically explore in-depth the complex interrelationships between various agents and structures which, arguably, fits the SID context. Furthermore, this paper will help scholars understand how SID is made from SST perspective and guide them to conduct future research to build on and also help executives to be guided by
... Assume the price elasticity of demand (E D ) is 1. 25 A luxury car such as Ferrari. C. ...
... The validity of the NRH, or Friedman's weaker version called the "accelerationist" hypothesis, was a subject of considerable debate starting in the late 1960s. Lucas (1972) and Sargent (1971) pointed out that the initial tests (such as those of Solow, 1969) were inconsistent with rational expectations, and later evidence favored the NRH, which by the early 1980s had become integrated even into Keynesian treatments (see, for example, Gordon, 1978, or Baumol andBlinder, 1982). In the last decade and half, however, what is in effect an overturning of this consensus has occurred, thanks to the widespread adoption of the Calvo (1983) specification of nominal price adjustment. ...
Article
We consider what, if any, relationship there is between monetary aggregates and inflation, and whether there is any substantial reason for modifying the current mainstream mode of policy analysis, which frequently does not consider monetary aggregates at all. We begin by considering the body of thought known as the 'quantity theory of money.' The quantity theory centers on the prediction that there will be a long-run proportionate reaction of the price level to an exogenous increase in the nominal money stock. The nominal homogeneity conditions that deliver the quantity-theory result are the same as those that deliver monetary neutrality, an important principle behind policy formulation. The quantity theory implies a ceteris paribus unitary relationship between inflation and money growth. Simulations of a New Keynesian model suggest that we should expect this relationship to be apparent in time series data, with no heavy averaging or filtering required, but with allowance needed for the phase shift in the relationship between monetary growth rates and inflation. While financial innovation can obscure the relationship between monetary growth and inflation, evidence of a money growth/inflation relationship does emerge from U.S. time series and G7 panel data. Various considerations suggest that studies of inflation and monetary policy behavior can benefit from including both interest rates and money in the empirical analysis.
... As stated by Terdoo and Adekola [26], deciding whether or not to adopt any CSA practice falls under utility and profit maximization theoretical frameworks. The theory of utility explains the behavior of individuals on the basis that individuals can consistently rank their choices based on their preferences [27]. With the theory of utility, what is deemed necessary about utility concerning choice/s being made is whether an option has a higher utility than another and not the measure of the difference between the available options. ...
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Agriculture, particularly small-scale farming, is both a contributor to greenhouse gas (GHG) emissions and a victim of the effects of climate change. Climate-smart agriculture (CSA) offers a unique opportunity to adapt to the effects of climate change while at the same time mitigating GHG emissions. The low response to the adoption of CSA among small-scale farmers raises questions as to the factors influencing its adoption in the small-scale farming system. With the aid of a close-ended questionnaire, structured interviews were conducted and formed the basis on which data were generated from 327 small-scale farmers selected through random sampling. Descriptive statistics, Composite Score Index and a Generalized Ordered Logit Regression (gologit) model were employed for the analysis. The majority (56.6%) of the sampled farmers fell in the medium category of users of CSA practices, while the lowest proportion (17.7%) of the sampled farmers fell in the high category. The use of organic manure, crop rotation and crop diversification were the most popular CSA practices among the sampled farmers. Educational status, farm income, farming experience, size of farmland, contact with agricultural extension, exposure to media, agricultural production activity, membership of an agricultural association or group and the perception of the impact of climate change were found to be statistically significant and positively correlated with the level of CSA adoption. Furthermore, off-farm income and distance of farm to homestead were statistically significant but negatively correlated with the CSA level of adoption. This paper argues that climate change-related education through improved extension contact and exposure to mass media can strengthen integrated farm activities that bolster farm income. Additionally, farmer associations or groups should be given adequate attention to facilitate CSA adoption as a means to climate change mitigation and resilience.
... Again, the CBN has continued to leverage monetary policy rate to control the volume of money in the economy and reduce inflationary pressures. Baumol & Blinder [8] explain that this is mostly designed to reduce the liquidity position in the economy which has the effect of raising interest rate and driving down the general price level. Despite various policy initiatives including sterilized intervention in the foreign exchange market introduced by the CBN in the past decade to drive down the prices of goods and service in the country, the inflation situation in the country has taken a turn for the bad. ...
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Motivated by the rising general price level amidst varying exchange rate, this paper modeled the exchange rate pass-through to inflation in Nigeria, disaggregating the exchange rate into Bureau de Change (parallel market) exchange rate and the official exchange rate. Monthly time series data that cover the period of 2006M01 to 2021M4 was used for this study and sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and the International Monetary Fund. The study employed the econometric technique generalized autoregressive conditional heteroscedasticity (GARCH) and both Bureau de Change and official exchange rate do not pass-through to inflation in the short run. At the same time, the volatility of both the parallel market and official exchange rate negatively affect inflation in Nigeria. The negative impact is inelastic because a 1 per cent increase in the parallel market exchange rate volatility would lead to a less than proportionate decrease in inflation by about 0.085. Similarly, there would be a less than proportionate decrease in inflation by about 0.054 following a 1 per cent rise in official exchange rate volatility. The result further revealed that the volatility is not persistent as the sum of the ARCH and GARCH coefficients is less than one. Given the findings, the study recommends consistent exchange rate management policy in the managed-float system alongside structural transformations to mitigate the structural problems that may transmit to inflation in Nigeria.
... On one hand, the transactions in the real sector support and encourage real investment, which, in turn, stimulates the monetary sector to finance the increasing investment spending. On the other hand, an active and efficient financial system supports the real sector with multiple ways and instruments to finance the investment spending (Baumol and Blinder, 2003). However, the empirical experiments don't necessarily match with this ideal mutual relationship. ...
... Blinder and Baumol set their concept for why productivity matters"…nothing contributes more to material well-being, to the reduction of poverty, to increase in leisure, and to the country's ability to finance education, public health, environment improvement, and the arts than its productivity growth rate.", ((Blinder and Baumol, 1993), P. 491). ...
Thesis
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This thesis principally seeks to provide empirical examination of the contribution of human capital, particularly in the form of education, to productivity at the micro level, through the lens of human capital and production theories, for a pooled sample of countries from the Middle East and North Africa (MENA), in comparison with both the Eastern Europe and Central Asia countries (ECA). This research mainly aims to establish substantive empirical evidence on the varying effects of human capital on growth, across regions. It also aims to investigate the role of human capital investment in the productivity gains, mainly through efficiency and labour productivity, in the formal private manufacturing sector, in the aforementioned regions. The thesis takes into account the variations in per capita income levels, based on the World Bank classifications of countries by income group. In addition, this research recognises and takes into account the heterogeneity which exists throughout the selected sample of countries. The main objective of evaluating the impact of human capital is to untangle the existing differences in the firms’ performance, partly on account of employing different workers with varying levels of education, with distinctive regional socio-economic changes, and different political conditions. The stochastic frontier analysis (SFA), as a fully parameterised model is used, in order to address and examine the determinants affecting production efficiencies, especially from a human capital point of view, and in the light of Vandenbussche, Aghion, and Meghir’s 2006 assumptions, on growth, distance to frontier, and composition of human capital, which remains untested in MENA and ECA at the firm-level. The SFA was applied following the approach of Caudill, Ford, and Gropper (1995) (CFG) by estimating and testing stochastic frontier production functions, assuming the presence of heteroscedasticity in the one-sided error term (inefficiency), and by following the approaches of Hadri (1999) for cross sectional data assuming the existence of heteroscedasticity in both error terms (the one-sided inefficiency term and the two-sided symmetric random noise), in order to obtain more accurate measures of technical efficiency. However, the rationale for this choice of the two different regions, is the heterogenous organisational structures, and the dissimilarities between production functions across economies in different developmental phases, which can be used as a suitable platform for analysing the distinctive effects of human capital composition on efficiency, and growth in each region in comparison with the other. In addition, the applied methodology also involves the incorporation of two matching methods consisting of a completely randomised experimental design, propensity score matching (PSM), and a fully blocked experimental design, Mahalanobis distance matching (MDM), using a cross-sectional firm level dataset, in order to examine the causal effects of formal training on productivity in MENA, and in ECA. The main conclusion of the empirical analysis suggests that highly-educated labour proxied by workers with tertiary education and those with university degree, appear to have a positive and statistically significant impact on efficiency in the two regions. Noting that the closer is the country to the frontier, the more important this level of human capital tends to be. As a country becomes closer to the frontier, it depends more on innovation and knowledge creation, which leads to the reallocation of labour from unskilled-complementary technology production activities, to skilled-prejudiced and technology-intensive activities. This result appears to confirm the association between high levels of human capital and growth, and chimes with the relevant literature about the link between human capital and growth in the developing and developed countries. It was also found that low-skilled labour component, denoted by workers who attended secondary school, seemed to have positive and statistically significant contribution to efficiency only in the less developed countries, such as MENA. This is due to the fact that the further the country is from the technological frontier, the more reliant the country becomes on imitation activities, and this seemed to corroborate the ideas posited in the literature about the sources of growth and the proximity to the world’s technological frontier. The low-skilled labour in the private manufacturing firms, in MENA, is positively associated with high levels of efficiency, and its impact appears to be significant, especially in high- technology firms. Although in the more affluent countries, such as the high-income economies in Eastern Europe, and the middle-income economies in ECA at large, the impact of secondary school workers gives the impression of being insignificant on efficiency. With respect to the intermediate-skilled labour, which is represented by the proportion of workers who have been trained in technical schools, or received on-the-job training, the maximum likelihood estimates point that their effects on efficiency have a propensity to be statistically insignificant, in MENA and ECA, in reducing the effects of inefficiency in firms’ performance. In fact, intermediate-skilled labour is found to have a positive and significant relationship with higher levels of inefficiency, especially in MENA. Put simply, it impedes efficiency improvements in the manufacturing firms, particularly, in the low and medium-technology plants in MENA. Furthermore, the effects of highly-skilled workers on efficiency were found to be positive and of a high level of significance in the low and medium-technology firms, and this is quite clear, especially, in the high-technology manufacturing firms in this region. All in all, the results of this study are in line, and compare well with the hypotheses of endogenous growth models of Lucas (1988) and Romer (1990), and with the assumptions of Benhabib and Spiegel (1994), that the economic growth is conditional on the human capital accumulation to improve efficiency and increase productivity in order to catch up with the technological frontier and shift it upward.
... On the other hand, the economic model is described as "a theoretical construct that represents economic processes by a set of variables and a set of logical and quantitative relationships between them" [26]. The Cloud service composition problem is considered as a multi-objective optimization problem to Table 1 Aggregation functions where n is the total number of composed services, k is the loop times number and p is probabilistic variable [25] Sequential Parallel Conditional Loop [24] improve throughput and minimize cost and response time. ...
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The service composition problem in Cloud computing is formulated as a multiple criteria decision-making problem. Due to the extensive search space, Cloud service composition is addressed as an NP-hard problem. In addition, it is a long term based and economically driven. Building an accurate economic model for service composition has great attention to interest and importance for the Cloud consumer. A deep learning based service composition (DLSC) framework has been proposed in this paper. The proposed DLSC framework is considered an amalgamation between the deep learning long short term memory (LSTM) network and particle swarm optimization (PSO) algorithm. The LSTM network is applied to accurately predict the Cloud QoS provisioned values, and the output of LSTM network is fed to PSO algorithm to compose the best Cloud providers to contract with them for composing the needed services to minimize the consumer cost function. The proposed DLSC framework has been implemented using a real QoS dataset. According to the comparative results, it is found that the performance of the proposed framework outperforms the existing models with respect to the predictive accuracy and composition accuracy.
... С целью исследования был проведено онлайн-анкетирование среди работодате-лей в России и Болгарии. Обе страны являются развивающимися и, в соответствии с этими критериями, имеют более низкий индекс развития человеческого потенциала [12] по сравнению с развитыми странами. В течении последних лет у двух стран было очень динамичное развитие и в настоящее время укрепляются экономические отно-шения, а также растут их импорт и экспорт. ...
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Сотрудники играют все более важную роль в успехе организации в цифровой экономике. Развитие цифровых технологий влечет за собой трансформацию на рынке труда. Доклад основан на результатах исследования, проведенного в 2019 году среди работодателей в Болгарии и России. Исследование имеет цель проанализировать развитие человеческого капитала в организациях в двух развивающихся странах. Также посмотреть проблемы, стоящие перед организациями цифровой экономики связаны с персоналом.
... The expectations of the public play a major role in increasing inflation and creating confusion in measuring the inflation gap, because if the expectations are rational, the difference between the actual rate of inflation and the expected rate of inflation is small and does not affect their decisions in production and use; the prediction error is the net random number of inflation according to the following mathematical equation: (Blinder & Baumol, 2009) ...
... It was established that deregulation is not the best option and that neoliberalism cannot not be separated from economics. This is supported by Baumol and Blinder [1] who suggested that the use of tradable emissions can come up with a remedy to correct its own deficiencies. Most interviewees were not happy with either deregulation or regulation. ...
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Neoliberal work has been absolutely brilliant and was created with people with a purpose that is the reason why it managed to have such a huge audience. Additionally neoliberalism is the powerful and dominant ideology shaping the world today, as we are living in an age of neoliberalism with its emphasis on transferable and flexible skills on curricula. Critics on the other hand, including feminist economists have mentioned that the theory negates social and environment responsibility, other researchers also argue that neoliberalism benefits advanced nations when they invest abroad. Thus, neoliberalism is taken to be a major obstacle to democracy in that it reduces social regulation and actively frustrates policy initiatives in several areas like, the expansion of literacy and education and health care programs, which require the role of the public sector. However, the goal of this research is to find out if neoliberalism is influencing the teaching of economics. The research employed a qualitative research method through the use of interviews. Interview data revealed that neoliberalism is not a problem; the problem is inequality which needs to be dealt with. It is recommended that more research is needed on how to generate economic growth without widening the gap between the rich and the poor not to fight against neoliberalism principles. The other suggestion is to identify a problem and bring a solution rather than concentrating on criticisms. Therefore, research should be geared towards addressing problems which are hindering economic growth.
... It is argued that supply disruption events are linked to monetary socio-economic damage through a cause-effect chain. According to economic theory, in the case of a geopolitical tension causing a supply disruption, the supply curve shifts, meaning that less material is offered to the market for the same price (McEachern, 2011;Varian, 2014;Baumol and Blinder, 2015). Such a disruption is more likely for critical raw materials, which have more limited production, and the disruption causes undesired economic damage (Graedel and Reck, 2015). ...
Thesis
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The activities required to provide healthcare services bring challenges to environmental sustainability. The sector relies on diverse products, services and facilities, including disposable products, complex equipment and transportation. This domain has not been well explored from a sustainability lens and the level of awareness around healthcare sustainability is low. Life-cycle based methods have the potential to characterize systems related to the healthcare sector and many others; however, these methods are mostly – if not exclusively – related to an inside-out pathway to assess impacts. From an outside-in perspective, there is potential for raw material criticality to assess resource availability in the healthcare sector, especially after the proposal to integrate it into the Life Cycle Sustainability Assessment (LCSA) framework.A pending task around this proposed methodological pathway is to explore the applicability and readiness of supply risk methods, specifically the geopolitical supply risk (GeoPolRisk) method has been proposed to assess resource related impacts. This research provides and integrates methods to assess environmental sustainability from a life cycle perspective with focus on enhancing criticality indicators as an outside-in impact pathway associated with the Area of Protection “Natural Resources” in Life Cycle Assessment (LCA); moreover, their applicability is validated with multiple case studies, being one of those a part of the healthcare sector.The thesis is divided in 9 chapters along two branches: “Healthcare Sustainability” and “Raw Material Criticality in Life Cycle Assessment”. The first chapter provides an introduction to the manuscript and presents the research question and objectives of the thesis; it is followed by the state of the art in chapter 2. Chapter 3 presents the development of a novel framework to help address sustainability challenges in the healthcare sector through life cycle thinking. Chapter 4 and Chapter 5 propose and test methodological enhancements to the geopolitical supply risk method required to better address resource related impacts in life cycle assessment. Chapter 6 presents an integrated assessment taking into account the enhanced method and its relation to more traditionally used environmental impact categories in LCA. In chapter 7, the GeoPolRisk method is used to better understand the relevance of assessing outside-in impacts associated to an element used in the healthcare sector. Chapter 8 integrates the methodological enhancements previously presented to study inside-out and outside-in impacts for a case study associated with medical imaging. Finally, accomplishments and future opportunities for development on the field are discussed as part of the last chapter of the manuscript.Along the branch of “Healthcare Sustainability” this work contributes to the development of an integrated framework to support research in this domain and the first application to a case study in the healthcare sector of an integrated life cycle assessment incorporating environmental indicators and the GeoPolRisk method. Along the branch of “Raw Material Criticality in LCA”, the PhD develops new approaches and proposes methodological enhancements to advance the assessment of resource use in LCA.
... Alternatively, income substitution effect would result in a fall in housing demand. Higher housing prices reduced the demand for the houses since they reduced the purchasing power of the buyers' disposable income (Baumol et al., 2011). A rational buyer for a house would consider purchasing the house when the deal is good and could be managed within his/her budget constraints (Mazurek et al., 2019). ...
Article
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Over the years, private housing prices skyrocketed and the high demand to own private housing remained unmet. Prices influenced the perception of affordability and would also affect the demand for private housing. The urgency to understand the intertwined relationships between housing cost (prices), affordability, and demand especially in the COVID-19 pandemic situation is high. Hence, this research aimed to quantify the relationship or impact of rising prices on the private housing affordability and its demand. The results from this research could conclude that soaring prices lowered the affordability of buyers and delay the purchase of private property shortly. However, the demand to purchase a private property was higher with rising prices suggesting that higher prices indicate more wealth and potential to own a more valuable asset. Affordability is a temporary barrier to own private properties. This implied that the wealth effect from properties likely outweighed that of the consumption or income substitution effect. This understanding of the relative impacts between housing cost, affordability, and demand would contribute significantly to policymaking in providing signals and advice for policymakers to priorities social mobility or investment return from the property market.
... This approach can be conceptualised using institutional theory (Baumol and Blinder, 2008;North, 1990). Every society has both formal institutions, namely laws and regulations defining the legal rules of the game, and informal institutions, namely 'socially shared rules, usually unwritten, that are created, communicated and enforced outside of officially sanctioned channels' (Helmke and Levitsky, 2004, p. 727). ...
Article
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The aim of this paper is to evaluate how to tackle the illegal wage practice where formal employers pay their formal employees an undeclared (envelope) wage in addition to their official declared salary, which reduces the tax and social contributions paid to the authorities. Until now, two competing policy approaches have been advocated, namely a conventional rational economic actor approach which seeks to increase the perceived or actual penalties and probability of being caught, and an emergent social actor approach that seeks to improve tax morale. Reporting two nationally representative surveys of employers and employees conducted in 2015 in Croatia, the finding is that just under 1 in 15 formal employees (6.6%) reported receiving an envelope wage from their formal employer, with the mean amount of their net income unreported amounting to 30%. Salary under-reporting is not always employer initiated. Employees in 30% of cases asserted it was either a joint idea or they had suggested it. To tackle salary under-reporting, logit regression analysis reveals support for the rational economic actor approach of increasing the risk of detection and the social actor approach of improving tax morality with regard employers, but only support for improving tax morale with regard to employees. The paper concludes by discussing implications for theory and policy.
... Within rational consumer theory utility refers to the total satisfaction received from consuming a good or service (Baumol and Blinder, 2011). Essentially the more useful a product is to a consumer, the greater utility they will have. ...
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Chapter
Central place theory, as used in market area analysis, explains how economic activity is spatially organised, and how the systematic organisation of such activity can optimise it. However, this work has devoted little attention to problematic issues in rural areas, which are nearly free of the diseconomies associated with urbanisation, such as pollution and congestion, but which often have difficulty accessing goods and services. This paper will demonstrate how an alternative spatial economic structure can be organised within the framework of central place theory and describe what sort of regional system is required to sustain the availability of goods and services in rural areas.
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Tax became an indispensable necessity today, and it is stable for the independent judgments to make state organization in the rule of money and power. But the tax still in charge of psychological paid deduction may deprive the enjoyment of a portion of its assets and practical considerations here were required to reconcile these opposing interests is therefore necessary that the tax system is based on the foundations of the public treasury to ensure their rights and achieving its goals on the one hand and preserving the rights on the other hand ،Citizen and mitigate the impact of tax it. Justice has set up one of the main and most important of these lines and as a key to the integrity of the tax system as well as a target destination for the system. To achieve the goal of the study, were divided in three chapters, which reviewed the conceptual framework of the study, which included on the first topic addressed the concept of tax and objectives, through the four demands addressed first requirement definition and characteristics of the tax, while the second addressed the requirement of a good tax system which By Adam Smith. While addressing the third requirement legal basis to impose the tax, which included financial contract theory and social solidarity. Finally, the fourth requirement was to address the fundamental objectives of the tax and all of the goals of economic, social and political. The second topic included the concept of tax justice and elements, through the three demands came first requirement of explain the concept of tax justice including horizontal and vertical equity. The second requirement address included the elements of tax justice (i.e. the means by which to achieve justice in taxation). This included the four pillars was equal to the tax and tax and public personality and non-duplication . While the third requirement came to distinguish between tax equity and social justice. The chapter II of this study is to review the structure of the tax system in Iraq and income tax legislation in Iraq, through the demands addressed first requirement of direct taxes including income taxes and taxes on capital. The second requirement dealt with indirect taxes, which include taxes and taxes on commodity circulation and behavior . . The second topic of chapter II addressed the income tax legislation in Iraq, where Section Demands to also address the first requirement of the concept of the income tax and the tax position of the Iraqi legislature to either second requirement was to address income subject to tax in the tax legislation in Iraq. The third and final chapter has dealt with justice and the tax achieved in the Income Tax law No. 113 of 1982, as amended, as its first address to the legislature the tax position of the Iraqi staff of tax justice. While the topic of the second look to the future turns out the tax system in Iraq calls for the liberalization of world trade. The study ended with several conclusions and recommendations.
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This paper describes some common pitfalls in the teaching of price discrimination. The paper then presents some clarification of these issues and makes suggestions for teaching price discrimination to students in Principles and Intermediate Microeconomics classes.
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Social state law has a need to regular fiscal source to maintain its sovereignty and to fulfill the duties the Constitution levies. Fort his reason, use of taxation power is a political obligation. The regulations related to tax concerns the whole society. Tax acts has a lot of features not included in other many acts. The most important one of these is that tax acts have to show a suitable change to the economic life altering constantly. In every society, if the rules found or created are not suitable to expectations, necessities and conditions of a society in a specified time period, the society makes them out of order eventually whatever compeller power of them is inflexible and decisive. While acts are prepared, it is compulsory to determine the real needs by observing the society studiously. Because tax acts have to be especially suitable to the fundamentals of moral and personal interest. In legislating, changing or annulment of tax acts, it has to be cared social structure, market conditions, and suitability to menatlity and beliefs of the society rather than concrete or abstract reasons. Otherwise, even force or sanctions becomes insufficient in obeying the law. In this study, it is aimed to search what sociologic factors are in legislation of acts and suitability of tax acts to social structure as is in other acts and to reveal tax acts by considering the regulations related to Turkish Personal Income Tax Act and literature review method is used as research method.
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Инвеcтор (предприятие) должен осущеcтвлять дифференцированные по видам финансовые инвестиции после предварительной оценки их окупаемости. Расчёт окупаемости финансовых инвестиций cлужит инструментом для принятия инвестиционных решеннй.В статье рассматриваетсн проблема окупаемости инвестиций, а также выдвинуты понятие, формы, уcловия применения и функции расчёта окупаемости финансовых инвестиций.
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Exchange rates remain the main axes of any financial market, because of their important role at the level of the economy. Therefore, the question of determining the exchange rates of local currencies is the concern of all the economies of the world, for its sensitivity and its great role in maintaining the value of the local currency to the currencies of other countries. Therefore, the exchange rates were discussed in this research and the extent to which the role of government reserves in building this important price is discussed. Taking into consideration the two strongest currencies of the two most important economic countries in the world-the United States and the United Kingdom. The study deals with the analysis of fluctuations in government reserves and their impact on the level of exchange rate construction of both the US dollar and British pound sterling. The researcher also conducted a comparison between the two countries to show the seriousness of the results reached in the practical side of the research. The research was divided into (4) investigations according to the following:
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The sunk cost fallacy results in taking into account unrecoverable past costs in present decision-making. This work aims to study the origins and the main implications of this behaviour, with reference to the underlying theory. The relationship between sunk costs and rational choice theory is analysed and an empirical case study to test some hypotheses of the background theory is presented.
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Most of the theory for the evolution of caste specialization in social insects assumes that increased efficiency in worker labor leads to specialization and increased worker efficiency gives colonies with behavioral specialists an advantage. However, there are an increasing number of studies that show that the task specialists within social insect colonies do not have the highest efficiency. Indeed, some studies show that some groups of workers are uniformly better than all other groups at every task. In this note I adapt the Principle of Comparative Advantage from economics to show that, rather than maximizing the payoff, specialization is advantageous when minimizing opportunity costs. This leads to the prediction that caste specialization should be associated with reduced opportunity costs rather than increased task efficiency. This article is protected by copyright. All rights reserved
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Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities. The main goal of the article is to suggest a simple decision tree model to describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment behaviour is affected by specific factors like risk taking, competitive advantage or business experience. After that a decision-making tree is suggested to explain the process of reinvestment as determined by the manager.
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This article evaluates the impact of starting-up unregistered and operating informally on small firm growth in Kosovo, the country with the highest levels of informality in Western Balkans. The study uses mixed research methods as an inquiry to combining both qualitative and quantitative forms. Reporting data from 487 business owners extracted from a 2017 nationally representative survey of 8,533 households in Kosovo, 47.7 percent had started-up unregistered and were operating informally at the time of the survey. Using an instrumental variable (IV) estimation with a binary endogenous regressor to estimate the impact of informality (a treatment group) on small firm growth (control group), while controlling for other entrepreneur and firm determinants, a strong positive effect of the informality on firm growth is identified. Entrepreneurs operating informally had an 11.6 percentage points higher probability of achieving their firm growth objectives compared with entrepreneurs operating formally. Yet, the qualitative interviews revealed that growth objectives of small firms were limited, so the unregistered firms outperformed registered firms only under the modest growth objectives. Taking into account the limitations of the study, the implications for theory and policy are proposed to tackle the informality such as incentives of government small business support programs.
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