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This paper aims to study the determinants of financial deepening (FD) in Mexico. FD is measured as the fraction of total credit assigned to private sector as a proportion of GDP. The explanatory variables include: enforcing contracts (rule of law) and institutions; bank regulation; bank competition; formal labor; and financial literacy, among others. The data contains information of each State of the Mexican Republic. The model estimation is performed by using ordinary least squares (OLS), robust least square (RLS) with several weights functions (to deal with outliers), and a dynamic panel model (DPM) estimated with the generalized method of moments (GMM). The main findings are that: 1) the rule of law, 2) financial savings, and 3) financial education are the main determinants of financial deepening in Mexico. || Este trabajo tiene como objetivo estudiar los determinantes de la profundad financiera (PF) en México. La PF se mide como el crédito total asignado al sector privado como proporción del PIB. Las variables explicativas incluyen: cumplimiento de contratos (estado de derecho) e instituciones; regulación bancaria; competencia bancaria; trabajo formal; y educación financiera, entre otros. Los datos contienen información de cada Estado de la República Mexicana. La estimación del modelo se realiza mediante el uso de mínimos cuadrados (MCO), mínimos cuadrados robustos (MCO) con varias funciones de ponderación (para tratar con valores atípicos) y un modelo de panel dinámico (MDP) estimado con el método generalizado de momentos (MGM). Los principales hallazgos son que: 1) el estado de derecho, 2) el ahorro financiero, y 3) la educación financiera son los principales factores determinantes de la profundización financiera en México.

The study aimed to measure the level of anxiety towards mathematics in high school students and if they differs by gender and institution. For this, the scale designed by Muñoz-Cantero and Mato-Vázquez (2007) was applied to 536 Mexican students from three different institutions in the public sector. This instrument is divided into five factors: anxiety towards the evaluation, towards the temporality, towards the understanding of the problems, towards the numbers and the mathematical operations and towards real life situations. The data matrix was analyzed using the Cronbach's alpha coefficient to validate its consistency, from which a very acceptable value of 0.932 was obtained. The analysis confirmed that the data matrix is not an identity matrix and presents acceptable correlations between variables, confirming the extraction of five factors that explain 63.38 % of total assimilable variance. In addition, the ANOVA test was calculated with the F statistic and its significance to prove the hypothesis of equality of means. A significant difference of means by gender was found in four of the five factors. Only anxiety towards real-life mathematical situations had no significant difference in means. Otherwise, the academic institution variable show difference between groups only in anxiety towards real-life mathematical situation. The Levene statistic was calculated for both variables to prove the hypothesis of equality of population variances. The gender variable presented equality of population variances in the five factors. The institution variable had not equality in population variances in anxiety towards mathematical problems comprehension and anxiety towards real-life mathematical situation.

This paper identifies patterns in total and per capita CO2 emissions among 208 countries considering different emission sources, such as cement, flaring, gas, oil, and coal. This research uses linear and non-linear dimensional reduction techniques, combining K-means clustering with principal component analysis (PCA) and t-distributed stochastic neighbor embedding (t-SNE), which allows the identification of distinct emission profiles among nations. This approach allows effective clustering of heterogeneous countries despite the highly dimensional nature of emissions data. The optimal number of clusters is determined using Calinski–Harabasz and Davies–Bouldin scores, of five and six clusters for total and per capita CO2 emissions, respectively. The findings reveal that for total emissions, t-SNE brings together the world's largest economies and emitters, i.e., China, USA, India, and Russia, into a single cluster, while PCA provides clusters with a single country for China, USA, and Russia. Regarding per capita emissions, PCA generates a cluster with only one country, Qatar, due to its significant flaring emissions, as byproduct of the oil industry, and its low population. This study concludes that international collaboration and coherent global policies are crucial for effectively addressing CO2 emissions and developing targeted climate change mitigation strategies. [ABSTRACT FROM AUTHOR]

This paper evaluates the relationship between investing in workforce well-being and profitability of listed companies in Mexico compared to European companies from an Environmental, Social, and Governance (ESG) investor perspective. In this case, the Refinitiv workforce score or High-Performance Work Policies (HPWP) is used as an indicator of the quality of workforce well-being by including the industry effects (economic and business sectors) and the behavioral (sentiment) factors as control variables. Specifically, this article examines the relationships between HPWP, stock price changes (measured as a percentage), profitability (ROE), and market risk (betas). We used a sample of companies from the Refinitiv Mexico and European stock indices for this purpose. In the Mexican case, the results show that a higher level of well-being promotion relates to better company profits. The opposite happens in European companies. Regarding market prices, European companies show higher prices when they have higher HPWP and Mexican companies confirm the opposite. Regarding market risk, only European basic materials with high HPWP show less risk. Finally, in almost all Mexican business sectors, the relationship between market risk and workforce well-being is negative. [ABSTRACT FROM AUTHOR]

In this research, we develop an extension of the stochastic routing model with a fixed capacity for the distribution of perishable products with a time window. We use theoretical probability distributions to model the life of transported products and travel times in the network. Our main objective is to maximize the probability of delivering products within the established deadline with a certain level of customer service. Our project is justified from the perspective of reducing the pollution caused by greenhouse gases generated in the process. To optimize the proposed model, we use a Generic Random Search Algorithm. Finally, we apply the idea to a real problem of designing strategies for the optimal management of perishable food distribution routes that involve a time window, the objective being to maximize the probability of meeting the time limit assigned to the route problem by reducing, in this way, the pollution generated by refrigerated transport. [ABSTRACT FROM AUTHOR]

The effects of various geopolitical tensions, conflicts between countries and the global post-pandemic COVID-19 have caused an acceleration in the price level in many countries around the world. This research focuses on Mexico since its monetary policy has created intricate interactions between inflation and growth in the short and long term, maintaining recently one of the highest real interest rates in Latin America (on average 5.75% vs. the US 2.3%). This paper examines the asymmetric link between the National Consumer Price Index and the Global Economic Activity Index in Mexico during the period 1994–2023. To do this, a Nonlinear Autoregressive Distributed Delay (NARDL) model is used with monthly data, which will allow the relationship between both variables to be more adequately investigated. The main empirical finding is that upward or downward shocks to the consumer price index have caused different effects in magnitude and sign on economic growth over time. Finally, several reasonable, practical, and feasible recommendations are provided for the design of the monetary policy considering non-linear effects. [ABSTRACT FROM AUTHOR]

In this study, we examined whether the constructs of usefulness, motivation, likeness, confidence, and anxiety influence the student's attitude towards statistics. Two hundred ninety eight students enrolled in the private university were surveyed by using the questionnaire proposed by Auzmendi (1992). Data analysis was done by structural equation model AMOS software. The results support the model proposed by Auzmendi of five factors, however the data reveal that there exists an alternative model (CFI = 0.907) that best fits the proposed model (CFI = 0.885). Furthermore, of the 25 indicators proposed only 22 have an acceptable range and two of the indicators (Items 9 and 2) should be considered in the construct of anxiety and usefulness respectively.

This paper aims to identify the main determinants of the countries that present contagion during the period 2000–2021, based on the determination of the behavior patterns of 18 stock market indices of 15 of the main economies. To do that, first, the B-spline method and Bezier curves are used to smooth observations by minimizing the noise. Subsequently, the Functional Principal Component Analysis (FPCA) methodology is applied. Then, the K-means clustering algorithm is used to determine the main groups using the silhouette method and cross-validation, considering the sum of squares of the distances as the function to minimize. Finally, classification trees and macroeconomic and financial analyses are used to determine the rules of variables that give a direct explanation of the contagion (clustering) between the stock indices. The main empirical results obtained suggest that the most significant macroeconomic variables are the Gross Domestic Product, the Consumer Price Index, and Foreign Direct Investment, while in the financial aspect and the most representative are Domestic Credit and number of companies listed on the stock market. It is worth noticing that government spending does not have a significant effect at any time as a determinant of contagion. Finally, it is important to mention, and surprising, that Mexico's IPC was not clustered in the same group of US stock market indices anytime, despite the strong commercial relationship and the geographical closeness. [ABSTRACT FROM AUTHOR]

Copyright of Panorama Económico (1870-2171) is the property of Economic Panorama Magazine / Revista Panorama Economico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article proposes climate derivative strategies as an alternative to set up guaranteed prices for agricultural producers with the idea that this market mechanism replaces direct government intervention and traditional insurance. To do that, we apply a bivariate time-varying copula to model temperature behaviour as a shadow price of each degree Celsius above or below a given temperature band. We apply the methodology to a wheat-producing region of Apan Hidalgo in México, where the temperatures may vary from −8 to 33°C in a 7-year sample. The proposed timevarying copula uses the minimum and maximum temperature as risk factors in a normal copula with logistic marginals. This copula acceptably fits the original data with a slight delay to the seasonal regime change, but on average, it acceptably mimics the extreme temperature behaviour. The design of the derivative strategies (long American-Parisian-instalment strangles) with underlying temperatures is carried out through a Monte Carlo simulation valuation. Our proposal is more cost efficient than the current programme, a guaranteed price system, broadening its scope and benefiting more farmers. [ABSTRACT FROM AUTHOR]

The Global Fear Index (GFI) is a measure of fear/panic based on the number of people infected and deaths due to COVID-19. This paper aims to examine the interconnection or interdependencies between the GFI and a set of global indexes related to the financial and economic activities associated with natural resources, raw materials, agribusiness, energy, metals, and mining, such as: the S&P Global Resource Index, the S&P Global Agribusiness Equity Index, the S&P Global Metals and Mining Index, and the S&P Global 1200 Energy Index. To this end, we first apply several common tests: Wald exponential, Wald mean, Nyblom, and Quandt Likelihood Ratio. Subsequently, we apply Granger causality using a DCC-GARCH model. Data for the global indices are daily from 3 February 2020 to 29 October 2021. The empirical results obtained show that the volatility of the GFI Granger causes the volatility of the other global indices, except for the Global Resource Index. Moreover, by considering heteroskedasticity and idiosyncratic shocks, we show that the GFI can be used to predict the co-movement of the time series of all the global indices. Additionally, we quantify the causal interdependencies between the GFI and each of the S&P global indices using Shannon and Rényi transfer entropy flow, which is comparable to Granger causality, to confirm directionality more robustly The main conclusion of this research is that financial and economic activity related to natural resources, raw materials, agribusiness, energy, metals, and mining were affected by the fear/panic caused by COVID-19 cases and deaths. [ABSTRACT FROM AUTHOR]

This papers aims at examining the importance of adopting energy democracy and energy justice principles in carrying out energy projects in Mexico. These concepts have gained international relevance in recent years due to the climate change and the energy transition; however, they have not been adopted to evaluate the feasibility of Mexico’s energy projects. In this context, this research analyzes the Eurus wind farm in the state of Oaxaca, which was recognized for complying with Mexican regulations and paying particular attention to environmental and social impacts, as well as governance issues; even it has gained international recognition. Nonetheless, from its construction to its current operation it has had conflicts with the communities. The main findings are that when analyzing this project under the crucible of energy democracy and energy justice, we found several negative impacts and deficiencies in its development, the reason being the absence of these principles when evaluating this energy project. [ABSTRACT FROM AUTHOR]

This paper aimed to develop a useful Machine Learning (ML) model for detecting companies with lasting competitive advantages (companies' moats) according to their financial ratios in order to improve the performance of investment portfolios. First, we computed the financial ratios of companies belonging to the S&P 500. Subsequently, we assessed the stocks' moats according to an evaluation defined between 0 and 5 for each financial ratio. The sum of all the ratios provided a score between 0 and 100 to classify the companies as wide, narrow or null moats. Finally, several ML models were applied for classification to obtain an efficient, faster and less expensive method to select companies with lasting competitive advantages. The main findings are: (1) the model with the highest precision is the Random Forest; and (2) the most important financial ratios for detecting competitive advantages are a long-term debt-to-net income, Depreciation and Amortization (D&A)-to-gross profit, interest expense-to-Earnings Before Interest and Taxes (EBIT), and Earnings Per Share (EPS) trend. This research provides a new combination of ML tools and information that can improve the performance of investment portfolios; to the authors' knowledge, this has not been done before. The algorithm developed in this paper has a limitation in the calculation of the stocks' moats since it does not consider its cost, price-to-earnings ratio (PE), or valuation. Due to this limitation, this algorithm does not represent a strategy for short-term or intraday trading. [ABSTRACT FROM AUTHOR]

This paper aims to simulate portfolio decisions under uncertainty when the diffusion parameters of the risky asset and short rate paid for a bond are both modulated by a time-inhomogeneous Markov chain, with transition probabilities dependent on states, time, and asset prices. To do this, we first found closed-form solutions of the corresponding utility-maximization problem, which solves a rational consumer that makes portfolio and consumption decisions by using the corresponding infinitesimal generator associated with the Markov chain. Subsequently, as an illustration of the theoretical results obtained, several scenarios were simulated for the Mexican case. The expected economic policy was inferred from announced monetary policy decisions regarding the reference rate and possible changes in trend due to the lack of fiscal stimuli. Under this framework, states were defined from the current and expected economic policies, and transition probabilities were expressed in terms of the ratio between the prices of the risky asset and the bond. It should be noted, as far as the authors know, that no analytical solutions are known in the literature for the case of Markov-modulated time-inhomogeneous chains with transition probabilities that, themselves, are stochastic processes. [ABSTRACT FROM AUTHOR]

This paper analyzes the flow of the contents of interleaved buffers with continuously operating machines in a mass production line. Under this framework, the products to be manufactured advance from station to station to receive a physical–chemical transformation that adds value as they progress in the process. The existence of decoupling buffers between operations (between two consecutive workstations) is a common practice in order to alleviate the pressure that is ahead due to the lack of synchronization between consecutive operations, which causes leisure and/or bottlenecks in the system. In this proposal, we analyze the dynamics of a mass manufacturing line with intermediate decoupling buffers. To do that, we use a regenerative stochastic process approach to build a model where the products stored in each buffer are taken all at once by the consecutive machine. In a second approach, we use a homogeneous birth–death process with constant input–output and assume that the products are taken one by one by the consecutive machine. Finally, we use a non-homogeneous birth–death process to analyze the dynamics of a system whose inputs and outputs depend on time. These proposals are accompanied by numerical examples that illustrate its practical utility. [ABSTRACT FROM AUTHOR]

This paper calibrates through loss functions the parameters of Heston’s stochastic volatility model by using two different methods: minimizing a nonlinear objective function (a loss function) with constraints on the values of the parameter and using a differential evolution algorithm. Both methods are applied to implied volatilities on the Mexican Stock Exchange Index with four maturities and twenty-eight strike prices. The selection criterion for the parameters is minimizing the value of the mean square error of the implied volatility. The first method has a better performance with less error and time. However, empirical results show that for both methods the adjustment of implied volatilities is better for options with longterm maturities than for short-term maturities. [ABSTRACT FROM AUTHOR]

Copyright of Investigación Administrativa is the property of ESCA Santo Tomas - IPN and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the effect of derivatives on the relationship between the foreign exchange rate and the stock market. A theoretical model is used to extend the understanding of that relationship. Also, the model is tested with an empirical analysis using the GMM strategy for the Mexican and Brazilian stock markets for the period 2007 to 2019. Findings reveal that in addition to the spot exchange rate, exchange rate futures explain the currency exposure, wherein the derivative effect is the most prominent. The result implies that both risk sources should be considered in the implementation of risk management or macroeconomic policy. The theoretical results are extended by applying them to international portfolio management, proposing a strategy to mitigate foreign exchange exposure with derivatives. This study contributes to the literature by explaining why the minimum variance hedge ratio plays an essential role in the foreign exchange rate and stock market nexus. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper is aimed at providing an economic and financial turbulence index useful to determine the source factors and root causes of any type of crisis. The methodology is based on Minsky's (1974) Financial Instability Hypothesis and on Mahalanobis' distance. To do that, the dinamic correlations among Minsky's financial dimensions and principal component analysis are examined. The Mexican case is studied since in the last decades, it has undergone two financial crises that seem to have had different root causes and features. [ABSTRACT FROM AUTHOR]