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The purpose of this work is to use information technology to help management decisions. The crux of the problem is the choice of suppliers of materials and components for mechanical engineering companies. Periodically, in the procurement process, suppliers should be assessed on a number of criteria. The importance of rating is due to the fact that in today's market there are a large number of suppliers of the same material resources. Purchase is made from the most competitive suppliers, constantly confirming their status as a reliable business partner. The company developed a method of evaluating suppliers based on the system of management of the bases of the bath Microsoft Office Access. MS Access works in the Windows operating environment and allows users to organize a local database (DB). The local Access database has its own tables, forms, reports and other DB facilities of the organization with a relatively small amount of data. With the help of the scoring method, suppliers are ranked by their level of reliability. The relationship is terminated with a supplier that does not meet the required level of reliability. In this way, management solutions for logistics of supply receive a tool to hang the efficiency and get good results of the enterprise, to achieve its market stability.

Noise traders are often thought to be detrimental to market stability, increasing volatility and the risk of bubbles and crashes. The effect of noise traders on the learning and development of info...

We estimate an endowment-based asset pricing model in which agents have heterogeneous and time-varying beliefs about the future price on a range of asset classes. This gives insight into the extent behaviour differs across assets, and what this implies for market stability. We find evidence for behavioural heterogeneity for all asset classes but equity. Heterogeneity is especially large and persistent in asset classes for which limits to arbitrage are more binding. In less constrained (financial) markets, agents update their beliefs more frequently. Consequently, the probability of behavioural bubbles and crashes is substantially higher in macroeconomic asset classes than in financial asset classes.

The European Union’s Emissions Trading System (EU ETS) is complemented by a Market Stability Reserve (MSR). After a major revision of the EU ETS in 2018, the MSR effectively makes the supply of allowances responsive to demand. In this paper, we show that a cap-and-trade scheme with an endogenous cap, such as the EU ETS produces a green paradox. Abatement policies announced early but realized in the future are counter-effective because of the MSR, they increase cumulative emissions. We present the mechanisms in a two-period model, and then provide quantitative evidence of our result for an annual model disciplined on the price rise in the EU ETS that followed the introduction of the MSR. Our results point to the need for better coordination between different policies, such as the “European Green Deal.” We conclude with suggestions to improve the workings of an endogenous cap, ahead of the MSR review scheduled for 2021.

This paper investigates how time-varying beta and return spillovers relate to bank diversification strategies conditional on market states, from a portfolio management approach. This paper explores the methods of estimating beta in a time-varying fashion for banking data. Further, it discovers the regime-switching relationship between bank beta and returns. Finally, this paper analyzes how the dynamic relationship between beta and return implies to bank diversification strategies. The main findings are: 1) Bank betas are time-varying and the relationship between beta and return in banking is regime-dependent; 2) banks use different diversification strategies in response to market movements conditional on market stability; 3) return spillovers among the banking industry affect bank returns through activity diversification.

This review begins with a discussion of the general properties of gelatin and its sources, particularly in the food and health industries, and then briefly address the status quo of gelatin in today's market. Apart from the basic chemical compounds and gelatin types, this paper also discussed the commercialisation of gelatin. This study also highlights the production of conventional gelatin and its current method of processing, i.e. enzymatic hydrolysis. In addition, the variety of raw materials of collagen is outlined and briefly broached the plant hydrocolloids which have been labeled as 'veggie-gelatin'. With regard to the potential and market stability of gelatin, its recent studies are summarised in this paper. Accordingly, this paper focuses on assessing the general utilities of the various sources of collagen as gelatin derivatives. At that basis, the aim of this review is to provide an insight into gelatin in current applications, market value and progress in gelatin extraction.

There are limitations in the understandings of investors’ overreaction to the volatility in less transparent industrial sectors. Investors investing in a less transparent sector are likely to over-interpret available market information. This article compares investors’ reaction to market shocks across different industrial sectors, through analyzing the information content in implied volatility using financial derivatives of individual companies in Singapore. Investors in the less transparent property and financial service sector are found to overreact on market shocks, further destabilizing the market. The findings imply that regulatory measures that increase the level of transparency could aid the stabilization of markets. JEL Classification: G13, G14, G18

This paper examined the risk-return relationship and the correlation dynamics of African stocks relative to global factors. By applying both the static and augmented capital asset pricing model, as well as dynamic conditional correlation methodology to daily returns series from January 3, 2003 to December 29, 2014, we find evidence of conditional correlation between African stocks and global factors influenced by the global financial crisis. From the risk-return point of view, Egypt and South Africa, although dominant, show relatively weak risk mitigating opportunities. Their information ratios are highly anemic to internationally accepted thresholds. Despite this, international investors seeking to diversify via uncorrelated markets may consider Africa, albeit on account of volatility persistence, present and past market conditions, market stability, as well as size and liquidity considerations.

We explore the link between mutual funds and fragility risk in the corporate bond market. We classify a fund’s trading style based on its responses to signals of large dealer inventories. Trading style is persistent and the majority of funds demand liquidity. Notably, a subset of funds earn positive alpha by intentionally supplying liquidity during periods of sustained customer selling (with transitory price effects). Liquidity-supplying funds maintain their relative trading style when facing large outflows and elevated market stress, thus alleviating fragility risk. Our results add nuance to existing evidence that mutual funds pose a threat to market stability.

Today, the competitiveness and image of an organization at the core market depends on the professional level of its employees. A senior manager as an employer chooses the most active methods of attracting the best professionals to his team using innovative technologies for working with the staff and candidates for positions. An instrument of this new approach to personnel management is branding policy, which implementation is carried out through the formation of which organization’s HR-brand at the labor market.Aim. To study the theoretical substantiation of the essence of the category “HR-brand” and the determination of its attractiveness for employees of pharmaceutical companies.Results. The article analyzes the concept of the “employer brand” and describes the components of the organization’s HR brand. The theoretical analysis conducted allows us to form a fairly complete understanding of the “HR-brand” concept, which is relatively new for the Ukrainian organizations. The article also analyzes the importance of the HR brand for pharmaceutical organizations and reflects the views of specialists from production plants, wholesalers and the pharmacy sector regarding the level of implementation of branding policies and the structure of the ideal employer offer. The results of expert assessment of the factors affecting the formation of the HR brand of a pharmaceutical organization are given.Conclusions. Thus, in order to create an effective staffing in pharmaceutical organizations it is necessary to implement a branding policy, which is based on the formation of the HR-brand of the employer at the labor market. This will enable enterprises in the manufacturing, wholesale and retail sectors to attract the best talented employees, who will significantly enhance their competitiveness and market stability.

The impact of authorities’ information disclosure on social welfare and market stability has become a widely debated topic since the contribution of Morris and Shin (2002). Despite several theoretical works, this strand of literature remains void of empirical contributions. By assessing how disclosure of stress test results influences market risk perception, we provide factual evidence on how authorities’ enhanced communication affects financial markets’ stability. Our results provide empirical evidence to support Faria-e-Castro et al.’s (2017) theoretical findings, demonstrating that severe stress tests, if enacted in countries with credible fiscal capacity such as the U.S., can lead agents to revise their risk estimations downwards for all banks, notwithstanding their performance in the exercise.

PurposeDespite regulatory claims of straitening volatility and preventing crashes, evidences on circuit breakers' ability to achieve so are nonconclusive. While previous scholars studies general performances of circuit breakers, the authors examine whether Malaysian price limits aggravate volatility, impede price discovery, and interfere with trading activities in both tranquil and stressful periods.Design/methodology/approachThe study uses a combination of parametric and nonparametric techniques consistent with Kim and Rhee (1997) to examine the major ex-post hypotheses in circuit breaker research.FindingsFor calm markets, the authors find significant success of upper limits in tempering volatility with low trading interference. Lower limits show mixed results. Conversely, in crisis markets limits fare poorly in nearly all aspects, particularly for lower limits.Practical implicationsRamifications of the paper's findings are discussed through highlighting the asymmetric nature of price limits' ex-post effects. The paper also contributes to regulatory debate surrounding the quest for an optimal price limit.Originality/valueThe paper is the first of its kind in documenting long-horizon evidence of ex-post effects of a wide-band price limit. Moreover, the paper is unique in its approach in bifurcating circuit breaker performance along the line of market stability periods.

Using data for Italian banks over the 2001–2012 period, we assess the existence of a nonlinear relationship between finance and growth, through the application of alternative measures of financial development. We show that both branch density and aggregate credits over GDP positively contribute to economic performance. While the relationship between branch density and economic activity is shown to be monotonic, an inverted U-shape is found once aggregate credits to GDP are employed as the main measure of financial development. Evidence presented in this paper further reveals that concentrated markets, that is, monopolistic and oligopolistic markets, facilitate economic growth, especially when credits to GDP are employed. Several robustness checks confirm our findings.

There is an active search for ways and mechanisms to upgrade the agrarian economy in the Republic of Belarus and increase its efficiency in conditions of stiffen market situation, but no efficient mechanisms have yet been found. In this regard, we’ve carried out systematic research and prepared a research papers that answer many questions regarding raising the agricultural economy and market challenges. We believe that it can become the basis for accepting specific recommendations. Conditions forming market stability and determining an enterprise’s strategy are determined during the research. A range of factors have been identified. Implementation of these factors will mobilize the entire arrangement and production system and the practice of management to achieve targeted economic and financial results, especially for profitability and profit. The first part of the paper defines the role, functions and significance of such fundamental factors of efficient agriculture management as intensification, concentration, specialization and distribution of production facilities.

Vulnerable nature of price forecasts, such as an unpredictability of future and numbers of socio-economic factors that affect market stability, often makes investment risky. Earlier studies in Finance suggested that constructing a portfolio can promise risk-spread gains. While Fund Standardization improved the traditional theories by reducing the computational complexity and by associating every interaction in the portfolio, such a method still cannot become a winning strategy because it does not measure the current value or the relative price of each asset. Inspired by the works of finding returns per risk, we attempt to design an optimal portfolio by searching products that have potential to grow further. More specifically, we first analyze risk-adjusted returns in the previous periods and use their inertia as a momentum. However, because historic movements alone do not fully elucidate future changes nor guarantee positive returns, we scored the relative values of each stock to make more informed estimations. Using the Capital Asset Pricing Model, we measured the values of each stock and determined those undervalued. In this study, we applied a Genetic Algorithm to optimize portfolios while incorporating the momentum strategy and the asset valuations. The proposed GA model was tested in two separate markets, S&P500 and KOSPI200, and projected greater profits than that from both the previous method with momentum method and the market indexes. From the experimental results, the proposed CAPM+ method was found to be very effective in financial data analysis and to lay a groundwork for a sustainable investment execution.

Beginning in 2023, allowances held in the market stability reserve of the EU ETS above the number of allowances auctioned the previous year will be cancelled. In this paper, we analyse the consequences of this new cancellation mechanism. Using numerical analysis, we show that additional national abatement measures now have the potential to reduce total EU ETS emissions. A key insight is that, for this to happen, domestic emission reductions must occur early. How early depends crucially on how the future demand for allowances evolve. To facilitate an understanding of the rather complex system the reformed EU ETS constitutes, we present a series of extensions to the analysis to show how the results are affected by, for example, future emission levels, technological development, optimising agents and speculative trading in allowances.

China’s steel industry has not yet implemented a carbon tax policy, and its benefits and impacts are still in the theoretical research stage. In addition, enterprises have an insufficient ability to respond to changes in production and sales, which seriously affects the market’s stability. The government should simultaneously start from multiple perspectives, such as energy conservation, emission reduction, dynamic adjustments, and business decisions. Therefore, this research constructs a repeated dynamic game model including carbon tax policy and other mixed reduction policies, and studies the stability and related indicators of the market. The results are as follows: (1) the output adjustment policies that enterprises can implement will show an increasing trend under the single carbon tax policy. (2) The output adjustment policies that enterprises with larger output will also show an increasing trend under the mixed emission reduction policy when emission reduction targets continue to increase. (3) Smaller-output enterprises need to be more cautious in formulating their production plans, and their output adjustment policies will be restricted and affected by more factors. In summary, enterprises should comprehensively consider emission reduction policies, output adjustment policies and other enterprises’ output changes, to ensure that the steel market will not fall into an imbalanced state.

Paddy rice is one of the most important crops to offer daily food for human beings and has a strong influence on food security and market stability. Therefore, it is of significance to obtain first-hand information related to rice such as rice planting extent. In order to timely and accurately obtain the spatial distribution and temporal variations of rice plants, remote sensing techniques have been introduced and applied to achieve this goal, among which the phenological method is unsupervised and can be used to automatically extract rice. However, the phenological methods are strongly dependent on the weather conditions, and the resultant extraction results might be damaged or incomplete. Additionally, the machine learning-based methods are less influenced by the weather contaminations but are restricted by the availability of training samples. In consideration of the challenges of each approach, this study combines these two approaches to extract rice by using the initial phenology-based rice samples as the training samples of machine learning models, thus obtaining more complete results and high accuracy. This strategy is tested in the Central Valley of California, USA, one of the main rice-producing areas in the United States, and is compared with the rice maps derived from Cropland Data Layer (CDL) from the U.S. Department of Agriculture (USDA). The results show that through the incorporation of the phenology- and machine learning-based methods, the derived rice maps present high consistency with the CDL-rice map, and high accuracy is achieved in terms of OA and Kappa values reaching up to 0.96 and 0.86 respectively, while the purely phenology-based rice map shows great misclassifications thus leading to a sharp decrease in the Kappa value (0.49). This comparison proves the effectiveness of this strategy. The satisfactory results in this study show the possibility of extending this strategy to other regions for rice mapping.

We study the role mutual funds play in the recovery from fast intraday crashes based on data from the National Stock Exchange of India for a single large stock. During normal times, trading activity and liquidity provision by mutual funds is negligible compared to other traders at around 4% of overall activity. Nevertheless, for the two intraday market-wide crashes in our sample, price recovery took place only after mutual funds moved in. Market stability may require the presence of well-capitalized standby liquidity providers for recovery from fast crashes.

The United States’ individual health insurance markets have long been fraught with problems. Before the Affordable Care Act (ACA), these markets were almost entirely regulated by states, the vast majority of which did not protect people with preexisting conditions. In addition, consumers went separately to brokers, agents, and insurance companies to buy their health insurance plans, making it difficult to comparison shop and often leading to confusion about what was covered. One of the goals of the ACA was to fix these problems, and a key measure of its success has been how well the individual market has fared since. Over the years, we have seen that there are 3 important characteristics of a stabilized health insurance market. The first is a large risk pool with a good balance of healthy and sick people. The second is multiple participating insurance carriers. And the third, which is the most important for consumers as well as the most politically salient, is steady premiums. This chapter will explore the policy levers states can use to promote market stability and thereby improve health insurance affordability and increase the number of insured residents.

Cap-and-trade programs such as the European Union's Emissions Trading System (EU ETS) expose firms to considerable risks, to which the firms can respond with hedging. We develop an intertemporal stochastic equilibrium model to analyze the implications of hedging by risk-averse firms. We show that the resulting time-varying risk premium depends on the size of the permit bank. Applying the model to the EU ETS, we find that hedging can lead to a U-shaped price path, because prices initially fall due to negative risk premiums and then rise as the hedging demand declines. The Market Stability Reserve (MSR) reduces the permit bank and thus, increases the hedging value of the permits. This offers an explanation for the recent price hike, but also implies that prices may decline in the future due to more negative risk premiums. In addition, we find higher permit cancellations through the MSR than previous analyses, which do not account for hedging.

Refereed/Peer-reviewed Brands share more of their customers with bigger competitors and fewer with smaller ones. However, there are occasional deviations to this predictable Duplication of Purchase (DoP) pattern. When two or more brands share excess customers because of functional or nonfunctional differences—it is called a partition. While past research using the NBD-Dirichlet model demonstrates partitions in annual or shorter data, there is no empirical evidence for partition persistency over the longer term, although some other NBD-Dirichlet deviations are known to persist over time. Examining expected partitions in 10 consumer goods categories in the United Kingdom, the authors show partitions overwhelmingly persist over 3 years. The findings contribute support to Dirichlet theory, especially on market stability, boundary conditions, and provide practical implications for portfolio management.

The article systematizes modern concepts of financial stability. Practical significance: the main provisions and conclusions of the article can be used to assess the financial stability of Russian companies.

In this paper, we explore the volatility spillovers across different Bitcoin markets. We decompose the realized volatility into common and idiosyncratic volatilities, as well as the good and bad volatilities. Then the asymmetry in volatility spillovers between Bitcoin markets is measured by the DY (Diebold and Yilmaz) index. In addition, we construct statistics to test the asymmetry in volatility spillovers between different Bitcoin markets. The results are achieved as follows. The spillovers of systematic and idiosyncratic volatilities dominate the connectedness among different Bitcoin markets. In addition, the idiosyncratic volatility spillovers are more easily influenced by policies. Good volatility spillovers dominate the Bitcoin markets and change over time. The further results suggest that there is significant asymmetry between systematic and idiosyncratic volatility spillovers in the Bitcoin markets, while the asymmetries between good and bad volatility spillovers are heterogeneous in different markets. The findings in this paper can provide some suggestions for regulators controlling market stability and investors generating investment strategies.

This paper examines the risk connectedness across seven cryptocurrencies, Bitcoin, Ethereum, Ripple, Litecoin, Stellar, Monero, and Dash, which have large capitalizations in the cryptocurrency market. The data sample is from August 7, 2015, to February 15, 2020. We measure the return risks of the cryptocurrencies by using the CAViaR model, showing that they have similar risk tendencies, with volatility clusterings from the beginning of 2017 to the end of 2018. The net pairwise spillover index developed by Diebold and Yilmaz [1] is used as the measure of the risk connectedness among the cryptocurrencies. We find that the risk spillover directions are highly correlative with the market capitalizations of the cryptocurrencies. Cryptocurrencies with small market capitalization transmit risks to those with large market capitalization. When there is a downward risk tendency, the risk spillover levels among the cryptocurrencies are stronger than when there is an upward risk tendency, while the spillover directions remain the same under both risk tendencies, except for the cryptocurrency Monero, the particularity of which may be due to the difference in its trading volume compared to the others. We use generalized forecast error variance decomposition for the spillover index and explore the risk connectedness across the cryptocurrencies at different timescales, namely, the short term (0–4 days), medium term (4–30 days) and long term (30–300 days). The risk spillovers can be neglected at the short-term frequency, which implies a delayed effect. The risk spillovers at medium-term frequency are mostly stronger than those at long-term frequency. The dynamic connectedness results show that the means of risk spillover at a long-term frequency are larger than those at medium-term frequency. An inverse result holds for the ranges of risk spillover. The fluctuations of risk spillover at long-term and medium-term frequencies admit the same comparison result with the means of risk spillover in these two frequencies. The findings in this paper provide some suggestions for regulators controlling market stability and cryptocurrency investors generating investment strategies.

Carbon pricing helps countries steer their economies towards and along a carbon-neutral growth path. This paper considers how the design of carbon pricing instruments affects their effectiveness, efficiency and feasibility. Design choices matter both for taxes and Emissions Trading Systems (ETSs). Considering the role of carbon price stability for clean investment, the paper shows how volatile carbon prices can cause risk-averse investors to forego clean investment that they would have undertaken with more stable prices. The paper then evaluates the effectiveness and efficiency of policy instruments to stabilise carbon prices in ETSs, which tend to produce more volatile carbon prices than taxes. The paper analyses the auction reserve price in California, the carbon price support in the UK, and the market stability reserve in the EU ETS. Considering feasibility, the paper discusses the tax (or emissions) base, how revenue use can affect support from households and firms, and administrative choices.

This article develops an insider-trading model with the presence of rational and representativeness heuristic insiders in the market with and without market regulation. We find that, regardless of whether the market regulation exist or not, the heuristic insider trades more aggressively on his information, than the rational insider does, with the result that there is a higher probability for him to earn greater profits. Further, a higher heuristic bias of the heuristic insider leads to lower expected profit for rational insider, but higher expected profits for the heuristic insider. Moreover, the heuristic insider and rational insider prefer to trade less aggressively on their information when there is market regulation, but, they are likely to get more ex-ante expected profit. Furthermore, we find that the price efficiency and market stability may all be sacrificed if insider trading is regulated.

Globalization in the new millennium has brought a set of profound social, economic and political changes in the world. Pakistan and her neighboring country China have joined hands and has initiated China-Pakistan Economic Corridor (CPEC) which is an ambitious project that focuses on improving connectivity and cooperation among both the neighboring giants. The growing nexus between China and Pakistan through CPEC is going to strengthen their markets as well stock markets. Ultimately both the economies are bound to benefit consequently resulting in increased GDP of both the countries. In this piece of research, we have studied the impact of CPEC on Pakistan Stock Market (PSX) and SSE by employing GARCH and EGARCH model from January 2011 to March 2019 on daily basis which shows recent purchases of up to 45% of Pakistani shares owned by China. Empirical analysis shows that in PSX risk parameter is little bit higher in post-CPEC comparatively pre-CPEC period. Volatility of SSE has high in both pre and post-CPEC period as compared to PSX. It reveals that PSX market after the advent of CPEC is showing stability which is a sign of encouragement for businessmen, traders and investors to invest. Market stability has increased manifold and the findings are supported by Morgan Stanley Capital International (MSCI). Recently Bloomberg has ranked Pakistan amongst the first 5 best performing stocks around the world. The research findings show PSX has a high potential for growth and is expected to become a lucrative market for businessmen, traders and investors.Read Complete Article at ijSciences: V82019032016 AND DOI: http://dx.doi.org/10.18483/ijSci.2016

International audience; In October 2015 the European Parliament has established a Market Stability Reserve (MSR) in the Phase 4 of the EU-ETS, as part of the 2030 framework for climate policies. In this paper we model the EU-ETS in presence of the Market Stability Reserve (MSR) as it is defined by that decision and investigate the impact that such a measure has in terms of permits price, output production and banking strategies. To do so we build an inter-temporal model in which polluting firms competing in an homogeneous good market are price takers in a permits market and face an uncertain demand. Our main finding is that the MSR succeeds in increasing the permits' price correcting an excess supply (and conversely decreasing it in case of excess demand). However, when the output demand is stochastic, the MSR may alter the arbitrage conditions that determine permits' prices. In some cases which depend on the extend of the demand variation, unintended effects on the price pattern appear. This in turns may adversely affect welfare.

A challenge to developing data-driven approaches in finance and trading is the limited availability of data because periods of instability, such as during financial market crises, are relatively ra...

This Article analyses certain aspects and controversial matters of the revised Markets in Financial Instruments Directive (MiFID II) in view of the reform’s potential to improve investor confidence and market stability.

The stringency of the EU's Emission Trading System (ETS) is bound to be ratcheted-up to deliver on more ambitious goals as formulated in the EU's Green Deal. Tightening the cap needs to consider the interactions with the Market Stability Reserve (MSR), which will be reviewed in 2021. We analyse these issues using the model LIMES-EU. First, we examine how revising MSR parameters impacts allowance cancellations. We find that varying key design parameters leads to cancellations in the range of 2.6–7.9 Gt – compared to 5.1 Gt under current regulation. Overall, the bank thresholds, which define when there is intake to/outtake from the MSR, have the highest impact. Intake rates above 12% only have a limited effect, and cause oscillatory intake behaviour. Second, we analyse how more ambitious climate 2030 targets can be achieved by adjusting the linear reduction factor (LRF). We find that the LRF increases MSR cancellations substantially up to 10.0 Gt. This implies that increasing its value from currently 2.2% to only 2.6% could be consistent with an EU-wide target of −55% by 2030. However, MSR cancellations are subject to large uncertainty, which increases the complexity of the market and induces high price uncertainty.

Introduction . Studying the needs of consumers is an important task for enterprises that work in the mass market. The needs determine the characteristics of goods. These characteristics form competitive advantages, which can ensure the market stability of enterprises.The value chain helps entrepreneurs concentrate on the processes that form the added value, and exclude processes that do not create value. Value chain concept can be used in determining the possible sources of competitive advantages and the formation of market stability of enterprises. Purpose . The purpose of the article is to define the role of the value chain in shaping the competitive advantages and ensuring the market stability of enterprises and their associations. Methods. The method of theoretical analysis, the method of generalization, comparison ae used. Results. Consumer value is one of the main characteristics when purchasing goods for consumers. It manifests itself through the possibility of choosing a particular product from a large number of similar goods. The key role in the choice of the goods belongs to the value of the goods, the quality of the goods, logistical support, other characteristics of the goods, etc. Value for the consumer is a characteristic of the product, which is determined by market attractiveness and willingness to pay. The value chain can be used by the enterprise as a tool that shapes consumer preferences. Using the value chain concept can help enterprises significantly reduce the cost of production and sales of products. This will help make the goods more attractive to consumers. Sources of competitiveness can also be determined using a value chain. Competitive advantages will make it possible to increase sales volumes. The value chain can be used by managers in the formation of an effective enterprise development strategy and in operational planning. Analysis of the value chain allows you to identify the processes that form a high added value. Managers should pay special attention to these processes. Originality. The obtained results showed that the use of the value chain concept can become an instrument for increasing the efficiency of enterprises’ activities. Using this concept will provide businesses a competitive advantage. This will provide companies a sustainable competitive position. Alternative configuration values may be used by associations of undertakings.. Conclusion . The value chain allows companies to identify advantages in competition. The main task of constructing the value chain is to determine the strategic directions of the development of the main and auxiliary processes in the formation of the real value of the product for the consumer. Using the value chain increases the efficiency of the enterprises. In addition, the value chain allows enterprises to identify areas of strategic development that are built on competitive advantages.

Applying a principal-agent perspective on trilogue negotiations, this article examines how the rapporteur and the Presidency, as agents of respectively the European Parliament and the Council, are able to reach a deal with their fellow agent while avoiding an involuntary defection among their principals. Despite these intra- and inter-institutional constraints, early agreements can be concluded because agents execute two parallel tasks on behalf of their principals: representing them inter-institutionally and acting as the deal-facilitator intra-institutionally. We identify three ways in which the agents can combine these two acts of delegation and conclude an early agreement: (1) creating a tied-hand situation for themselves; (2) affecting the intra-institutional coalition formation by bringing in allies from the other institution; and (3) actively searching for signals from the principals and the fellow agent on the zone of possible agreement. We illustrate these dynamics through a case study of the policy-making process on the 2015 Decision on the Market Stability Reserve.

The final design choices for Phase IV (2021–2030) of the European Union Emissions Trading System (EU ETS) are about to be made. The European Commission, the European Parliament and the Council of t...

The EU implemented the Market Stability Reserve (MSR) in response to the 2008 financial crisis to deal with short-term impacts of future shocks, such as the Covid-19 pandemic. We link a model that intertemporally optimizes the handling of banked allowances every five years with one that simulates the annual working of the EU ETS including the MSR with its potential cancelling. Neglecting the pandemic, 2.16 billion allowances are cancelled. Accounting for the pandemic, 0.28 billion additional allowances are cancelled if the European economy fully recovers by 2021, which even overcompensates the 2020 drop in CO2 emissions. Additional cancelling increases when the pandemic lasts longer, meaning that the MSR even outperforms its initial purpose.

Policy makers reformed the European Union (EU) Emission Trading System (ETS) to address low prices and price volatility. They reduced the cap and strengthened the Market Stability Reserve (MSR). The effectiveness of these reforms hinges on path dependency of emission and abatement technology. Conversely to pre-existing analysis, we observe that postponing allowance allocations through the MSR can be equally, if not more significant than cancellation. Additional stochastic analysis establishes that the MSR increases price volatility. These findings imply that the reforms gave reducing allowances too much attention, and managing their availability in response to shocks too little.

Because of their size, Institutional Investors have significant influence over financial systems. In this paper, I look at how institutional investors’ actions can significantly affect market stability. We first look at investment bank, Lehman Brothers and how its actions during the Great Recession rippled through the larger American and European financial system. We then follow Lehman by charting the various ways institutional investors can and do hold sway over a company and its decisions.

Steroid hormones, such as testosterone, have been shown to affect risk preferences in financial traders with high levels leading to excessive risk-taking. Hormone levels, in turn, are affected by trading outcomes as well as by gender - males are more sensitive to stimuli than females. We develop a model to investigate the effects of hormones on financial market stability and trader performance. An increase in the proportion of female traders does not necessarily make markets less volatile; however, it reduces the occurrence of market crashes. Male traders on average under-perform females, although the best performing individuals are more likely to be male.

Index modeling is useful for evaluation of complex objects such as social institute of labor market. This institute associates different levels of the society: demographic, professional, financial and other. Formal approach to the labor market functioning assessment can be done through the calculating of system of indexes - index of possibilities, index of demanded competencies, index of intentions, and final cumulative index of labor market dysfunction. Using of the cumulative index we can outline the indicators of labor market stability and its dynamics in different regions of the country. Index calculation let us to classify three possible conditions of the labor market: normal functioning, functioning with compensation and crisis functioning. Finally, an original program application for the supporting of the indexes calculation was done.

We examine the trading behavior of two heterogeneous groups of Algorithmic Traders (ATs), namely High-Frequency Traders (HFTs) and Buy-side Algorithmic Traders (BATs). We find that these two groups exhibit within-group and between-group commonality in trading volumes, wherein within-group commonality of BATs is higher than that of HFTs. Also, there exists within-group commonality in directional measures of trade execution. We find new evidence of between-group contrarian trading behavior, which is more pronounced among BATs than HFTs. The presence of within-group commonality and between-group contrarian trading among ATs ensures market stability and price discovery.

Paddy rice mapping in an accurate and timely manner was of significance as the explicitly spatial paddy rice maps played a critical role in food security and market stability. Over the decades, remote sensing (RS) techniques offered great potential to extract paddy rice from the optical satellite images. Two main categories of paddy rice mapping methods were commonly utilized. The first one was the phenology-oriented methods by utilizing the distinctive phenology of paddy rice, and the machine learning-based approaches were the other mainstream for paddy rice extraction by being recognized as a classification task. However, neither of the above methods were actually applicable to automatically map paddy rice for the large cloudy areas. The phenological methods were subject to the availability of time-series cloud-free RS inputs due to cloud contamination, and machine learning-based methods were often confined to the availability of high-quality collected training samples. Therefore, this study proposed a new flexible framework to integrate the above two methods, in an attempt to achieve the goal of automatic paddy rice mapping for large cloudy area. Firstly, phenological paddy rice mapping was implemented for the areas with cloud-free time series satellite images available to generate the paddy rice potentials. Following that, the derived paddy rice potentials were purified through filtering operations. Finally, the machine learning classifier was trained using the purified samples, and spatially transferred to other regions for the extraction of paddy rice. Several experiments were carried out to assess our proposed framework and the subsequent mapping results. The experimental results were promising, indicating that our framework contributed to overcoming the strong reliance on training data for machine learning methods, and reducing the number of multi-temporal inputs for automated paddy rice mapping, which potentially provided a new paradigm for the purpose of paddy rice extraction.

The EU implemented the Market Stability Reserve (MSR) in response to the 2008 financial crisis to deal with short-term impacts of future shocks, such as the COVID-19 pandemic. We link a model that intertemporally optimizes the handling of banked allowances every five years with one that simulates the annual working of the EU ETS including the MSR with its potential cancelling. Neglecting the pandemic, 2.16 billion allowances are cancelled. Accounting for the pandemic, 0.28 billion additional allowances are cancelled if the European economy fully recovers by 2021, which even overcompensates the 2020 drop in CO2 emissions. Additional cancelling increases when the pandemics lasts longer, meaning that the MSR even outperforms its initial purpose. Thus, we conclude that no additional policy measures to support abatement are required in response to the COVID-19 pandemic.