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In the past decade, financial institutions have invested significant efforts in the development of accurate analytical credit scoring models. The evidence suggests that even small improvements in the accuracy of existing credit-scoring models may optimize profits while effectively managing risk exposure. Despite continuing efforts, the majority of existing credit scoring models still include some judgment-based assumptions that are sometimes supported by the significant findings of previous studies but are not validated using the institution's internal data. We argue that current studies related to the development of credit scoring models have largely ignored recent developments in statistical methods for sufficient dimension reduction. To contribute to the field of financial innovation, this study proposes a Dimension Reduction Assisted Credit Scoring (DRA-CS) method via distance covariance-based sufficient dimension reduction (DCOV-SDR) in Majorization-Minimization (MM) algorithm. First, in the presence of a large number of variables, the DRA-CS method results in greater dimension reduction and better prediction accuracy than the other methods used for dimension reduction. Second, when the DRA-CS method is employed with logistic regression, it outperforms existing methods based on different variable selection techniques. This study argues that the DRA-CS method should be used by financial institutions as a financial innovation tool to analyze high-dimensional customer datasets and improve the accuracy of existing credit scoring methods. [ABSTRACT FROM AUTHOR]

This study examines the spillover dynamics and interconnectedness amongst sustainability indices, green bond markets, and oil price shocks. Using data from June 2013 to February 2023, this study employs spillover index methodology to analyze the transmission of shocks and volatility. The findings reveal that there is time-varying connectedness between all variables, which evidences a significant boost during times of crisis and extreme circumstances. Furthermore, the North American and US sustainability indices, along with the SP500 Environmental, Social, and Governance (SP_ESG) index, act as significant transmitters of shocks and volatility to other markets under different market conditions. Conversely, the Asia-Pacific, emerging market, and European sustainability indices, along with the green bond index, have emerged as net volatility receivers. Additionally, the study highlights the role of oil risk shocks as a transmitter of volatility under normal and bullish market statuses, while becoming a receiver in the lower quantile. These results have noteworthy implications for understanding the interdependencies and risks within financial markets and provide insights for investors, policymakers, and market participants. [ABSTRACT FROM AUTHOR]

Given that most environmental regulation is performed on the international and national scale and that municipal powers are often limited, what are the necessary conditions for local government to take on leadership and policy innovation in this space? The transportation-for-hire industry provides an interesting case study as municipalities around the world recently updated their local regulatory frameworks because of the disruption caused by the advent of ridehailing. Over time, policy learning resulted in policy convergence of major components, including license requirements, vehicle standards, and rate standardization, across the industry. However, overlooked from these initial regulations, but now gaining traction is the regulation of greenhouse gas (GHG) emissions of ridehailing vehicles and the transportation-for-hire industry more generally. Because of how many transportation-for-hire vehicles are in use, activists argue that environmental fleet standards ought to be tougher than that for personal-use vehicles. This paper investigates the emerging regulatory frameworks for GHG emissions by examining four case studies of the first-mover cities (London, Amsterdam, Mexico City, and New York City) in this emerging policy space, untangling the complex web of multi-level regulatory governance to tease our policy learning outcomes. Through the innovative lens of examining multi-level governance for policy learning, we conclude that GHG emissions in the transportation industry at the local level only occurred after international and national frameworks were set, giving "permission" to local leaders to demonstrate innovation and leadership on how to achieve targets set by higher-order governments. Cities, assisted with policy-learning transfer through international not-for-profit organizations, acted via local government powers to fill in the gaps of international and national frameworks with policies implemented at higher orders of government in other places. These local environmental transportation-for-hire bylaws took a three-pronged form: (a) vehicle permit standards; (b) regulations of public space and infrastructure; and (c) public–private partnerships to assist in the transition to electric vehicles. [ABSTRACT FROM AUTHOR]

Competitiveness is a generally accepted concept that emerges in all social and economic spheres, so understanding competitiveness in the sphere of tourism is also essential for destinations to attract a significantly larger number of tourists and increase tourism expenditure. The aim of the research in this paper is related to the verification of the applicability of the Integrated Competitiveness Model, which was created by Larry Dwyer & Lee Kim. In order to demonstrate the applicability of the Integrated Competitiveness Model using the example of Bosnia and Herzegovina, the paper established a clear methodological framework based on a questionnaire as the main research instrument, which was interpreted by applying a Likert scale, and the responses were analyzed using measures of descriptive statistics. The statistical processing of the collected responses indicates the successful applicability of the Integrated Model, according to which Bosnia and Herzegovina is a moderately competitive destination. A particular significance of the model is its precise suggestion of the multidimensionality and interdependence of competitiveness determinants, highlighting those that need improvement. The research, which utilized an innovative approach through a survey questionnaire, achieved representativeness through careful sample selection, encompassing not only tourists but also representatives of the tourism industry, resulting in original conclusions.

The purpose of this article is a comparative analysis of regional and temporal labor market differentiation. In the study, the following voivodeships were taken as comparative objects. In accordance, following the administrative division, the voivodeships were adopted, while the research period was taken as the years 2011–2021. To study the differentiation of the voivodeship labor markets, the classical method of share shifts and the analysis of share shifts were used. The number of employed people and the registered unemployed by gender were chosen as the measures of differentiation on which the study was based. The results of the analyses made it possible to examine changes in the structure and assess the development of regional labor markets over time.

Higher education (HE) is a significant factor in a country’s economic prosperity and plays a vital role in addressing sustainability issues and actively promoting sustainable development. While many EU member countries have well-developed education systems in terms of rankings and SDGs’ attainment, little is known about the progress of other European countries. The goal of this research is to estimate the efficiency of higher education in the attainment of Sustainable Development Goals (SDGs) in 40 European countries. The method used to estimate efficiency is Data Envelopment Analysis (DEA) with output-orientation and variable returns to scale approach. In the final model specification, two input variables and one output variable are used. Results indicate that the average technical efficiency of the 40 European countries is relatively high and equal to 0.94. Nine countries emerge as fully efficient in achieving SDG 4 with a coefficient equal to 1. The four largest higher education systems achieved an above-average efficiency score of 0.97 or higher. Six countries are recognized as the worst performing. However, more analysis is necessary to examine the sources of inefficiency in the worst-performing countries. Due to specific data limitations indicated in this research, it remains a challenge to evaluate the precise impact of higher education and its contribution to SDGs.

ABSTRACTInfrastructure assets are vital for economic development and integration, but they also encompass political risks. In Africa, infrastructure assets have remained a paradox where there is great potential for opportunities but very few projects get to the final phases. Adequate infrastructure can propagate the attainment of the Sustainable Development Goals whilst supporting recovery from the Covid-19 pandemic. Drawing from a longitudinal data set from 2000 to 2021 for 35 African countries, the paper empirically examined the nexus between infrastructure and political risk. Several techniques were employed to determine the dynamic effect, cointegration and causality between infrastructure and political risk. Controlling for the potential endogeneity in infrastructure the system Generalized Method of Moments, the relationship between political risk and infrastructure was ascertained. Furthermore, the ARDL-PMG was employed to determine the cointegration and causal relationship between infrastructure and political risk. The results suggest a cointegration between infrastructure assets and political risk. Infrastructure adjusts to changes in political risk to its long-run equilibrium at a speed of adjustment of 16.9 per cent. Bridging infrastructure gaps in Africa requires an extensive set of actions. Thus, the policy derivatives of our findings, suggest controlling the proliferation of political risk to support infrastructure investment.

The COVID-19 outbreak and the global uncertainty it causes produce an apparent panic in stock markets. Efforts to explain the economic spillover effects of COVID-19 can guide authorities to design a control policy against the financial impacts of pandemics. The paper examines the effects of the COVID-19 cases on the stock markets in the emerging Latin American countries of Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The paper employs a continuous partial wavelet methodology to observe lead-lag relations between the daily variables of new COVID-19 cases and the stock market index for each Latin American country. Brazilian new COVID-19 cases led the Bovespa (BVSP) index to decline during the whole period, except February and June 2020, at one month-two month-frequency band. The wavelet and phase difference analyses indicate that, except for Brazil, COVID-19 cases did not affect the stock market indexes adversely during the whole sample period but did affect the stock exchange markets negatively during some sub-sample periods of the entire sample of each country. Dynamics of Latin American stock exchange markets in the short and long run can be explained by some other parameters of real and financial sectors and COVID-19 cases. [ABSTRACT FROM AUTHOR]

This paper provides estimates of persistence in historical UK data on life expectancy applying fractional integration methods to both an annual series from 1842 to 2019 and a 5-year average from 1543 to 2019. This method is the most appropriate for our purposes since it is more general and flexible than the classical methods based on integer differentiation. The results indicate that the former exhibits an upward trend and is persistent but mean reverting; the same holds for the latter, though its degree of persistence is higher. Similar results are obtained for the logged values. On the whole, this evidence suggests that the effects of shocks to the series are transitory though persistent, which is useful information for policy makers whose task is to take appropriate measures to increase life expectancy. [ABSTRACT FROM AUTHOR]

Financial sector distress is a situation in which financial intermediation is either costly or impossible (or both) as proxied by tight financial conditions – high spreads, decline in equity value and high volatility. Tight financial conditions have been identified as a risk factor to the medium-run GDP growth. I therefore use different statistical methods aiming at extracting early warning signals from the cross-country data related to financial health and soundness of countries’ financial systems. The novelty of my approach is that I account for class imbalance – that is I adjust my results for the fact that financial distress periods are rare events. I contrast that to the previous literature. I find that it is possible to generate accurate warning signals about future distress well in advance and suggest which variables should be closely monitored as sources of financial vulnerabilities.

We examine the relationship between oil as a major export for the member countries of the Gulf Cooperation Council (GCC) and the forward levels of all GCC currencies using wavelet analysis. We find that oil and GCC forward markets have significant but weak relationships at high frequencies. We also find evidence of significant and strong relationships at low frequencies during periods of low oil prices. However, no noticeable relationship is observed during periods of rising oil prices. This could be explained by the significant concern about the negative effects of the decline in oil prices, especially with regard to liquidity and public finances.

Poverty reduction and economic progress and development accentuate sustainability and growth. This study explores a new model that specifies the FDI-led growth theory for the Rwandan economy. An annual time series data from 1970 to 2018 was obtained from the World Bank. The Johansen cointegration and ARDL approaches were used after realizing a varied order of integration from the stationarity test by adopting unit root tests. All variables were established to wield a positive impact on economic development except financial development from the financial sector which was significant in the short run but insignificant in the long run. Financial development from the private sector, exchange rate, consumer price index, gross domestic product, and population wield significant influence on FDI inflow for economic development, which implies that an improvement in these factors will equitably support economic growth. In principle, 1% improvement in the financial development from the private sector and exchange rate will produce a corresponding 397% and 78% increase advancement in FDI inflows in the long run. Averagely, financial development from the private sector, exchange rate, consumer price index, gross domestic product, and population are valuable to the economy of Rwanda. Therefore, we recommend that the relevant authority expand regional and global bilateral and partnership to enhance the economy to fully reap the benefits of engaging in globalization. [ABSTRACT FROM AUTHOR]

The recent COVID-19 pandemic or Global Health Crisis (GFH) has distorted the normal functioning of the global economies and financial markets. Previous research has shown that Islamic equities were relatively more stable than conventional ones during the 2008 Global Financial Crisis (GFC). So, this study aims to assess the effect of the COVID-19 pandemic on the performance and co-movement of the leading Islamic finance markets by employing MGARCH-DCC on daily frequency data spanning from January 01, 2017 to October 22, 2021. The findings suggest that, as expected, the pandemic outbreak has increased the volatility across the sample markets, but it faded relatively soon, indicating that Islamic equities carry hedging features and offer portfolio diversification benefits to investors. Moreover, the sample countries are less correlated during the sample period than expected. The findings have important implications for policymakers and diverse investors deciding on portfolio diversification. Global ethical and Islamic investors, including fund managers, could benefit by focusing on more stable markets and building optimal portfolios of Shari’ah-complaint equities during turbulent market conditions, such as the COVID-19 pandemic.

This article examines how local initiatives can gain international visibility and recognition as well as how they can diffuse to other cities. It explores the leadership of the mayors of Bogotá, Stockholm, and Portland, but also how there were specific contexts that favored the transformations of these cities. The work uses Finnemore and Sikkink's norm "life cycle" and Gilardi's diffusion models to explain how local initiatives and policies were promoted using the C40 network as a platform to diffuse practices on climate action and sustainable development. The research undertaken points to a similar pattern through which local policies get international resonance: after initial leadership arises at the local level to promote local policies, international visibility is gained through the winning of awards and the promotion of such policies within the C40. Learning, emulation, and competition are identified as mechanisms through which diffusion occurs. Related Articles: Tran, Carolyn‐Thi Thanh Dung, and Brian Dollery. 2022. "Administrative Intensity and Financial Sustainability: An Empirical Analysis of the Victorian Local Government System." Politics & Policy 50(3): 540–61. https://doi.org/10.1111/polp.12466. Villanueva Ulfgard, Rebecka. 2019. "Mexico's Struggle with Development between Global Compromises and National Development Plans." Politics & Policy 47(1): 50–78. https://doi.org/10.1111/polp.12288. Wallis, Joe Tor Brodtkorb, Brian Dollery, and Muiris MacCarthaigh. 2017. "Commissions and Local Government Reform: Expressed Leadership Identities of Commissioners in Inquiries Proposing Municipal Mergers in Northern Ireland and New South Wales." Politics & Policy 45(2): 285–308. https://doi.org/10.1111/polp.12199. [ABSTRACT FROM AUTHOR]

Cities are increasingly prominent on the climate change map because they are more interconnected than ever. This study investigates whether and if so, how the C40 Cities Climate Leadership Group (C40) network influences corporate environmental, social, and governance (ESG) scores. Drawing upon the network embeddedness, we propose that the C40 improves the embedded firms' ESG/E scores. Our international evidence from a sample of 7206 firms across 84 countries confirms our hypotheses. Furthermore, we find that the Paris Agreement announcement can strengthen the positive relationship between the C40 and ESG/E scores, while financial slack can only enhance the C40-E score relationship. This study highlights the importance of the global city network in improving corporate sustainability performance and guides managers and policymakers to pursue a sustainability agenda. • The role of the C40 network in improving ESG performance is investigated. • Corporate ESG/E scores increase when the firm is embedded in the C40 Cities network. • The announcement of PA strengthens the positive relationship between the C40 and ESG/E scores. • Financial slack strengthens the positive relationship between the C40 and E scores. [ABSTRACT FROM AUTHOR]

Determining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.

Abstract Climate change is one of the most challenging environmental and social problems for contemporary urban planning. In response to this phenomenon, city networks have emerged as new configurations of urban climate governance that encourage the implementation of experiments such as testing new solutions regarding sustainable transport. While city networks are gaining momentum and influence as effective platforms to transform and scale up pilot experiments into city-wide schemes, little is known regarding their role in conditioning and leveraging such urban experiments Our paper investigates the underexplored nature of urban experiments within city networks and provides a better understanding of how these networks condition urban experiments. To this end an analytical model has been developed and applied to the case of the C40 Climate Leadership Group (C40) and its Climate Positive Development Good Practice Guide. Our findings suggest that the C40 encourages variation in local climate experiments and the generation of new and innovative climate solutions in member cities. In particular they reveal that the implementation of climate positive experiments has passed the ‘variation’ stage, is currently in the ‘selection’ stage, and likely to move towards the ‘retention’ stage in the near future. Potential experimentation outputs of the case are identified as built environment change, new citizen practices, policy change, infrastructural change and new technology. Noticeably, we consider that the C40 plays an important role in providing fundamental institutional support to implement and leverage climate projects within its member cities.

Research background: Enterprises are an important element of the economy, which explains that the analysis of their duration on the market is an important and willingly undertaken research topic. In the case of complex problems like this, considering only one type of event, which ends the duration, is often insufficient for full understanding.