Search

The flow of funds account provides information on various economic sectors’ financial transactions. The present study has investigated the impact of monetary shocks on the dynamics of lending and borrowing of various economic sectors such as households, non-financial enterprises, the banks, the Central Bank of Iran (CBI), the government, and the foreign sector as well as the changes in financial assets and liabilities of mentioned sectors. An accurate analyzing in this regard could provide helpful guidance in making the appropriate policies for influencing macroeconomic variables. For this purpose, a FAVAR model was employed using data from 1973-2017. It was concluded that monetary shocks increased both the acquisition of new financial assets and the issuance of new liabilities of various national economic sectors and the banks were net borrowers from other economic sectors while other sectors – except the non-financial enterprises and the government that response with a delay– were net lenders in the first year. However, all national economic sectors turned into lenders and the foreign sector had become the borrower after the first year is passed. The reason for this appears to be the difference between domestic and foreign interest rate. Net capital outflow occurs for two years significantly.

SMEs are the pillars of the state's economy which has many limitations, including financial limitations. Several financial institutions are willing to provide financial assistance and one of the requirements is the transparency of the financial statements of SMEs. One solution for the transparency of financial reports is to use an e-accounting information system. Based on observations of several SMEs, there are facts that SMEs have not used a manual system in managing their finances or have not used the e-accounting system so that financial institutions have not been able to provide financial assistance. One of the reasons for the importance of an accounting system for financial institutions to make financial assistance a requirement for SMEs is the transparency of the flow of funds/financial use provided to SMEs. On the other hand, there are many factors that cause SMEs not to use e-accounting, including limited funds to purchase e-accounting software, limited knowledge to use e-accounting. The determination of this exploration is to build an open source-based e-accounting model and use the TAM to solve these problems. The outcome of this investigation is the TAM model for the adoption of open source e-accounting for SMEs. The resulting TAM model consists of several parts, namely: attending training accounting information system, collaborative learning between SMEs and outsource e-accounting resources.

Introduction: There is a risk of fragmentation of services for persons with concurrent drug addiction and mental health challenges (dual diagnosis). The services are primarily given in separate systems with separate funding streams and budgets. This can lead to structural barriers, and we presume that this division of work and the structure and flow of funds can affect various aspects of integrated services. In this study, we view integration as a coherent set of methods and models on the funding, administrative and organisational levels designed to create connectivity, alignment and collaboration within and between the government agencies and departments in Norwegian municipalities. The aim is to investigate how the organising of financial resources in Norwegian municipalities affect integrated service provision to persons with dual diagnosis. Method: This is a case study, using three municipalities as units of analysis. The case is how the organising of municipalities` financial resources affect integrated municipal services to persons with dual diagnosis. We conducted in-depth interviews with employees and managers. In addition, we made observations of meetings where services to persons with dual diagnosis were discussed, assessed and allocated. The data was analysed with a Stepwise- Deductive Inductive approach. Results: Preliminary findings point at the tendency to shift responsibility for the financing of individuals` services between the different government agencies and departments in the organisation. This applies for both municipal services, as well as admissions in private institution units. The government agencies and departments have separate budgets, and none of them has admissions in private institution units as a budget item in their main budget. When the severity and complexity in the service recipients` situation requires such an admission, the participants describe this responsibility shift as a way to avoid these kinds of high-price solutions. In practice, this leads to discussions regarding which of the service recipients challenges that are most dominant, in order to place responsibility at the most suitable municipal service. There existed no unwillingness to collaborate once the responsibility was clarified. These processes throws persons with dual diagnosis back and forth in the system, and can lead to complex needs not being met. Discussion: The results point at the framework conditions in the organisation, the silo-budgets and keeping the costs as low as possible. The responsibility shift becomes a structural barrier where the patients` issues are explained as more or less dominant in order to force other departments to “pay the bill”, instead of joining up to address the persons complex needs together in an integrated manner. Conclusions: There is a need to evaluate the organizing of Norwegian municipalities’ financial resources in order to find solutions that integrates mental health-, social- and somatic services. This is a case study, which can lead to challenges when it comes to generalising the findings. There is a need for further research on how funding solutions can promote integrated care to persons with dual diagnosis.

This paper revisits the period of substantial widening of external imbalances in advanced economies in the run-up to the global financial crisis and their adjustment since then. We take a granular look at these imbalances through the lens of their domestic counterpart: the net financial balance of the household sector, the government, non-financial corporations, and financial corporations. Our findings challenge the often-claimed view that the household sector lies behind most of the dynamics of the current account. In fact, we show that it is non-financial corporations and the government that account for the bulk of: (i) the co-movement with the standard set of fundamental covariates of the current account; (ii) the external adjustment and expenditure reduction in the aftermath of the global financial crisis; and (iii) the diverging dynamics during large and persistent current account imbalances. These results emphasize that analyzing domestic sectoral balances can lead to a better empirical and theoretical understanding of global imbalances.

The potential dark side of government guarantees, introduced to mitigate concerns about financial stability during economic downturns, is that they may create incentives for excessive risk-taking. In a low-interest rate environment, this effect may be even stronger as financial institutions try to “reach for yield”. In this paper, we use the 2008 introduction of unlimited deposit insurance for all credit unions in the province of British Columbia, Canada, to examine the effect of government guarantees on financial institutions’ earnings uncertainty. We find that the policy change resulted in an economically and statistically significant decrease in earnings uncertainty. In addition, although deposits grew following the policy change, lending did not increase and instead capitalization ratios improved. Overall, our results suggest that the provincial government guarantee boosted depositor confidence and increased the flow of funds to the insured financial institutions. We do not find support for the risk-taking hypothesis but instead show that risk management improved following the policy change. Finally, the effect of the policy change was stronger for smaller, more levered credit unions as well as those with fewer members and smaller market share.

This study uses the flow of funds accounts framework and undertakes an in-depth analysis of the inter-sectoral mobility of capital in India. Unlike previous studies, the FH model is estimated at th...

Apattern of mutual independence of financial position of industrial companies and credit institutions was identified. The issues of development of industrial companies in difficult economic conditions, the causes and consequences of deterioration of credit institutions, the issues of control over the flow of funds from the real sector of the economy to the financial sector are studied as cause-effect relationships in development of industrial companies and the overall change in the macroeconomic environment.

Countries, philanthropies, and private sector organizations have been actively investing in global health security around the world. However, despite the coordinated approach to funding within the Global Health Security Agenda, there is currently no well-established method to track the commitment and disbursal of funds for global health security from funders to recipients or to identify the activities supported by existing funding initiatives. To address this need, we developed the Global Health Security Tracking Dashboard. This interactive, publicly available, Web-based dashboard maps the flow of funds from funder to recipient and categorizes the target efforts of those funds, allowing users to identify patterns of influence and success in health security funding implementation. The dashboard provides an evidence-based approach for defining targets for future funding by identifying the areas in which funds have not yet been effectively allocated, showcasing successes, and providing a source of information to promote mutual accountability. Electronic supplementary material The online version of this article (10.1007/s10393-019-01402-w) contains supplementary material, which is available to authorized users.

The main purpose of this paper is to show how a simple (medium-scale) empirical stock–flow consistent dynamic model can be developed from scratch. Eurostat data and conventional statistical packages (notably EViews, Excel and R) are used. On the theoretical side, the work builds upon the pioneering work of Godley/Lavoie (2007). Sectoral transactions–flow matrices and balance sheets are explicitly modelled and their evolution over time under different scenarios is analysed. On the empirical side, the model draws upon the applied work of Burgess et al. (2016). The case of Italy is considered, but the model can be replicated for other countries. Eurostat annual data (from 1995 to 2016) are used to estimate or calibrate most model parameter values (for example, consumption function and housing investment parameters). Remaining parameters are borrowed from the available literature or taken from a range of realistic values (for example, weight on past errors in agents' expectations). The model is then used to impose and compare alternative scenarios for Italian sectoral financial balances, based on different shocks to government spending.

Integrating tax methodology and foreign exchange rates dynamics, and utilizing Miller and Scholes [1] framework, we are able to derive a testable algorithm that identifies financial flow of funds across countries, which in turn leads to short term changes in exchange rates. In this model we are going to identify changes in the flow of funds, directed toward financial investments, lending or borrowing, between two countries, and thereby the short term changes in the foreign exchange rate that solely stems from expected changes in the tax codes. Thus, expected change in the foreign exchange rate becomes an endogenous variable, while the common view in the literature is that expected change in foreign exchange rates that differs from the market consensus is the trigger for flows of funds across countries. Alternatively, by using the above-mentioned algorithm, one can imply the market beliefs regarding expected changes in the tax code.

Pharmaceutical benefit managers (PBMs) are playing an increasingly important role in establishing access to pharmaceutical products for patients. PBMs set retail prices for pharmaceutical products, negotiate "rebates" from manufacturers based on total sales volume of products, and achieve several types of postsale price concessions and payments from pharmacies. All of these activities describe a complex flow of funds that has not been transparent to clinicians or to patients. In this article, we describe these terms and processes to better understand how pharmaceutical products are financed in the United States. In 2016, US pharmaceutical manufacturers reported gross pharmaceutical sales of $462 billion and net pharmaceutical sales of $318 billion. The difference between gross and net sales is largely due to the different "payments" from manufacturers to PBMs and other intermediaries in the marketplace. We examine the flow of funds through the US pharmaceutical distribution system over time using data from the annual reports of 13 major pharmaceutical manufacturers for the period 2011-2016. Overall, we find that net revenues for our sample of firms grew by an average of 2.7% annually between 2011 and 2016, whereas rebates and other payments increased by 15% annually over the same period. Our examination of the pharmaceutical market reveals the enormous scale of payments from pharmaceutical manufacturers to intermediaries. We observed that these payments have been growing disproportionally to manufacturer net income over the past 5 years. We also found a lack of transparency regarding the flow of funds through intermediaries. This entire marketplace is now the subject of intense public debate.

The profession's ideological hegemony in the health care delivery system has rested upon its highly specialized knowledge, requiring lengthy training and decision-analytical methods presumed to be inaccessible to nonprofessionals. Physicians remain perhaps the most stereotypical representatives of the professional-managerial class, whose relationship to the productive process has been defined as the reproduction of social life, popular and material culture, and the mechanisms of social control. The on-going corporatization of the United States (US) health care delivery system is accelerating the development of medical information technology. The medical profession has historically enjoyed exclusive authority over judgments about the quality and cost-effectiveness of diagnostic and therapeutic services initiated under physician orders. Over the last several decades the medical profession helped convince the public that more medical care meant better health. Public policy has sought to reduce the flow of funds into the health care industry by reversing financial incentives.

Synopsis. In this chapter, we focus on Central Banks and the commercial banking system as a whole. While these agents are always large and active, a meaningful change in their size can have a major impact on asset prices. We will find that, in the median case at least, Fed balance sheet expansion does have a stabilizing effect on credit spreads. This is not to imply that Central Banks have the power to eliminate extreme event risk. The Fed “put” might be free, but it is not guaranteed in size or effect. We will also show how Flow of Funds data, which measures the amount of lending in the system, effectively forecasts long-term equity returns. The back tested results turn out to be stronger than standard valuation indicators can deliver, especially over shorter horizons.

When we think of Google supporting the fake news industry, the first thing that comes to mind is how, as described in the previous chapter, it serves up an audience with its various search products. However, there is an entirely separate way—less obvious but extremely influential—that Google supports the fake news industry: financially through ad revenue. The first half of this chapter focuses on the mechanics and scale of Google’s algorithmic ad distribution system, the extent to which it funds fake news organizations, and the reluctant steps Google has taken over the years to curtail this dangerous flow of funds.

In school privatization there is upstream money and there is downstream money but it all flows in one stream and below ground. We’ll follow the hidden flow of funds that passes through nonprofits organized under Internal Revenue Code 501(c)(3) and 501(c)(4). Privatizing philanthropists are expertly coached on how to use their wealth, often with a large tax deduction to themselves, to alter public policy. To do politics with 501(c)(3) private foundations and donor-advised funds, they pour money into organizations that can crawl right up to the line that prohibits nonprofits from being involved in politics. When that line is about to be crossed the money is diverted to 501(c)(4) fronts that can engage in political battles while preserving the privatizers coveted ends—the secrecy of their identities.

From 2013 to 2016, the trust industry entered a period of transitional development. Under the background of economic transition and the restructuring of the supervision of grand asset management industry, the growth rate of the scale of trust assets has significantly slowed until the second half of 2016, when the growth rate rebounded. Judging from the sources and flow of funds, there is a structural imbalance in the trust industry.

Money stock, defined as the sum of coins, notes, demand and time deposits, decisively affects macroeconomic variables such as GDP and price. Yet its true nature has been obscured in economics. Where does it come from? How are they created, and how much? Concerning money creation under the fractional reserve banking system, the intermediation and deposit creation theory of banking have coexisted. In this chapter, we apply accounting system dynamics modeling framework to investigate the process of money creation by building a simple simulation model and then apply theoretical insights obtained to a case study on the flow of funds accounts in Japan between 1980–2017. We found that money stock equals total domestic debts financed by banks, to non-banking private and public sectors including non-financial corporations, households, and the government. An intermediate divergence of the equality between 1994–2014 calls for further specification and precision of proxy time series. Current empirical finding demonstrates that the majority of money is created as interest-bearing debts, confirming the consistency of deposit creation at a national level. Consequently, it should not be ignored in economic theory and policy analysis.

This paper studies shock transmission across macroeconomic sectors in the UK, using data from the Bank of England's Flow of Funds statistics. We combine two different approaches to quantify the spread of shocks to assess whether sectors with large bilateral economic linkages as measured through network data have a greater statistical likelihood of shock transmission between them. The combination of both approaches reveals the Monetary Financial Institutions sector's role as shock absorber, and identifies the most important channels of shock transmission. The inferential discrepancies between network data and the actual spillovers highlight the contribution of the proposed methodology.

This paper examines the role of speculative motives in the determination of commodity prices and specifically food related commodity prices. The motivation for this study is the considerable flow of funds into commodities, the widespread view that the process of financialization has led to greater levels of speculation and that speculation is the primary cause of regular spikes in food prices since the turn of the century. We consider two forms of short-term trading, a biasing influence (Manipulators) and a correcting influence (Speculators), relative to the fundamental price. While both forms of short-term trading are relevant, they are small in terms of their influence on overall prices. We do however find some evidence of an increased role being played by Manipulators during the period most associated with financialization.

The article discusses the views of the Business Monitor International (BMI) on the commercial bank survival in the midst of the economic recession in Chile. It mentions that the BMI had remained hopeful that the banking sector will still keep its business survive due to the financial assistance of the government. The BMI believes that the economy will recover in 2010 due to its stable gross domestic product (GDP).

The main aim of this chapter is to demonstrate how the implementation of an intra-branch exchange risk hedging strategy can be traced cross-sectionally, that is, by means of snapshots of banking practice at certain points in time. After documenting the Yokohama Specie Bank (YSB)’s early history, it is demonstrated how the bank went through different managerial phases. YSB development in China on a silver basis is explained as a natural consequence of hedging practice, in contrast to the tendency to treat the latter as an anomaly. At all times, the bank could not neglect the realities of the world’s monetary geography. Willingly or not, YSB’s cadre had to take into account the fact that the bank’s center of gravity would, almost inevitably, move towards Shanghai; YSB’s decentralized operating in the many industrial and commercial centers of Manchuria was the consequence of government policy, on the one hand, and the severely limited credit conditions within the regions, on the other.

The current pandemic situation has opened requirements for getting maximum support not only from government bodies but also from general public and nonprofit organizations. Aiding a non-profit organization with financial aspects is a common concern due to lack of transparency in flow of funds taking place for the indicated social issues. There is an immediate need for a channel or mechanism to support and validate the cash flow in such scenarios. In this paper, we explore the generic issues in this topic and propose our idea to solve the same. This paper talks about a financial platform backed by a bank X, that channelizes, reports and provides earmarked funds from charity accounts of donors (just like a regular Fixed Deposit account online interface) to accounts of Non-Profitable Government Organizations (NGOs) aka beneficiaries (irrespective of banks). This significantly solves the challenge posed by lack of transparency and accountability on the part of NGOs and dramatically increases donor confidence and thereby the number of donors, average donation size and frequency.

A reliable banking system in developing economies like Nigeria is vital for economic progress as it facilitates the flow of funds to productive investment sectors. The capital adequacy requirement of banks is a crucial feature of the stability of the banks globally. Because of its importance, we have examined the antecedents to capital adequacy. We have used the data set of ten leading banks of Nigeria from 2007 to 2017. Our results indicate that ROA and loan to total assets are significantly associated with capital adequacy. However, we found that nonperforming loans and size are negatively associated with the capital adequacy. Our results do not support the association between macroeconomics variables and capital adequacy. Therefore, we recommend that all banking entities should reserve sufficient cash and cash equivalents as a percentage of deposits and apply aggressive risk management practices to reduce the magnitude of nonperforming loans. This study was restricted to one country. Future studies can be carried out in other countries. A comparative data set of more than one country may bring further insight into the phenomenonKeywords: Capital adequacy ratio, banks-specific determinants, macroeconomic determinants, Nigeria.

The object of the study is educational tourism as a complex socio-economic phenomenon. The subject of the study is the scientific and practical basis, consisting of the theoretical principles of the functioning of educational tourism and methodological support of the impact of educational tourism on the activation of the labor market, taking into account its current situation and legislative support. The goal is the improvement of the conceptual and categorical apparatus of educational tourism and the development of scientific and practical proposals for activating the labor market, taking into account existing trends in the development of educational tourism. Tasks: to achieve this goal, the article has posed and solved the following main tasks: update the definition of the concept of "educational tourism" taking into account the existing features of its development; propose the main stages of ensuring the activation of the labor market taking into account educational tourism and determine the main directions of its activation. Methods. Theoretical and practical analysis of the work of specialists in the field of educational tourism and the functioning of the labor market has proved the need to use such research methods: monographic, analysis and synthesis, structural-logical method, systematic approach, theoretical generalization. Results. It is proposed to define the concept of “educational tourism” taking into account various forms of economic activity, length of stay for education, the ability to carry out paid activities, which will increase the validity of employers' proposals for determining the characteristics of jobs in the labor market. Taking into account the refined definition, the main stages and measures of activating the labor market are proposed, which are: activating the economic activity of business entities as a source of foreign exchange earnings from the provision of educational services to foreigners; the growth of the results of inter-industry relations of enterprises that provide additional services; the growth of the results of inter-industry relations of enterprises that provide additional services; the formation of an additional sales market for suppliers of consumer services, expanding the assortment and increasing requirements for the quality of goods and services, which stimulates the creation of new jobs; improving the quality of the workforce through the introduction of the latest training technologies, the flow of funds to expand the infrastructure of the education sector. The main directions of changes in existing negative trends in the economic activity of the labor market are identified: support for regional producers, providing fisheries with the necessary qualifications in accordance with market requirements, the uniform development of regions and the creation of the required educational infrastructure that can provide the labor market with specialists of the required quality and competencies. Conclusions. In the definition of the concept of educational tourism, it is advisable to take into account the purpose of the stay, increase the period of visa support and enable educational tourists to engage in economic activities for personal income. In the process of implementing the main stages and measures to activate the labor market, it is advisable to take into account the main market animated effects that arise in the process of obtaining education. As the main directions of intensifying the labor market, economic support should be provided to entrepreneurs, improve the skills of the workforce by improving the quality of education in higher education institutions on the basis of traditional and exclusive training programs.

In this study, we systematically analyze the flow of funds in the Chinese economy from 1992 to 2017 according to the theoretical framework of, and using statistics from, the flow of funds analysis. We observe the fluctuating characteristics of and changing trends in China’s industrial cycle and in its financial cycle from the perspective of the flow of funds analysis, discuss and analyze structural problems existing in the flow of funds in China, and offer some policy suggestions.

We use the discipline of flow of funds accounting to define liquidity algebraically from the standard budget constraint. By rearranging the expression for the private sector’s net acquisition of financial assets, we derive a formula for gross flows that splits out aggregate sources from the uses of liquidity. The model aligns with existing analyses of inside and outside money. It also shows that the main focus of traditional monetarism, namely bank deposits, is a use of funds rather than a source of funds. We argue that the aggregate inside plus outside money determines the size of maturity spreads, whereas the differential between inside and outside money flows determines credit spreads and the value of the exchange rate.

This research transposes the data from China’s Flow of Funds Account and Flow of Funds Matrix and clarifies the features of assets and liabilities between sectors. Then, using the Leontief Inverse principle, the author builds a ripple effect model for measuring financial risk, conducts a multiplier analysis to explain the risk ripple effects of each financial transaction item rankings, and analyzes the final ripple effect of systematic financial risk in China’s whole financial market. The results show that the systemic risk assessment of financial transaction instruments in China in 2017 exceeded the situation of the 2007 United States sub-prime crisis, which required special attention from policymaking authorities.