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Expanding economic cooperation with the EAEU is of great importance to the Government of the Republic of Korea, which is focusing on providing new drivers of economic growth through expanded trade with various countries and groups of countries, including the Eurasian region. Economic cooperation between the Republic of Korea and the EAEU has the potential to promote mutually beneficial development in the long term as both regions are forming complementary industrial complexes. International competitiveness can be ensured through bilateral economic cooperation based on the advanced industrial technologies of the Republic of Korea, as well as energy and mineral resources, which are the main production factors of the EAEU countries. Moreover, in the current economic situation of the Republic of Korea, where it is necessary to reduce trade dependence on China, expanding cooperation with the EAEU is becoming a key aspect of its further economic development.

We investigate the extent of investors' awareness of the bubble risk of assets' fundamental value by examining Chinese listed companies' goodwill bubbles. We find that firms with larger goodwill have a higher possibility of goodwill impairment recognition in the future, indicating a higher bubble risk of companies' assets fundamental. Next, we find that firms with more goodwill experience lower stock returns in subsequent 1–3 years, which means investors do not demand corresponding risk compensation and underestimate the goodwill bubble risk for these firms. Furthermore, we investigate five behavioral biases driving investors to underestimate the bubble risk. The results show that investors' gambling preference for bubble assets is the key driver, while investors limited attention, extrapolation, opinion divergence, and earnings expectation are not applicable in our setting. Our study suggests that investors' gambling preference is a channel through which the risk of companies' assets fundamental bubble transmits to the stock market. [ABSTRACT FROM AUTHOR]

Full economic independence of business structures places special requirements on the financial management quality. Its main task is to ensure self-sufficiency and self-financing as the basis for liquidity and market stability of the business. Taking into account the role of agro- industrial enterprises in the socio-economic development of the region and the specifics of the organization of their activities, coordination of the actions of the state, as the owner of the land, and its lessees in this process is of parti- cular importance. By leasing the most important resource, the goals of the state should be the following: preservation of soil fertility, its effec- tive use, compliance with the optimal structure of crop rotation, ensuring employment of eco- nomically active rural population, ensuring food security in the region, price stability for a socially significant range of food products, and ensuring socio-economic development in general. The article examines the activities of one of the leading agricultural organizations in the region. Its liquidity and market stability were determined, factors that had a negative impact on its activities as a whole were identified.

Copyright of Economica: Revistă Ştiinţifico-Didactică is the property of Academy of Economic Studies of Moldova (AESM) / Academia de Studii Economice din Moldova (AESM) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates the sensitivity of stock returns to changes in oil prices and tax returns in net-oil exporting economies, focusing on the Gulf Cooperation Council (GCC) countries from March 30, 2003 to March 30, 2022. The problem statement addresses the challenge of understanding the interplay between oil price fluctuations, tax policies, and stock market dynamics in these economies, which are heavily reliant on oil revenues. The aim of the study is to provide insights into how variations in oil prices and tax returns impact the cross-section of stock returns in the GCC region. The objectives include analyzing the econometric relationships between oil prices, tax policies, and stock market performance using an appropriate econometric model. The results reveal a significant sensitivity of stock returns to changes in oil prices and tax returns in the GCC countries during the specified period. The econometric model employed indicates strong correlations between fluctuations in oil prices, tax policies, and stock market movements, highlighting the intricate connections between these variables. Moreover, the study identifies specific sectors within the stock market that are particularly sensitive to oil price changes and tax policy adjustments. Policymakers in the GCC countries can use these insights to design more effective fiscal and economic policies aimed at enhancing market stability and investor confidence amidst dynamic oil market conditions.

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

Concerns about systematic price distortions in the EU Emission Trading System (ETS) have risen in recent years. This paper shows how carbon-market design affects the impact of market sentiment, i.e. systematic deviations of price expectations from fundamentals by at least some market participants, on equilibrium prices. The Market Stability Reserve (MSR) of the EU ETS that adjusts supply based on past allowance banking undermines self-stabilization of the carbon market by discouraging rational intertemporal arbitrage. The MSR increases vulnerability of the EU ETS to market sentiments. Initially, the allowance price responds more to distorted expectations while the MSR (partially) prevents the distortion to spread across periods. Making the MSR more responsive to banking decisions increases the likelihood that distorted expectations turn out to be correct ex post. In contrast, a mechanism that adjust the cap based on the current allowance price does not face a trade off between stabilizing prices in the present and the future. [ABSTRACT FROM AUTHOR]

The increase in interest rate is related to the efforts of monetary authorities to neutralize inflationary pressures; while the rate reduction can be interpreted as an invitation to business sector to access more favorable lending conditions. The effectiveness of these changes largely depends on the development level of financial system, the role of the central bank as a creditor and current economic situation. In this research an econometric regression double-logarithmic model was applied, with the main goal of examining the relationship between discount rate and its influence on interest rates and money supply on the example of the National Bank of Serbia. The results show the correlation between the NBS discount rate and interest rates of commercial banks and the amount of money in circulation, indicating their influence on market stability.

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. [ABSTRACT FROM AUTHOR]

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 informed traders, however, has received little attention. We consider a computational model of a derivatives market containing informed traders and noise traders with the former group having to learn to price the traded asset. We demonstrate that noise traders have a beneficial effect on market stability: an increase in the amount of noise traders makes the market more resilient to shocks. Noise traders by pushing the price away from fundamentals create opportunities for learning, increasing the proportion of informed traders possessing high levels of trading skills in turn protecting the market. [ABSTRACT FROM AUTHOR]

The spatial data infrastructures (SDIs) which constitute a direct link between spatial data users and the large Earth observation industry, have a leading role in establishing market opportunities in the space sector. The spatial information supplied through various forms of SDI platforms exhibits large increases in demand volatility. The users' demand is unpredictable and the market is vulnerable to high evolution shifts. We study the effect of extreme demands for a particular type of spatial information, the satellite images. Drawing on two French SDIs, GEOSUD and PEPS, we examine the shifts occurring on their platforms and assess the probability of witnessing a spike/drop in the short term of different satellite imagery schemes: the high resolution images through GEOSUD; the Landsat (U.S.), Sentinel (Europe) and SPOT (France) images through PEPS. We analyze the market stability through the two SDIs and evaluate the probability of future records by using the Records theory. The results show that the high resolution images demand through GEOSUD, for which the classical i.i.d. model fits the most, is stable. Moreover, the Yang-Nevzorov model fits to the Landsat data, due to more records concentrated beyond the first observations. The Landsat demand is the less stable out of the other three satellite images series, and the probability of having a record in the coming years is the highest. While the use of Records theory drops mathematical constraints, it offers an alternative solution to the non-applicability of the machine learning techniques and long-term memory models.

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

The orderly release of electricity plan is an important measure for China’s electricity market reform which also lead to excessive pressure for coal power units caused by the low planned electricity quantity. Allowing high-priced units to participate in the market can effectively alleviate the market pressure. However, the participation of high-priced units in electricity market will have an impact on the declaration behavior of other generators. In this context, an evolutionary game model of bidding for two groups of generators considering the market liberalizing degree (MLD) is proposed. Above all, the profit model of two kinds of generators is proposed under two bidding strategies considering the MLD. On this basis, an evolutionary game model of generators’ bidding is built to qualitatively analyze the market equilibrium solution which is affected by the MLD coefficient. Thus, the expected evolutionary stable equilibrium of bidding can be formed spontaneously in electricity market by adjusting the MLD coefficient. The case studies are performed for demonstrating the proposed evolutionary game model of generators’ bidding, and simulation results show that different MLD and the initial state of bidding behavior of generators will influence the final evolutionary stable equilibrium of bidding market, and it also shown that the government can make the electricity market develop towards​ the expected state by adjusting MLD and supervising the bidding behavior of generators.

Market stabilization is a critical regulatory challenge for the private insurance component of the Affordable Care Act (ACA). Initially ACA market instability was due largely to the actuarial uncertainty associated with new market conditions for which good actuarial data were lacking. Then, in 2017, just as actuarial uncertainty was abating, political uncertainty came into play, reactivating and compounding actuarial uncertainty. Agreement is widespread that some stabilization measures are needed to improve the functioning of the ACA’s market reforms. Based on documentary research at a national level and in-depth case studies in ten states, this study examines the role actuarial and political uncertainty have played in creating unstable market conditions and explores what measures state and federal lawmakers could take to improve market conditions.

The ease of Internet stock trading has lured relatively inexperienced investors into the financial markets. This paper is a study of the consequences of the influx of these uninformed traders with a dynamic equilibrium framework. The results show that these strategic, uninformed online traders who adopt feedback strategies cannot outperform those who do not follow feedback strategies and that feedback trading cannot affect market equilibrium. The results also show that an informed trader’s equilibrium strategy and expected profit remain unchanged with or without feedback trading. The presence of feedback trading in the market does not affect the speed at which information gets incorporated into prices. If uninformed traders aggregately adopt a more aggressive feedback trading strategy, they bear a higher risk. It is therefore important to manage and contain these uninformed traders’ risks. The implications for regulating and designing such Internet trading systems are also discussed. [ABSTRACT FROM AUTHOR]

The purpose of the article is to describe methodological approaches to the complex concept of reliability of engineering enterprises in a competitive environment. The concept of enterprise reliability is proposed to include the following areas of analysis: sustainability of economic growth, financial stability, industrial mobility and market stability. Each of the areas under consideration has its own aspects of analysis and indicators. The definitions of the proposed directions have been given, the need for their joint use in determining the reliability of the enterprise has been substantiated. The main content of the study is to analyze each component of the reliability of the enterprise, the proposed system of indicators that determine them, as well as the most favorable trends in the last time to improve the status and reliability of the enterprise. According to the results of the conducted research, the conclusion about the necessity of development of methods of reliability evaluation of engineering enterprises through the levels to create the structure of sectoral development opportunities has been made.

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.

The outbreak of the coronavirus in December 2019, with its accompanying declaration as a pandemic by the World Health Organisation in March 2020, resulted in lockdown of the global financial markets. This paper uses data from pre-coronavirus, coronavirus endemic and coronavirus pandemic periods to evaluate the impact of coronavirus pandemic on stability of Africa stock markets, sovereign bond markets and U.S. dollar exchange rates in Kenya, Morocco, Nigeria and South Africa as well as Africa Sharia equity and Sukuk indices. Findings from study suggest that Africa financial markets became very unstable during the coronavirus pandemic than during the endemic and pre-coronavirus periods. Results from bivariate regression model show evidence of negative impact of coronavirus pandemic on financial market returns. The results further show that Africa financial markets return volatility increases as the number of coronavirus cases increases. Overall, the findings suggest that coronavirus has negative impact on financial markets’ returns and exacerbated financial markets instability thus retarding sustainable economic development in the continent. [ABSTRACT FROM AUTHOR]

• We estimate an asset pricing model with heterogeneous agents. • We evaluate how behaviour differs across assets. • Heterogeneity is more pronounced when limits to arbitrage are more binding. • This has important implications for market stability. • Behavioural bubbles/crashes are more likely for macroeconomic asset classes. 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. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

This study investigates the sensitivity of stock returns to changes in oil prices and tax returns in net-oil exporting economies, focusing on the Gulf Cooperation Council (GCC) countries from March 30, 2003 to March 30, 2022. The problem statement addresses the challenge of understanding the interplay between oil price fluctuations, tax policies, and stock market dynamics in these economies, which are heavily reliant on oil revenues. The aim of the study is to provide insights into how variations in oil prices and tax returns impact the cross-section of stock returns in the GCC region. The objectives include analyzing the econometric relationships between oil prices, tax policies, and stock market performance using an appropriate econometric model. The results reveal a significant sensitivity of stock returns to changes in oil prices and tax returns in the GCC countries during the specified period. The econometric model employed indicates strong correlations between fluctuations in oil prices, tax policies, and stock market movements, highlighting the intricate connections between these variables. Moreover, the study identifies specific sectors within the stock market that are particularly sensitive to oil price changes and tax policy adjustments. Policymakers in the GCC countries can use these insights to design more effective fiscal and economic policies aimed at enhancing market stability and investor confidence amidst dynamic oil market conditions., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2024 Published by Elsevier Ltd.)

International negotiable financial instrument markets have a high level of electronic trading. It is displayed using the consolidated limit order book, the widening the range of trading orders, smart order routing, high speed access to the market on the basis of latency minimizing. The result of electronic trading is the development of high-frequency trading, the positive features of which are the increase of trading activity and market liquidity, and the reducing of transaction costs. The main drawback of high-frequency trading is the potential negative impact on market stability (software failures, the manipulative incentives of algorithmic strategies, in particular, technical arbitrage, the use of homogeneous strategies, cyber risks). The current system of high-frequency trading requires particular actions from the regulators to overcome information gaps and enhanced monitoring to create a regulatory environment that could take into account both the aspects of supporting market development and its stability through appropriate macroprudential instruments, especially the implementation of the stress testing of the high-frequency algorithms in response to the shocks of various origin, taking into account the aggregate market effect of the mutual influence of different algorithmic strategies.

The spatial data infrastructures (SDIs) which constitute a direct link between spatial data users and the large Earth observation industry, have a leading role in establishing market opportunities in the space sector. The spatial information supplied through various forms of SDI platforms exhibits large increases in demand volatility. The users' demand is unpredictable and the market is vulnerable to high evolution shifts. We study the effect of extreme demands for a particular type of spatial information, the satellite images. Drawing on two French SDIs, GEOSUD and PEPS, we examine the shifts occurring on their platforms and assess the probability of witnessing a spike/drop in the short term of different satellite imagery schemes: the high resolution images through GEOSUD; the Landsat (U.S.), Sentinel (Europe) and SPOT (France) images through PEPS. We analyze the market stability through the two SDIs and evaluate the probability of future records by using the Records theory. The results show that the high resolution images demand through GEOSUD, for which the classical i.i.d. model fits the most, is stable. Moreover, the Yang-Nevzorov model fits to the Landsat data, due to more records concentrated beyond the first observations. The Landsat demand is the less stable out of the other three satellite images series, and the probability of having a record in the coming years is the highest. While the use of Records theory drops mathematical constraints, it offers an alternative solution to the non-applicability of the machine learning techniques and long-term memory models. [ABSTRACT FROM AUTHOR]

This is an informal and sketchy review of five topical, somewhat unrelated subjects in quantitative finance and econophysics: (i) models of price changes; (ii) linear correlations and random matrix theory; (iii) non-linear dependence copulas; (iv) high-frequency trading and market stability; and finally—but perhaps most importantly—(v) “radical complexity” that prompts a scenario-based approach to macroeconomics heavily relying on Agent-Based Models. Some open questions and future research directions are outlined.

We study an indicator of financial instability based on the computation of the decay rate for the propagation of a given market shock. The rate of variation through time of an initial perturbation of the price process enables us to understand if such a shock will be rapidly absorbed or, on the contrary, it will be amplified by the market. The indicator combines non-linearly volatility, leverage and covariance between leverage and price and is model-free. It provides an early warning indicator of instability for a given high frequency financial time series. A new consistency theorem for the estimator of each component of the proposed indicator is proved. The properties of the indicator are investigated numerically under the CEV model and empirically using tick-by-tick data of the S&P 500 index futures. [ABSTRACT FROM AUTHOR]

Nowadays, in the conditions of permanent economic instability it is very important to find effective instruments of sustainability of economic security. There is awareness that economic security is based on investment attractiveness of corporate and other assets. It can explain scientific interest to the research of increasing investment attractiveness of assets with the help of marketing methods and how it will influence the level of economic security in the country. The present manuscript focuses on the research of the marketing investment marketing support in the system of economic security of the state. Initially, the data that confirm the influence of marketing mechanisms of investment activity were provided. Additionally, we introduced the ways of effective introduction of investment activity based on marketing and the system of economic security. We conclude with a discussion on where the future of marketing in investments and economic security lies. [ABSTRACT FROM AUTHOR]

This article investigates the effects of a price limit change on the volatility of the Korean stock market's (KRX) intraday stock price process. Based on the most recent transaction data from the KRX, which experienced a change in the price limit on 15 June 2015, we examine the change in realized variance after the price limit change to investigate the overall effects of the change on the intraday market volatility. We then analyse the effects in more detail by applying the discrete Fourier transform to the data set. We find evidence that the market becomes more volatile in the intraday horizon because of the increase in the amplitudes of the low-frequency components of the price processes after the price limit change. Therefore, liquidity providers are in a worse situation than they were prior to the change. [ABSTRACT FROM AUTHOR]

This study examines the influence of the fear of missing out (FOMO), which spreads through social networks, on financial market stability. We extend the networked evolutionary minority game model, a widely used methodology in econophysics, by incorporating the asymmetric reward structure and investors' FOMO. The agent-based simulation results reveal that the asymmetric reward structure significantly improves the stability of the system. In contrast, the FOMO significantly reduces market stability. FOMO-induced irrational behavior disrupts the market's normal functioning, leading to decreased stability. However, as agents become more interconnected and actively adapt their strategies, the adverse effects of FOMO on the system diminish. • We extend the networked evolutionary minority game model by considering investors' fear of missing out (FOMO). • Asymmetric reward structures improve the stability of the system whereas investors' FOMO reduces market stability. • As agents become more interconnected and actively adapt their strategies, FOMO is less likely to destabilize the market. [ABSTRACT FROM AUTHOR]

Construction enterprise economic stability is determined as condition at which there is most coordinated interaction of all activity components(financing, manufacturing, human resources, marketing, investment and management). Construction enterprise stability enhancing may beachieved through the implementation of adaptation programs. A mechanism of the impact on economic stability of individual components is described which makes it possible to increase overall stability of the construction company in different situations.

This paper wants to develop a dynamic approach of markets. We take the economics of conventions (EC) as the basic theoretical framework and expand it regarding concepts, which help to answer the question under which circumstances markets are either (persistently) stable or (radically) dynamic. We introduce EC as a European research program focusing on uncertainty as the fundamental problem on markets. Then we develop the concept of market regimes to draw on some main pillars of the EC and at the same time to focus attention more, as it is usually the case, on the question why conventions are stable and why they change. We argue that usually markets are relatively stable; however, crises, exogenous factors, and divergent interpretations of quality on the individual level (dissatisfaction/critique of key actors) lead to change of conventions and consequently changing market regimes. Analytically, the existing regime fails to overcome uncertainty and establish market coordination. The empirical part of the paper illustrates the theoretical concepts with the case of a regional wine market where radical change led to the fall of the market convention and the rise of the domestic convention. [ABSTRACT FROM AUTHOR]

The Renewable Fuel Standard (RFS2), as implemented, has introduced uncertainty into US ethanol producers and the supporting commodity market. First, the fixed mandate for what is mainly cornstarch-based ethanol has increased feedstock price volatility and exerts a general effect across the agricultural sector. Second, the large discrepancy between the original Energy Independence and Security Act (EISA) intentions and the actual RFS2 implementation for some fuel classes has increased the investment uncertainty facing investors in biofuel production, distribution, and consumption. Here we discuss and analyze the sources of uncertainty and evaluate the effect of potential RFS2 adjustments as they influence these uncertainties. This includes the use of a flexible, production dependent mandate on corn starch ethanol. We find that a flexible mandate on cornstarch ethanol relaxed during drought could significantly reduce commodity price spikes and alleviate the decline of livestock production in cases of feedstock production shortfalls, but it would increase the risk for ethanol investors. [ABSTRACT FROM AUTHOR]