Theory in Economics

Human civilization is very clearly reaching a point of critical mass when it comes to technology and how it transforms culture and the economics that is therefore driven forward. The conversation around the practical aspects of generative artificial intelligence (Chat GPT, Q Star, Bard, Claude, Genesis, Firefly, and others) and their ethical implications is massively trending. The political conversations around it are slow to catch up but will soon take over once the general public feels their impact, which is likely (...) to happen in the next two to three years. -/- What is not being spoken of is the need for new economic models that can integrate the enormous and continuous shifts in trade that will occur, as we continue to implement more efficient manufacturing and logistics. Things like 3D printing in hub regions, the automation of transportation, augmented and virtual reality, and new creativity-based industries will all disrupt capital markets as well as social systems due to what we could call "meta-scarcity", which is to say, "the scarcity of scarcity"; In effect, we will lack the scarcity to maintain predictive power over the future. This is because when technology is capable of optimizing for creativity, people come up with new demands, and when new demands are supplied as quickly as they arise, no one is capable of knowing what kind of trends the market will take, yet it is necessary to try as public discussion could beneficially shape the economic landscape. (shrink)

Climate-econometric models postulate that increased CO2 levels cause the earth’s average temperature to increase and that the increases in the average temperature will result in huge costs in GDP. However, this causal relation is at odds with datasets that tell a different story: that the causal relationship is inversed and the variable once thought to be the effect may turn out to be the cause and vice versa. Moreover, when the Earth’s temperature is measured, it appears that changes in the (...) measurement set up can lead to changes in the measurement outcomes thereby skewing the relevant estimates. These results reveal two sources of endogeneity in climate-econometrics: simultaneity whereby X causes Y and Y causes X and also measurement error thus making the relevant causal inferences weak from an epistemological viewpoint. Moreover, since climate-econometric models are used to advice decision-making there are further connotations: first, climate policies can hardly be evaluated through common economic methods and, second, different model-based estimates could lead to different policy-prescriptions dependent on whether endogeneity is taken into account or not. And if different policies are tied to different sets of value judgments, then it can be said that different model-based projections carry different normative implications. (shrink)

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price an option (...) or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)

Anthropologists sometimes tell us about alternative theories for coping with the data of life. It seems to me that going to economics can provide one with similar material to report. I flesh out the proposal in this paper.

The question of how to frame agential preferences in economics finds one caught between Scylla and Charybdis. If preferences are framed in as minimal and deflationary a manner as revealed preference theory recommends, the theory falls prey to objections about its predictiveness and explanatory power. Alternatively, if too many cognitive and causal intricacies are incorporated into the preference concept, revealed preference models will violate pragmatic norms of model construction, surrendering model simplicity and generality. This paper charts a middle course, arguing (...) that the path to salvation lies through an understanding of revealed preference models as program explanations. (shrink)

Despite the conclusions from the contemporary philosophy of science, many economists cherish the ideal of positive science. Therefore, value-free economics is still the central paradigm in economics. The first aim of the paper is to investigate economics' axiomatic assumptions from an epistemological perspective. The critical analysis of the literature shows that the positive-normative dichotomy is exaggerated. Moreover, value-free economics is based on normative foundations that have a negative impact on individuals and society. The paper's second aim is to show that (...) economics' normativity is not a problem because the discussion concerning values is possible and unavoidable. In this context, Weber and other methodologists are investigated. The conclusion of the paper is that science can thrive without strict methodological rules thanks to institutional mechanisms. Therefore, economists could learn from artists who accept the world without absolute rules. This perspective opens the possibility for methodological pluralism and normative approaches. (shrink)

Understanding the buying and shopping behaviour of current and potential consumers is essential in formulating a successful marketing strategy. It is no longer sufficient for companies to merely produce goods or provide services; companies must know who their consumers are, why they buy, when, where and at what price they buy, and what benefits they expect to gain from the purchase. Companies also need to identify how far consumers are willing to travel to make their purchases and whether the size (...) of the sales area plays a significant role in their preferences. Retailers must also determine whether their customers prefer online shopping or want to buy and spend their leisure time in shopping centres. The paper aims at presenting the selected current trends in buying and shopping through elaborating an overview of the selected research studies and secondary data. The paper also gives an overview of contemporary trends in shopping, customer preferences with regard to types of retail outlets, e-commerce as such, buying and shopping in the online environment and, last but not least, the changes in consumer behaviour during the COVID-19 pandemic. -/- Pochopenie nákupného správania súčasných a potenciálnych spotrebiteľov je podstatou úspešnej marketingovej orientácie na trhu. Nestačí už len vyrábať výrobky, resp. Poskytovať služby, je potrebné poznať, kto je spotrebiteľ, prečo nakupuje, kedy a kde nakupuje, za akú cenu a aký úžitok od nákupu očakáva. Akú vzdialenosť je ochotný prejsť za nákupmi, či hrá v tejto preferencii podstatnú úlohu predajná plocha predajne, alebo vzdialenosť. Či preferuje online prostredie, alebo chce okrem nákupov (hlavne) v nákupných centrách tráviť aj svoj voľný čas. Cieľom nášho príspevku bolo zhodnotiť vybrané súčasné trendy v nakupovaní prostredníctvom spracovania prehľadu vybraných výskumov a sekundárnych dát. V príspevku sa stručne venujeme prehľadu súčasných trendov v nakupovaní, preferenciám spotrebiteľov podľa typu predajní, elektronickému obchodu ako takému, nakupovaniu v online prostredí a v neposlednom rade aj zmenám v spotrebiteľskom správaní počas trvania pandemie COVID-19. (shrink)

Risk assessment is one of the prerequisites for understanding its causes and possible consequences. We base our risk assessment on the principles described in the European standard EN 31000 - Risk Management Process. This standard comprehensively describes the continuous activities that are necessary in managing risks and minimizing their possible adverse effects on the operation of the system under investigation. In this activity, it is necessary to first identify the existing risks, then analyze and evaluate the identified risks. In the (...) analysis of existing risks, it is possible to use both qualitative and quantitative analytical methods, or combine them. We use qualitative methods in cases where we do not have a sufficient amount of input information, these are more subjective. Quantitative methods are more accurate, but also more demanding on input information and time. The choice of a suitable analytical method is a basic prerequisite for knowledge of risks and their evaluation. The values of individual risks obtained in this way are the basis for determining the measures that are ecessary to minimize them, i.e., to adjust them to an acceptable level. The draft measures are always based on the value of the individual components used to calculate the risk number, as well as on the value of the asset , which needs to be protected. Appropriately chosen analytical methods are one of the basic prerequisites for the consistent application of the principles of risk management, as a continuous process aimed at increasing the overall security of the system under study. In the article, the author describes the procedures used in risk assessment, as well as specific analytical methods that can be used in working with risks. The aim of identifying risk factors is to create a list of events that could cause undesirable disruption to ongoing processes. At this stage, we define all the risks that will be subsequently analyzed and evaluated. When identifying, we can use methods such as, e.g. SWOT, PHA (Preliminary Hazard Analysis) or CA (Checklist Analysis). Methods suitable for determining the causes and creating scenarios for the course of a risk event are ETA (Event Tree Analysis) or FTA (Fault Tree Analysis). The basic analysis of the system can be performed using the FMEA method (Failure Mode and Effect Analysis), which provides a numerical risk assessment. By comparison with the numerical value of the risk that we are willing to accept, we obtain 2 groups of risks. Acceptable, which will be given regular attention and unacceptable, which we will focus on in risk management and we will try to minimize its negative affect on the functioning of the system under study. (shrink)

The article aims to define the management mechanism of complex, open dynamic systems with human participation. The following parts of the system life-cycle were identified and unified in the theoretical scope: general and specific compositional elements of repeating changes, marginal index boundaries, the dynamics of the compositional elements of the lifecycle, the key points of the change in the character of the index dynamics. In the practical scope, two common trends of socio-economical system life-cycle management are considered. The first trend (...) is the regulation of the comprising element ratio, which provides the increase in the duration of the maximally effective performance of a functioning system. The second trend is the regulation of the reproduction time of a new system. The systems life cycle aspects are investigated in almost all sciences and studied within many disciplines in the field of higher education. Therefore, deepening the mastery of scientific and methodological foundations of the life cycle of a complex open dynamic system is useful for any subject in everyday and practical activities. A human being – in the formation of own human capital. Families – when it is formed, the birth of children, the distribution of income and expenses. Companies – for efficient business activities. As well as local communities, local self-government bodies, public authorities and global entities within their profile activities. The results of the research provide the possibility of the development of applicable mechanisms for effectiveness and stability enhancement of managerial and entrepreneurial operation in business projects. (shrink)

Risk has become one of the main topics in fields as diverse as engineering, medicine and economics, and it is also studied by social scientists, psychologists and legal scholars. But the topic of risk also leads to more fundamental questions such as: What is risk? What can decision theory contribute to the analysis of risk? What does the human perception of risk mean for society? How should we judge whether a risk is morally acceptable or not? Over the last couple (...) of decades questions like these have attracted interest from philosophers and other scholars into risk theory. This handbook provides for an overview into key topics in a major new field of research. It addresses a wide range of topics, ranging from decision theory, risk perception to ethics and social implications of risk, and it also addresses specific case studies. It aims to promote communication and information among all those who are interested in theoetical issues concerning risk and uncertainty. This handbook brings together internationally leading philosophers and scholars from other disciplines who work on risk theory. The contributions are accessibly written and highly relevant to issues that are studied by risk scholars. We hope that the Handbook of Risk Theory will be a helpful starting point for all risk scholars who are interested in broadening and deepening their current perspectives. (shrink)

In the recent well-being literature, various theory-free accounts of well-being have been proposed to ground informative evaluations of policies’ welfare implications without relying on any specifi...

The monograph is devoted to the scientific substantiation of theoretical and methodological postulates of the integrated reporting formation and development of practical recommendations for definition and disclosure of the integrated reporting items. Preconditions of the integrated reporting genesis are defined, which include institutional theory development and institutional investors emergence, whose activities are based on the following principles: socially responsible investment; movement of Ukraine to the European Union; increasing the requirements for the disclosure of accounts by stock exchanges; international cooperation in (...) ecological safety issues; modern information and communication technologies development. An overview of the basic foundations of the integrated reporting compilation is presented, difficulties of its formation and popularization among Ukrainian companies are revealed. Perspective directions of activity on the integrated reporting implementation in Ukraine are determined. Recommended for managers, academics, graduate and undergraduate students of economic specialties. (shrink)

The article examines the process of formation inventory of the enterprise and determines the optimal volume of commodity resources for sale. A generalization of author’s approaches to the formation and evaluation of inventories of the enterprise is carried out. The marketing-logistic approach was applied for the purpose of distribution groups of commodity resources due to the risk of non-fulfillment the order for the supply of goods of the enterprise. In order to ensure an effective process of commodity provision of the (...) enterprises, the costs associated with the formation of inventories are determined. The formalized scheme of the formation commodity provision and the process of optimization inventory of the enterprise is offered. The analysis the structure of the company’s inventory is carried out, the volume of goods turnover is defined, the stocks are grouped for various clustering characteristics. To conduct the study, statistical information was used on commodity resources of the enterprises, statistical methods (grouping, structure analysis, estimation of dynamic series), tools for assessing the efficiency of inventory use, HML-FMR clustering were used. The necessity of using XYZ and ABC analysis is indicated in order to obtain more reliable results and forecast values of the product support of the enterprise. Economic-mathematical modeling is applied and graphically shown the difference in the formation of commodity resources by various features of HML-FMR clustering. The calculations allow the enterprise to determine the optimal amount of commodity resources in accordance with the needs of consumers and their solvent demand, to plan financial resources for the formation of inventories, to develop assortment policy in accordance with demand for products and their implementation. The results of calculations the volume of merchandising of the enterprise, taking into account the HML-FMR clustering affect the formation of final financial performance of the enterprise — income and profits. (shrink)

En el mundo actual se muestra preocupación por los grandes problemas que enfrentan los sistemas económicos. El libre mercado ha demostrado ser eficiente pero no completamente exitoso en satisfacer verdaderamente al hombre en bienestar y bienser. Se presentan argumentos en favor de la economía de mercado en relación con la colectivista, pero se llega a afirmar que la concepción del hombre dentro de la primera tiene que completarse: verlo en sus facetas individual, social, material y espiritual. Por último, se propone (...) adoptar esa visión completa en el análisis económico a través de cuatro medidas concretas. (shrink)

The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this (...) problem because they wanted to have an effective and simple model. Becker’s economic method is presented as a dead end to which economics has been brought to. It is impossible to connect different selves of one human being by using the utility measure. The works of Schelling and J.S. Mill are used to explain this impossibility. The conclusion of this article is that instrumental rationality and utility have affected economics significantly. But, this simplified view on human nature is no longer valid. Hence, economics needs to think not only about the means but also about the human goals. Economics needs to rebuff relativism and show people how to achieve well-being. If we want to help people with their self-governance, we will have to choose reason over emotions. (shrink)

The preconditions and features of the formation of post-industrial society are defined in the article. The distinctive role of active innovation infrastructure of the country in integrating into the European community and society based on knowledge are proved. The characteristic features of the economy of post-industrial society are the increasing role of intangible resources in ensuring social reproduction, “softization” and “servization” the subjects of innovation infrastructure. The essence of economic category “innovation infrastructure“ is defined in the article. It is a (...) dynamic self-regulating system of markets and subjects that entering these markets in certain economic relations and it provides the necessary conditions for implementation of the innovation processes. Mechanism of functioning of the constituent elements of innovation infrastructure in market economy is proposed, relationships between them are defined. (shrink)

Pigeons and other animals sometimes deviate from optimal choice behavior when given informative signals for delayed outcomes. For example, when pigeons are given a choice between an alternative that always leads to food after a delay and an alternative that leads to food only half of the time after a delay, preference changes dramatically depending on whether the stimuli during the delays are correlated with the outcomes or not. With signaled outcomes, pigeons show a much greater preference for the suboptimal (...) alternative than with unsignaled outcomes. Key variables and research findings related to this phenomenon are reviewed, including the effects of durations of the choice and delay periods, probability of reinforcement, and gaps in the signal. We interpret the available evidence as reflecting a preference induced by signals for good news in a context of uncertainty. Other explanations are briefly summarized and compared. (shrink)

In recent decades, behavioral sciences have introduced into economic theories of choice the image of weak willed individuals with limited rationality, whose decisions are affected by systematic errors. From here, theorists of libertarian paternalism originate the thesis of the possibility of State interventions that promote citizens’ welfare by conditioning their choices while, at the same time, safeguarding their freedom. The Author asserts that such a public promotion of individual welfare is equivalent to the transformation of the welfare State into a (...) paternalistic State and that its theorists aim to avoid the debate about the conflict between exercising liberty and containing the public expenditure which is necessary to protect social rights. (shrink)

Cet essai présente une description de plusieurs travaux inédits de Jacques Derrida au sujet de Marx et d'Althusser datant des années 1960 et 1970. Au-delà du travail philologique, il s'agit aussi d'une étude théorique de notions telles que 'idéologie', 'fétichisme', 'reproduction', 'division du travail', 'différence sexuelle', 'domination', 'économie politique', 'matérialisme dialectique', ou 'production culturelle' — tout autant à travers les textes marxistes que dans les lectures déconstructives qu'en propose alors Derrida. Durant les années 1970, dans le cadre de son séminaire, (...) Derrida s'efforce de penser une autre économie politique, au-delà de l'économie du propre qu'il identifie aussi bien chez les économistes classiques que chez leurs critiques marxistes. Ces lectures détaillées et combattives de textes marxistes restent aujourd'hui inédites. Leur prise en compte contribue à redéfinir l'image de Derrida et de la déconstruction, en témoignant de ses discussions très avancées de Marx, d'Althusser, et de la pensée marxiste — et ce dès la fin des années 1960 et le début des années 1970, plus de 20 ans avant la publication de Spectres de Marx (1993). -/- Une version plus courte de cet article fut traduite en espagnol par Ramiro Parodi, et publiée en 2019 dans le numéro 7 de la revue Demarcaciones — numéro consacré au 25ème anniversaire de la publication de Spectres de Marx. (shrink)

The article is devoted to the prospects of creation and functioning of cooperative banks and development banks in Ukraine. The article deals with the peculiarities of cooperative banks and development banks. Sci-entists analyzed the views on the activities of banks and their impact on economic development. The article deals with the peculiarities of development and operation of the cooperative banks of developed countries: Germany and Poland. A three-tier model of national cooperative bank system has been suggested. The influences of developments (...) banks operations on the national economy are defined. The main grounded differences between development banks and commercial banks are defined. The problems of creating devel-opment banks in Ukraine are analyzed. (shrink)

The purpose of the article is to provide the evolving international trends of modern management models and authorial vision of model of state governance system in Ukraine, its subsystems, in particular, the system of provision of administrative services that is appropriate for the contemporary times. Methodology. On the basis of scientific and theoretical approaches to the definitions of terms “state governance” and “public governance”, there was an explanation of considerable difference between them and, taking into consideration, the mentality of Ukrainian (...) society and peculiar weak side in self-organization, the authors offered to form authorial model of governance on the basis of historically traditional for Ukraine model of state governance and to add some elements of management concepts that proved their significance, efficiency and priority in practice. Results. The authors emphasized the following two prevailing modern management models in the international practice: “new state management” and “good governance”. The first concept offered for consideration served as a basis for the semantic content of state activity that reflects more the state of administrative reformation. Practical meaning. A practical introduction of management to the domestic model of governance creates the range of contradictions that do not allow implementing herein concept. Pursuant to authors, the second one allows in considerable measure to reform state governance, considering historically developed peculiarities of this model. Moreover, the involvement of concept herein into introduction of informational and communicational technologies in the process of governance eliminates the necessity of power decentralization, it allows to form real net structure and, at the same, to keep vertical power structure, to involve citizens for formation and taking of management decisions, to form electronic communicational channel of feedback, to provide citizens with electronic administrative services. All indicated advantages of the concept certify about the necessity to reform state governance exactly in this field. Meaning/ Distinction. This article raises a question about the significance of formation and sequence of state policy in Ukraine aimed at creating an information-oriented society, space, as well as informational and technological infrastructure. (shrink)

The purpose of the work is to form the net structure of management of the system of administrative services provision on the basis of implementation of subject-to-subject interactions between state sector and civil society. Methodology. The methodology basis for the investigation is the abstract-logical analysis of theoretical and methodological backgrounds for management of relations and interactions. For the theoretical generalization and formation of net structure, there are used scientific recommendations of Ukrainian scientists regarding the necessity to implement subject-to-subject relations in (...) the system of administrative services provision. Results. The investigations allowed confirming that the hierarchical structure of the state governance system does not give an opportunity to implement equal interaction between a subject of provision and a subject of an appeal as these relations have one – way communication and the feedback channel has a formal character. Moreover, the civil society is not considered by state sector to be a source of methods and ways to develop the system of state governance, in particular, the management system of administrative services provision. Practical meaning. The net structure of management will allow implementing the subject-subject relations in the system, under which the actions of the subject of provision – that means state sector – will be directed to the realization of rights and interests of the subjects of appeal. In their turn, apart from the performance of all legislative responsibilities that they should perform, they can carry out activities directed to the development of management activity in the system of administrative services provision and the whole system of state governance as an integral system of management. Meaning/Distinction. The provided model of the net structure will allow involving citizens in the processes of state governance and increasing the impact of the civil sector during the making of state and management decisions and, as a result, to confirm subject-to-subject positions in the relations. (shrink)

Status of the national currency of Ukraine exchange rate has been characterized as unstable in recent years. Herewith, the Government has not implemented decisive measures on its stabilization, as a rule, underestimating the importance of the Hryvnia exchange rate stability for the successful economic growth in terms of socio-economic transformations. It should also be noted that in modern conditions among scientific and methodical approaches to the State exchange rate formation mechanisms some uncertainty regarding basic and additional tools for such regulatory (...) activities allocation is still persist. The problem relevance is exacerbated by the lack of effective policy (coordination between the NBU and the Government actions) regarding the national currency stabilization as an indispensable prerequisite for an effective macroeconomic development. These circumstances determine the importance of factors influencing the national currency exchange rate and its regulation tools research, as well as new organizational and economic mechanisms for the national currency exchange rate in Ukraine stabilization identification. In the emerging market economy conditions formation of the efficient State currency exchange-rate regulation system provides an opportunity not only to stabilize its exchange rate in different socio-economic conditions, but to create the basis for improvement the country economic development as a whole. Given this, the issue of effective tools for the national currency exchange-rate regulation by the state determination is of theoretical, practical and methodological significance. This emphasizes the relevance of further scientific-methodological and practical principles in-depth development for the national currency exchange-rate regulation. (shrink)

Nowadays a lot of new financial instruments for SMEs innovation projects are getting more popular in the business environment. A great number of them are traditional like credit loans at the same time we can observe the appearance of innovative ones. Variable set of financial instruments generalized on fig.1. This classification is giving by Organiztion of Economic Cooperation and Development ( OECD). As we can see from the fig.1 the classification is based on risk approach. For further research it is (...) needed to сlarify these definitions. Firstly, asset based finance is the method of assigning structured turnaround capital and term loans, disbursement of debit portfolio, stocks, machines, funds, and / or real estate. This type of finding is suitable for SMEs beginners, refinancing existing loans, growth financing, mergers and acquisitions. (shrink)

The practice of using the term “electronic governance” does not differentiate the concepts of the subject of management, that is, the three branches of government, with forms, processes and technologies of governance, which is not correct, since the use of information technology in state activities is not a top priority. On the other hand, electronic governance technologies cannot be considered separately from the automated governance processes as well as electronic governance technologies are not a supplement or an analogue of the (...) traditional state, as intended to communicate by means of electronic governance technologies to increase the efficiency of the entire system of public administration, in particular in the system of administrative services. (shrink)

In markets globalization and increasing competition context, governments of the world’s leading countries are forced to use complex organizational and economic instruments to support the countries’ economy. One of such instruments is creation of Free Economic Zones (FEZ) with favorable conditions for doing business. Over the last decade activation process of Free Economic Zones mechanism disposal for the economy of a particular country development has been possible to observe. If in 1995 there were approximately 500 zones in the world, now (...) there are more than 4,300 zones in more than 130 countries which employ more than 68 thousand workers. In addition, global practice has shown that FEZ activities effective organization is efficient not only in giving impetus to the country’s economy development, but in bringing it into the world leaders as well. (shrink)

Technologies currently have a tremendous impact on all spheres of economy, business and a state. They integrally change people’s conception of trade, property, and market entities interaction. Artificial intelligence, additive, informationommunication, green technologies, biotechnologies, and blockchain technologies development and implementation confirm their leadership importance and inevitability in relation to the activities traditional approaches. In the modern world only the companies with flexible vision, equipment and technologies able to instantly reform, adapt to new conditions and challenges, will benefit. The point at (...) issue is Industry 4.0 as a new technological mode emergence. (shrink)

The monograph reveals challenging issues of small and medium enterprises development in the European Union and East-Partnership countries. Special attention is paid to a new paradigm of financing investments and fostering innovations at all levels of legal entities including SMEs, enhancing innovative entrepreneurship in conditions of global social and technological challenges as well as determining priority sectors for small and medium enterprises as drivers of economic growth. The authors of the monograph emphasize on such European approaches to financing SMEs as (...) crowd-funding and SME-bonds, analyze experience of applying fiscal instruments to support investment and innovations. The researchers underline the role of social investment as an innovative strategy for European SMEs that could be applied in Ukraine and East-partnership countries, suggest new conceptual approach to the evaluation of innovative business development. They also analyse trends of Ukrainian IT enterprises development in the context of modern information services in a global market. Additional attention is paid to the analysis of SMEs’ entrepreneurial potential in conditions of global social and technological changes, estimation effects of applying electronic governance technologies to provide administrative services by public authorities of various levels of governance. Finally, the researchers disclose economic mentality of legal entities as an informal side of financial assets and substantiate the necessity of creation entrepreneurial universities as drivers of innovative development of economy. The materials of the monograph will be useful to scholars, financial managers of companies, financial analysts, representatives of state bodies who implement the state policy in the field of SMEs development in the East-partnership countries, as well as students of economic universities. (shrink)

This paper tackles the asymmetry of economic interests and geopolitics between developed and developing countries. Currently, the geopolitics presupposes that the majority of novel technologies are devised and designed in developed countries with their subsequent transfer to the developing countries. Moreover, in the context of the global crisis, the issue of de-dollarization is relevant from the political and economic points of view. Our specific focus is on the small oil countries and the issue how to get off the oil needle (...) in the painless way. Furthermore, the paper analyzes the rise of cryptocurrency that is envisaged as the substitute of the U.S. dollar which has been the world most dominating currency for the last several decades. This paper considers the global asymmetry which has the greatest impact on countries with economies dependent on energy exports. In the light of the diminishing returns from the sale of oil, we examine the ways for escaping this asymmetry. The authors consider the geopolitical asymmetry stemming from the dominance of the U.S. dollar, analyze the political situation and offer the pathways for the development of those economies where oil become an obstacle for economic development. The paper examines the ways of solving the above-mentioned problem by other states in detail and conduct the comparative analysis of the above issues in relation to the economy of Azerbaijan. From this case study we conduct a comparative analysis of the developed and developing countries taking into account the economic asymmetry and global economic and financial security. (shrink)

This paper focuses on the novel and leading innovations and investments into the new energy technologies. Energy issues, including sustainability, energy security and energy dependency are probably one of the most crucial and critical issues that humanity must face at the moment. Recent global challenges, such as climate change and the rise of the “green” energy (represented by the increasing deployment of the renewable energy sources (RES)), as well as distributed energy generation and platform energy markets (e.g. peer-to-peer (P2P) markets (...) for electricity) that were made possible thanks to the rise of Internet, social networks and sharing economy, all create a demand for the new energy technologies. The leaders in energy innovations, such as Tesla are becoming the true trendsetters who are marking the way for the humankind to go forward.We provide an overview of the innovative energy technologies that might change the energy market as we know it and discuss their outcomes and possible implications. Moreover, we contemplate the changes that might be caused by the ongoing transition from the fossil fuels to RES. Our results might be of some interests to researchers and stakeholders dealing with energy economics and policy. (shrink)

In recent years, there have been many reforms in the field of accounting. In the same time, scientists focus on the leading methods of accounting, financial management and economic opportunities for the additional use of accounting tools to introduce reforms in the field of the accounting of public sector entities. The main goal of this paper is to reveal the leading features of the accounting system of public sector entities and to study the aspects of a new accounting system, which (...) in the future can be implemented into the activities of public sector entities. The paper provides a scientific vision of the accounting reform of public sector entities. Our vision of forming a new accounting system in the public sector is based on the accounting model used in Italy and takes into account the peculiarities of the methodology and accounting organization in accordance with the International Accounting Standards. We highlight the main problems of introducing a new accounting system for public sector entities, based on the International Accounting Standards. In our opinion, this research can form new knowledge in the national literature on the accounting of public sector entities and highlight the main problems that arise while implementing accounting reforms. In addition, our research results can serve as a basis for the implementation of the accounting of public sector entities on the basis of International Accounting Standards for the public sector and the accrual principle. We believe that the main scientific aspects of public sector accounting will be the basis for future reforms based on the implementation of International Accounting Standards in the activities of public sector entities. (shrink)

The 21st century imposed many challenges on mankind, among them there is a very important problem of entrepreneurial leadership transformation. Entrepreneurship gradual modification under the pressure of factors of innovation, informatization of the environment and the need for socialization of the relations between businessmen and society has led to the need of new understanding of leadership positions. The purpose of this scientific research is to substantiate the style of entrepreneurial leadership, which will become dominant in the 21st century. Analyzing and (...) systematizing the scientific works of many modern scholars by the methods of theoretical synthesis, analysis and synthesis, we have solved the problems of entrepreneurial leadership transformation. The use of the historical and logical method has revealed the relationship between the entrepreneurial leadership development and entrepreneurial types. The study found that the global business environment requires new leaders, whose key competences will meet the needs of society, educational space, ethical requirements, etc. Studying the similarities and differences of various leadership styles has become the basis for the allocation of a new style – the leadership of conscious influence, the main characteristics of which are given in this research. In order to achieve the goals, set by the leader-entrepreneur, it is proposed to systematize the leadership opportunities on tactical and strategic, the factors of influence on their realization in the future are generalized. By the method of scientific and theoretical prediction the portrait of an entrepreneur in a global perspective has been formed. Prospects for further research in this area are the development of a methodology for evaluating the effectiveness of business leaders' actions and systematization of ways to increase their effectiveness in the future. (shrink)

The focus of the research is to develop recommendations of smart specialization (SS) for Ukrainian policymakers using European approaches. The authors revealed that the main SS projects are presented in such sectors as agri-food, industrial modernization and energy. More than 12 EU countries were the plot for conducted analysis of SS, as a result of which the level of activity of each country was determined. The creation of consortiums, including SMEs, associations, universities and other participants, disclosed the successful way of (...) SS realization. The structure of SME’s innovative potential in Ukraine was identified underlining their main characteristic features like types of innovations and innovative activity, differentiation according to enterprise size, their regional distribution. The authors explored lack of innovations on regional and national level and significant territorial disparities, which could be eliminated through policy implementation of regional SS. The existing legislative norms for possibility of SS implementation in Ukraine were analyzed due to correspondence with the EU ones. The analysis provides the opportunity to consider them only as general framework documents without any action plans and sectoral prioritization at all. The weak points of these law documents are emphasized. As a result of research, the authors developed recommendations presented by direct action plan for Ukrainian policymakers, which include such activities as underlining key priorities (especially ICT applicability in every SS project) and their correspondence with the EU ones; eliminating regional imbalances by focusing on innovation development and reorientation of some regions according to SS priorities; respecting regional existing capacities; providing organizational mechanism for cooperation of stakeholders and financial mechanism for SS support through the EU structural funds. (shrink)

At the paper the dynamics of the development of the services market in Ukraine and its structure are analized. The influence of global economic processes on the services market has been studied. The concepts of "services" and "outsourcing" are characterized. Attention is paid to the development of services in the field of informatization and consulting. The main functions of information and consulting services in agriculture are defined. The purpose of the paper is to study and analyze the current state of (...) the Ukrainian market of services, its structure and dynamics of development, the definition of the dominant sectors of the market of services, as well as substantiation of the possibilities of using professional advisory services in agriculture. (shrink)

The paper is devoted to the study of determinants determined the level of financial security of economic systems. It is shown that the financial security of an economic system implies the achievement of a level of financial stability that will contribute to simultaneously maintaining financial equilibrium and ensuring targeted growth in line with the development strategy. The level of financial security of rail transport in Ukraine was analyzed and it was determined that the decline in its security was the result (...) of a complex interaction of external and internal factors, the main of which were tight government regulation, shifting the financial burden of social responsibilities to Ukrzaliznytsya, PJSC, lack of competition in the transportation of the main nomenclature of cargo and the unsatisfactory state of non-current assets. Based on the Argenti’s method, it is shown that the consequence of the inefficient financial management of Ukrzaliznytsia, PJSC are the reduction of its insolvency. Three main determinants of the financial security of rail enterprises were identified: a reduction in traffic volumes, an unstable capital structure and the impossibility of timely repayment of current liabilities. An additive model for assessing the impact of selected determinants on the level of financial security of Ukrzaliznytsia, PJSC is proposed. The analysis of the model parameters showed that the greatest impact has the index of industrial production, which is due to the predominant formation of its own financial resources of rail transport due to income from freight traffic. A complex of measures designed to improve the financial condition of rail enterprises was proposed. It is substantiated that in order to equalize existing threats, it is necessary to take political decisions aimed at improving the financial condition of Ukrzaliznytsia, PJSC by reducing the intensity of leaching of its financial resources, as well as implementing an anti-crisis financial strategy aimed at optimizing the capital structure and financial rehabilitation of rail enterprises. (shrink)

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches the management of innovative development the economic entities in order to increase the efficiency of activity, to ensure competitiveness, to intensify innovation activity. Basic research focuses on assessing the innovation processes, the fourth generation of new industrial revolution, diagnosis of sources of innovation financing, assessment of social innovations. The research results have been implemented in the different models of development innovation management, (...) renewable energy, introduction of start-up projects and lifelong learning. The results of the study can be used in decision-making at the level the economic entities in different areas of activity and organizational-legal forms of ownership, ministries and departments that promote of development the economic entities on an innovative basis. The results can also be used by students and young scientists in modern concepts and mechanisms for management of innovative development the economic entities in the context of efficient use the resource potential and improvement of innovation policy. (shrink)

This paper argues that economics is epistemologically limited in at least two main ways: first, economics fails at managing uncertainty as effectively as natural sciences do; second, economics assumes that rational patterns of utility maximization are real just to ensure deduction within economic models. Hence, this paper maintains that the high level of abstraction from reality of economics limits its explanations of its constantly changing ontology, i.e. markets. In particular, this paper shows that the epistemological limitations of economics become evident (...) once two examples from today’s world are considered, namely: the substitution of physical labor with AI-powered machines; and the introduction of the so-called Universal Basic Income (UBI), i.e. governmental stipends paid to those citizens whose job has been replaced by machines. Importantly, this paper argues that if an economy were to reach to the point where machines run any sort of private or public business and humans earn only the UBI, then such a situation would represent a limit case for economics. Indeed, this paper finds that although machines would represent the perfect example of rational utility-maximizers, in such a limit situation standard economic theory would most likely fail at predicting long-term economic outcomes. (shrink)

The notion of “worth” and “value” throughout human history was only partly dependent on economic reasons. Arrangements about what is considered an equivalent value/measure of wealth are the result of complex interdependencies of economic, social and cultural factors. For thousands of years people have used precious metals as universal equivalent and main measure of wealth; full-value metal money was, in fact, only reinforced by the authority of state (ruler) evidence of presence certain amount of precious metal. The rejection of valuable (...) coins and the provision of banknotes with precious metals (that is, the rejection of the gold and the silver standard) led to the fact that the circulating money signs in the society ceased to denote a concrete value, becoming an abstraction, putting the population in dependence on state’s monetary policy and financial stability of national economy. Bitcoin and its numerous alternatives arose as a response to the challenge of informatization, globalization and individualization of economic activity. This is an attempt to escape from control of state structures that are inclined to abuse their right to issue banknotes and to voluntaristic methods of managing the economy. To some extent, the cryptocurrencies reflect the nostalgia of market participants on the gold standard, which is surprisingly transformed into a complete denial of the materiality (including the metal substance) of money. This situation stimulates the search for new models for designation the equivalent value in the information society. (shrink)

We show how to embed a framework for multilateral negotiation, in which a group of agents implement a sequence of deals concerning the exchange of a number of resources, into linear logic. In this model, multisets of goods, allocations of resources, preferences of agents, and deals are all modelled as formulas of linear logic. Whether or not a proposed deal is rational, given the preferences of the agents concerned, reduces to a question of provability, as does the question of whether (...) there exists a sequence of deals leading to an allocation with certain desirable properties, such as maximising social welfare. Thus, linear logic provides a formal basis for modelling convergence properties in distributed resource allocation. (shrink)

We show that linear logic can serve as an expressive framework in which to model a rich variety of combinatorial auction mechanisms. Due to its resource-sensitive nature, linear logic can easily represent bids in combinatorial auctions in which goods may be sold in multiple units, and we show how it naturally generalises several bidding languages familiar from the literature. Moreover, the winner determination problem, i.e., the problem of computing an allocation of goods to bidders producing a certain amount of revenue (...) for the auctioneer, can be modelled as the problem of finding a proof for a particular linear logic sequent. (shrink)

The chapter reconstructs the developments of a basic idea, namely the physical-moral analogy, in the works of the Scottish Enlighteners. The opposition of a 'Newtonian' to a 'Cartesian' approach yields the program of an 'experimental' moral science. This program, in turn, was never implemented but yielded nonetheless an unintended result the shaping of political economy as an empirical science, distinguished to a point from moral philosophy and theology.

Cerreia-Vioglio et al. :341–375, 2011) have proposed a very general axiomatisation of preferences in the presence of ambiguity, viz. Monotonic Bernoullian Archimedean preference orderings. This paper investigates the problem of Arrovian aggregation of such preferences—and proves dictatorial impossibility results for both finite and infinite populations. Applications for the special case of aggregating expected-utility preferences are given. A novel proof methodology for special aggregation problems, based on model theory, is employed.

Consistindo em um processo ético-jurídico de deliberação coletiva, o que se impõe à manifestação da Vontade Geral como um fenômeno histórico-cultural é a condição de imanência que a caracteriza em um movimento dinâmico-dialético que demanda uma formação econômico-social que possibilite a emergência de valores e práticas, condutas e comportamentos, necessidades e objetivos que, tendo como fundamento o interesse comum, se lhe correspondam, convergindo para uma forma de autodeterminação que guarda possibilidade de promover a superação da alienação das capacidades humanas no (...) contexto das relações socioprodutivas, a saber, a autogestão. Tal experiência social de autodeterminação coletiva, conforme assinala o artigo, envolve tanto a esfera política quanto o âmbito econômico e encerra a noção que implica desde a igualdade substancial até a efetiva participação política, sobrepondo-se ao viés mercadológico da organização econômico-social vigente e à estrutura burocrática corporificada pelo Estado no sistema capitalista. (shrink)

The literature of economic theory, like that of philosophy, abounds in prefaces and prolegomena. Methodology and analysis of concepts take an important place in a science which has not found the sure path of development. But there is no sure path for methodology either. The selfconscious methodology of social science has been largely a borrowing from that of physical science, where procedures have developed to a stage of considerable maturity. But the analogy falls down where guidance is most needed, at (...) the points where social science is most likely to develop new concepts and new types of structure. Philosophers have not been lacking, indeed, to belittle the entire enterprise, and to deny the possibility of anything that could strictly be called social science. (shrink)

Savage denied that Bayesian decision theory applies in large worlds. This paper proposes a minimal extension of Bayesian decision theory to a large-world context that evaluates an event E\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$E$$\end{document} by assigning it a number π\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\pi $$\end{document} that reduces to an orthodox probability for a class of measurable events. The Hurwicz criterion evaluates π\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$\pi $$\end{document} (...) as a weighted arithmetic mean of its upper and lower probabilities, which we derive from the measurable supersets and subsets of E\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$$E$$\end{document}. The ambiguity aversion reported in experiments on the Ellsberg paradox is then explained by assigning a larger weight to the lower probability of winning than to the upper probability. However, arguments are given here that would make anything but equal weights irrational when using the Hurwicz criterion. The paper continues by embedding the Hurwicz criterion in an extension of expected utility theory that we call expectant utility. (shrink)

For every 2-person bargaining problem, the Nash bargaining solution selects a point that is “between” the relative utilitarian point and the relative egalitarian point. Also, it is “between” the utilitarian and egalitarian points. I improve these bounds. I also derive a new characterization of the Nash solution which combines a bounds property together with strong individual rationality and an axiom which is new to Nash’s bargaining model, the sandwich axiom. The sandwich axiom is a weakening of Nash’s IIA.

Chateauneuf and Faro axiomatize a weighted version of maxmin expected utility over acts with nonnegative utilities, where weights are represented by a confidence function. We argue that their representation is only one of many possible, and we axiomatize a more natural form of maxmin weighted expected utility. We also provide stronger uniqueness results.

Standard theories of expected utility require that preferences are complete, and/or Archimedean. We present in this paper a theory of decision under uncertainty for both incomplete and non-Archimedean preferences. Without continuity assumptions, incomplete preferences on a lottery space reduce to an order-extension problem. It is well known that incomplete preferences can be extended to complete preferences in the full generality, but this result does not necessarily hold for incomplete preferences which satisfy the independence axiom, since it may obviously happen that (...) the extension does not satisfy the independence axiom. We show, for incomplete preferences on a mixture space, that an extension which satisfies the independence axiom exists. We find necessary and sufficient conditions for a preorder on a finite lottery space to be representable by a family of lexicographic von Neumann–Morgenstern Expected Utility functions. (shrink)

In political economy, the seminal contribution of the Baron–Ferejohn bargaining model constitutes an important milestone for the study of legislative policy making. In this paper, we analyze a particular equilibrium characteristic of this model, equilibrium uniqueness. The Baron–Ferejohn model yields a class of payoff-unique stationary subgame perfect equilibria in which players’ equilibrium strategies are not uniquely determined. We first provide a formal proof of the multiplicity of equilibrium strategies. This also enables us to establish some important properties of SSPE. We (...) then introduce veto players into the original Baron–Ferejohn model. We state the conditions under which the new model has a unique SSPE not only in terms of payoffs but also in terms of players’ equilibrium strategies. (shrink)