Suchergebnisse

This book deals with behavioral responses of management of firms that make several decisions with respect to production, marketing, finance, organization of activities within divisions, and interrelations between divisions (including synergies between them and constraints placed on each other in the attainment of overall goals of the firm). The market conditions, that constitute the basis of such decisions, may be stable, random but predictable, or uncertain. It can be expected that objectives attained by the firm, as a result of decisions of management, may be different from the maximum which can be achieved. A generic conceptualization of such managerial discretion and operationally useful methods of measurement have been presented. It is possible to develop machine learning algorithms on this basis to minimize managerial discretion and assist managers in arriving at strategic decisions thereby leaving more resources to deal with uncertain events as they arise. The volume is a great resource not only for researchers, but also decision makers in corporates.

The objective of this paper is to analyze Islamic teaching to promote market competition. It is important to analyze these Islamic teachings because the Islamic teachings provide a different approach and better than the conventional approach to promoting market competition. There are three Islamic teachings in promoting market competition. The first is motivating and encouraging sellers to compete continuously, the second is rejecting a state price and market mechanism intervention and the third is banning all the unfair transactions. All of the teachings will promote market competition. Sellers as the main participants of the competition intend to compete continuously and fairly. They will compete continuously with each other because motivated and encouraged to do so. The continuous competition will depend on sellers' competency to compete because they cannot exploit government intervention. Also, they will compete fairly because all the unfair transactions are banned comprehensively and immediately. These Islamic teachings promote market competition, on one side, show that Islamic teachings are different and better than the conventional approach in handling competition to be a continuous and fair competition, and in the other side, show that a competitive market is not an imaginary one.

The real world is characterized by the presence of imperfections in goods, financial and labour markets. These imperfections have the potential to create links among those markets that differ in a relevant way from those outlined in the standard model. In financial markets, imperfections can alter the efficiency of the economy and thus cause unintended effects on goods and labour markets. Moreover, in the presence of market distortions, the interaction between policies and institutions becomes a critical aspect. This book, which brings together essays from distinguished scholars on this subject, provides new insights on how these imperfections affect the outcomes of real-world markets.

This paper evaluates changes in electricity generation costs caused by the introduction of market mechanisms to determine production in the United States. I use the staggered transition to markets from 1999 to 2012 to estimate the causal impact of liberalization using a differences-in-difference design on a comprehensive hourly panel of electricity demand, generators' costs, capacities, and output. I find that markets reduce production costs by 5 percent by reallocating production: gains from trade across service areas increase by 55 percent based on a 25 percent increase in traded electricity, and costs from using uneconomical units fall 16 percent. (JEL L51, L94, L98, Q41, Q48)

PurposeThis paper seeks to examine the role that regulation and regulatory agencies played in the creating of the subprime mortgage market, and the subsequent crash of the mortgage market. The paper has two goals. First, it seeks to document the degree to which the US housing markets, and the US housing finance market, were regulated prior to the crash. Second, it seeks to show that regulatory bodies set policies which created both incentives and explicit requirements for Fannie Mae and Freddie Mac, as well as depository institutions, to enter the subprime market.Design/methodology/approachThe paper examines the regulatory environment of the subprime market. It uses regulatory filings and other documents as primary sources.FindingsThe popular perception that the subprime mortgage market arose because housing finance was largely unregulated is incorrect. In point of fact, the housing finance market was very heavily regulated. Indeed, the paper shows that the creation of the subprime market was a formal goal of the federal government, and that federal regulatory agencies explicitly required participation by the Government Sponsored Enterprises (GSEs).Originality/valueThe paper's primary implication is that incentive conflicts within the US housing finance system significantly contributed to the mortgage crisis. These incentive conflicts were not just within private firms, but also extend to the GSEs and regulatory agencies. Regulatory agencies not only failed to anticipate the crisis; they actively encouraged the policies which created it. As a result, the primary focus of reform efforts should be on identifying and eliminating such conflicts.

Economic growth, and the distribution of wealth and income,
are two of the major, dimensions of economic policy in all countries. If
one follows the data published by the World Bank, one can see, that even
the relative income distribution in the developed and some of the
developing countries are very similar; it is only, that the level of
income is much lower in the latter countries, and therefore, that low
income is more visible and striking. Therefore, raising the level of
income of the very poor has been a major task of all governments. There
has been a very controversial discussion, however, as to how the incomes
of the poor can be raised easily, whether by economic growth,
redistribution of wealth, i.e. the means of production, or of income.
This discussion has been inconclusive so far, and the present paper sets
out to examine some of these aspects. Pakistan may serve as a perfect
example, considering the fact, that the country first suffered from an
overemphasis on economic growth and a neglect of distribution and then
tried distribution with no growth.