Networks in economic development

2019 ◽  
Vol 35 (4) ◽  
pp. 678-721 ◽  
Author(s):  
Emily Breza ◽  
Arun Chandrasekhar ◽  
Benjamin Golub ◽  
Aneesha Parvathaneni
Keyword(s):  
Economic Development ◽  
Policy Analysis ◽  
Information Flow ◽  
Risk Sharing ◽  
Information Diffusion ◽  
Unintended Consequences ◽  
Network Economics ◽  
The Right ◽  
Economics Research

Abstract This chapter surveys the implications of some studies in network economics research for economic development. We focus on information flow and risk-sharing—two topics where work in theory, empirics, and policy analysis have been especially intensive and complementary. In analysing information, we distinguish models of information diffusion and aggregation, highlight how different models imply very different guidance regarding the right way to seed information. In discussing risk-sharing, we look at the key frictions that impede efficient informal insurance, and some potential unintended consequences when policymakers intervene to help. Throughout, we stress practical insights that can be used with limited measurement of the details of networks.

SYSTEMIC CAUSES OF THE APPEARANCE OF “COBRA EFFECT” IN THE MANAGEMENT OF SOCIO-ECONOMIC DEVELOPMENT

2019 ◽  
Vol 86 (3) ◽  
pp. 51-61
Author(s):  
M. S. Mokiy ◽  
E. K. Borzenko
Keyword(s):  
Economic Development ◽  
Economic System ◽  
Gross National Product ◽  
The Family ◽  
Social And Economic Development ◽  
Socio Economic Development ◽  
Energy Consuming ◽  
The Right ◽  
Goals And Objectives ◽  
Least Energy

The article on the basis of extrapolation of system laws of management of social and economic development illustrates the system reason of the Cobra effect, that is, a situation where, despite the rather attractive goals that managers formulate, the result of the activities of subordinates is opposite to what was intended. The main problem of management is the development of a system of indicators, in which, working on the indicator, employees would change the state in the right direction. The reason for the Cobra effect is the manifestation of systemic patterns of socio-economic development. The main system regularity is the desire of the system for stability and self-preservation. This state of the system is achieved using the least energy-consuming way. It is shown that any worker, realizing system regularities, aspires to stability and self-preservation. Therefore, the employee is always forced to work for achieving the indicator. The article analyzes the manifestation of these laws at the level of enterprises and state. When managers understand these patterns explicitly or covertly, changes in the economic system are moving in the right direction. It is shown that the existing system of target indicators used as indicators to assess the effectiveness of management does not meet the goals and objectives of socio-economic development. At the meso- and macrolevel, absolute, volumetric indicators, such as gross national product and others, reduce the range of benefits to the population. The article defines the vector of change in the system of indicators for assessing the effectiveness of management at the regional and state levels, based on the fact that the key element is the family. At the same time, the targets should be indicators to assess the availability of benefits for households.

Lending to the Borrower from Hell

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
United States ◽  
Sixteenth Century ◽  
Sovereign Debt ◽  
Risk Sharing ◽  
The United States ◽  
Philip Ii ◽  
Loan Contracts ◽  
The Right ◽  
Intelligent Model ◽  
New Evidence

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.

Social Enterprises like the Right Step for Economic Development for Kosovo

2018 ◽  
Vol 1 (1) ◽  
pp. 26 ◽  
Author(s):  
Afrim Loku ◽  
Fatlum Gogiqi ◽  
Vesë Qehaja
Keyword(s):  
Economic Development ◽  
Social Enterprises ◽  
The Right

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scholarly journals How Risky Is That Risk Sharing Agreement? Mean-Variance Tradeoffs and Unintended Consequences of Six Common Risk Sharing Agreements

2021 ◽  
Vol 6 (1) ◽  
pp. 238146832199040
Author(s):  
Gregory S. Zaric
Keyword(s):  
Risk Sharing ◽  
Financial Risk ◽  
Unintended Consequences ◽  
Drug Costs ◽  
New Drugs ◽  
Total Drug ◽  
Number Of Patients ◽  
Clinical Benefits ◽  
The Impact ◽  
Mean Variance

Background. Pharmaceutical risk sharing agreements (RSAs) are commonly used to manage uncertainties in costs and/or clinical benefits when new drugs are added to a formulary. However, existing mathematical models of RSAs ignore the impact of RSAs on clinical and financial risk. Methods. We develop a model in which the number of patients, total drug consumption per patient, and incremental health benefits per patient are uncertain at the time of the introduction of a new drug. We use the model to evaluate the impact of six common RSAs on total drug costs and total net monetary benefit (NMB). Results. We show that, relative to not having an RSA in place, each RSA reduces expected total drug costs and increases expected total NMB. Each RSA also improves two measures of risk by reducing the probability that total drug costs exceed any threshold and reducing the probability of obtaining negative NMB. However, the effects on variance in both NMB and total drug costs are mixed. In some cases, relative to not having an RSA in place, implementing an RSA can increase variability in total drug costs or total NMB. We also show that, for some RSAs, when their parameters are adjusted so that they have the same impact on expected total drug cost, they can be rank-ordered in terms of their impact on variance in drug costs. Conclusions. Although all RSAs reduce expected total drug costs and increase expected total NMB, some RSAs may actually have the undesirable effect of increasing risk. Payers and formulary managers should be aware of these mean-variance tradeoffs and the potentially unintended results of RSAs when designing and negotiating RSAs.

scholarly journals A Review of Reductionist versus Systems Perspectives towards ‘Doing the Right Strategies Right’ for Circular Economy Implementation

Systems ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 38
Author(s):  
Raquel Balanay ◽  
Anthony Halog
Keyword(s):  
Circular Economy ◽  
Systems Approach ◽  
Holistic Approach ◽  
Comprehensive Analysis ◽  
Unintended Consequences ◽  
Review Reports ◽  
The Right ◽  
Business As Usual ◽  
Analytical Frameworks ◽  
Reductionist Approach

This systematic review examines the importance of a systems/holistic approach in analyzing and addressing the footprints/impacts of business-as-usual activities regarding the development of a circular economy (CE). Recent works on why current CE approaches have to be examined in terms of reductionist vs. systems perspectives are reviewed to tackle questions pertaining to the right or the wrong way of CE implementation. ‘Doing the right thing right’ is essential for sustainability—the ultimate goal of a CE, which must be viewed as a system to begin with. The limited reductionist approach overlooks and thus cannot prognosticate on the formidable unintended consequences that emerge from ‘doing the right things wrong’, consequences that become too costly to undo. The systems approach, being holistic, is complicated and difficult to pursue but open to exciting opportunities to integrate innovations in CE analysis and implementation. Complexity is an inherent downside of the systems approach. However, both approaches are complementary, as reductionist models can be combined to create a system of comprehensive analysis to correct the approach towards implementation of current CE initiatives. This review reports that advancements in systems analytical frameworks and tools are highly important for creating general guidelines on CE analysis and implementation.

THE RIGHT TO USE HUMAN CAPITAL IN ACCOUNTING

2017 ◽  
Author(s):  
Oleksandra Mazina ◽  
◽  
Serhii Rohoznyi ◽  
Olena Kareva ◽  
◽  
...  
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Accounting System ◽  
Mathematical Methods ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Employment Contract ◽  
Sustainable Economic Development ◽  
Initial Cost ◽  
The Right

The key factor of sustainable economic development is investment support for human capital development aimed at generating innovative knowledge, professional skills, support and development of abilities and talents, qualitative human characteristics without which economic and social growth is excluded. The study of human capital and the right to use it as objects of an accounting system designed to provide reliable information to users will help society to control the process of human development as a core value and driving force in achieving sustainable economic development from the micro to the global level. In this study, the methods for assessing human capital as an object of accounting «The right to use human capital» are applied according to the methodology of the International Financial Reporting Standard 16 "Lease". The condition for applying the methodology of this standard is the analogy with the employment contract between the business entity and the employee with the terms of the lease agreement. The measurement of such an asset is based on the initial measurement of the lease liability, which is calculated as the present value of future lease payments. Such an asset is subject to straight-line amortization over the life of the contract. Additional investment in human capital at the start of a contract, or in the process of execution, increases the value of the Right to Use Human Capital. To calculate the initial cost of an asset and its depreciation during the term of the employment contract, you can use the existing mathematical methods from the standard list of the EXCEL office program. In this study, using a conditional example of an employment contract for a period of five years, a minimum wage of UAH 6,000 and a discount rate of 7%, the calculation of the initial cost of the «Right to use human capital» is provided.

scholarly journals Welfare Consequences of Information Aggregation and Optimal Market Size

2017 ◽  
Vol 9 (4) ◽  
pp. 303-323 ◽  
Author(s):  
Kei Kawakami
Keyword(s):  
Asymmetric Information ◽  
Risk Aversion ◽  
Risk Sharing ◽  
Information Aggregation ◽  
Market Size ◽  
Positive Externality ◽  
Trading Model ◽  
Welfare Implications ◽  
The Right

We analyze the welfare implications of information aggregation in a trading model where traders have both idiosyncratic endowment risk and asymmetric information about security payoffs. The optimal market size balances two forces: (i) the risk-sharing role of markets, which creates a positive externality amongst traders, against (ii) the information-aggregation role of prices, which leads to prices that are more correlated with security payoffs, thereby undermining the hedging function of markets. Our analysis indicates that a market with infinitely many traders may not be the right welfare benchmark in the presence of risk aversion and information aggregation. (JEL D43, D62, D82, D83)

scholarly journals Mudra (shishu) – an effective scheme in startups

2019 ◽  
Vol 9 (4) ◽  
pp. 222-226
Author(s):  
K.C. Kavipriya
Keyword(s):  
Economic Development ◽  
Individual Development ◽  
High Rate ◽  
Small Scale ◽  
Poor People ◽  
Employment Opportunities ◽  
The People ◽  
The Individual ◽  
The Right ◽  
Small Scale Industries

Economic Development of a country depends upon the individual development; Creation of more Employment opportunities is the right way to strengthen our Economy. By way of strengthening Small scale units, ultimately more people will get Employment. More over Small scale Industries required less amount of Capital. These are the main reasons to start the scheme MUDRA. The scheme MUDRA was launched in the year 2015 by Government of India. In India most of the people are depending upon small scale businesses as their source of livelihood. Most of the individuals depend on un-organised sectors for loans and other credit facilities which have high rate of interest along with unbearable terms and conditions. Ultimately it will lead these poor people to fall in debts. This paper is an attempt to educate the readers about MUDRA Yojana.

scholarly journals Knowledge Transfer for Economic Development: Online Farmer Traning in Vojvodina

2021 ◽  
pp. 50-60
Author(s):  
Juhász Bálint ◽  
◽  
László Lengyel ◽  
Keyword(s):  
Economic Development ◽  
Knowledge Transfer ◽  
Program Implementation ◽  
Development Program ◽  
Target Area ◽  
Technical Equipment ◽  
Level Of Knowledge ◽  
The Right ◽  
Farmer Training ◽  
User Friendly

During the five-year period of the Vojvodina Economic Development Program implementation, €350 million has been invested in the target area. The aim of the present research is to review the process and achievements of farmer training and to introduce a model of successful knowledge transfer. The success of online farmer training was analyzed using statistical methods. A general model introducing a concrete practice example was developed using structural analysis and modeling. As a result of the research, we point out that improving the level of knowledge of farmers through training is a key issue in the operation of successful integration systems, in the production of crops of the right quality and quantity. Due to the fact that the design was made to be user-friendly, and requires a low-level technical equipment and IT skills, the knowledge base is equally accessible to farmers regardless of age, education and place of residence. The program expands the level of knowledge and digital competencies of the farmers, and provides useful information for further developments. The flowchart presented in the article is a suitable tool to increase the efficiency of the training today and can serve as a reference for other institutions engaged in similar activities.

A Review of International Risk Sharing for Policy Analysis

2019 ◽  
Author(s):  
Pilar Poncela ◽  
Michela Nardo ◽  
Filippo M. Pericoli
Keyword(s):  
Policy Analysis ◽  
Risk Sharing ◽  
International Risk Sharing
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