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Abstract - Public Debt Sustainability in Sri Lanka
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Abstract: Public debt, one of the main reasons for financial crises in some emerging markets, has become the most crucial topic among policymakers. The ongoing debates among policymakers and the candidates of the forthcoming presidential election in Sri Lanka motivate the current research. The primary objective of this study is to analyze the public debt sustainability in Sri Lanka using a fiscal reaction function. The study applies the unit root test, autoregressive distributed lag (ARDL) bound test analysis, ARDL long-run model, and vector error correction model. The study used annual time-series data taken from the Central Bank of Sri Lanka and the World Development Indicators for the period from 1980 to 2017. The estimated results of the fiscal reaction function confirm that public debt was not sustainable under the study period in Sri Lanka. The finding proves that fiscal policy measures are not appropriate to maintain public debt sustainability and fiscal solvency. The study recommends shifting away from foreign sources to other sources to finance the budget deficit or reduce the budget deficit in Sri Lanka. Keywords: Public debt, Sri Lanka, Public debt sustainability, ARDL model, Cointegration. |
Abstract - Public Opinions Impacts on Cryptocurrency Valuation: A View from Behavioral Finance Perspective
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Abstract: Many fintech start-ups participant companies and cryptocurrencies have experienced phenomenal growth in value during the past several years. Many specialists would like to know the reasons for such success. In this article we investigate the predictive power of public opinions. This is one of the few works that using quantitative analysis connects social media and internet users’ activities with cryptocurrency valuations. Keywords: Fintech, Valuation, Cryptocurrency, Cryptoeconomy, Behavioral Finance, Predictive Power. |
Abstract - Racing to the Bottom? The Link between Exporting Behaviour and Worker Job Satisfaction
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Abstract: Using firm-level data from the World Bank’s Enterprise Surveys, this paper investigates whether there exists a significant relationship between the exporting status of a firm and the likelihood of its workers leaving the job, after controlling for a number of firm and industry characteristics. We also examine the connection between the fraction of sales exported and the number of production days lost due to worker strikes. Our main conclusion is that exports affect the number of employees leaving due to illness (or for other reasons) positively and significantly. By utilizing several enforcement measures, such as inspections by fire and building safety officials, this paper illustrates that the argument for “race to the bottom” in labour standards as a result of trade liberalization deserves greater consideration in regional, multilateral and bilateral trade agreements. Keywords: Labour standards, International trade, Regulations, Enforcement. |
Abstract - Quadratic Approximation of the Newsvendor Problem with Imperfect Quality
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Abstract: The paper presents a newsvendor problem in a fuzzy environment by introducing product quality as a fuzzy variable, and product demand as a probability distribution in an economic and supply chain management environment. In order to determine the optimal order quantity, a methodology is developed where the solution is achieved using a fuzzy ranking method combined with a quadratic programming problem approximation. Numerical examples are provided and compared in both situations, namely fuzzy and crisp. The results of these numerical examples show that the decision maker has to order a higher quantity when product quality is a fuzzy variable. The model can be useful for real world problems when historical data are not available. Keywords: Imperfect quality items, Newsvendor problem, Quadratic programming. |
Abstract - Rating Methodology: New Look and New Horizons
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Abstract: In the previous paper a new approach to rating methodology has been suggested. Key factors of a new approach were the following: 1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, 2) The incorporation of rating parameters (financial "ratios") into the perpetuity limit of modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory): for companies with infinite lifetime. In current paper further development of a new approach has been done. We have generalized it for the general case of modern theory of capital structure (Brusov–Filatova–Orekhova (BFO) theory): for companies of arbitrary age. A serious modification of BFO theory in order to use it in rating procedure has been required. It allows to apply obtained results for real economics, where all companies have finite lifetime, introduce a factor of time into theory, estimate the creditworthiness of companies of arbitrary age (or arbitrary lifetime), introduce discounting of the financial flows, using the correct discount rate etc. This allows use the powerful tools of BFO theory in the rating. All these create a new base for rating methodologies. Keywords: Rating, rating methodology, discounting of financial flows, Brusov–Filatova–Orekhova theory, coverage ratios, leverage ratios. |