Hasil untuk "Capital. Capital investments"

Yuni Setyaningsih

Stunting remains an alarming problem in Indonesia, with profound implications for human capital development and long-term economic productivity. Despite the national government’s commitment, including Presidential Regulation No. 72/2021, inefficiencies in local budget execution continue to challenge targeted outcomes. This study aimed to track stunting-related budgets in Tuban Regency between 2021 and 2022, with a focus on allocation trends, sectoral involvement, and realization performance across specific and sensitive interventions. Budget allocations for stunting reduction increased sharply from IDR 17.5 billion in 2021 to IDR 51.1 billion in 2022 (a 192% increase), with participating government offices expanding from 4 to 9. The Health Department remained the lead implementer, implementing IDR 17.6 billion in 2022, or 34.5% of the total stunting-related budget with community nutrition services absorbed most of the budget. Meanwhile, the public works spent IDR 10.6 billion for rural water infrastructure, reinforcing the importance of WASH in sensitive interventions. The education sector experienced a threefold increase, yet its share remained under 0.5% of the total. While the environmental sector emphasized infrastructure-based waste management. These findings highlight fiscal expansion yet persistent implementation gaps. It is essential to strengthen budget tagging, intersectoral collaboration, and evidence-based planning to optimize the impact of increased investments in stunting reduction

Di Zheng, Guang Yang, Lei Lei et al.

Facing the current trend of the virtualization of the real economy, this paper examines the influence of financialization on the main business performance of real enterprises. Theoretically, corporate financialization often stems from the motives of “reservoir” and “speculative arbitrage”, which in turn lead to the “feed-back effect” or the “crowding-out effect. Collecting data from China's A-share listed companies from 2012 to 2022, this study constructs a micro-level indicator of corporate financialization and empirically tests the effects and mechanisms of financialization on their main business performance. The findings reveal that, overall, financialization has a detrimental impact on their main business performance, indicating that the “crowding-out effect” outweighs the “feed-back effect”. This conclusion remains robust after a series of robustness tests. Further mechanistic tests demonstrate that financialization does not act as a “reservoir” to reserve liquidity funds; rather, it inhibits corporate innovation investments and real capital investments, thereby diminishing the main business performance of real enterprises. This research, from the micro-level perspective, proves the influence of financialization on the development of real enterprises to be negative. It also offers empirical support for government to strengthen financial regulation of real enterprises and guide capital to “return from virtual to real”.

Francis Lwesya

Abstract This article examines the growth of green finance in Africa using Scopus data from 2012 to 2024. Even though Africa contributes less than 4% of global greenhouse gas emissions, the continent is extremely vulnerable to the effects of climate change. Addressing climate change and promoting sustainable development in Africa requires green finance to support environmentally sustainable projects. However, insufficient institutional and policy frameworks, reliance on foreign investment, high perceived investment risk, underdeveloped green bond markets, a lack of low-carbon infrastructure, and a lack of effective public–private partnerships (PPPs) are some of the obstacles Africa faces in successfully raising capital for green finance investments. To address these challenges, an integrated framework is developed, comprising six pillars: strengthening institutional frameworks, mobilizing financial resources, enhancing engagement, ensuring equitable distribution, building capacity and governance, and promoting sustainable practices. Potential avenues for further research include determining the incentives needed to promote both foreign and domestic investment in the green economy and how African countries can strengthen public–private partnerships (PPPs) to increase green investments.

Tomohiro Hirano, Joseph E. Stiglitz

This paper analyses the impact of credit expansions arising from decreases in collateral requirements or more expansionary monetary policies on long-term productivity in a model with endogenous growth. Credit expansions associated with relaxation of land collateral financing (capital collateral financing) will be productivity-and growth-retarding (enhancing). Without appropriate financial regulation, expansionary monetary policy may so encourage land speculation using leverage that productive capital investment is decreased; there is a temporary asset boom, but slower economic growth. The generation that experienced the asset price boom is better off, but subsequent generations are worse off because of low growth.

Himanshu Choudhary, Arishi Orra, Manoj Thakur

Portfolio optimization is essential for balancing risk and return in financial decision-making. Deep Reinforcement Learning (DRL) has stood out as a cutting-edge tool for portfolio optimization that learns dynamic asset allocation using trial-and-error interactions. However, most DRL-based methods are restricted to allocating assets within a pre-defined investment universe and overlook exploring new opportunities. This study introduces an investment landscape that integrates exploiting existing assets with exploring new investment opportunities in an extended universe. The proposed approach leverages two DRL agents and dynamically balances these objectives to adapt to evolving markets while enhancing portfolio performance. One agent allocates assets within the existing universe, while another assists in exploring new opportunities in the extended universe. The effciency of the proposed methodology is determined using two real-world market data sets. The experiments demonstrate the superiority of the suggested approach against the state-of-the-art portfolio strategies and baseline methods.

Francis Dennig, Bassel Tarbush

We characterize the outcomes of a canonical deterministic model for the intergenerational transmission of capital that features differential fertility. A fertility function determines the relationship between parental capital and the number of children, and a transmission function determines the relationship between the capital of a parent and that of their children. Together these functions generate an evolving cross-sectional distribution of capital. We establish easy-to-verify conditions on the fertility and transmission functions that guarantee (a) that the dynamical system has a steady state distribution that is either atomless (exhibiting inequality) or degenerate (not exhibiting inequality), and (b) that the system converges to such states from essentially any initial distribution. Our characterization provides new insights into the link between differential fertility and long-run cross-sectional inequality, and it gives rise to novel comparative statics relating the two. We apply our results to several parametric examples and to a model of economic growth that features endogenous differential fertility.

Iro Tasitsiomi

Passive investing has gained immense popularity due to its low fees and the perceived simplicity of focusing on zero tracking error, rather than security selection. However, our analysis shows that the passive (zero tracking error) approach of waiting until the market close on the day of index reconstitution to purchase a stock (that was announced days earlier as an upcoming addition) results in costs amounting to hundreds of basis points compared to strategies that involve gradually acquiring a small portion of the required shares in advance with minimal additional tracking errors. In addition, we show that under all scenarios analyzed, a trader who builds a small inventory post-announcement and provides liquidity at the reconstitution event can consistently earn several hundreds of basis points in profit and often much more, assuming minimal risk.

Wazir Ali, Abdul Rahman, Ravik Karsidi

Skill development is pivotal to Pakistan’s economic and social transformation, addressing human capital challenges. This systematic literature review synthesizes findings from 38 peer-reviewed studies conducted between 2015 and 2024 to evaluate Pakistan’s existing policies and practices. Findings reveal myriad barriers in Pakistan’s vocational education ecosystem, including outdated curricula, weak industry-academia collaboration, and governance inefficiencies, disproportionately affecting vulnerable rural populations. Programs like the National Skills Strategy (NSS) and Punjab Skills Development Fund (PSDF) aim to align education with labor market demands, but financial constraints and governance inefficiencies hinder implementation. Due to infrastructural inadequacies, digital literacy and entrepreneurial education programs face implementation challenges. The study advocates for experiential learning modalities and inclusive policies to dismantle socio-cultural barriers. Comparisons with global models such as Germany’s dual education system and Singapore’s SkillsFuture initiative illustrate opportunities to modernize Pakistan’s TVET (Technical and Vocational Education and Training) framework. Policy recommendations emphasize the need for strategic investments in digital infrastructure to modernize curricula, foster industry partnerships, and integrate cutting-edge technologies aligning TVET with Industry 4.0, fostering public-private partnerships, and promoting gender-inclusive strategies to enhance workforce readiness and economic competitiveness. These reforms align with Sustainable Development Goals (SDGs) 4 and 8, offering a pathway for Pakistan to enhance workforce readiness, foster economic competitiveness, and promote equitable socioeconomic development.

Ravi Kashyap

We engineer blockchain based risk managed portfolios by creating three funds with distinct risk and return profiles: 1) Alpha - high risk portfolio; 2) Beta - mimics the wider market; and 3) Gamma - represents the risk free rate adjusted to beat inflation. Each of the sub-funds (Alpha, Beta and Gamma) provides risk parity because the weight of each asset in the corresponding portfolio is set to be inversely proportional to the risk derived from investing in that asset. This can be equivalently stated as equal risk contributions from each asset towards the overall portfolio risk. We provide detailed mechanics of combining assets - including mathematical formulations - to obtain better risk managed portfolios. The descriptions are intended to show how a risk parity based efficient frontier portfolio management engine - that caters to different risk appetites of investors by letting each individual investor select their preferred risk-return combination - can be created seamlessly on blockchain. Any Investor - using decentralized ledger technology - can select their desired level of risk, or return, and allocate their wealth accordingly among the sub funds, which balance one another under different market conditions. This evolution of the risk parity principle - resulting in a mechanism that is geared to do well under all market cycles - brings more robust performance and can be termed as conceptual parity. We have given several numerical examples that illustrate the various scenarios that arise when combining Alpha, Beta and Gamma to obtain Parity. The final investment frontier is now possible - a modification to the efficient frontier, thus becoming more than a mere theoretical construct - on blockchain since anyone from anywhere can participate at anytime to obtain wealth appreciation based on their financial goals.

Ariel Ortiz-Bobea, Robert G. Chambers, Yurou He et al.

Increasing agricultural productivity is a gradual process with significant time lags between research and development (R&D) investment and the resulting gains. We estimate the response of US agricultural Total Factor Productivity (TFP) to both R&D investment and weather, and quantify the public R&D spending required to offset the emerging impacts of climate change. We find that offsetting the climate-induced productivity slowdown by 2050 alone requires a sustained public R&D spending growth of 5.2-7.8% per year over 2021-2050. This amounts to an additional $208-$434B investment over this period. These are substantial requirements comparable to the public R&D spending growth that followed the two World Wars.

Yuta Otsuki, Shotaro Yagishita

This paper proposes a new approach using the stochastic projected gradient method and Malliavin calculus for optimal reinsurance and investment strategies. Unlike traditional methodologies, we aim to optimize static investment and reinsurance strategies by directly minimizing the ruin probability. Furthermore, we provide a convergence analysis of the stochastic projected gradient method for general constrained optimization problems whose objective function has Hölder continuous gradient. Numerical experiments show the effectiveness of our proposed method.

Geraldo Xexéo, Filipe Braida, Marcus Parreiras et al.

Selecting language models in business contexts requires a careful analysis of the final financial benefits of the investment. However, the emphasis of academia and industry analysis of LLM is solely on performance. This work introduces a framework to evaluate LLMs, focusing on the earnings and return on investment aspects that should be taken into account in business decision making. We use a decision-theoretic approach to compare the financial impact of different LLMs, considering variables such as the cost per token, the probability of success in the specific task, and the gain and losses associated with LLMs use. The study reveals how the superior accuracy of more expensive models can, under certain conditions, justify a greater investment through more significant earnings but not necessarily a larger RoI. This article provides a framework for companies looking to optimize their technology choices, ensuring that investment in cutting-edge technology aligns with strategic financial objectives. In addition, we discuss how changes in operational variables influence the economics of using LLMs, offering practical insights for enterprise settings, finding that the predicted gain and loss and the different probabilities of success and failure are the variables that most impact the sensitivity of the models.

M. T. Devine, V. Bertsch

To meet carbon emission targets, governments around the world seek electricity consumers to invest in self-sufficiency technologies such as solar photovoltaic and battery storage. Such behaviour is sought in markets typically characterised by an oligopoly amongst generating firms. In this work, we study the interactions between investment decisions on the demand side and the supply side, and we investigate how price-making behaviour on the supply side affects these interactions compared to a situation with perfect competition. To do so, we introduce a novel stochastic mixed complementarity problem to model several players in an oligopolistic electricity market. On the supply side, we consider generating firms who make operational and investment decisions. On the demand side, we consider both industrial and residential consumers, each of whom may invest in self-sufficiency technologies. The uncertainties of wind and solar generation are the sources of the model's stochasticity. We apply the model to a case study of a stylised Irish electricity system in 2030. Our results demonstrate that price-making on the supply side increases investment in self-sufficiency on the demand side, leading to a reduction in prices and carbon emissions. We also find that both market power and self-sufficiency alter the investment and decommissioning decisions made by generation firms. Counter-intuitively, we also observe that the absence of a feed-in premium increases investment in solar generation on the demand side. Our findings highlight the importance of including both demand and supply side investment in models of electricity markets characterised by an oligopoly.

Zixin Feng, Dejian Tian, Harry Zheng

The paper investigates the consumption-investment problem for an investor with Epstein-Zin utility in an incomplete market. A non-Markovian environment with unbounded parameters is considered, which is more realistic in practical financial scenarios compared to the Markovian setting. The optimal consumption and investment strategies are derived using the martingale optimal principle and quadratic backward stochastic differential equations (BSDEs) whose solutions admit some exponential moment. This integrability property plays a crucial role in establishing a key martingale argument. In addition, the paper also examines the associated dual problem and several models within the specified parameter framework.

Christian Mitsch

This paper focuses on a decentralized profit-center firm that uses negotiated transfer pricing as an instrument to coordinate the production process. Moreover, the firm's headquarters gives its divisions full authority over operating decisions and it is assumed that each division can additionally make an upfront investment decision that enhances the value of internal trade. On early works, the paper expands the number of divisions by one downstream division and relaxes basic assumptions, such as the assumption of common knowledge of rationality. Based on an agent-based simulation, it is examined whether cognitively bounded individuals modeled by fuzzy Q-learning achieve the same results as fully rational utility maximizers. In addition, the paper investigates different constellations of bargaining power to see whether a deviation from the recommended optimal bargaining power leads to a higher managerial performance. The simulation results show that fuzzy Q-learning agents perform at least as well or better than fully individual rational utility maximizers. The study also indicates that, in scenarios with different marginal costs of divisions, a deviation from the recommended optimal distribution ratio of the bargaining power of divisions can lead to higher investment levels and, thus, to an increase in the headquarters' profit.

Asmah Laili Yeon, Uni Tsulasi Putri

Equity crowdfunding (ECF), also known as crowd-investing or investment crowdfunding, is a way of boosting capital used by start-ups and early-stage companies. Fundamentally, ECF offers the company’s securities to potential investors in exchange for their investment. As a result, each investor is authorized to a share in the company proportionate to their financing. This paper discusses the ECF industry regulations in Malaysia and Indonesia in terms of its prospects and challenges during the COVID-19 pandemic through doctrinal research using the conventional legal method. Critical and analytical approaches were used to achieve its objectives. The findings showed that ECF has seen a growth of over 170% in new accounts registered in Malaysia, with 65% of them being retail investors. There is a great demand from individual and retail investors who are looking to invest in various investment products and services made accessible to them. The Capital Markets and Services Act 2007 plays an important role to provide good governance of ECF business in Malaysia. Further, the Guidelines on Recognized Markets (GRM 2020) (Item 1.01 GRM) and section 15 (g) of the Securities Commission Act 1993 clarifies the function of the Securities Commission to regulate ECF activities and protect the interests of the parties involved, especially investors. In Indonesia, the main regulator of ECF is the Financial Services Authority and the new ECF law is the Financial Services Authority Regulation Number 57/POJK.04/2020 concerning Securities Crowdfunding. The regulation aims to extend the scope of the crowdfunding which includes debt-based securities and sukuk. The prospects of ECF business in both countries are great especially in the era of the pandemic because the fintech, which has led to new investment products and services, is a vital force that helps democratize investments and will continue to increase as investors become more educated and informed. In terms of the ECF law, comparatively, it is different in terms of the governance, process and procedure, types of investors, etc. which are applicable in both Malaysia and Indonesia.

Šarūnas Barauskas, Roberto Ripamonti, Emanuele Ragnoli

The crypto ecosystem has evolved into a formidable channel for raising venture capital. Each new wave of capital inflows has been epitomized by a new type of investment vehicle, may it be ICOs, DAOs, or NFTs. Regrettably, none of these paradigms tried to address the issue of investor protection, a pillar of efficient capital markets. Moreover, very few projects tried to generate economic revenue, focusing instead on marketing alone to attract new investors. Without revenues, price discovery was impossible, while investors were left without any protection against rug pulls. This has forced regulators to take a hard-line approach to the ecosystem, and rule that certain tokens are securities when they are not intended to be. Regulators have left the door open to cryptocurrencies with truly decentralised activity like Ethereum, most notably the SEC in its interpretation of the Howey test for digital assets. We believe that a great number of decentralised projects could benefit from this regulatory exception. A system where project revenue is automatically directed to a treasury pool, and the price of tokens is computed following a predetermined bonding curve, would allow to efficiently raise capital, while investors would have automatic guarantees of fair participation in the success of the project. Such a framework would incentivise founders to design decentralised projects that create value instead of hype, while making the application of securities laws less stringent or even needed. NFT royalties in particular are an example of decentralised economic activity that generates cash flows, used to back the value of associated tokens. We propose a cryptographic system that ties the price of tokens to the success of a decentralised activity, guarantees the fair distribution of tokens, and rewards founders and participants in the system in line with the amount of risk they are taking.

Dragicevic Curkovic Marija

Research background: The results of the researches in the word show that traditional crafts play very important role in presenting the culture and traditions of any country and provide opportunities for employment with low capital investments. Dubrovnik traditional crafts have not been touristic valorized as well. That is why is relevant to analyse the role and development possibilites of Dubrovnik traditional crafts from international poin of view. Purpose of the article: The aim of the paper was to analyse importance and types of traditional crafts as much as to explore the attitudes of local residents in the area of Dubrovnik towards the possibilities of developing new tourism products forms based on the traditional crafts. Methods: For the purpose of the paper the secondary and primary data have been used. The empirical research has been conducted using the structured interview method. The sample has consisted of 48 employees. The respondents were residents, employed by companies in Dubrovnik. The results of primary and secondary researches have been considered together regarding the elements of cultural motivation. Findings & Value added: The local residents consider that traditional crafts could be important factor of sustainable development of tourist destinations Dubrovnik. There is an interest in “reviving” them and valorizing for tourism purposes, especially Konavle, Mljet and Coastal embroidery, Knitting, Stonemasonry and Sericulture. All traditional crafts had been currently positioned in the area of mediocre level of tourist valorization.

Daniela - Lavinia Balasan, Dragoş Horia Buhociu, Cristinel Ferţu

Even if, after the integration into the European Union in 2007, Romania had a thriving economy, it ranks in the top of the underdeveloped countries, where the minimum wage is among the last in the European Union. Although the post-social transition and European integration have shown themselves full of benefits, there are major differences between the capital and large cities and rural areas in our country. This influences the population in the migration process. The agrarian system has come up with a new concept, namely regional development, a concept that includes the set of economic activities taking place within a region, the investments made in the private sector, the reduction of the unemployment rate and, above all, the proposals initiated to increase the standard of living. This article is based on an indication of the problems facing the South – East Region and the current needs of the agricultural system and involves the creation of a plan of measures and techniques to increase performance in rural areas.

David Hobson, Martin Herdegen, Joseph Jerome

In this article we consider the optimal investment-consumption problem for an agent with preferences governed by Epstein-Zin stochastic differential utility who invests in a constant-parameter Black-Scholes-Merton market. The paper has three main goals: first, to provide a detailed introduction to infinite-horizon Epstein-Zin stochastic differential utility, including a discussion of which parameter combinations lead to a well-formulated problem; second, to prove existence and uniqueness of infinite horizon Epstein-Zin stochastic differential utility under a restriction on the parameters governing the agent's risk aversion and temporal variance aversion; and third, to provide a verification argument for the candidate optimal solution to the investment-consumption problem among all admissible consumption streams. To achieve these goals, we introduce a slightly different formulation of Epstein-Zin stochastic differential utility to that which is traditionally used in the literature. This formulation highlights the necessity and appropriateness of certain restrictions on the parameters governing the stochastic differential utility function.