Current Strategies in Economics and Management Vol. 5

Using Target-oriented Utility to Elicit Preferences for Taking Risks in Uncertain Financial Markets

2021-08-26T05:27:23+00:00

Consistent with Bernoulli's interpretation of utility, investment managers determine their clients' preference for risk by directly asking clients about their willingness to take risks. Many investors find answering such questions difficult. Consistent with Simon's theory of bounded rationality, other investment managers ask clients how much money they will eventually want to withdraw from their investment account to meet education, retirement, or other investment goals. Many clients find such questions easier to answer.

This paper aims to show how the target-oriented utility integrates these two approaches by interpreting the utility of wealth as the probability of the client needing that level of wealth to achieve their investment goals. In this case, a client's willingness to take risks reflects their uncertainty about how much wealth will be required to achieve their targets. The target-oriented utility predicts loss-aversion during bull markets where winning stocks are sold too early and gain-seeking where losing stocks are held too long in bear markets. Our results offer a normative explanation to the disposition effect, which is the prevalent biased behavior that drives investors to "sell winners too early" in bull markets and to "ride losers too long" in bear markets.

Investigating the Equality of Customer Loyalty between Two Commercial Banks in Anambra State, Nigeria: Hotelling T-square Approach

2021-08-26T05:30:49+00:00

Aims: This study examined the equality of customer loyalty between two Banks in Anambra State, Nigeria. The objective of this study was to determine if there exists significant difference between loyalties of customers in two commercial banks in Anambra State.

Methodology: The data used for this study was primary data collected through the aid of administered questionnaire. The statistical tool used in analyzing the data was the permutation method for Hotelling T-Square.

Results: The result of the analysis found a test value of 1.03 and a corresponding p-value of 0.43 which indicates that there is no significant difference between customer loyalties of the two commercial banks. This result could be attributed to the improved supervision of the apex bank in Nigeria (Central Bank of Nigeria) on the activities and operation of the banking sector. Since, customer loyalty can help firms develop strategies to grow the right customers and in turn customers can be viewed in terms of their lifetime value.

Conclusion: Based on the outcome of this study, studies on determining the retention and lifetime value of commercial banking customers in Nigeria is recommended as a fruitful area for future research, for it appears that the banking industry is one of the most profitable within the Nigerian economy, hence, higher performance could be attained in terms of customer retention and loyalty thereby creating wealth to her shareholders and rendition of social obligations to the larger society.

A Global Perspective: Tourism, Terms of Trade and Welfare of the Poor

2021-08-26T05:34:48+00:00

The paper investigates the impact of an increase in tourism and a change in the terms of trade on the welfare of different classes in an economy. We set up a three-sector, three-factor (one speciﬁc) model of general equilibrium to derive the results. The most important result we obtain is that tourism can immiserize the poor. In the concluding section we argue that a tax on tourism (a non-distortionary tax) should be used to subsidize the poor and restore their welfare level.

The Estimation of CO2 Emissions Avoided through the Use of Biodiesel in the Brazilian Road System

2021-08-26T05:38:57+00:00

For several years, the use of oil to move vehicles, generate energy and other activities necessary for social life, made the world quite dependent on this input. However, this non-renewable source of energy is becoming increasingly scarce, while the demand for it grows periodically. Various researches have been carried out in order to search for alternative sources of fuels, which preferentially reduce the aggressions to the environment, provided by fossil fuels. Among these alternative fuels, biodiesel stands out, a fuel obtained through the process of transesterification of vegetable oils or animal fats, which has become a potential substitute for petroleum diesel. Among the advantages of using this fuel, the following stand out: being renewable, reducing the country's dependence on oil, in addition to having lower levels of greenhouse gas emissions than petrodiesel. Among these gases, CO₂ stands out, which contributes to the warming of the planet and which will be the target of this study. From the calculations carried out taking into account the consumption of petrodiesel in Brazil, it is intended to quantify the emissions from its use by 2025 and in parallel to calculate the emissions avoided with the use of methyl soy biodiesel in the percentages established by the Brazilian Government in same period.

Scientific Perspectives of Assessing the Possibility of Global Economic Crisis

2021-08-26T05:42:35+00:00

The existing literary sources do not provide an opportunity to forecast or develop measures to overcome the deterioration of economic activity. The authors consider the problems of the money circulation in its various forms, components, and relationships. The necessary parameters were determined by data from various literary sources. It is shown that certain interrelationships make it possible to construct the dependence of the probability of crisis phenomena on time. This dependence shows a singularity corresponding to the manifestation of the crisis. The formula obtained allows to predict the emergence of crisis phenomena and to seek ways to overcome them.

Overview of Paradoxical Poverty in Russia

2021-08-26T05:47:31+00:00

The problem of poverty worries not only the population but also serves as the subject of numerous scientific works. The study of the issue was carried out with the help of surveys and a method of reviewing literary sources. The theoretical basis was the assumption of the relationship between poverty and property inequality. It is established that the curves of the change in the proportion of the poor and decile coefficients have a shift of the optimums relative to each other. This shift indicates the presence of a delay. By today, the delay was leveled that may portend social upheavals. To prevent social upheavals, one should apply the entire possible set of measures to reduce the share of the poor and decile coefficient.

The Cost of Credit in the Presence of Missed and Delayed Payments Fees

2021-08-26T05:55:36+00:00

Partial insolvency in leasing contracts may entail affording additional costs. In this paper, we focus on the case that the lessee makes partial payments in due time and settles the debt increased by the late payment interests later. The presence of the extra-costs drives the lease Effective Annual interest Rate (EAR) to deviate from the lease contract rate. This work aims to illustrate how design the contract payback amortization to stick EAR to the lease contract rate, when the lease contract rate, the late payment rate, and the contract terms are exogenously fixed. First, we achieve a proxy for EAR given by the lease contract rate plus an extra-charge rate addendum. We show that this last addendum is sensitive to the payback Modified Duration, a weighted size, and timing average. Specifically, the longer the Modified Duration, the smaller the extra-charge rate addendum. As a consequence, two general rules to drive EAR close to the lease contract rate to roll out, specifically: (1) the payment pattern should be set with a long Modified Duration; and (2) the surrender value of the leased good should be put large. As the contract settlement is given, we identify a lower bound and an upper bound for EAR. The results of the paper are useful to provide policymakers a better knowledge about the effects on EAR of the contract conditions on the pattern of payments.

Critical Research on Impact of Contributory Pension Scheme on Economic Growth in Nigeria

2021-08-26T05:59:55+00:00

The study examined the impact of contributory pension scheme on economic growth in Nigeria for the period 2004-2012. The objectives of the study were to determine the impact of pension funds on economic growth and as well as to ascertain the impact of pension savings mobilized on economic growth. The study used Ex-post-facto research design. Ordinary Least Square Regression method was used in data analysis. The study finds that pension funds have negative and significant impact on economic growth while pension savings had positive and significant impact on economic growth. The implication of the finding is that the contributory pension scheme has achieved the objective of using pension funds to provide long term capital that will promote economic growth. It also implies that pension savings contribution is low, an indication of low coverage of the scheme. It was recommended that investment outlets of pension funds should be increased and efforts should be intensified to ensure greater compliance and mobilization of savings from contributors.

An Overview: The Theory of the Organization and the New Paradigms

2021-08-26T06:02:56+00:00

This paper proposes to tackle a subject that many authors have warned should not be taken lightly: “the new paradigms of Science” and the theory of management. The paper begins with a brief explanation about the changing environment which began during the 1970s. This section contains background and relevant criticism made by several authors, and sets out the argument for the need to change to a new paradigm. This is followed by an exploration of new concepts and ideas that have emerged in New Science that have direct relevance to developing new organizational models. Finally, a way to envision and conceptualize the organization as a living entity and to undertake the construction of a new paradigm is suggested.

A General Overview of Information Technology and the Effectiveness of Supply Chain Management in the Kenya Public Sector

2021-08-26T06:11:23+00:00

Main objective of the study was to establish factors affecting effectiveness of supply chain management in Kenyan public sector with, specific reference to the Ministry of Finance. The study’s specific objective is to determine the effect of ICT on effectiveness of SCM. The study adopted a descriptive research design with a study population of 120 management staff working at the Ministry of finance. A stratified random sampling was employed to select a sample of 60 respondents. Questionnaires were used as the main data collection instruments and SPSS applied to analyze data. Pearson correlation established that there is relationship between the research variables (r= 0.918). It is concluded that effectiveness of SCM depends on integration of SCM functions with ICT. The study recommends implementation of IT based SCM systems on the supply chain management practices.

Revisiting Technical Efficiency Measurement within Single Hospital through of a Stochastic Frontier Cost Panel

2021-08-26T06:17:57+00:00

This article aims to revisit the measurement of the relative technical efficiency of three clinics belonging to the University Hospital of the Federal University of Santa Catarina, Brazil, held in the second half of the 1990s. On this occasion, the specification of the econometric model included the analysis of productive sectors of the same institution in different periods of time. A Cobb-Douglas function of stochastic frontier cost using the compound error model was estimated by maximum likelihood (MLE), for a monthly data panel. The efficiency measures were calculated using a formula adapted to the costs, based on the estimated parameters. Now, in addition to the re-presentation of the original study, we return to its methodological path from the year 2000 onwards. In this task, it is evident that the evolution of the theme continued to prioritize the comparative evaluations of efficiency between hospitals, without exploring confrontations between units of the same institution. In view of this, it is proposed to move towards the use of stochastic frontier cost panels, estimated simultaneously with functions of variables potentially explaining the levels of inefficiency.

Investigating the Mediation Role of Attitude towards Product Placement in Social Media

2021-08-26T06:27:04+00:00

The present paper empirically examines consumer attitude and behavioral intention structures in social media context, particularly focusing on Gen Ys who are the world’s largest population group. Three antecedent factors (i.e. perceived relevance, perceived value and perceived credibility) were closely examined for their influences on attitude towards product placement (App) and purchase intention. App was proposed to serve as a mediator between these antecedent factors and purchase intention. The mediation results indicated that perceived relevancy and perceived credibility affect purchase intention in two ways: directly and indirectly through App. Meanwhile, perceived value only has a significant direct effect on purchase intention. Consumers considered perceived relevance and perceived credibility as antecedents to App, but not perceived value. The findings provide useful insight to both marketers and academicians in planning for their promotion strategy.

Effect of Garlic as Feed Additive on Performance and Economy of Production of Cockerel Chicks

2021-08-26T06:49:45+00:00

The growth performance, feed digestibility, economy of production and blood parameter of cockerel chicks fed diets with Garlic as feed addictive (0, 1.5, 3.0 and 4.5%) was evaluated in a trial that lasted 8 weeks. Two hundred and forty (240) day old cockerel chicks of the black strain were used; they were randomly allotted to four treatments each representing the level of Garlic addition, with 60 chicks per treatment of three replicates each. The four diets were almost isocaloric and isonitrogenous. Feed and water were offered to the birds daily and data were collated on feed intake, weight gain digestibility of nutrients, serum metabolites and haematological parameters. All data were subjected to ANOVA. The treatments had comparable levels of initial body weight (90.0 g), daily weight gain per bird (6.02 ± 0.39 g) and feed conversion ratio (5.43 ± 0.5 g), while the daily feed intake per bird was significantly (P<0.05) varied and least at 4.5% inclusion level, with corresponding highest (#25,489) profitability and best (P<0.05) digestibility of crude protein, NFE and ether extract. Highest (P<0.05) PCV, Hb, RBC, WBC and lymphocyte was obtained at 4.5% level of inclusion, with corresponding high level of plateles and significantly (P<0.05) depressed urea (3.13 g/dl). The use of garlic in cockerel chicks’ nutrition up to 4.5% is beneficial, for the enhancement of growth, digestibility wellbeing and profitability.

Analyzing the Aspects of Profitability of Charcoal Production and Marketing in Ibarapa Zone of Oyo State Nigeria

2021-08-26T06:55:52+00:00

This study analyzed the profitability of charcoal production and marketing in Ibarapa zone of Oyo state using a structured questionnaire. A multistage sampling technique was adopted to select one hundred (100) respondents for the study. The descriptive statistical method and budgetary analysis were used for data interpretation. Charcoal marketing is dominated by middle or old age mostly females (71.7%), the business are funded from personal saving and support from cooperative society. The finding reveals that 48.5% of respondent had no formal education and economic analysis showed that marketers require ₦50,000-₦500,000 as working capital with a resultant profit of ₦300,000-₦500,000 per annum and charcoal marketing efficiency was 1.32. In Conclusion, charcoal marketing is profitable with net returns of ₦58,000 on 200 bags sold.