The new Keynesian trade-off between output and inflation: Time series based evidence from Russia

This article [written by Chin-Hong Puah, Chong Yang Sim, Mui Yin Chin, M. Affendy Arip ] – published in Business and Economic Horizons, Volume 15(1), 2019.

TitleThe new Keynesian trade-off between output and inflation: Time series based evidence from Russia

Abstract: As oil exports remain the main source of income for the Russian economy, the ongoing plunging of global oil prices is causing severe adverse supply shock and cost-push inflation in the country. The recent attempts at stabilisation policies by the policymakers have not been very successful in stabilising both national output and inflation. This has brought about concern over the relevance of policymaker interventions in the Russian economy. We investigate this matter by applying Asai’s (1999) model. Our empirical results indicated that the trade-off between output and inflation in the short run in Russia is inversely associated with the mean rate of inflation, which supports the new Keynesian view. As such, stabilisation policies, particularly monetary policies adopted by policymakers, are extremely crucial in moderating the short-run trade-off between output and inflation with respect to the recent financial crisis.

 

Keywords: Output-inflation trade-off, new Keynesian, new classical, nominal rigidity

 

Citation: Puah, Chin-Hong; Sim, Chong Yang; Chin, Mui Yin; Arip, M. Affendy, 2019.
“The new Keynesian trade-off between output and inflation: Time series based evidence from Russia”,
Business and Economic Horizons, Vol.15, Issue1, pp.126-136. DOI: http://dx.doi.org/10.15208/beh.2019.8  

Efficiency analysis by combination of frontier methods: Evidence from unreplicated linear functional relationship model

This article [written by Omar Sharif, Md Zobaer Hasan, Yun Fah Chang, Mahboobeh Zangeneh Sirdari ] – published in Business and Economic Horizons, Volume 15(1), 2019.

Title: Efficiency analysis by combination of frontier methods: Evidence from unreplicated linear functional relationship model

Abstract: This study proposes a new efficiency measurement technique CDS as combination of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) and compares the CDS efficiency score with the DEA and SFA efficiency scores. The financial companies listed in Malaysian Stock Exchange for the period 2007-2016 are used to estimate the different types of efficiency score. Besides, linear regression analysis and ULFR (unreplicated linear functional relationship) analysis are used to analyze the performance of this CDS technique with the DEA and SFA techniques. The result suggests that the most efficient model is CDS which has a significant positive correlation with profit risk. Among the CDS, DEA and SFA techniques, the recommended technique (CDS) shows higher coefficient of determination values for both ULFR (0.9994) and linear regression (0.292) analysis. Also, based on the results of CDS, this study postulates that the most efficient firm is ACSM (Aeon Credit Service (M) Bhd) and the least efficient firm is MAY (Malayan Banking Bhd).

Keywords: Malaysian Stock Exchange, data envelopment analysis, stochastic frontier analysis, unreplicated linear functional relationship model

 

Citation: Sharif, Omar; Hasan, Md Zobaer; Chang, Yun Fah; Sirdari, Mahboobeh Zangeneh, 2019.
“Efficiency analysis by combination of frontier methods: Evidence from unreplicated linear functional relationship model”,
Business and Economic Horizons, Vol.15, Issue1, pp.107-125. DOI: http://dx.doi.org/10.15208/beh.2019.7

Cluster analysis of development of alternative finance models depending on the regional affiliation of countries

This article [written by Pavlo Rubanov, Tetiana Vasylieva, Serhiy Lyeonov, Svitlana Pokhylko ] – published in Business and Economic Horizons, Volume 15(1), 2019.

Title: Influence of regulatory capital requirements on the self-financing capacity of a banking company

Abstract: The article examines the hypothesis about the existence of regional peculiarities in the development of alternative financing models (such as p2p consumer lending, p2p business lending, p2p real estate lending, balance sheet business lending, balance sheet consumer lending, equity-based crowdfunding, reward-based crowdfunding, real estate crowdfunding, profit sharing crowdfunding, donation-based crowdfunding, invoice trading, debt-based securities). According to an alternative hypothesis, due to the high integration of international financial markets, there are no regional peculiarities of the development of alternative financing models. The cluster analysis tools allow verifying these hypotheses. The cluster analysis methods used, such as tree clustering, k-means clustering, and two-way joining, demonstrate the lack of links between the country’s regional affiliation and the degree of development of certain types of alternative financing in it. The key factors affecting the formation of clusters are volumes of peer-to-peer consumer lending and business lending, as well as the volume of invoice trading. According to the results of the research, the authors conclude that it is necessary to find other factors, apart from the regional features, which influence the ratio in the development of certain types of alternative financing in different countries.

Keywords: Alternative finance, peer-to-peer lending, crowdfunding, cluster analysis, regional analysis

 

Citation: Rubanov, Pavlo; Vasylieva, Tetiana; Lyeonov, Serhiy; Pokhylko, Svitlana, 2019.
“Cluster analysis of development of alternative finance models depending on the regional affiliation of countries”,
Business and Economic Horizons, Vol.15, Issue1, pp.90-106. DOI: http://dx.doi.org/10.15208/beh.2019.6