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The semi parametric geographically weighted regression (GWR) analysis showed that before the financial crisis, a higher degree of financial industry agglomeration enabled banks to benefit more from agglomeration economies, which led to the banks’ improved cost efficiency. The effect was particularly significant for Chongqing and nearby western region as well as for Beijing and the nearby Bohai Economic Rim. However, following the financial crisis, market size became essential for improving the banks’ cost efficiency; such a phenomenon was significantly prominent in Inner Mongolia, Hebei, Shanxi, and Gansu, four provinces with the degree of industrial agglomeration higher than their financial industry agglomeration. Regarding the banks’ profit efficiency, before the financial crisis, regions with frequent economic and trade activities (e.g., Sichuan and Chongqing in west region and the eastern coastal region) had a higher financial industry agglomeration that resulted in superior profit efficiency.

Keywords: China’s uneven regional development; China’s banking industry; Financial industry agglomeration; Spatial econometric analysis; Cost efficiency; Profit efficiency.

JEL Classification: G210; P340; R120

Long memory of stock price return has not received its due attention from researchers in Sri Lanka. This study employs fractional integration approach to explain the behavior of stock price return of All Share Price Index (ASPI) in Sri Lanka. The study coversthe period from January 02, 1985 to September 28, 2018, consisting of 8803 observations. The return of the ASPI is defined as rt = [ln(ASPIt) – ln(ASPIt–1)]*100. The Autoregressive Fractionally Integrated Moving Average model(ARFIMA) is used to examine the presence of fractional integration in the return series. The time domain exact maximum likelihood is used to estimate the ARFIMA model. The Volatility of ASPI return series are proxied by absolute return, squared return and conditional variance derived from fractionally integrated GARCH(FIGARCH) model. The autocorrelation function of volatility decays hyperbolically for lags 1 through 200. The results show that return series does not have long memory, while the volatility series have long memory. The findings indicate that stock market in Sri Lanka is not efficientand, the results provide information to the investors, regulators, practitioners, derivative market participants, traders and government policy makers to incorporate some risk in their strategies.

Keywords: ARFIMA, exchange rate, fractional integration, Long memory, Sri Lanka

Applying an extended IS-LM-AS model, this paper finds that a 1% depreciation of the Australian dollar causes the CPI to rise by 0.0537%. In addition, more money supply, a higher crude oil price, a higher U.S. CPI, and a higher expected price will cause Australia’s CPI to rise. Inflation targeting has reduced exchange rate pass-through to consumer prices since 1993.Hence, exchange rate pass-through to Australia’s consumer price is partial and relatively small.

Keywords: exchange rate pass-through, exchange rates, consumer prices, money supply, crude oil prices.

JEL Codes: F31, F41

In this paper we introduced an approach for estimation of optimal performance of products. The analysis of this performance with the aim of formulating recommendations to reduce its cost.

Keywords: estimation of performance of products; reduction of product’s cost.

The study investigates the impact of tax revenue shocks on sustainable economic growth in Nigeria during the period 1980-2017 making use of annual time series data. The conventional and structural breakpoint unit root tests indicated that the study variables are fractionally integrated.The study employs the ARDL bounds testing approach to examine the long and short run relationship between the variables of interest. The bounds test results confirmed the existence of long-run relationships among the variables of interest. The empirical results revealed that PPT had a negative impact on growth that was not significant while PIT displayed a significant negative influence on growth in the short and long run period. CIT and CED indicated a significant positive effect on growth in both the short and long run. GCE had a significant negative effect while GRE showed a significant positive influence on economic growth both in the short and long run period. GDD, PED and FCS all exerted a significant negative effect on growth both in the short and long run period. The structural break dummy variable showed a positive impact on growth that was significant only in the short run. The study therefore recommends improved efficiency in tax collection and administration, diversification of revenue base, fiscal policy adjustment that reduces unproductive expenditure and reduction in government deficit financing.

Keywords: Tax Revenue, Economic Growth, Nigeria, Bounds Test, Structural Break

In the 21st century, the capital market dominates the financial sector in many countries. Financial systems play a crucial role in the economic development of a country. There are enough economic studies that divulge that a wellfunctioning financial structure and administration increases profit-making proficiency, financing, and expansion.

The study divulges that the Indian investment/financial sector has experienced wide-ranging changes since the nineties as an outcome of the financial sector makeover. Inevitably, the broadening and strengthening of the financial structure havepermitted wider and more fruitful financing to materialize.

System revises as the most common threat influencing commerce transactions, suggestive of rising unpredictability among the international investor circle. Probability and risk mapping reasoned Data Stealing/Phishing/Hacktivism as the extremely high rampant menacing. Numerous industries such as Financial Services, Govt/PSU, Infrastructure, and Telecom have collectively ranked Information & Cyber Insecurity as the number one risk.

Transmitting accurate and true information to stakeholders is imperative for market efficiency thereby reducing speculation in asset prices. It is imperative to perform a systematic review in this field as the behavioral biases have implications for market participants, regulators, and academicians.

This study would provide broad guidelines to investors to understand and grasp the nitty-gritty of the market in their pursuit to maximize profit by minimizing risks. A high degree of volatility in the Indian market has led to more development in the future.

Keywords: Financial market, Behavioral aspects, Risks in market offerings.

This paper analyses the effects of the sectoral growth and public expenditure on Tanzania’s tax revenue performance both in the short run and long run. The paramount importance is to provide a policy mechanism that would help Tanzania raise tax revenue from different sectors of the economy as the requirements for financing service delivery increase and the demand for donors declines in the country. The autoregressive distributed lag (ARDL) bounds testing approach. For the validity and reliability of the results, the assumptions of homoskedasticity, normality, serial correlations, and model stability were tested. Empirical results indicate that there is a strong positive relationship between tax revenue and main sectors of the economy namely, agriculture, industrial, and services sectors in both short-run and the long run. Similarly, recurrent and development public expenditures, as well as trade openness, tend to exert positive effects on tax revenue performance in the short run and long run. However, free trade is likely to lower the tax revenue ratio. The uniqueness of this paper is that first, the paper develops a simple analytical model for tax revenue performance based on key sectors of the economy. Second, findings suggest policies to support the development of value added linkages between major sectors of the economy and government expenditures while emphasizing the need to open the potentially large contribution of sectors of the economy with the view to widening the tax base. Third, trade policies should be designed to factor in the ambiguous relationship between trade liberalization and international trade taxes. Further trade liberalization is likely to reduce total tax revenue because international trade taxes, which constitute a large share of total tax revenue, decline in Tanzania.

Keywords: Tax Revenue, Sectoral Growth, Government Expenditure, ARDL.

JEL Classifications: C20, H20, H50

We propose a problem of intrinsic price of jumps associated with hedging strategies in an incomplete market where the stock price follows Merton jump diffusion model. Then we give a representation formula of this intrinsic price in view of options, and derive that there is a minimizing intrinsic price of jumps associated with hedging strategies in this incomplete market.

Keywords: intrinsic price; incomplete market; jump diffusion model; minimizing intrinsic price.

JEL classification: C22; G13

In the 18th and 19th century there were three great economists who created their own economic systems; the Scott Adam Smith (1723-1790) and the Germans Friedrich List (1789-1846) and Karl Marx (1818-1883). Smith was the protagonist of capitalism and free trade- policy, Friedrich List the pre-thinker or mentor of social market economy and temporary protectionism and Karl Marx the intellectual prophet of socialism and state economy.

It is impossible to explain List‘s theory in some sentences and to point out its significance today. However, we can categorize his ideas according to five major topics: (1) Et la patrie, et l´humanité – homeland and humanity, (2) Through wealth to freedom, (3) Le monde marche – the changing world, (4) The policy of the future and (5) The union of the European continent.

List has criticized man´s greed when man comes to power, influence and wealth. Instead of such typical excesses of capitalism, he proposed a structure of prosperity that would provide satisfaction and wealth for all social classes. It would involve a healthy social balance between rich and poor and between nations. He states that no nation has ever achieved success as an industrial power without also enjoying a high degree of political freedom, the respect for human rights, an independent justice system and an effective infrastructure with a high levelled education system.

(Marjit & Sarkar, 2017) have proved the existence of a unique inequalitypreserving redistribution allocation in the contract curve. The allocation is proven for those measures of inequalities which satisfy certain criterion. We investigate whether their Strong Pareto Superior (SPS) allocation hold in a special scenario, which moves away from their stated axioms. We find the evidence to the contrary; however, the theoretical foundation for such an analysis remains an open question.

Keywords: Strong Pareto Superior allocation, Fairness, Inequality.

JEL Classifications: C00, D63