EconLit with Full Text

The selection of appropriate solution strategies to deal with the disruption in project management has become an essential topic. The evaluation of the ranking of solution strategies for dealing with disruption as a complex multi-criteria decision-making (MCDM) problem includes several alternatives with conflicting criteria in the implementation phase of the project. This paper introduces a new MCDM method by a novel integration of grey relational analysis (GRA) and measurement alternatives and ranking according to the compromise solution (MARCOS) approaches under interval-valued fuzzy sets (IVFSs). The contribution of this paper is not only to extend the MARCOS method with both GRA techniques and IVFSs but also to propose a method for weighting the criteria that considers both the subjective and the objective weight based on entropy in an integrated manner. In this proposed method, the subjective weights assigned by decision makers (DM) and the objective weights are based on interval Shannon’s entropy theory. Subsequently, the proposed method is evaluated through an empirical example, which demonstrates its applicability and validity in prioritising solution strategies for managing project disruption. The paper also provides managerial insights.

The establishment of the circular economy contributes to the development of sustainable consumption and creates new consumer habits, changes the market of goods and promotes innovations and ecological principles in the daily life of the population. The increasing consumption of eco-friendly goods is closely related to the environmental responsibility of the individual, which is formed over time and affects the results of social production and the technological level of production. The article examines the problem of adjusting public demand that would increase the rate of adoption of the circular economy, analyses factors affecting public demand and determines the price of changing public targets for different groups of the population. The mathematical function of public utility in the introduction of the circular economy changes the determining factors of consumer satisfaction, tending to reduce risks to the ecosystem and the health of consumers. It is concluded that when carrying out certain educational activities, 22% of surveyed consumers on average are ready to change their preferences in favour of eco-friendly goods. If a systematic approach is used and the market for environmentally friendly products is balanced, the main hazardous environmental products and their alternatives that can adjust public demand and change consumer habits are analysed.

In the article, we examine the promotion of hate and autocracy in the environment of liberal democracy and market economy, comparing economic values with social capital, as well as the relationship between ideology and authoritarian populism. We use the method of critical analysis, together with a synthetic method to describe the integrated socio-politico-economic phenomena. We develop the theses as follows. 1. The free market is inseparable from the freedom of speech and press. 2. Freedom of speech and economic activities has many limitations including the responsibility of actors, social state politics, and ideology. 3. The biggest threat to freedom lies in very democracy which tends to evolve into populist autocracy. 4. The constitution guarantees both freedom of speech and economic activities but it is effective only when the majority is convinced of the value of constitutional democracy.

The article examines the politico-economic ethos as it relates to the idea of solidarity and contrasts it with social chaos. The politico-economic ethos is defined as the ethos of collective responsibility, confirming not only the pragmatic interests of governments but also testifying to common normative values in the cooperation of regional political and economic actors. Instrumental (economic, managerial, consumerist, or other) attitudes expose politics without any ethos. Systems based on knowledge, control, and predictability are particularly fragile. The sources of solidarity of the European Union as a politico-economic entity are examined. European solidarity, which began as economic cooperation, is associated with hegemonic and perspective-imposing tendencies, that is, with the “European/non-European” variant of the “barbarian/non-barbarian” distinction. Solidarity is an aspect of sociality in the world of political and economic speaking beings (Aristotle), and it is necessary for economic activity.

Algorithmic trading models are now widely used in investment decision-making. By grounding these models in scientific knowledge, investors can obtain efficient results in financial markets. During the COVID-19 outbreak, the drug manufacturing industry has received substantial attention from investors. The purpose of our research is to form an investment portfolio using an algorithmic trading model in the drug manufacturing industry. The model covers the entire process of portfolio formation: market analysis, selection of industry, selection of particular stocks, data mining, forecasting and investment decision-making. Three portfolios – maximum return, minimum risk and maximum Sharpe ratio – are constructed and compared across two periods. Portfolios formed using deep learning forecasting outperformed the index in more cases than did portfolios created using the Monte Carlo simulation. Portfolio formation using algorithmic trading models is suitable for individual investors, can be easily automated using the computer application and can not only be applied to one industry but diversified across various sectors.

Since research and development (R&D) investment identified as the main factor for economic development in contemporary endogenous models, many studies investigated the determinants of such investment. Though there is no disagreement that internal financing sources are vital for R&D expenditures (at least for matured firms), there are still ongoing discussions as to which of them takes priority: revenue or cash flows. This paper analyses the impact of firms’ revenue and cash flow on R&D expenditures by employing a dynamic linear model. Also, we use the Vector Error Correction Model to test the variance composition. Our research confirms that, in the beginning, positive revenue dynamics serve as the most critical signal for business to invest in R&D activity. However, later profit that firms earn comes to the first place in the ladder of their motivation.

The aspiration of the undertaken article is to explore the effect of relative price variability (RPV) on the inflation rate by estimating the model of fixed effects regression by employing the panel data of prices of 35 cities of Pakistan. We have followed the Ball - Mankiw (1995) approach, which has considered the dissemination of changes in relative price as the supply shocks and reflects on a theory of inflation on the supply side. Our results show that the inflation rate, both food, and non-food inflation, is significantly and positively affected by relative price variability. The results imply that supply-side factors, as exhibited in the dispersion of relative price changes, are robust determinants of the inflation rate.

The cultural and creative industries (CCIs) are becoming important sector for national economies development. It generates considerable economic wealth and acting as catalyst for innovation and progress in other sectors. The CCIs also significantly contributes to the identity, culture and values development. For these reasons, stimulating the development of cultural and creative industries becomes an important challenge for European and national policies. Evaluating the impact of cultural and creative industries on the economic system provides important arguments for policy makers to make strategic decisions in relation to CCIs sector development. The article provides analysis of the current CCIs evaluation methods and indexes such as The Creative City Index, Composite Index of Creative Economy, European Creativity Index, Global Creativity Index, Hong Kong Creativity Index and Creative Space. Based on the analysis strength and weaknesses of these indexes, new analytical tool - Cultural and creative industries index (CCII) was developed and presented in the publication. CCII has been designed exceptionally for the analysis of cultural and economic aspects of creative activities with a focus on cultural and creative industries output factors. The CCII is applied to perform comparative analysis of CCIs sector in EU countries. Results of the analysis is presented in the article.

Creative economy consists of such areas as publishing, advertising, architecture, design, art, crafts, fashion, television, films, software, music, toys, and others. The areas of the creative economy are grouped in different lists suggested both by scholars and by government. The concept of creative society arises both from the ever-increasing creative challenges in society and from the emergence of the creative economy. However, the creative society presupposes the existence of creative individuals and the economic environment within it. The paper deals both with the different classification of the creative economy and with the concept of a creative society.

Comparative analysis of the EU countries’ socioeconomic indicators is carried out here along with the systematic analysis of the global and the EU strategic documents, the European Commission’s communiqués, the European Commission’s (committees’) and individual working groups’ studies on employment issues. Potential scenarios for increasing employment are considered basing on the analysis of socioeconomic conditions in Lithuania. The article uses the methods of systematic scientific literature analysis, general and logical analysis, comparison, summation and abstraction as well as the mathematical and statistical processing methods. Situation analysis is based on the data of the Eurostat, specialized surveys and the results of statistical calculations. The article substantiates that in order to increase employment, efficient resource allocation and targeted economic policy focused on social problems of the country are needed, and appropriate measures for its implementation are proposed. Employment-friendly macroeconomic policy-making is seen here as a fundamental strategic guideline to address the problems of employment and social economic inequality. Green economy and green jobs’ development are one of the priority directions in increasing employment in Lithuania. Employment policy guidance in green technologies (renewable energy sources, recycling, and green building), the green economy, and promotion of professional skills in this area are recommended. Transition to green economy, eco-villages and ecological communities would be one of the fundamental directions in increasing employment among the most vulnerable groups. Furthermore, regional policies must be intensified in Lithuania to enhance economic (investment) and social attractiveness of less populated areas.