multi product budget constrained acquisition and pricing with uncertain demand and supplier quantity discounts abstract we consider the joint acquisition and pricing problem where the retailer sells multiple products with uncertain demands and the suppliers provide all unit quantity discounts the problem is to determine the optimal acquisition quantities and selling prices so as to maximize the retailer s expected profit subject to a budget constraint this is the first extension to consider supplier discounts in the constrained multi product newsvendor pricing problem we establish a mixed integer nonlinear programming minlp model to formulate the problem and develop a lagrangian based solution approach computational results for the test problems involving up to thousand products are reported which show that the proposed approach can obtain high quality solutions in a very short time

more mortgages lower growth in newly collected data on 46 economies over 1990 2011 we show that financial development since 1990 was mostly due to growth in credit to real estate and other asset markets which has a negative growth coefficient we also distinguish between growth effects of stocks and flows of credit we find positive growth effects for credit flows to nonfinancial business but not for mortgage and other asset market credit flows by accounting for the composition of credit stocks and for the effect of credit flows we explain the insignificant or negative growth effects of financial development in recent times what was true in the 1960s 1970s and 1980s when the field of empirical credit growth studies blossomed is no longer true in the 1990s and 2000s new bank lending is not primarily to nonfinancial business and financial development may no longer be good for growth these trends predate the 2008 crisis they prompt a rethink of the role of banks in the process of economic growth jel e44 o16 o40 c33

optimal inventory and hedging decisions with cvar consideration abstract we consider a newsvendor who makes an ordering decision to meet stochastic demand and buys a put option written on the demand to hedge against the risk of low demand to maximize his expected utility which is measured by the conditional value at risk cvar the put option is fairly priced with specifications for the strike price and the strike quantity with the consideration of lost sale penalty cost we derive structural results on the optimal ordering and hedging polices we show that the newsvendor will not order more than that without the option contract when the strike quantity is pre determined and low and he will order more when the strike quantity is a decision variable moreover the optimal strike quantity is less than or equal to the optimal order quantity in the risk neutral setting and interestingly there are cases in which the optimal hedging ratio first increases then keeps constant as the newsvendor becomes less risk averse we also show that the value of the put option increases as the newsvendor becomes more risk averse and demand becomes more uncertain furthermore the effect of risk aversion on the value of the option highly depends on the magnitudes of the system parameters

the finance growth nexus evidence from bank branch deregulation this paper provides evidence that financial markets can directly affect economic growth by studying the relaxation of bank branch restrictions in the united states we find that the rates of real per capita growth in income and output increase significantly following intrastate branch reform we also argue that the observed changes in growth are the result of changes in the banking system improvements in the quality of bank lending not increased volume of bank lending appear to be responsible for faster growth

production capacity planning for multiple products under uncertain demand conditions abstract this study chiefly deliberates issues regarding capacity allocation for multiple products when producing multiple products a manufacturer needs to allocate a favorable production quantity to each product under conditions of uncertain demand since the excess or shortage of a product will in turn cause the loss of profit the proposed model and the corresponding algorithm in this study are used to find out the optimal capacity allocation under the given probability density function of specific demands and to effectively allocate limited capacity to multiple products with an aim to maximize profit finally the numerical example suggests that the marginal profit the inventory holding cost the shortage cost the loss of excess production and market demands should be considered in an effort to discover an optimal capacity allocation with regard to multiple products

optimal acquisition and remanufacturing policies for multi product remanufacturing systems abstract this paper studies an acquisition and remanufacturing problem in a market driven multi product remanufacturing system where the remanufacturer acquires multiple used products cores of highly variable quality under independently uncertain demand and carbon emissions regulation in order to balance between the environmental and economic benefit the problem is formulated as a nonlinear programming model in presence of the quality variability of cores and carbon tax scheme subject to budget and risk constraints since the average cost of the remanufactured products is independent of the remanufacturing quantity the model is then decomposed into two separated sub problems namely the remanufacturing problem and the acquisition problem in the remanufacturing problem the optimal remanufacturing policies including the optimal remanufacturing cost thresholds and the optimal remanufacturing rate are derived in the acquisition problem the optimal policies of core portfolio acquisition quantities and remanufacturing quantities can be derived the acquisition problem viewed as an extended multi product newsvendor problem mpnp is a convex optimization problem furthermore a two tier bisection method with polynomial computational complexity can be developed to obtain the optimal policies based on the karush kuhn tucker kkt conditions finally numerical experiments are provided to show the application of the model and the effect of the quality variability

multi product inventory model for cold items with cost and emission consideration while sharing storage and transportation units is common for many product types cold items usually have different temperature requirements and as a result not all items can share a holding transportation unit consequently the type of products and their compatibility with other products needs to be considered in the inventory model in this paper we propose multi product inventory models for cold items the models determine the inventory levels that minimize either the cost or carbon equivalent emissions we model the compatibility of items as a constraint in the inventory model to solve the model we first find an appropriate family of products that can share a storage transportation unit then for each family of products we develop an approximate solution method to determine the order quantity of each product within a family numerical experiments demonstrate the solution procedure and provide managerial insights into cold item inventory policies

multi item quick response system with budget constraint quick response mechanisms based on effective use of up to date demand information help retailers to reduce their inventory management costs we formulate a single period inventory model for multiple products with dependent multivariate normal demand distributions and a given overall procurement budget after placing orders based on an initial demand forecast new market information is gathered and demand forecast is updated using this more accurate second forecast the retailer decides the total stocking level for the selling season the second order is based on an improved demand forecast but it also involves a higher unit supply cost to determine the optimal ordering policy we use a computational procedure that entails solving capacitated multi item newsboy problems embedded within a dynamic programming model various numerical examples illustrate the effects of demand variability and financial constraint on the optimal policy it is found that existence of a budget constraint may lead to an increase in the initial order size it is also observed that as the budget available decreases the products with more predictable demand make up a larger share of the procurement expenditure

banking reforms in eastern european countries this paper investigates the present state of reforms in the banking sector of the central european countries with occasional comparisons with other eastern european countries progress is variable across the countries of the region but in all countries banking reforms generally lag reforms in other areas and much remains to be done regulation generally takes the european union s regulatory framework as a model progress on paper is much more advanced than implementation and as a result all banking systems in the region are fragile and prey to instability the paper also looks at basic performance indicators and arrives at the conclusion that even basic intermediation has remained rudimentary and quite inefficient this analysis suggests the urgency of the following measures i the further opening up of the sector to foreign penetration ii the withdrawal of the state from bank ownership hi the speeding up of implementation of existing regulations and iv the completion of the regulatory framework adding specific measures dealing with local problems that are not reflected in the imported regulatory map

credit constraints and gdp growth evidence from a natural experiment abstract before 1998 texas was the only state that greatly restricted home equity loans and cash out refinancing for non housing consumption such borrowing was authorized in texas for the first time through a constitutional amendment in 1998 using state level panel data and recently developed synthetic control methods based on machine learning we find that the texas constitutional amendments relaxing credit constraints had an insignificant impact on gdp growth our findings have important policy implications for the stimulative effect of easier home equity access on gdp growth

the finance and growth nexus revisited we find that an expansion of credit has a positive effect on per capita output growth only up to a point beyond this threshold the impact of finance on growth is not statistically significant anymore we show however that the estimated non linear relationship may stem from the omission of factors not considered in the literature so far these factors may have a negative impact on growth in mature financial systems and include the magnitude of financial cycles as well as the importance of non intermediation activities in banks business models

financial dependence global growth opportunities and growth revisited abstract we show that financial development has a non monotonic effect on growth in the rajan and zingales 1998 and fisman and love 2007 sample beyond a threshold financially dependent industries and industries facing good growth opportunities grow disproportionately more slowly

the risk averse and prudent newsboy the effects of risk and risk aversion in the single period inventory newsboy problem are examined comparative static effects of changes in the various price and cost parameters are determined and related to the newsboy s risk aversion the addition of a random background wealth and of an increase in the riskiness of newspaper demand are also examined although many of the comparative effects generally are ambiguous some fairly simple restrictions on preferences and or risk increases are shown to lead to qualitatively deterministic results

optimal ordering quantities for multi products with stochastic demand return cvar model abstract multi product ordering problem with stochastic demand is often optimized by the expected cost reduction or the expected profit improvement in most of previous works moreover risk preference of decision maker is often ignored evidently this approach is impracticable when the corresponding volatility is larger based on the outstanding characteristics of conditional value at risk cvar as a risk measure the paper proposes an optimal order model for multi product with cvar constraints also the model is finally formulated as a linear programming problem the model is simulated for the case of a newsvendor to analyze to what degree it succeeds the solution in fact is bound consistent fully with the decision maker s intuition on return risk decision making finally results of return cvar model and the classical model are compared and shows that return cvar model is more flexible than the classical model

implicit bank debt guarantees costs benefits and risks the expectation by market participants that public authorities might bailout the creditors of banks that are considered too important for financial system stability or another reason to be allowed to fail is commonly referred to as an implicit guarantee public authorities do not have any explicit commitment to intervene they may even honestly state that they not want to do so ex ante but may feel compelled to do so ex post a declared policy aim is to limit the value of implicit guarantees by making banks stronger more easily resolvable in case of distress as well as by imposing extra charges that rise as banks become more systemically important as part of the latter approach globally systemically important banks are identified and subjected to more costly and intrusive regulation there is little evidence that specific approach has been successful so far there is some evidence that the introduction of new resolution frameworks has been helpful while the use of newly available resolution tools and the involvement of bank creditors in the burden sharing associated with bank failure resolution has significantly reduced the value of implicit bank debt guarantees where it occurred in that sense actions speak louder than words

optimal returns policy for supply chain with e marketplace abstract we study in this paper a supply chain which is integrated by a returns policy in the past owing to a lack of sales channels the returned products would worth very little now with the advance of the e commerce the returned products can be sold with a higher price on the e marketplace in light of this we first investigate the optimal returns policy under the existence of the e marketplace through a mean variance analysis we further study the risk issue associated with the optimal policy extensive simulations are then carried out and the managerial insights are discussed

central bank independence and macroeconomic performance some comparative evidence this note uses information on a sample of sixteen oecd countries to assess the relationship between central bank independence and macroeconomic performance as previous work suggests politically controlled central banks are more likely to pursue policies that lead to high and variable inflation however the authors find little evidence that political control of central bank policy has any impact on measures of the level or variability of growth unemployment or the ex ante real interest rate copyright 1993 by ohio state university press

mean variance analysis of a single supplier and retailer supply chain under a returns policy abstract in the literature most of the supply chain coordinating policies target at improving the supply chain s efficiency in terms of expected cost reduction or expected profit improvement however optimizing the expected performance alone cannot guarantee that the realized performance measure will fall within a small neighborhood of its expected value when the corresponding variance is high moreover it ignores the risk aversion of supply chain members which may affect the achievability of channel coordination as a result we carry out in this paper a mean variance mv analysis of supply chains under a returns policy we first propose an mv formulation for a single supplier single retailer supply chain with a newsvendor type of product the objective of each supply chain decision maker is to maximize the expected profit such that the standard deviation of profit is under the decision maker s control we study both the cases with centralized and decentralized supply chains we illustrate how a returns policy can be applied for managing the supply chains to address the issues such as channel coordination and risk control extensive numerical studies are conducted and managerial findings are proposed

a benchmark solution for the risk averse newsvendor problem in this paper we derive the first order conditions for optimality for the problem of a risk averse expected utility maximizer newsvendor we use these conditions to solve a special case where the utility function is any increasing differentiable function and the random demand is uniformly distributed this special case has a simple closed form solution and therefore it provides an insightful and practical interpretation to the optimal point we show some properties of the solution and also demonstrate how it can be used for assessing the newsvendor utility function parameters

inventory control with an exponential utility criterion a base stock policy is shown to be optimal when a dynamic version of the news vendor model is optimized with respect to an exponential utility criterion

the newsstand problem a capacitated multiple product single period inventory problem abstract practically all of the many earlier papers on the newsboy problem consider a single newsboy product with no capacity constraint this paper presents formulations and solution procedures for handling multiple newsboy type products under two cases a one resource capacity constraint and b multiple resource constraints for case a we present a necessary extension to the classical hadley whitin result for handling general demand distributions for case b we present a solution procedure that can efficiently handle the common situation where a very large number of products are involved

aggregate constrained inventory systems with independent multi product demand control practices and theoretical limitations in practice inventory managers are often confronted with a need to consider one or more aggregate constraints these aggregate constraints result from available workspace workforce maximum investment or target service level we consider independent multi item inventory problems with aggregate constraints and one of the following characteristics deterministic leadtime demand newsvendor basestock policy rq policy and ss policy we analyze some recent relevant references and investigate the considered versions of the problem the proposed model formulations and the algorithmic approaches finally we highlight the limitations from a practical viewpoint for these models and point out some possible direction for future improvements

does one size fit all a reexamination of the finance and growth relationship abstract recent research has found a strong positive effect of a country s financial development on economic growth we propose that this relationship may vary according to the level of financial development divided in three regions in the low region countries with very low levels of financial development additional improvements in financial markets have an uncertain effect on growth in the intermediate region financial development has a large positive effect on growth finally in the high region the effect is positive but smaller we examine a panel of 74 countries using generalized method of moments gmm dynamic panel techniques and find support for the different regions

multi product newsvendor problem with value at risk considerations abstract we consider the single period stochastic inventory newsvendor problem with downside risk constraints the aim in the classical newsvendor problem is maximizing the expected profit this formulation does not take into account the risk of earning less than a desired target profit or losing more than an acceptable level due to the randomness of demand we utilize value at risk var as the risk measure in a newsvendor framework and investigate the multi product newsvendor problem under a var constraint to this end we first derive the exact distribution function for the two product newsvendor problem and develop an approximation method for the profit distribution of the n product case n 2 a mathematical programming approach is used to determine the solution of the newsvendor problem with a var constraint this approach allows us to handle a wide range of cases including the correlated demand case that yields new results and insights the accuracy of the approximation method and the effects of the system parameters on the solution are investigated numerically

effects of higher order moments on the newsvendor problem abstract in this paper we propose a stochastic programming model for the well known single period newsvendor problem by adopting the conditional value at risk cvar as the risk metric in the objective function the demand uncertainty is modeled in terms of discrete scenarios that reflect the empirical distributions implied by market demand data our numerical results demonstrate that the higher order moments skewness and kurtosis of demand have obvious effects on the newsvendor problem and the stochastic programming framework provides a flexible and effective decision support tool for the newsvendor problem

finance and the sources of growth the authors evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources total factor productivity growth physical capital accumulation and private saving they use 1 a pure cross country instrumental variable estimator to extract the exogenous component of banking development and 2 a new panel technique that controls for country specific effects and endogeneity they find that banks do exert a large causal impact on total factor productivity growth which feeds through to overall gdp gross domestic product growth the long run links between banking development and both capital growth and private savings are more tenuous

the effect of financial development on convergence theory and evidence we introduce imperfect creditor protection in a multicountry schumpeterian growth model the theory predicts that any country with more than some critical level of financial development will converge to the growth rate of the world technology frontier and that all other countries will have a strictly lower long run growth rate we present evidence supporting these and other implications in the form of a cross country growth regression with a significant and sizable negative coefficient on initial per capita gdp relative to the united states interacted with financial intermediation in addition we find that other variables representing schooling geography health policy politics and institutions do not affect the significance of the interaction between financial intermediation and initial per capita gdp and do not show any independent effect on convergence in the regressions our findings are robust to removal of outliers and to alternative conditioning sets estimation procedures and measures of financial development

an innovatory package for financial sector reforms in eastern european countries abstract this essay sees reform of the financial sector as the key to successful transition to a market economy the analysis generates the following practical proposals first the central bank should be endowed with strong independence accumulating the deposit insurance supervisory and lender of last resort functions second the central bank should host the payments system and impose gross settlement without credit lines in excess of required reserve balances it should also impose suitable capital requirements for credit exposure third universal banking should be accepted to improve corporate governance and to make a well functioning capital market less necessary fourth to reduce moral hazard and provide maximum flexibility an innovatory multi tier bank licensing is proposed fifth when government cannot borrow from the central bank borrowing will contribute to the development of securities markets whose other two pillars are privatisation and mortgage financing to alleviate the burden on public finance and maximise liquidity perpetuals assorted with suitable calls and puts are proposed