On many occasions we need to construct an index that represents a number of variables. Cost of living index, general price index, human development index, index of level of development, etc are some of the examples that are constructed by a weighted (linear) aggregation of a host of variables....

The main objective of Romania’s post-accession strategy stands for the convergence with the EU Member States. If the nominal convergence (low inflation rate, stability of the exchange and interest rates, contained public debt) seems more easily to be achieved, the real convergence is supposed...

The constitution of cyclical provisions is related to the effects of latent credit risk in the financial institutions, a risk that materializes during an economic downturn. This study proposes a method both to calculate the amount of cyclical provisions and to estimate the timing of this type of...

Basic causality is that a cause is present or absent and that the effect follows with a success or not. This happy state of affairs becomes opaque when there is a third variable that can be present or absent and that might be a seeming cause. The 2 x 2 x 2 layout deserves the standard name of...

The cross-sectional trends in dividends are investigated at an aggregate level of ownership (i.e. closely/largely held and regulated firms), and at disaggregate level across 20 industries to examine how Indian Private Corporate Sector appropriated its profits over 1961-2007 periods....

Pairs trading is a popular trading strategy that tries to take advantage of market inefficiencies in order to obtain profit. The idea is simple: find two stocks that move together and take long/short positions when they diverge abnormally, hoping that the prices will converge in the future. From...

Entropy is a measure of information and uncertainty which has been used recently in different areas, besides of its original utilization in physics. Finance, microeconomics, macroeconomics, utility functions or even psychology are approached areas, using analogies between the areas physics and...

Attribution of economic joint effects is achieved with a random order model of their relative importance. Random order consistency and elementary axioms uniquely identify linear and proportional marginal attribution. These are the Shapley (1953) and proportional (Feldman (1999, 2002) and Ortmann...

Pairs trading is a popular trading strategy that tries to take advantage of market inefficiencies in order to obtain profit. Such approach, on its classical formulation, uses information of only two stocks (a stock and its pairs) in the formation of the trading signals. The objective of this...

There are two important effects of foreign direct investments (FDI) on a host economy: the effect on economic growth and the effect on export performances. Both economic features are important for the transition economies' prospects of European Union (EU) accession. After a short review of...