Modeling Financial Type 2b Globalization and its Repercussion on the Real Economy
Abstract The description of economic globalization still lacks a comprehensive formal and normative theory. The Globalization Types Model is a proposal to bridge this deficiency. Having modeled the globalization of physical trade flows, the so-called type 1 globalization with its different logics of subtypes 1a, 1b, and 1c, the aim now is to describe the globalization of finance, i.e. type 2b, and to integrate it into the Globalization Types Model. This paper analyses the repercussion of financial transactions on the evolution of economic cycles. Due to the mutual interactions of different systems, the modeling is not based on state equations but on principles of system dynamics with its positive and negative feedback loops. It puts the emphasis not on equilibrium but on transition modeling, i.e. on the triggering of state change. The result is a cognitive model showing the influence and systemic effects of financial transactions performed on commodity exchanges causing increased volatility of commodity prices and the repercussion on the industry value-chain. The model links the speculative part of financial type 2b globalization to physical demand and trade flows of globalization type 1, capital investments of globalization type 2a, as well as human migration of globalization type 3a and unemployment.
Complexity, Network-Decisions And Alternative Risk Premia: Some New Theories Of Structural Change And Portfolio Decisions.
Structural Change is the basis for many decisions such as government fiscal and monetary policies, government interventions, corporate-expenditure decisions, corporate strategic decisions, portfolio management decisions in finance; household allocation decisions, etc.. Structural change in industries and national economies is increasingly more difficult to detect partly because of the growth and dominance of Complex Systems and “Networks” in modern industries and economies – such Networks and Complex Systems include GVCs (global value chains), retail store networks; franchising networks; internet networks; services networks; credit-chains in industries; online social networks; etc.. The relationship between Complexity and Structural Change is well established in the physics, applied math and economic dynamics literatures. Traditional definitions and modeling of structural change have erroneously focused on changes in labor, technological progress, market share, and or capital – which are grossly inadequate in the new economy and post- global financial crisis (as confirmed by changes in the global retailing and housing industries and other industries). Also the modeling of structural change seems to be constrained by the availability of data, and often omits the relationship between structural change on one hand, and globalization, financial stability and international financial contagion. This article: i) introduces the Operations Strategy Model of structural change, explains how it differs from the Lewis Model of Structural Change; and explains the often omitted relationship between operations strategy (of companies and government agencies) and structural change; ii) introduces other new Complexity-based models/theories of Structural Change in industries; iii) reviews the relationships among Operations Research, Complexity and Structural Change; iv) explains the symbiotic relationship between structural change on one hand, and economic growth, financial stability, financial contagion and globalization; v) discusses the significant gap between academic research and practice and explains some issues and factors that should be considered in the development and testing of structural change models; vi) explains how alternative risk premia can be generated from new models of Structural Change.
The mark of sexual preference in the interpretation of texts: preface to a homosexual reading.
Since reading is an interaction or confrontation between the reader and the text-an interaction that depends upon the background and perspectives of the reader as well as on the text being read-we can assume that the dynamics of sexuality and sexual object choice will influence how readers ascribe meaning to literary texts. In fact, although other aspects of our identities come into play when we read, sexual identity is unique and central because of the role that it plays in the creation of subjectivity. Specifically, male homosexuality informs and structures the reading of texts. But what does it be a homosexual reader or to effectuate a homosexual reading of a particular text?