Economics and Financial Networks and Their Impact on the Macroeconomy and Financial Markets

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Markets".

Deadline for manuscript submissions: closed (30 June 2024) | Viewed by 2505

Special Issue Editors


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Guest Editor
Faculty of Business Administration in Foreign Languages, Bucharest University of Economic Studies, 010731 Bucharest, Romania
Interests: quantitative finance; econometrics; financial markets
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

There is a growing awareness about the fact that networks emerge naturally from the way individuals and firms tend to interact with each other. Recent studies underscore the importance of production networks and of financial networks in understanding the aggregate dynamics of the economy and financial markets as well as their interactions.

In this Special Issue, we call for papers that study the implications of the presence of economics and financial networks and their properties in the dynamics of the macroeconomy and financial markets.  Papers focusing on topics such as production networks, financial networks, the transmission of financial and macroeconomics shocks to the real economy and to financial markets are particularly welcome.

Dr. Petre Caraiani
Dr. Mihail Busu
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • production networks
  • financial networks
  • quantitative finance
  • macroeconomics

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Published Papers (1 paper)

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Research

17 pages, 1159 KiB  
Article
The Impact of the Mechanism for Aligning Horizontal Fiscal Imbalances on the Stability of the Financial System
by Nataliia Yaroshevych, Iryna Kondrat and Tetyana Kalaitan
J. Risk Financial Manag. 2024, 17(2), 74; https://doi.org/10.3390/jrfm17020074 - 13 Feb 2024
Viewed by 1560
Abstract
The growth of state transfers to offset disparities in regional development affects the stability of the country’s financial system. This article delves into this outcome, empirically analyzing whether the transfer system for horizontal fiscal alignment leads to decreased financial system stability through increased [...] Read more.
The growth of state transfers to offset disparities in regional development affects the stability of the country’s financial system. This article delves into this outcome, empirically analyzing whether the transfer system for horizontal fiscal alignment leads to decreased financial system stability through increased borrowing at municipal and national levels. To test this hypothesis, we employ a quasi-experimental analysis strategy, examining potential scenarios of configuring transfers to Ukrainian municipalities for addressing horizontal fiscal imbalance. Across various transfer calculation scenarios involving changes in the calculation period, the number of budgets in consideration, and the alignment subject, we find that a suboptimal system of horizontal fiscal alignment, transferring funds from financially secure municipalities to insecure ones, leads to a rise in the public finance debt, subsequently decreasing financial system stability. Additionally, we discover that the current mechanism in Ukraine for horizontal fiscal alignment, designed to mitigate inequalities in socio-economic development among communities and regions, paradoxically exacerbates these disparities, artificially inflates indicators of decentralization reform success, and undermines public finance stability. Full article
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