Journal of Advances in Economics and Finance

7

Authors: Yu Hsing

Applying the aggregate demand-aggregate supply model and based on a sample during 2000.Q4-2016.Q1, this paper finds that aggregate output in South Korea is negatively affected by real depreciation of the Korean won, the real interest rate and the expected inflation rate are positively associated with government debt as a percent of GDP, lagged U.S. real GDP and growth of labor productivity. A major policy implication is that real depreciation of the Korean won would help exports but cause import costs and domestic inflation to rise and capital outflows.

16

Authors: Hussain Abusaaq, Paul M. Beaumont, Yaniv Jerassy-Etzion

We present a fast and accurate algorithm to compute the maximally smooth instantaneous forward rate curve and the associated spot rate curve for the term structure of interest rates for coupon bearing bonds. The method produces zero pricing errors, constrains initial and terminal conditions of the spot and forward curves and produces the maximally smooth forward rate curve among the class of polynomial spline functions. The algorithm is simple enough to be quickly explained to traders and clients and flexible enough to be easily modified for different types of fixed income security markets. We illustrate the algorithm using on-the-run U.S. Treasury bonds for periods where the yield curve has a normal shape and also when it is inverted.

20

Authors: Hrabrin Bachev

Research on governance of agrarian sustainability is at the beginning stage due to “newness” of the problem, emerging new challenges, fundamental modernization during recent years, “lack” of long-term experiences and relevant data, application of narrow (certain form/management level), one-dimensional, unisectioral, normative, without transaction costs etc. approaches. This paper suggests a modern and practical framework for analyzing and assessing the system of governance of agrarian sustainability. Interdisciplinary New Institutional Economics framework is incorporated and agrarian sustainability is properly defined, principle mechanisms and modes of governance (institutions, market, private, public, hybrid) of agrarian sustainability are classified, and a holistic approach for identifying components and factors, assessing efficiency, and improving governance system is presented. Framework is to be further discussed and improved while its application requires new type of micro and macro-economic data for agrarian agents’ preferences and behavior, activities and efficiency of farming organizations, effects and impacts on social, community and natural environment, etc.