The Problems of Economy

11-20

Authors: Hubarieva I. O., Salashenko T. I.

The article substantiates the methodological approach to electricity safety monitoring and developing practical guidelines for its implementation. Electricity safety is a state of the electric power system, which ensures its existence and guarantees that the electric power interests of its elements are satisfied. Ensuring electricity safety means achieving a systemic state in which electricity consumers are aware of the effective level of their own consumption, which provides them with the chosen option of operation, and electricity producers can meet their electricity interests to the required extent. Electricity safety monitoring should be carried out regularly (daily) and be of an operational and preventive nature in order to quickly identify risks and respond to threats of electricity crises. The methodical approach to monitoring electricity safety includes the following points: development of the electricity safety components and synthesis of the electricity safety indicators; quantitative and qualitative assessment of electricity safety; generalized assessment and qualitative interpretation of electricity safety. A methodical approach to monitoring electricity safety is proposed, which requires daily assessment of the quantitative and qualitative state of electricity safety by consumer (adequacy margin), production (reliability margin) and fuel (supply margin) components, and makes it possible to quickly identify and respond to risks, thus avoiding electricity crises. The approbation of the proposed approach allowed us to specify the crisis level of the real electricity security and the pre-crisis level of the nominal electricity security. Such a situation requires immediate action by the central executive body to prevent power outages.

28-44

Authors: Onyschenko V. O., Berezhna A. Y., Filonych О. М.

The article aims at studying the manifestation features of the system of incentive tariff regulation of utilities given the need to attract investment to modernize the utilities infrastructure in cities in the field of electricity and centralized water consumption, indicating its risks and benefits. The following methods were used: decomposition, comparative analysis (when considering the methods of tariff calculation based on the "cost plus" principle and on the "rate of return on invested capital and regulatory asset base"), scientific abstraction, systemic approach, construction of scientific hypotheses (when studying the algorithm for the calculation and dynamics of the incentive tariff for electricity distribution services and centralized water consumption). A change in the electricity cost for end consumers under the transition to an incentive tariff for electricity distribution has been modelled. The dynamics of tariffs changes in centralized water consumption services is studied based on the concept of the rate of return on invested capital and regulatory asset base (RAB-methodology), and the number of investment resources that under such conditions can be directed to modernize urban water infrastructure is forecasted. The expediency of different approaches to determining the rate of return on capital (single and differentiated rate) given the legal status of assets is proved. The RAB tariff regulation concept is applied to services in the field of centralized water consumption with the identification of risks and benefits for consumers, service providers and potential investors in the modernization of the industry infrastructure. Given the energy intensity of the services, the impact of the full introduction of the electricity market on the tariffs dynamics and on the need for effective social tension preventers has been identified. The research results prove the necessity and validity of applying incentive tariff regulation in the field of electricity and water consumption, provided that the interests of consumers and service providers are balanced; and allow authorized persons to design a number of appropriate measures to ensure that the service provider invests the established amount of finance in the first regulatory period, given the uncertainty of this issue in the regulations.

52-57

Authors: Omelyanenko V. A.

Ensuring sustainable development at the level of individual territories becomes especially important for Ukraine. At the same time, the management of sustainable development processes should be improved with respect to the key aspects related to innovation. In these circumstances, the concept of innovation landscape helps to focus on creating competitive advantages and, on their basis, on developing strategies for sustainable development. Having analyzed the existing research results, we can conclude that theoretical, methodological and practical aspects of innovation policy development within sustainable development need further specification. Thus, the study in question aims at conceptualizing the innovation landscape in the context of sustainable development. The scientific analysis carried out allows us to suggest a new definition for the innovation landscape, understanding it as an integrative set of indicators, which reflects socio-economic conditions and includes the performance of public authorities, innovative management tools used, the activity of innovative economic entities, the availability and quality of innovation infrastructure, the development of cluster relationships, etc. aimed at solving problems of socio-economic development. Having generalized the research results, including those of the author's research, we can determine that the concept of innovation landscape and an appropriate applied approach based on it open wide opportunities for creating and managing the spatially rooted structures of innovative interactions between science, education, business and communities. It is proved that innovation landscape should be considered both at the regional and territorial level. It is determined that to form an innovative landscape of sustainable development of a region it is necessary to use new innovative practices, opportunities and challenges that arise at the local level in accordance with these trends. It can be done within the innovation audit mechanism recognizing these trends and supporting innovation management.

64-71

Authors: Vasylyk A. V., Stoliaruk K. S., Buluy A. V.

The main aim of the article is to update the research on identifying problems and developing measures to overcome professional burnout through a combination of instruments in the author’s sociological study, taking the staff of one of the domestic enterprises as the material for the research. The aim is also to identify and determine the key symptoms of burnout syndrome. Given the brisk growth of the service sector, it is obvious that it naturally affects the increase in the number of «man-man» professions, which are among the most vulnerable ones as for the burnout probability. That is why diagnosis of such problems has been performed at a restaurant from a popular chain in Ukraine. The key objectives of this study are the following: to determine the structure of the company’s staff by estimating the burnout level; to compare negative factors influencing the restaurant employees’ work; to assess the impact of working conditions on burnout; to find out the respondents’ attitude to work; to compare the respondents’ assessments of the components of the «Individuality» factor. The study has resulted in identifying the following problems: employees’ improper attitude to work; long working hours leading to overwork; conflicting clients; inadequate rest conditions for employees. Besides diagnosing these problems, the article also suggests measures to overcome them, naming some projected indicators of reducing the effects of employees’ burnout at the enterprise under study and the corresponding costs for taking these measures.

78-84

Authors: Kondratenko N. O., Novikova M. M., Spasіv N. Y.

The article examines some peculiarities of developing an adaptive financial management system at domestic enterprises. It was found out that the management and application of financial resources in a market economy is carried out through financial payments. This mechanism is based on the control over production expenses level and their divergence from socially necessary costs. It is noted that budgeting is the main basis for building an adaptive financial management system at an enterprise, which pays due regard to the impact of financial risks and the ways to avert them. Cash flow management cannot but use the scheme for behavioral modeling of the possible outcomes of the cash flows. The development of financial models for assessing and managing financial risks is part of the overall budgeting system at an enterprise. They are a fairly reliable instrument for assessing and managing the entire financial risks system at an enterprise, as they make it possible to assess different levels of risk due to different factors influencing them and to the different levels of risk controllability. To describe the relationship of financial indicators, a multifactor model is proposed, which allows a detailed study of the interdependence of features, the closeness of the relationship between variables, their subordination. It makes it possible to describe the mutual influence of internal and external factors on the total capital efficiency, to take into account changes (variations) in the parameters of this environment, the reaction of financial stability to these deviations. It is concluded that the development of an adaptive financial management system at an enterprise helps to improve the financial performance of the enterprise, provides transparency to the financial management and cash flow and allows the management to take viable solutions and create the most profitable financial plans.

91-97

Authors: Sova O. Y., Morozov Y. Y.

The article aims at summarizing the existing risk management strategies helping to prevent bankruptcy and liquidation of enterprises, taking into account modern environmental challenges and the impact of the COVID-19 pandemic on the performance of business units. As a result of the study, tactical and strategic methods of risk management were identified. The components of the risk management process are identified in accordance with international standards. The main types of enterprise management strategies in crisis situations are described, highlighting the ERM approach, together with its main differences and advantages for its use at enterprises. Statistical data on the number of business entities in Ukraine and the number of bankruptcy proceedings in 2016-2020 are analyzed. It is emphasized that the goals and main tasks of the state policy of the Ministry of Justice of Ukraine for 2021-2023 include the introduction of transparent bankruptcy procedures, which will quickly restore the debtor's solvency or fairly distribute the bankrupt's assets among creditors. Changes to the procedure for initiating bankruptcy proceedings of a legal entity, defined by the Bankruptcy Procedure Code of Ukraine, are suggested. Threats to businesses engaged in foreign economic transactions are presented based on an overall assessment of the global impact of risk scenarios on business (GBI). It is proven that the rationalization of strategic planning instruments and the implementation of a systemic approach to the crisis management of an entity, in general, and its financial and economic activities, in particular, influence greatly the effectiveness of restoring the financial solvency of that entity in a crisis situation. Determining the effectiveness of state support programs for carrying out business activity in the pandemic, and assessing the medium-term effectiveness of measures taken by government agencies make up the directions for further research.

107-122

Authors: Onyshchenko S. V., Berezhna A. Y., Filonych О. М.

Theoretical approaches to the formation of the budget mechanism as a form of practical implementation of budget policy are made more profound; budget decentralization as a budget regulating and stimulating mechanism in the current situation in Ukraine is studiedl and perspective directions of introducing various budget mechanism are outlined. The mechanistic concept was applied to budgetary relations, thus becoming the basis for highlighting the main features of the budgetary mechanism, determining the main provisions of forming the budgetary mechanism. Emphasis is placed on the relationship between budget policy, which is manifested through the dialectical unity of budget strategy and tactics, and the budget mechanism. The budgetary mechanism is defined as a system of measures aimed at influencing the mobilization of optimal funds, their efficient distribution and rational use in order to ensure macroeconomic balance, sustainable development and preservation of state sovereignty, as defined by state policy. It is suggested to integrate the constituent elements of the budgetary mechanism into the appropriate subsystems within its framework, through which the main functions of the budgetary mechanism aimed at achieving the goal are manifested. In order to study a subsystem of the budgetary mechanism, namely the regulatory mechanism, the peculiarities of the manifestation of budgetary decentralization in Ukraine are analyzed. It is proved that the introduction of the subsidiarity principle while constructing the decentralized model of inter-budgetary relations in the unitary Ukraine is currently the best option for it to find a balance between the advantages of budgetary federalism and the unitary form of budgetary relations. Systemic problems of budget decentralization have been identified, namely: decentralization occurs by bringing in new persons to act on the national level; it does not affect the mechanisms of autonomy in decision-making on taxation and the formation of additional sources of local budget revenues; statutory tax benefits for the local tax mobilization significantly reduce the financial resources of local budgets; local budgets remain significantly dependant from the state; in the regulation of local budget revenues, preference is given to transfer instruments, and the share of budget-generating taxes is reduced. Given the theoretical construct of the public sector theory, which gives grounds to the formation of local budget revenues, and the results of the research on budget regulation in Ukraine, budget decentralization processes are only proven to be pretentious, and the need to improve the division of budget authority is identified, while emphasis is made on financial self-sufficiency.

134-142

Authors: Khudolii Y. S., Khalievina M. O.

The article aims at studying the place of and prospects for financial technology development in the banking business during the digitalization process in the economy by using both the theoretical and empirical research methods. Having analyzed research works on the topic, the authors systematize the key trends in banking innovations in Ukraine and prove the relevance of financial technology in the banking business during the current digitalization. As a result, the current place of financial technology in the banking business is determined by identifying modern customers’ needs and current market conditions in the field of money services (the growing number of Internet users, gadgets, and hence the growth of the cashless money transfer turnover), and the following prospects are suggested: customer value and the quality of service provisioning (i.e., quickness, flexibility of the business structure and extensive use of various technologies). The results are based on the synthesis and analysis of the achievements of financial technology companies in the Ukrainian and world markets, their cooperation with banks, as well as their actions in the global pandemic, the latter reducing the financial inflow, but at the same time encouraging innovations. Research prospects in this context lie in suggesting the key trends of the future, such as including financial services in non-financial relations, the Internet of Things (seamless payments, where the focus shifts from payment to the service itself, providing long-term interaction between the seller and the buyer); the nature and consequences of changing the format of payment services in the domestic market (PSD2). Still, much will depend on further results of the work of the Ministry of Digital Transformation of Ukraine and the actions of the regulator, i.e. the National Bank of Ukraine, concerning the digital development of the financial sector.

155-168

Authors: Tyzhnenko A. G., Ryeznik Y. V.

The paper discusses the applicability of the two main methods for solving the linear regression (LR) problem in the presence of multicollinearity – the OLS and the ridge methods. We compare the solutions obtained by these methods with the solution calculated by the Modified OLS (MOLS) [1; 2]. Like the ridge, the MOLS provides a stable solution for any level of data collinearity. We compare three approaches by using the Monte Carlo simulations, and the data used is generated by the Artificial Data Generator (ADG) [1; 2]. The ADG produces linear and nonlinear data samples of arbitrary size, which allows the investigation of the OLS equation's regularization problem. Two possible regularization versions are the COV version considered in [1; 2] and the ST version commonly used in the literature and practice. The performed investigations reveal that the ridge method in the COV version has an approximately constant optimal regularizer (λ_opt≈0.1) for any sample size and collinearity level. The MOLS method in this version also has an approximately constant optimal regularizer, but its value is significantly smaller (λ_opt≈0.001). On the contrary, the ridge method in the ST version has the optimal regularizer, which is not a constant but depends on the sample size. In this case, its value needs to be set to λ_opt≈0.1 (n-1). With such a value of the ridge parameter, the obtained solution is strictly the same as one obtained with the COV version but with the optimal regularizer λ_opt≈0.1 [1; 2]. With such a choice of the regularizer, one can use any implementation of the ridge method in all known statistical software by setting the regularization parameter λ_opt≈0.1(n-1) without extra tuning process regardless of the sample size and the collinearity level. Also, it is shown that such an optimal ridge(0.1) solution is close to the population solution for a sample size large enough, but, at the same time, it has some limitations. It is well known that the ridge(0.1) solution is biased. However, as it has been shown in the paper, the bias is economically insignificant. The more critical drawback, which is revealed, is the smoothing of the population solution – the ridge method significantly reduces the difference between the population regression coefficients. The ridge(0.1) method can result in a solution, which is economically correct, i.e., the regression coefficients have correct signs, but this solution might be inadequate to a certain extent. The more significant the difference between the regression coefficients in the population, the more inadequate is the ridge(0.1) method. As for the MOLS, it does not possess this disadvantage. Since its regularization constant is much smaller than the corresponding ridge regularizer (0.001 versus 0.1), the MOLS method suffers little from both the bias and smoothing of its solutions. From a practical point of view, both the ridge(0.1) and the MOLS methods result in close stable solutions to the LR problem for any sample size and collinearity level. With the sample size increasing, both solutions approach the population solution. We also demonstrate that for a small sample size of less than 40, the ridge(0.1) method is preferable, as it is more stable. When the sample size is medium or large, it is preferable to use the MOLS as it is more accurate yet has approximately the same stability.

178-184

Authors: Drymalovska K. V., Bala R. D.

The article aims at analyzing domestic and foreign experience in social policy provision (the essence of the concept, its basic models and directions), as it acts as a kind of lever to determine the principles, priorities, directions of the social sphere development. The article suggests a new definition of the "social policy" concept through analyzing the content of the category in question. The public administration approach to understanding the "social policy" concept is also outlined. The article identifies the priority directions of transformations in the EU member states’ social policy, which are taking place due to globalization challenges. Based on these areas, the main principles of European social policy are identified, namely: inclusiveness, gender equality, digitalization, support for youth policy development (employment, education), and financial education of citizens. Social policy in such countries as Canada, Germany, China, and Australia is analyzed, and peculiarities of its changes due to the COVID-19 pandemic are considered in the following areas: support for employment, social protection and the unemployed; social support for certain social groups; support for business development. The main means helping to implement the outlined areas are identified, namely: creation of funds to support certain social groups; formation of favorable conditions for lending to small, medium and large businesses; financing of various social programs (providing employment, training, and wage subsidies). The main directions of domestic social policy in the COVID-19 pandemic are also given. Relevant conclusions on domestic and foreign experience in the implementation of social policy are formed. Further research can be related to the issues of creating a mechanism for an effective social policy implementation.

192-200

Authors: Chala T. G., Slavuta O. I., Korepanov G. S., Chernenko D. I.

The article aims at substantiating the theoretical and methodological foundations for creating a unified statistical indicators system and statistical analysis of the water resources management at the city level. The advantages of using standardized indicators in the field of sanitation and water supply at the city level are identified and characterized in accordance with ISO 37120: 2014 «Sustainable cities and communities – indicators of urban services and quality of life». Both the main and auxiliary indicators of urban services and quality of life on «Water and sanitary conditions» and «Sewage» topics are systematized as for their formulas, application features and data sources. It is established that, according to the Water Risk Filter, Ukraine can be divided into four regions depending on the water risk, namely, low, moderately medium, medium, and high water risk levels. Based on these data, such cities from the Global Register of Cities developed by the World Council on City Data (WCCD) were selected: Amsterdam (Netherlands), Barcelona (Spain), Dubai (United Arab Emirates), Guadalajara (Mexico). Their indicators in the field of sanitation and water supply were analyzed. It is established that these cities are characterized by a high level of water supply and sewerage services, as well as a fairly high level of the access to high-quality sanitary and hygienic conditions. The situation with quality indicators of water management is worse. For example, advanced waste treatment is only carried out in Dubai. In Guadalajara, 21% of urban wastewater is not treated at all. It is established that in general, Dubai is the leader in the quality of water supply and sanitation services, while Guadalajara is the outsider city, showing the lowest quality levels of most of the studied indicators. The national system of indicators is suggested to be expanded by including such an indicator as «Average annual duration of water supply outages per 1 household».