Rethinking ESG Compliance: Why IBM Should Prioritize Pro-Industrial Sustainability Over Carbon Neutrality

This paper critically evaluates IBM's pursuit of Environmental, Social, and Governance (ESG) compliance in light of its operational realities and economic constraints. While IBM has made ambitious sustainability commitments, including achieving net-zero emissions by 2030, this study highlights the financial and technological challenges posed by such initiatives. It argues that ESG mandates often prioritize optics over substance, forcing high-energy industries like IBM’s AI and cloud computing sectors to adopt costly and inefficient renewable energy strategies. The paper proposes a Pro-Industrial Sustainability Model, emphasizing economic growth, energy security, and AI-driven efficiency as alternatives to ESG conformity. Through comparative scenario modeling, the study demonstrates how this approach can enhance IBM's competitiveness while mitigating regulatory risks. The findings suggest that reframing sustainability as an industrial efficiency strategy offers a more pragmatic path forward for IBM

(Non-Monotonic) Effects of Productivity and Credit Constraints on Equilibrium Aggregate Production in General Equilibrium Models with Heterogeneous Producers

In a market economy, the aggregate production level depends not only on the aggregate variables but also on the distribution of individual characteristics (e.g., productivity, credit limit, ...). We point out that, due to financial frictions, the equilibrium aggregate production may be non-monotonic in both individual productivity and credit limit. We provide conditions under which this phenomenon happens. By consequence, improving productivity or relaxing credit limit of firms may not necessarily be beneficial to economic development

Sticky Information and Price Controls: Evidence from a Natural Experiment

We test the predictions of the sticky information model using a survey dataset by comparing the shoppers’ accuracy in recalling the prices of regulated and comparable unregulated products. Regulated product prices change less frequently, vary less across stores and between brands, and are sold more than comparable but unregulated product prices. Therefore, shoppers would be expected to recall the regulated product prices more accurately. However, we find that shoppers are better at recalling the prices of unregulated products, in line with the sticky information model which predicts that shoppers will be more attentive to prices that change more frequently

Évaluation de système de financement des établissements publics à Madagascar

This article highlights the assessment of educational achievement in Madagascar in relation to the actions taken during fund transfers to public schools. Public aid for education requires an in-depth study in order to improve future financing actions whose objective is to minimize school dropout and also increase access to school. Thus, we start from the analysis relating to the different theories and the investment of human capital, then the empirical evaluation of education financing to public schools for the case of Madagascar. The result of this study highlights the importance of education financing to cover the gaps in educational achievement in Madagascar, including the transparent, efficient and equitable management of funds allocated to education

Симметричная модель экономического равновесия: диалог с искусственным интеллектом

The book Symmetric Model of Economic Equilibrium: Dialogue with Artificial Intelligence is a unique experiment that blends economic theory with cutting-edge technology. It consists of a record of dialogues between the author and the artificial intelligence system Grok 3, with the central theme being the exploration of the Symmetric Model of Economic Equilibrium. This model introduces a novel perspective on the economy as a self-regulating system, where micro- and macro-levels are interconnected through cyclical flows and feedback loops, ensuring its integrity and adaptability.The book includes chat sessions in which the AI evaluates the model’s mathematical rigor, economic logic, and practical significance. It examines the model’s advantages over traditional approaches and its potential applications in economic policy and the development of analytical tools. The dialogue underscores the value of an interdisciplinary approach, integrating economic theory, dialectics, second-order cybernetics, and the capabilities of artificial intelligence. It illustrates how engaging with AI can enhance the understanding of complex economic processes and provide fresh momentum for further research in this field. The book is aimed at economists, AI researchers, and anyone interested in innovative directions for the advancement of economic science

Foreign direct investment and development and the role of research and development

Using a sample of 130 countries over the period 2004-2019, we revisit the development impact of foreign direct investment (FDI), but novelly examine the role of research and development (R&D) within this framework. To allow us to make causality statement, we use bilateral investment treaties (BITs) as an innovative instrument for FDI in the development equations. We find that, compared to FDI, expenditure on R&D has a more pronounced impact on development outcomes - through increasing growth and human development while reducing poverty and inequality. We also find that countries that spend more on R&D are less dependent on FDI for development. This suggests that R&D and FDI are substitutes in the development process with the results showing varying FDI and R&D thresholds at which the substitution takes place. We however, find a diminishing effect of FDI on development. Further to this, we find that R&D complements FDI only when FDI reaches a threshold level, and then begins to hurt development - at this stage there is sufficient R&D expenditure which possibly suggest sufficient adaptive capacity

Resilience and Rebound: A Financial Analysis of Czech's Big Four Accounting Firms Post-COVID-19 Recovery

In this comprehensive empirical analysis spanning 2020 to 2022, our study rigorously examines the financial performance of Czech's prominent Big Four accounting firms—Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG—following the multifaceted challenges posed by the COVID-19 pandemic. Focusing on critical profitability ratios, including Net Profit Margin, Return on Assets, and Earnings After Tax Margin, this research is dedicated to identifying the accounting firm that staged the most remarkable comeback during this tumultuous period. The findings unequivocally position KPMG as the standout performer, exemplifying unparalleled financial resurgence. KPMG's capacity to adapt and thrive in the post-pandemic landscape is particularly noteworthy. PwC consistently exhibits financial strength, maintaining a resilient performance throughout the study period, while Deloitte and EY demonstrate stability in their financial metrics. This empirical analysis underscores the dynamic nature of the accounting industry, emphasizing the pivotal role of adaptability and resilience in the face of unprecedented challenges. The insights gleaned from this study provide valuable guidance for stakeholders in the accounting profession, shedding light on strategies and practices conducive to post-pandemic recovery and financial resilience. The exceptional performance of KPMG stands as a compelling case study in navigating the evolving economic landscape

Financial inclusion in banking: A literature review and future research directions

This article presents a synopsis of financial inclusion research in banking. Complementing the existing reviews of the financial inclusion literature, I offer my own thoughts on the role of financial inclusion in banking, and the role of banks in financial inclusion. I focus my discussion on the effect of bank managerial discretion and regulation on financial inclusion outcomes, and the effect of financial inclusion on the business of banking. I show that bank managerial discretion and regulation affect financial inclusion through bank cost optimization decisions and regulatory changes that may have unintended consequences, while financial inclusion affects banks by increasing the deposit base of banks, improving bank profitability, improving banks’ resilience to shocks, improving bank stability and reducing bank risk. I also offer suggestions for future research directions

Did Slavery Impede the Growth of American Capitalism? Two Natural Experiments Using Farm Values per Acre

Two natural experiments challenge the view that slavery impeded the growth of American capitalism. An event study shows that farm values fell relative to the national average in slave states following abolition. A spatial regression discontinuity design (RDD) then suggests that any negative effects of slavery’s legality on farm values on the free-slave state border were counteracted by the institution’s practical utility. An explanation of these results can also be advanced: slavery provided a relatively cheap agricultural labor force in parts of the South where white Americans preferred not to settle. From this perspective, the growth of American capitalism was promoted rather than impeded by slavery

An Elementary Approach to GPIF Investment Allocation Optimization: A Basic Risk-Return Evaluation Perspective

This report examines a portfolio optimization methodology based on the investment allocation approach adopted by the Government Pension Investment Fund (GPIF). Employing quadratic programming, we derive optimal investment allocations for Japan, developed countries (excluding Japan), and emerging markets by incorporating market growth rates and variances. The analysis offers valuable insights into enhancing portfolio performance through a balanced approach to expected returns and risk management