How to invest in belgian shares by MULTIMOORA optimization

Different multiple objectives expressed in different units make optimization difficult. Therefore, the internal mechanical solution of a Ratio System, producing dimensionless numbers, is preferred to weights, which are most of the time used to compare the different units. In addition, the ratio system creates the opportunity to use a second approach: a non-subjective Reference Point Theory. Therefore, the Reference Point Theory uses the ratios found in the ratio system as co-ordinates for the alternative solutions, which are then compared to a Maximal Objective Reference Point. The two approaches form a control on each other. This overall theory is called MOORA (Multi-Objective Optimization by Ratio Analysis). The results are still more convincing if a Full Multiplicative Form is added, three methods assembled under the name of MULTIMOORA. At that moment, the control by three different approaches forms a guaranty for a solution being as non-subjective as possible. As to calculate the sum of three obtained ranks is not allowed, a theory of Ordinal Dominance is developed in order to remain in the ordinal sphere. MULTIMOORA is used to decide upon an investment in Belgian shares on basis of a ranking in the BEL20 Index

Robustness in regional development studies: the case of Lithuania

The article not only supplements the definition of robustness in econometrics as an improper term in the legal equation, but also provides an ordinary expression of it: from quantitative to qualitative. These interpretations were verified by applying them for the analysis of development of Lithuanian regions. In order to measure the welfare of the population of the region, it is not enough to calculate regional revenues, which serve as an exponent of economic welfare. Economic welfare stretches beyond that. In a welfare economy each individual has to feel good with regard to material welfare, health, education, security of all types and environment. In other words, a great deal of goals must be achieved. Moreover, this number of various goals is expressed through various units. In order to unify these different units, weights are usually used. However, the introduction of weights also supposes subjectivity. In order to avoid this dilemma, the internal mechanic solution by applying the system of coefficients thus obtaining dimensionless numbers prevails. In addition, this result provides for a possibility for suing non-subjective theory of the starting point. The selection of goals is also non-subjective, if all the concerned figures are involved, or if all the possible goals are represented. This theory, which is called MOORA, is applied for various regions of Lithuania. Revenues should be redistributed from better living regions of Lithuania to low income regions, but only under restricting conditions and by implementing accurately defined and fully supervised projects

Impact of economic development on the ecology in the regions of Lithuania

All three components of sustainable development (SD) – economic, social and ecological – are closely interrelated and have both direct and reverse impacts. To better understand the SD phenomenon and to manage it purposefully, we need to perform two essential tasks: first, a quantitative analysis of the status of the components; and second, a quantitative assessment of their impact on one another. Both economic development and ecological development are complex processes that manifest themselves in many aspects; thus, the quantitative assessment of the condition of these processes is based on multi-criteria methods. The article analyses the impact of economic development of the regions of the state on the ecological development as an essential component thereof. The latter statement represents the purpose of the study. The set of economic development indices is formed based on the possibility to obtain the required statistical information. Only those indices that reflect irreversible resources: water, air and land resources – are included in the system of economic development indices. Following the assessment of the condition of economic development and of the ecological development, the interrelation between the economic development and the ecological development shall be analysed based on correlation and regression analysis. It has been determined that economic development in the regions of Lithuania has a negative impact on the ecological development in those regions (r = 0.82). The components of economic development reflect only 57% of its impact on the ecology; whereas construction (r = 0.71) and industry (r = 0.47) have the biggest negative impact

Ranking of the Lithuanian Banks during the recession of 2008-2009 by the MULTIMOORA Method

The aim of this study is to do a critical analysis, on the basis of different objectives, the banks registered in Lithuania during the recession years 2008-2009. As these banks work in the same macro-economic environment, the objectives are chosen on the basis of the CAMEL classification (‘C’ Capital adequacy, ‘A’ Asset quality, ‘M’ Management quality, ‘E’ Earnings, ‘L’ Liquidity). Traditional Cost-Benefit Analysis is not suitable enough for this. Indeed Cost-Benefit analysis translates all direct and indirect costs and other objectives (benefits) into money terms. On the contrary, Multi-Objective Optimization takes care of the different objectives, with objectives keeping their own units. Different methods exist for the application of Multi-Objective Optimization. In our research, we tested these methods for their robustness. MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus a Full Multiplicative Form), showed positive results on these tests. Therefore MULTIMOORA was chosen for the ranking of the Lithuanian Banks during the recession years 2008-2009

Regional development in Lithuania considering multiple objectives by the MOORA method

The inequality between the regional incomes in a nation with a developed fiscal and parafiscal regime including social security will be equilibrated automatically by transfer payments from the richer to the poorer regions. The automatic system is not a guaranty for success. Internationally a project oriented system of the international organizations is known instead of an automatic system but the final goal is not always very clear. Multiple Objectives Optimization looks more robust to obtain regional and international development. Moreover a system of transfer payments is not sufficient to measure the well being of a regional population. In the well‐being economy, each individual would have to feel good concerning material wealth, health, education, all kind of security and concerning the environment. With other words, multiple objectives have to be fulfilled. However, these different multiple objectives are expressed in different units. Weights are most of the time used to equalize these different units. Introduction of weights means introduction of subjectivity. In order to avoid this dilemma, the internal mechanical solution of a ratio system, producing dimensionless numbers, is preferred: MOORA. In addition, this outcome creates the opportunity to use an additional non‐subjective reference point theory. The choice and importance of the objectives is also non‐subjective if all stakeholders involved come to an agreement. This theory is applied on the different counties of Lithuania. At that moment it is no more only a question of redistribution of income but also of a national policy of new constructions, of tourism development, of pollution abatement and of energy renewables, after the European Commission “related to the promotion of local employment”. Santrauka Nelygybė tarp skirtingų regionų pajamų išlyginama remiant skurdesnius regionus, t. y. dali turtingesnių regionų pajamų pervedant skurdesniems. Tačiau tokia sistema nėra sėkmės garantas, be to, ji nepajėgi įvertinti regiono gyventojų geroves. Plačiai žinoma tikslinės paramos sistema, kurią taiko tarptautines organizacijos, tačiau jos galutiniai rezultatai ne visada būna akivaizdūs. Esant gerovės ekonomikai, kiekvienas individas turėtų būti patenkintas materialine gerove, sveikatos apsauga, švietimu, saugumu bei aplinkosauga. Kitaip tariant, turi būti išpildyti daugelis siekių. Tačiau šie skirtingi siekiai išreiškiami skirtingais mato vienetais. Be to, skirtingiems siekiams sulyginti pasitelkiami reikšmingumui, kurie suteikia subjektyvumo. Siekiant to išvengti, pirmenybė teikiama reitingavimo sistema turinčiam MOORA metodui, paverčiančiam domesinius skaičius beįdomesniais. Be to, jis sukuria galimybę naudoti nesubjektyvią ekstrinio taško teoriją. Tikslai ir jų svarba yra objektyvūs, jei visos suinteresuotos puses dėl jų sutaria. Ši teorija pritaikyta vertinant daugelį Lietuvos apskričių. Šiuo metu svarbu ne tik perskirstyti regionu pajamas, bet ir formuoti naujų statybų, turizmo vystymo, taršos mažinimo, atsinaujinančiosios energetikos nacionalinę politiką pagal Europos Komisijos programą “Vietinio užimtumo skatinimas”. First published online: 10 Feb 2011 Reikšminiai žodžiai: MOORA, proporcinė sistema, ekstreminio taško teorija, regioninis vystymasis, pajamų perskirstymas, darbo jėgos nutekėjima