The convergence rate and necessary-and-sufficient condition for the consistency of isogeometric collocation method

Although the isogeometric collocation(IGA-C)method has been successfully utilized in practical applications due to its simplicity and efficiency,only a little theoretical results have been established on the numerical analysis of the IGA-C method.In this paper,we deduce the convergence rate of the consistency of the IGA-C method.Moreover,based on the formula of the convergence rate,the necessary and sufficient condition for the consistency of the IGA-C method is developed.These results advance the numerical analysis of the IGA-C method.

The impact of working capital management on credit rating

This study investigates the possible nonlinear relationship between working capital and credit rating.Furthermore,it examines the relationship between the three components of working capital(inventory,accounts receivable,and accounts payable)and a firm’s credit rating.Employing data for U.S listed firms for the period between 1985 and 2017,the results of our ordered probit model show a nonlinear relationship between working capital and its components and credit rating.Finally,we find that the deviation from the optimal working capital adversely affects the credit rating.The results of this study are of significant importance for policy makers,managers,decision makers,and credit-rating agencies,as they help highlight the importance of working capital management for a firm’s credit rating.

The concept of capital before and after industrial revolution： Islamic versus market economy

The concept of capital and ownership of capital in market economy and Islamic economy is different. Also the role that capital is expected to play in the economy is different in two economic systems. One of the key elements in creation of the capital （capital formation） is interest rate. In Islam interest is strictly forbidden. This paper reviews the concept of capital and the process of capital formation both before and after industrial revelation. In that context it also looks at the function of interest rate during the time of Prophet Mohammed and the present time.

Aggregate Capital Tied-up by Investment Projects——The Possibility of a Simple Estimation

The aggregate capital needs are a new business economics category which provides a new aspect to evaluate investment projects.The literature does not deal with this category as the project‘s total financial resource requirement.It is the total capital tied-up for the project in its lifetime.For calculation of it,the yearly capital tie-ups are being added together.Based on this,it can be examined the total capital amount,which results in a given net present value,or the total capital amount,which operates according to the given rate of profitability.The paper interprets the category,presents its relationship with the interest rate,and also presents the method of calculation based on model editing.In the case of the internal rate of return,the estimation may be greatly simplified.Instead of determining the yearly amounts and summation of these,the estimation can be carried out also with a simple division of two data.The paper demonstrates the possibility of simplification and shows an example to present the interrelations of data.

Analysis of the Moderator Effect of RMB Exchange-- Rate on Export The Case of Guangdong Province in China

An important limitation of the research literatures which study the effect on the export of the real effective exchange rates is the lack of application of interaction or moderator effect among the independent variables. To remedy this lacuna, the authors developed a model in which real effective exchange rate moderated the effect of import and utilization of foreign capital on export. The sample comprised 11 years＇ data in Guangdong China. The result showed that real effective exchange rate of RMB affected the export by interacting with utilization of foreign capital. Moreover, to some degree, the real effective exchange rate can also act as moderator between import and export.

The Analysis and Modification of Opportunity Cost of Investment

We think we should use basic return rate of industry to measure the opportunity cost of capital and use the rule of Maximum NPV （Net Present Value） to modify the wrong solution in the book.

Piketty’s Capital-Income Theory Reconsidered for a Small Open Economy with Increasing Savings Rate

Since Piketty offered a new view of capital/income ratio, numerous attempts have been made to examine the relationship between return on capital, economic growth and the capital/income ratio. This paper attempts to shed new light on this field. More precisely, following recent literatures that pay attention to dynamics of external balance sheets of countries, we examine if Piketty’s results for large countries are robust for a country that takes the world rate of return on capital as given and whose savings rate increases gradually from negative value. It is revealed that for such a country, (1) Kuznets curve is drawn and (2) capital/income ratio decreases in accordance with a rise in savings rate and return on capital.

An Evaluation of the Effect of Credit Risk Management （CRM） on the Profitability of Nigerian Banks

This paper assesses the effect of credit risk management （CRM） on the profitability of Nigerian banks with a view to discovering the extent to which default rate （DR）, cost per loan asset （CLA）, and capital adequacy ratio （CAR） influence return on asset （ROA） as a measure of banks＇ profitability. Data were generated from secondary sources, specifically, the annual reports and accounts of quoted banks from 2002 to 2011. Descriptive statistics, correlation, as well as random-effect generalized least square （GLS） regression techniques were utilized as tools of analysis in the study. The findings establish that CRM as measured by three independent variables has a significant positive effect on the profitability of Nigerian banks as indicated by the coefficient of determinations ＂R2 value＂ which shows the within and between values of 40.89% and 58.35% （which are impressive） while the overall R2 iS 43.91%, indicating that the variables considered in the model account for about 44% change in the dependent variable, that is, profitability. The study recommends that banks＇ management should be more scientific （application of risk evaluation techniques） in their credit risk assessment and management of loan portfolios in order to minimize the high incidence of non-performing loans and their negative effect on profitability.

Capital Structure and Natural Rate of Unemployment： An Empirical analysis

The model based on Marxism economics such as capital structure ,capital deposit and capital cycles measure directly natural rate of the unemployment. The natural rate of unemployment is decided by the capital per worker, capital structure and average wage. According to the model the natural rate of the unemployment is empirical from 1991 to 2009.the result shows that the ascendant trend is very obvious. At last, according to the model, adjusting economic structure and regulating income distribution can reduce natural rate of unemployment.

Effort Levels of Capital-constrained Retailer under Bank Financing

In a supply chain with a retailer confronted with financial constraints,impacts on profits of the supply chain can be alleviated by increasing the retailer's efforts and market demand through external financing( bank). If the cost of bank lending is not very high,the capitalconstrained retailer can borrow money and make efforts. The reduction of bank interest rates,however,increases the retailer's efforts. We prove that there is a unique equilibrium point between the retailers. We find out the optimal interest rate of the bank and the optimal efforts by the retailer through numerical analysis and verify validity of the results.

Discount Rate of China’s New Energy Power Industry

Under the dual pressures of energy crisis and environmental pollution,China’s new energy power industry has become a focal point for environmental management and requires greater investment.In this context,as a significant input of investment projects,discount rate requires a well-calibrated evaluation because new energy power investment projects are highly capital intensive.The main objective of this paper is to evaluate the discount rate of China’s new energy power industry.First,we use Moving Average to correct the parameters of capital asset pricing model(CAPM)and weighted average cost of capital,which extends the literature on the avoidance of CAPM noise information problem.Second,we study the industry-level annual discount rates of mainly China’s new energy power industries,including hydropower,nuclear power,wind power,and photovoltaic power industries for the period of 2014-2019.The results show that discount rates in China’s new energy power industries evolved differently between the years of 2014-2019 with average annual discount rates being 7.56%,5.83%,5.60%,and 8.64%,for the hydropower,nuclear power,wind power,and photovoltaic power industries,respectively.In 2019,the four annual discount rates were highest for the photovoltaic power industry(8.66%),followed by hydropower(7.17%),wind power(5.72%),and nuclear power industry(5.26%).Forecasting to 2020 from the 2019 evaluation base period,the discount rates are 6.37%,5.00%,6.57%,and 9.05%for the photovoltaic power,hydropower,wind power,and nuclear power industries,respectively.Under the different capital structures,their forecasts for the photovoltaic power,hydropower,wind power,and nuclear power industries in 2020 are,respectively,within[4.35%,9.24%],[3.92%,7.10%],[4.58%,10.40%],[5.46%,14.81%].We also discussed more details on capital structure and forecast period of discount rates for China’s new energy power industries.Our analysis shows that it is necessary to establish a new energy power industry database and steadily promote the implementation of policies.

Non-regular Employment of Women,Fertility Rate,and Economic Growth

This study analyzes the interaction between non-regular employment of women and economic growth patterns by an overlapping-generations model.Declining Birthrate White Paper-Cabinet Office(2013)shows the ideal number of children per household is 2.42 compared to the current number of 2.07,which is the lowest so far in Japan.The main reason households do not have the ideal number of children is“the costs burden of childcare and education”and the ratio amounts to 60.4%.In recent years in Japan,households in which both the husband and the wife work are increasing,whereas those in which only the husband works are decreasing.Additionally,although women have same educational background and abilities as men,most women become non-regular employees after marriage and childbirth,which reduces household income.In such a situation,raising the rate of pension insurance will be a big burden for the household and the declining birthrate may be caused by high levels of educational expenditure and pension insurance.The Japanese government has discussed raising the wages of non-regular employees.This paper finds that a rise in the wage rate of non-regular employment is needed under the public pension policy that raises the rate of pension insurance,and it must be at an adequate level.That is,there is a high risk that this policy will have a negative effect on Japan’s economic growth if an adequate level is not achieved.

Energy Assessment of Building Integrated Photovoltaics and Fuel Cell Systems: Design Study for Building(s) of Mie, Japan

A building integrated energy system (photovoltaic (PV) and fuel cell (FC)) is proposed for assessment of the energy self-sufficiency rate in five cities of Mie prefecture in Japan. In this work, it is considered that the electricity requirement of the building is provided by the building integrated photovoltaic (BIPV) system and the gap between the energy demand and BIPV supply is fulfilled by the FC. The FC is powered by the electrolytic H2 produced from the surplus power of PV. A design study of using the proposed system in five cities in Mie prefecture, which are in center part of Japan, has been performed. It has been observed that the monthly power production from BIPV is higher in spring and summer, while it is lower in autumn and winter at all considered locations. The self-sufficiency rate of the FC system is higher with decreasing households’ number and it has been observed that the 12 households are more suitable for full cover of the electricity demand by the combined system of PV and FC. The relationship between the households’ number and self-sufficiency rate of the FC system per solar PV installation area can be expressed by exponential curve. The coefficient of the exponential curve can predict the suitable city for the BIPV system with FC system utilizing electrolytic H2 generated by using excess energy from the PV system.

Energy Characteristics of an Integrated Power Generation System with Photovoltaic and Fuel Cell

An integrated energy system (with photovoltaic (PV) and fuel cell (FC) for building) is proposed and assessed in term of its energy self-sufficiency rate in seven cities (Nagoya, Toyota, Tajimi, Takayama, Ogaki, Hamamatsu, Shizuoka) in Tokai region in Japan in this paper. In this work, it is considered that the electricity requirement of the building for household users is provided by a building integrated photovoltaic (BIPV) system and the gap between the energy demand and BIPV supply is fulfilled by the FC. The FC is powered by the electrolytic H2 produced when PV power was in surplus. Based on the study of applying the proposed system in seven cities, which clarifies the effectiveness of the integrated BIPV, electrolytic H2 and FC power generation system, a universal system model has been developed in this paper. It has been observed that the monthly power production from BIPV as well as FC system are higher in spring and summer, while they are both lower in autumn and winter at all considered locations. The self-sufficiency rate of the FC system is higher with decreasing households’ number and it has been observed that 16 is the most appropriate number of households in a building, whose electricity demand could be fully covered by the integrated PV and FC system. Due to its climate condition, Hamamatsu is the best city in the region for installing the proposed system. The correlation between the households’ number and self-sufficiency rate of the FC system per solar PV installation area can be expressed by the regression curve in the form of y = ax-b well.

The Rate of Convergence of Augmented Lagrangian Method for Minimax Optimization Problems with Equality Constraints

The augmented Lagrangian function and the corresponding augmented Lagrangian method are constructed for solving a class of minimax optimization problems with equality constraints.We prove that,under the linear independence constraint qualification and the second-order sufficiency optimality condition for the lower level problem and the second-order sufficiency optimality condition for the minimax problem,for a given multiplier vectorμ,the rate of convergence of the augmented Lagrangian method is linear with respect to||μu-μ^(*)||and the ratio constant is proportional to 1/c when the ratio|μ-μ^(*)||/c is small enough,where c is the penalty parameter that exceeds a threshold c_(*)>O andμ^(*)is the multiplier corresponding to a local minimizer.Moreover,we prove that the sequence of multiplier vectors generated by the augmented Lagrangian method has at least Q-linear convergence if the sequence of penalty parameters(ck)is bounded and the convergence rate is superlinear if(ck)is increasing to infinity.Finally,we use a direct way to establish the rate of convergence of the augmented Lagrangian method for the minimax problem with a quadratic objective function and linear equality constraints.

Capital Account Openness,Exchange Rate Volatility and Economic Growth:International Experiences and Implications

Based on the Barro classical growth model, this paper introduces capital account openness and exchange rate volatility to conduct an empirical analysis using the panel data of 182 countries(regions) during 1970-2013 to examine the combined effects of capital account openness and exchange rate risks on economic growth. Our findings are as follows:(1) Without considering exchange rate volatility, capital account openness is subject to a threshold effect, i.e. capital account openness significantly promotes the economic growth of middle-and high-income countries but exerts the opposite effect on low-income countries; and(2) after exchange rate volatility is taken into account, the growth effect of capital account openness is reduced and the greater the exchange rate volatility is, the smaller the marginal effect of capital account openness will be; sample-specific results also proved the existence of the threshold effect. This paper offers the following implications:(1) The effect of capital account openness can be better examined based on risk factors;(2) moderately controlling exchange rate volatility is conducive to acquiring greater benefits from capital account openness; and(3) the threshold effect of capital account openness cannot be overlooked.

THE RATE OF RETURN ON CAPITAL FOR PENSION SYSTEM IN CHINA

The rate of return on capital is a key parameter in pension reform policy making. While evaluating pension reform, the method Feldstein proposed to measure the rate of return on capital is widely adopted. Here we calculate the rate of return on capital in China by this method. The calculation demonstrates that the rate of retum on all the industrial enterprises is around 6.5 percent from 1996 to 2000, and the average rate of return on state-owned industrial enterprises is lower than the above figure by 1.5 percent during the same period. Finally, we draw a conclusion that the rate of return ranging from 5 to 7 percent is appropriate for the pension reform in China.

The Impact of the US Interest Rate Hike on Emerging Market Economies and the Belt and Road Initiative

Since the end of 2015,the US Federal Reserve has raised its benchmark interest rate nine times.This has led to capital outflows and asset depreciation in many emerging market economies.The present paper examines the factors that determine the financial volatility of emerging markets in the face of external shocks.By calculating the capital flows of 30 emerging markets from 1990 to 2018 and conducting panel regression,this paper finds that countries with good infrastructure facilities,a sound banking system and high economic growth have significantly lower cross-border financial risks.An implication from the empirical analysis is that emerging countries would benefit greatly by actively taking part in the Belt and Road Initiative.The framework of the Belt and Road Initiative allows emerging countries better access to China s massive consumer market to promote trade and long-term growth.Their quality of infrastructure can be improved through cooperation with China in infrastructure investment.They can also jointly establish a cooperative financial framework to enhance regional financial stability.These strategies will reduce systematic financial risks and counteract the negative impacts of US interest rate hikes.

The Renminbi Exchange Rate Reform and the Rebalancing of China's Growth Model

This paper posits that a proper way to estimate the Renminbi(RMB) exchange rate is to base the evaluation on the Balassa-Samuelson effect, and that the optimal way to facilitate China's growth model transformation is gradual RMB internationalization and capital account liberalization. Regression estimates show that the gross domestic product per capita growth rate, or the productivity growth rate, has strong explanatory validity when estimating the RMB exchange rate. The findings further assert that, as the growth of gross fixed capital formation slows, and the growth of household consumption speeds up, China's economic growth will be sustained. The RMB exchange rate regime is one in which gradual reforms must yield to interest rates levels and hence should only be revalued conditionally.