Search Results (850)

This paper asks whether debt among affluent consumers reflects rational leverage, comparable to firms, or the influence of cognitive biases. Using survey data on Brazilian bank clients, we combine logistic regressions with a finite-mixture-inspired, rule-based classification and a test based on a ten-business-day overdraft grace period to identify heterogeneity in borrowing behavior. In the high-income subsample, Cognitive Reflection Test scores are unrelated to debt incidence, diverging from prior evidence in mixed-income populations. Among indebted affluent respondents, most borrowing is cost-sensitive and consistent with deliberate leverage (about 80 percent), while a minority displays patterns consistent with optimism bias and overconfidence (about 20 percent). The institutional feature of a temporary grace period lowers the effective cost of short-term credit and is associated with a marked reduction in overdraft use, reinforcing the leverage interpretation. Overall, consumer debt is heterogeneous; for the affluent, it largely aligns with leverage, though behavioral biases persist at the margins. Policy for high-income borrowers should prioritize targeted measures that address optimism bias and overconfidence while preserving deliberate leverage management through clear disclosures and monitoring of sensitivity to short-term credit costs. Full article

In recent years, the financial sustainability and survival of microfinance institutions (MFIs) have been seriously threatened by factors such as the reduction in donations, cooperation funds and international aid, and increased competition from commercial banks. Faced with this hostile scenario, which may limit access to credit for disadvantaged groups, MFIs must apply techniques to improve their efficiency, viability, lending capacity and survival. The objective of this study is to design a microcredit pricing model based on the Internal Ratings-Based approach, Basel III and probability of default to enhance access to credit for disadvantaged groups. We analysed a sample of 4550 microcredit transactions and 30 influential variables (25 idiosyncratic and 5 systemic). Our empirical results reveal that the IRB system is more equitable for borrowers and more efficient for MFIs, as it allows lower interest rates to be applied to borrowers with better credit histories. The application of the proposed IRB model can improve the sustainability, competitiveness and viability of MFIs by promoting operational efficiency and reducing default rates, thus contributing to financial inclusion by increasing supply. Full article

In this paper we investigate the short-run and long-run determinants of the informal economy in Romania using Dynamic General Equilibrium (DGE)-based estimates of informal output as the dependent variable. An ARDL model is used to analyze macroeconomic and institutional variables for Romania during the period of 1995–2023, including inflation (INF), primary net lending/borrowing (NLB), the political stability index (PSI), interest payments (INTPAY), gross domestic product per capita (GDP), and self-employment (SEMP). The findings show that inflation, fiscal balance, political stability, interest payments, and GDP per capita have a short- and long-run impact on informal output. In the long run, a 1% increase in inflation raises informal output by 0.03%, while a 1% rise in GDP per capita reduces it by 0.29%. The error correction term suggests a rapid adjustment speed of 79% toward the long-run equilibrium. These findings suggest that institutional reforms, sustained economic growth, and stable macroeconomic policies play an important role in reducing informality and promoting sustainable economic resilience in Romania. Full article

European Union legislation, particularly Council Directive 2004/113/EC, mandates gender neutrality in credit scoring to prevent discrimination. However, this creates a regulatory paradox if gender is a statistically relevant predictor of default risk. This study investigates this “fairness-through-unawareness” approach by empirically testing for systematic mispricing. We employ a twofold econometric analysis on a dataset of consumer loans from a Lithuanian peer-to-peer platform. After data preparation for the regression, the sample consists of 9707 loans. First, logistic regression is used to model actual default risk, controlling for credit rating, age, loan amount, and education. Second, Ordinary Least Squares (OLS) regression is used to model the interest rate set by the platform. The Logit model finds that gender is a highly significant predictor of default (p < 0.001), with male borrowers associated with a higher probability of default. Conversely, the OLS model finds that gender is not a statistically significant factor in loan pricing (p = 0.263), confirming the platform’s compliance with EU law. The findings empirically demonstrate the regulatory paradox: the legally compliant, gender-blind pricing model fails to account for a significant risk differential. This leads to systematic risk mispricing and an implicit cross-subsidy from lower-risk female borrowers to higher-risk male counterparts, highlighting a critical tension between regulatory intent and outcome fairness. The analysis is limited to observed loan-level characteristics; it does not incorporate household composition or the internal structure of the platform’s proprietary scoring model. Full article

In recent decades, the fractional derivative (FD) and memory-dependent derivative (MDD) have been borrowed for modifying the unsteady diffusion process. Yet, according to their definitions, only memory effects in temporal sense are reflected. To make spatial modifications, that is, a new version of MDD, the space-dependent derivative (SDD) is developed here. With the help of it, the heat diffusion process is remodeled in a more objective manner. The comparisons among the conventional model, spatial FD model, and SDD model show that the last one has the most expressive force, and it can be borrowed for considering other unsteady diffusion problems. Full article

Capital flow, integral to the global economy, is significantly influenced by business potential and institutional environments. As one of the world’s largest economies, China’s outflow plays a crucial role in the rapid development of its economy. This study examines domestic investment into public and private components to avoid aggregation bias, whether China’s outward foreign direct investment (OFDI) serves as a substitute or complement to local investments, and how local institutional quality mediates this relationship. We employed Dynamic Autoregressive Distributed Lag model ARDL simulation methods for the period of 1996–2021 in order to control endogeneity, auto-correlation, cross-sectional bias, as well as heteroscedasticity issues, which normally arise in time-series datasets. Our findings reveal that OFDI has a dual impact on local economies. Firstly, OFDI has a generally positive effect on private and public investment, but this relationship is nonlinear. Furthermore, institutional quality significantly influences private investment more than public investment. Additionally, higher interest rates are shown to adversely affect both private and public investments by increasing borrowing costs. These results offer valuable insights for policymakers aiming to optimize investment flows and economic stability. Specifically, fostering institutional quality can amplify the positive spillovers of OFDI on private investment, while mitigating its crowding-out effects on public investment. Full article

The three-dimensional documentation of hypogean structures poses significant methodological challenges due to the absence of natural light, confined spaces, and the presence of fragile painted surfaces. This study presents an integrated workflow for the survey of the Tomba dell’Orco (Tarquinia), combining terrestrial laser scanning, photogrammetry, and the light painting technique. Borrowed from photographic practice, light painting was employed as a dynamic lighting strategy during photogrammetric acquisition to overcome issues of uneven illumination and harsh shadows typical of underground environments. By moving handheld LED sources throughout long-exposure shots, operators produced evenly illuminated images suitable for feature extraction and high-resolution texture generation. These image datasets were subsequently integrated with laser scanning point clouds through a structured pipeline encompassing registration, optimization, and texture reprojection, culminating in web dissemination via the ATON framework. The methodological focus demonstrates that light painting provides a scalable and replicable solution for documenting complex hypogean contexts, improving the photometric quality and surface readability of 3D models while reducing acquisition time compared to static lighting setups. The results highlight the potential of dynamic illumination as an operational enhancement for 3D recording workflows in low-light cultural heritage environments. Full article

We examine how firms finance deficits when cash is tight, focusing on French private family firms and the COVID-19 period. In an under-studied, bank-based setting (France, 2003–2024), we reassess whether pecking-order behavior is stronger under family control and whether the gap with non-family firms widened after 2020. We find that family firms consistently use debt to bridge shortfalls, whereas comparable non-family firms rely less on new borrowing; this difference increases post-COVID, in line with policy-driven easing of bank credit and the importance of relationship lending. The amplification is stronger in credit-intensive sectors and for firms with deeper bank ties. The results, presented without strong causal claims, connect control preservation and intermediation to marginal financing choices and highlight a policy trade-off between short-run stabilization and later deleveraging. Full article

The traditional intermittent bus lane control struggles to achieve an effective balance between bus priority and lane utilization efficiency. To address this limitation, this study proposes a dynamic control strategy that enables the borrowing of intermittent bus lanes in mixed traffic flow environments and constructs a connected vehicle control model encompassing both the target intersection and its upstream segment. First, a dynamic clearance framework is established on the dedicated lane based on the real-time speed of buses. Concurrently, the target connected and automated vehicle (CAV) predicts the traffic signal status upon its arrival at the stop line to determine its traversable zone at the bus lanes. Subsequently, a coordinated control strategy is designed for the dynamic clearance framework and the traversable zone, leading to the development of lane-changing decision models under four distinct scenarios. This approach allows CAVs to dynamically utilize residual lane resources without compromising bus operations. Finally, using average vehicle delay as the evaluation metric, a comparative simulation analysis is conducted against the traditional bus lane utilization method across four dimensions: connected vehicle penetration rate, traffic flow saturation, right-turn proportion, and bus departure frequency. The experimental results demonstrate that the proposed strategy significantly improves both bus priority and overall traffic efficiency. Full article

Growing consumer preference for natural products has prompted interest in the use of plant extracts as plant raw materials providing active ingredients for cosmetics. This study focuses on vine tendrils, a by-product of grape cultivation, as a sustainable source of bioactive compounds. The idea of loan extraction using components borrowed from the final formulation was applied to extract valuable compounds from vine tendrils. The effectiveness of different extraction media was compared by analyzing the chemical profile of the extracts obtained using LC–MS/MS and UV–VIS techniques. The results obtained indicate the potential of extracts from grapevine tendrils as plant materials rich in bioactive substances with antioxidant properties, which supports their use in cosmetic products aimed at improving hair condition and skin protection. It is important to emphasize that grapevine tendrils are considered waste material that must be removed during vineyard maintenance. Cosmetics based on the processed extracts were prepared and evaluated. The viscosity, foaming properties, color parameters, and irritation potential of the developed cosmetics were assessed. The obtained results demonstrated the potential of the waste material as a valuable source of natural cosmetic components. Full article

We investigate the broad economic impact of accession in the case of 13 countries who joined the European Union starting with 2004, by comparing them with both EU and non-EU countries. Using 25 years of data, we document significant post-accession improvements in productivity and/or GDP per capita. Overall, these countries outperformed in terms of growth and productivity the European countries that never joined the EU. The newly admitted countries also out-borrowed non-EU countries in order to finance their transition and their subsequent economic growth. We also document a significant short-term, inverse relationship between the quality of governance and total factor productivity, on the one hand, and the ratio of debt-to-GDP on the other hand. This suggests that increases in the level of indebtedness could be driven by poor political governance and weak productivity. Borrowing appears to represent a compensatory, stop-gap measure rather than the result of sound economic strategy. Full article

This study investigates the determinants of household borrowing choices in Thailand, with a focus on the risks associated with formal and informal credit markets. Using cross-sectional survey data from 6949 respondents across 77 provinces collected in September 2021, we employ multinomial regression models to analyze how demographic, occupational, and income factors shape debt outcomes. The results indicate that younger and lower-income individuals in Bangkok are more likely to remain debt-free, while older, higher-income, and farming households are strongly associated with formal borrowing. In contrast, unemployed individuals, retirees, business owners, and freelancers disproportionately rely on informal credit channels, exposing them to high interest rates, repayment difficulties, and heightened financial risk. Regional disparities further underscore structural inequalities: households in the north and northeast are more likely to access formal finance, whereas those in Bangkok and the south tend to turn to informal lenders. These findings highlight the risks of financial exclusion and the persistence of informal lending in emerging economies. Policy measures that expand access to regulated credit, promote microfinance, and strengthen consumer protection frameworks are essential to mitigate household financial vulnerability and reduce exposure to debt traps. Full article

Egypt has experienced a sharp rise in external debt over the past decade, increasing from USD 55.8 billion in 2015 to over USD 165.3 billion by 2023. Despite maintaining a debt-to-GDP ratio within internationally accepted thresholds (approximately 45% in 2023), the country faces mounting economic distress, including foreign exchange shortages, currency depreciation, and rising debt-servicing burdens. This study argues that Egypt’s crisis stems not from excessive borrowing but from ineffective debt management, particularly the misalignment between debt maturities and the economic returns of financed projects. Using annual data from 2010 to 2023—a period deliberately selected to capture Egypt’s post-2011 political and economic transition—the analysis applies a Vector Autoregression (VAR) model and Granger causality test to explore short-term interactions between short-term and long-term external debt, the exchange rate, and foreign reserves. While the small sample size limits long-term econometric inference, it provides meaningful insights into short-term debt dynamics and liquidity pressures characteristic of Egypt’s current economic phase. The results show that short-term debt exerts significant depreciative pressure on the currency, while long-term debt weakly undermines reserves when tied to non-revenue-generating projects. Policy recommendations emphasize improving debt maturity alignment, enhancing transparency, and linking debt servicing to productive investments. Full article

FinTech-based lending has rapidly expanded in emerging economies, offering convenience and inclusion but also raising concerns about over-indebtedness. In Indonesia, the surge of digital loans has been accompanied by growing signs of risky borrowing behavior, including late payments, high debt-to-income ratios, and poor credit discipline. This study investigates the determinants of individuals’ propensity to indebtedness in FinTech-based loans, focusing on the influence of financial behavior biases, emotions, culture, and materialism, as well as the moderating effects of financial literacy, job security, and religiosity. Data were collected from 400 Indonesian civil servants and private/self-employed workers through an online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that all proposed determinants significantly increase indebtedness, with financial behavior biases having the strongest impact. Financial literacy and job security amplify these effects, while religiosity weakens the influence of emotions and materialism. These findings contribute to behavioral finance theory and underscore the importance of promoting financial literacy, strengthening job stability, and integrating responsible lending policies to mitigate debt risks in emerging economies. Full article

This study examines how the Donggyeong Daejeon (東經大全), the principal scripture of early Donghak, receives and theologically reconfigures the conceptual lexicon of Confucian classics through text mining-based analysis. Drawing on the classical Chinese texts of the Four Books and the Donggyeong Daejeon, and employing computational techniques such as keyword frequency, keyword-in-context (KWIC), and co-occurrence mapping, the study identifies structural parallels and semantic shifts across the two corpora. These patterns are then interpreted hermeneutically to assess how early Donghak appropriates, repurposes, and theologically transforms inherited Confucian categories. Findings suggest that while the Donggyeong Daejeon retains key Confucian terms, it situates them within a distinct theological framework. The Confucian triad of human being, the Way, and Heaven (人–道–天), for example, is recast in Donghak as “Heaven’s heart is the human-heart” (天心卽人心), a theological affirmation of the human as the locus of Heaven’s immanence. Similarly, the Confucian virtue of sincerity (誠) is reinterpreted through the lens of faith (信), transforming it from a metaphysical ideal into a performative mode of spiritual judgment. Most notably, the Confucian dualism of li (理) and qi (氣) is overcome through the theology of “ultimate energy” (至氣), a divine substance that animates and unifies all beings. By combining quantitative text analysis with interpretive discussion, this study presents Donghak not as a rhetorical appropriation of Confucian discourse, but as a conceptual innovation rooted in the resemanticization of its inherited language. This methodology offers a new model for tracking doctrinal transformation in East Asian religious texts and contributes to broader discussions on intertextual borrowing, and the semantic evolution of classical traditions. Full article