The relevance is determined by the presence of discussions among economists and political scientists about the state regulation role, especially during crises when governments are expected to provide an economic miracle solution or new measures that are not thought about during periods of growth. The subject of the study is government expenditures, which should be fairly distributed by governments in crisis times with a clear vision and understanding of public goals, for the achievement of which it is necessary to undertake economic changes. Therefore, the purpose of the study is to generalize the results of the discussion about the possibility of changing the economic “mainstream” to the “modern monetary theory” (MMT) and its prospects in public finance management. The research methods include systematic, critical, comparative and cross-country analysis and verification of the realism of the MMT’s proposals. The results of the study made it possible to analyze the economic solutions of the new theory based on the political subtext of the theory itself: is it possible to entrust governments with an unlimited budget filled with the issue of national currency; has there been a need to update public goals; what are the prospects for full employment with government funding of jobs; is it possible for society to subject taxes to increase or is there enough transparency and collection; is inflation dangerous in the current situation and in the future; is the MMT really an economic recipe for politicians focused on achieving public goals, including ecology and inequality. It is concluded that all-round criticism and all-round approval are equally unacceptable in relation to the new theory from the standpoint of practical state regulation. Some elements of the MMT have already been implemented in various countries, both successfully and with negative consequences. Therefore, when considering the MMT in unity with public goals, the criterion of choice should not be the quality of economic decisions, not their elegance and validity, but enforceability in accordance with urgent and strategic tasks that need to be solved by politicians.

The subject of the research is the segments of the financial system of the Russian Federation: the budget system, the banking sector, the stock and insurance markets, and the currency policy of the state. The purpose of the study is to determine the trends and factors in the development of the main elements of the financial system at the present stage. The relevance of scientific research is due to the fact that the financial system is a key element of the strategy of socio-economic development of any state, providing economic processes with financial resources and capital. The author uses the following methods: analysis, synthesis, generalization, and the logical method. The study highlights promising directions, ways and mechanisms for the development of the Russian financial system that are relevant in the 2020s. The key factors influencing their trends and threats that create barriers are analyzed. The main directions, ways and mechanisms for stimulating the further development of the elements of the financial system are described. The author concludes that due to the spread of the coronavirus pandemic and economic sanctions imposed on Russia, the stability of the Russian financial system has been violated, which requires the adoption of state regulation mechanisms to improve the activities of financial institutions. The prospect of further research on this topic may be related to the development of areas for improving individual elements of the Russian financial system.

The aim of the study is to identify the future of Russian bancassurance in the “digital” world based on the formation of a reasonable opinion on its prospects within the framework of path dependence and the ecosystem approach. The relevance of the article is determined by the significance of bancassurance for the development of the insurance sector and the Russian financial market as a whole. The author uses methods such as analysis and synthesis, analogy, induction, descriptive analysis, matrix construction, clustering using graphs, and index method. The study is based on the works of domestic and foreign authors, data from the Bank of Russia on the state of the banking sector of the Russian Federation and key indicators of the insurers; reports of the rating agency “RA Expert” on bancassurance; data of Professional Analysis Systems of Markets and Companies Interfax. Based on the results of quantitative analysis, the author concludes that the key factor determining the development of Russian bancassurance within the framework of path dependence is the role of banks as recipients of cash flows. The author shows that the digital transformation of bancassurance is mainly associated with the digitalization of intermediary relations between the bank, individual client and insurance company. To quantify the level of such transformation, the author proposes indices of digitalization of bancassurance. The author shows that bancassurance can be successfully built into ecosystems due to its peculiarities. However, the conditions for the development of ecosystems in the Russian market can lead to the dissolution of bancassurance in ecosystems and the loss of its significance for the development of the Russian financial market. The presented conclusions are to be discussed taking into account the study of new issues in this problem area, including a study of the mergers and acquisitions market to analyse changes in the ownership structure of banks and insurance companies; a study of corporate bancassurance; broader analysis of quantitative values of bancassurance due to new data; analysis of ecosystem development in the Russian financial market in order to move from predictive judgments to a discussion of real situations.

The aim of this article is to search for the relationship between working capital management (WCM) and profitability under different macroeconomic conditions. The dataset includes 179 companies from Gulf Cooperation Council (GCC) countries for a six-year period. Results reveal a nonlinear relationship between CCC and profitability in a way that, shorter CCC periods have opposite direction with profitability yet as the period increases this relation turns to be positive. The partial effect of CCC has a more significant influence than those of its components. However, overall significances of the components are higher. Gross profit and operating profit margins have high responsiveness against WCM changes. Among macroeconomic indicators, inflation and unemployment are distinctive in models yet GDP per capita has a moderate influence on profitability. To the best of our knowledge, this is the first study to examine the WCM-profitability relationship with a focus on macroeconomic variables in the GCC region.

Endogeneity can cause a significant bias in the coefficient estimation, up to the change in sign. It leads to controversial research results, which also makes it difficult to adequately test individual hypotheses and theories in corporate finance (CF). For practitioners, such as company valuation consultants, these model problems interrupt obtaining the most reliable estimates in the interests of the customer. The aim of this study is to review an endogeneity problem in CF and ways to solve a problem of endogeneity. We will illustrate the methods found in the systematic review with an empirical example. The paper provides the reasons for this problem from an econometric point of view and with examples from the CF and econometric methods of dealing with it. As a result of a systematic literature review, we have shown that dynamics panel models, in particular the Blundell-Bond method, are mostly used to consider endogeneity in CF studies. We have verified empirically the conclusion made in the framework of the literature review. To detect the endogeneity, we used the Hausman test, the endogeneity test, and the analysis of the correlation matrix, including the saved regression residuals. Eliminating step-by-step endogeneity, we concluded that the Blundell-Bond method is not always the optimal one for dealing with endogeneity in CF, as well as regression with a fixed effect. It was revealed that the two-stage least squares method (IV 2SLS) is the most appropriate method for the cost of capital model estimation eliminating endogeneity. In addition, the estimates of the cost of capital model, which analyzes the impact of non-financial reporting, have been improved.

Ratings are widely used in stock analysis, as they increase information transparency, simplify the assessment and investment decision-making in the stock markets, and increase their effectiveness. However, the use of ratings is constrained by subjective factors, which necessitates replacing expert assessments with objective characteristics. The aim of the study is to develop a stock valuation rating model, which allows obtaining additional information about the qualitative characteristics of shares in relation to existing rating methods, ensuring the transparency of the rating methodology and limiting the influence of subjectivity, affiliation and bias of an expert analyst. On the basis of the method of dynamic standard, a rating score is constructed, which expresses the measure of the proximity of the normative and actual order of the growth rates of indicators characterizing the investment attractiveness of stocks. When choosing current indicators for inclusion in the rating, the principle of their dynamic co-subordination (normative ordering by growth rates) proposed by I.M. Syroezhin and successfully used in the analysis of economic situations has been applied. The authors have built a share valuation rating model, which is a system of inequalities for the growth rates of six indicators (reference aggregated indicator — benchmark): the market price of a share, the size of the dividend per share, the company’s net profit, revenue, equity and the number of shares in circulation. One of the advantages of the developed model is its universality: it is applicable to any industry, any market, and any accounting system. The model will make it possible to address the problems of expert subjectivism, the use of projected values and the availability of initial information (indicators of official reporting). The authors note the limitation of the model — it is not applicable to the valuation of early-stage companies. The model has been tested by compiling ratings of common stocks from the MICEX index10 for one-year and five-year periods. A comparative analysis of the ratings showed that a higher rating of stocks is observed in the long term. This also determines the applicability of the developed model as a stock analysis tool for long-term fundamental investments.

The aim of the paper is to assess the debt sustainability of the budget system of the regions of the Northwestern Federal District (NWFD) of Russia and establish differentiated values of the budget constraints. The author uses methods of comparison and grouping, correlation and cluster analysis. The author’s methodology based on the methods of multivariate statistical analysis made it possible to include indicators that have the nature of leading indicators in the assessment, evaluate the integral indicator of debt sustainability, and determine the limit values of these indicators. Approbation of the author’s methodology for assessing the debt sustainability of the budget system on the statistics of the NWFD regions allowed dividing the regions into three clusters according to the types of debt sustainability and determining the threshold values of indicators for each cluster. The research results substantiate the need to reduce the high debt burden for 70% of the NWFD regions. The results indicate that the regions with a high level of debt sustainability include St. Petersburg, Leningrad and Kaliningrad regions. The integral indicator of debt sustainability of these regions is greater than one and the regions are well grouped according to six indicators of debt sustainability into a group that is homogeneous in terms of characteristics. The Republic of Komi, the Republic of Karelia, and the Arkhangelsk and Pskov regions have a low level of debt sustainability: the standard limiting values for the “debt-to-GRP ratio” indicator of the regions is less than 5%, and the “debt-to-revenue ratio” indicator — less than 42%, the value of all indicators of debt sustainability exceeds the values of the cluster centroids. For these regions, the author recommends pursuing a targeted budget policy with a mandatory debt reduction to the level of threshold values for the indicators of the regions of this cluster. The paper concludes that it is necessary to reduce the debt burden of most regions of the NWFD, as well as to establish differentiated values of budget constraint on public debt, taking into account the indicators of socio-economic development of these regions.

This study aims to identify the main factors that can influence the growth of the regional economy in order to assess the effectiveness of the government support measures for regions, designed to stimulate the regional domestic product growth. The subject of the study is the relationship of socio-economic indicators in the Northwestern Federal District of Russia. The authors apply the method of correlation-regression analysis. The scientific novelty lies in the development of an econometric model based on statistical data of the constituent entities of the Northwestern Federal District to forecast the levels of regional domestic product and consumer spending per capita. The main socio-economic indicators of the development of the Northwestern Federal District have been identified, which make it possible to quantitatively assess the measures taken by the government to financially support the population and the economy of the region. The Menges model was chosen as the basis for the study, which allows analyzing the relationship between such significant financial and economic indicators of an economic entity as gross regional product, investments, profit of organizations and consumption. The article developed an econometric model in the form of a system of interconnected econometric equations, the coefficients of which were estimated in the Gretl package of applied econometric programs. Based on the analysis and modification of the classical Menges model, the authors were able to determine the key indicators that have a significant impact on the dynamics of the economy of the Northwestern Federal District. These include the following factors: investments; consumer spending per capita; taxes; social payments; household deposits; personal loans; industrial production; income from business activities; profit of organizations. The authors conclude that financial support for entrepreneurs and businesses does not have a significant impact on the economic growth of the region, and measures aimed at increasing the wages of employees of organizations for the economy of the Northwestern Federal District are more effective than measures associated with an increase in social benefits. The research results will be useful to those who make regional management decisions to stabilize the post-pandemic economic situation in the Northwestern Federal District.

This paper considers the problems of state financial control, which are relevant for the government of any country. The aim of the study is to develop practical proposals to improve the effectiveness of the state financial and control authorities in the Republic of Tajikistan. The author uses the methods of analysis, generalization and comparison to identify shortcomings of the state financial control in the Republic of Tajikistan. The study presents an analysis of international experience in this area and some aspects of the Lima Declaration, which have been applied in practice and showed their effectiveness. The scientific novelty of the study lies in the fact that the author proposes measures to improve the state financial control activities of the Republic of Tajikistan and the Accounts Chamber. Among them: increasing the efficiency of using public funds, creating an integral system of state financial control, preventing duplication of powers and functions of state financial control bodies, introducing international experience in the field of state financial control and measures to improve laws and regulations in the field of state financial control, and creating a mobile and efficient system of state financial control. The author concludes that it is necessary to adjust the financial control system of Tajikistan to ensure its relevance and compliance with the requirements of the country’s current policy objectives. The author’s recommendations can be used to improve the regulatory framework of the state audit in the Republic of Tajikistan.

Financial behavior is a category and its relevance for Russia is growing rapidly along with the activity of people who carry out daily interactions in a dynamic socio-economic space at all its territorial levels (local, regional, national, and supranational). In this context, the authors emphasize the scientific significance of studying the process of behavior transformation leading to financial results. From the point of view of the authors, this is due to the understanding of the primary and secondary interdependencies, the coherence of the concepts used, their sequence, priority, and significance. The aim of the article is to show the connectedness of elements in the behavior of people who are actors simultaneously in three subspaces: social, economic, and financial, which are organized hierarchically. The goal is due to the diversity of people’s financial behavior and the need for a counter study of both the factors influencing it and the analysis of monitoring the intertwining forms of financial behavior. The authors use methods of spatial analysis, content analysis, and sociological factor analysis. The factors of influence are placed in the “pyramid” of subspaces, which contributes to their prioritization, the vectors of people’s interaction, the economic, socio-demographic determinism of their actions, and the territorial differentiation of the financial infrastructure, and other aspects are also highlighted. The article systematizes scientific approaches to the study of the economic and financial activities of the population from the point of view of the relationship of incentive motives which simultaneously affect decision-making. The study identifies structural elements of each of the three subspaces (relationships-resources-choice-experience), within which a person (social group) forms and implements a particular model of behavior. The main theoretical concepts used in the study of financial behavior are singled out: social relations, economic resources, financial strategy, and their relationship. The authors conclude that the financial behavior of people has a spatial structure. Its result is determined by the categories of three subspaces — social, economic, and financial, which together represent the “matryoshka” model. The proposed methodology is significant for identifying the characteristics of the financial behavior of young people and the factors influencing the transformation of their financial literacy.

The paper aims to substantiate the main development directions of legal regulation of artificial intelligence in healthcare. The main hypothesis of the study is the assumption that artificial intelligence should not be a subject of law. The author formulates the postulates necessary for the introduction of modern technologies in the context of the digitalization of medicine. General and special scientific methods are used: the dialectical method of cognition of reality, synthesis and deduction. The comparative and formal legal method of scientific cognition made it possible to analyze the laws and other documents of a number of states in the field of digitalization and the mechanism for financing the provision of medical services and medical care. The article analyzes the directions proposed by scientists and practitioners with the participation of the largest IT companies to improve the provision of medical care and medical services and optimize healthcare management. The author draws attention to financial mechanisms to stimulate the introduction of digital technologies in the healthcare system, directly to the provision of medical care. Structuring the main directions of applicability of digital technologies in healthcare allowed us to formulate proposals for improving their legal support. The analysis of foreign and domestic legislation has revealed the importance of using such a financial and legal mechanism as health insurance. Based on the results of the study, the author makes a conclusion about the need for a systematic approach to digitalization in healthcare and proposes an institutional and legal model for the development of patient-centered medicine based on artificial intelligence technologies.

The article is devoted to the analysis of the behavior of the interest rate risk of bonds in the conditions of a changing key interest rate. As known, the key rate is an instrument of monetary regulation of the Central Bank of the Russian Federation. During periods of instability, the key rate may change, which leads to changes in yields in the bond market. The latter, in turn, means that bonds on the Russian market are exposed to interest rate risk. When investing in federal loan bonds (OFZ), interest rate risk becomes the main type of risk, since there is no credit risk in such bonds. The aim of the paper is to obtain proof of the dependence of the interest rate risk of bonds on the term to maturity. The author applies methods of differential calculus to obtain the proof. The novelty of the research is that there is no similar proof in the literature. The instability of interest rates in the market persists at the present time, which allows us to speak about the relevance of this work. Results: it is established that with fixed values of the coupon rate, initial yield and the amount of interest rate change, the interest risk of bonds increases with an increase in the term to maturity. For longterm bonds sold at a discount, there is a term of a maximum interest rate risk. The formula for the approximate value of the term of maximum is obtained. Proven statements are confirmed by calculations, are consistent with previously performed studies, and are in line with market observations. The author comes to the conclusion that the proof obtained in the article of the dependence of the interest rate risk of bonds on the term to maturity can be used to analyze the behavior of the interest rate risk of bonds in the conditions of a changing key interest rate. The practical significance: the results of the research can be useful to the issuer and investor, as well as in theory when studying the investment properties of bonds.

This paper aims to restore some parameters of functionals using cubic splines to forecast rare events in finance and economics. The article considers the mathematical method for recovering an unknown function from many different functionals, such as the value of a function, the value of its first derivative, second derivative, as well as a definite integral over a certain interval. Moreover, all observations can occur with an error. Therefore, the author uses a method of recovering a function from different functionals observed with an error. The function is restored in the form of a cubic spline, which has a value-second derivative representation. The optimization problem consists in minimizing several sums of squares of the deviation at once, for ordinary values, for the first derivatives, for the second derivatives, for integrals, and for roughness penalty. For greater flexibility, weights have been introduced both for each group of observations and for each individual observation separately. The article shows in detail how the elements of each corresponding matrix are filled in. The appendix provides an implementation of the method as a FunctionalSmoothingSpline function in R language. Examples of using the method for the analysis and forecasting of rare (discrete) events in the economy are given. Formulas for calculating the cross-validation score CV (α) for the automatic procedure for determining the smoothing parameter α from the data in our problem of recovering a function by many functionals are shown. The paper concludes that the presented method makes it possible to analyze and predict rare events, which will allow you to prepare for such future events, get some benefit from this, or reduce possible risks or losses.

The purpose of this paper is to examine how the introduction of the pan-India electronic trading portal (eNAM) impacted the information transmission and price discovery in informationally linked markets of India for agricultural commodities. We have applied the information share and component share methods using daily data of five agricultural commodities from 2005 to 2019. This paper offers two findings, first; evidence shows that commodity stock prices have more price discovery as compared to the market prices. Whereas market prices also generate a significant price discovery, but its volume is less. Second, market prices adjust more quickly than commodity stock prices to correct the disproportion between both markets. This scenario is more evident post eNAM era. Conclusions from this study can be used to understand the information flow and would be helpful to academicians, practitioners, policymakers, or business players of commodity markets.

The aim of this research is to assess the impact of GST on India’s foreign trade. The GST Bill is implemented to simplify India’s complex tax system, allow commodities to move effortlessly across state borders, reduce tax evasion, enhance compliance, raise revenues, encourage growth, boost exports, and attract investors by making it easier to conduct business in India. The author uses the following methods of scientific research: Augmented Dickey-Fuller (ADF) for unit root tests, the Johansen-Juselius (JJ) for co-integration analysis and the Vector Error Correction (VECM) Model for short run and long run impact of GST on imports and exports from July 2017 to June 2021. The findings concluded that GST increases the exports of goods and services in both the long and short run. The VECM model’s test statistics reveal that imports rose after the imposition of GST. Because of the emergence of a uniform national market and tax system, GST has simplified commercial operations in India. Future studies on the effects of the GST introduction can examine the impact of GST on foreign trade by state or commodities.

The object of the study is the consolidated taxpayer group regime (CTG) introduced in Russia in 2012 for the largest groups of companies in which a group of companies is treated as a single entity for tax purposes. The aim of this paper is to investigate the reasons for the decision to cancel the CTG regime starting from 2023. The method of the study is an analysis of the available official reports, scientific publications and officials’ statements on the topic. We have also compared the initial objectives of the CTG regime introduction with the criteria by which the regime was further evaluated. In the paper we show that the main reasons for criticizing and abolishing the CTG regime do not correspond to the initial goals of its introduction. In the result, we found that the reasons for criticism stem from the fact that the CTG mechanism does not always allow the Russian regions to achieve predictability of their budgets and prevent them from diminishing. In prospect, this experience should be taken into account when making the decision on the future of the CTG regime to avoid a disappointment of the ‘losing’ regions.