The multiplier accelerator theory in the study of municipal-level investment

Abstract

Our approach combines the multiplier accelerator theory with the concept of efficient management of investment in socio-economic systems of various levels and thus it has enabled us to develop a matrix for diagnostics of investment processes by calculating investment efficiency (with the help of the investment multiplier) and the focus of the investment process (with the help of the investment accelerator). Upon these results we have mapped municipalities according to their levels of investment development and proposed a differentiated approach to managerial decision-making.These findings can be used to study investment attractiveness on the municipal level and to develop guidelines for assessment of investment attractiveness and for managerial decision-making to enhance investment efficiency.

Hedging Market Risks

“…Hedging strategies represent a set of specific hedging instruments and how to use them to reduce price risks. All hedging strategies are based on the parallel movement of the current price in the real market ("spot") and the futures price, the result of which is the ability to compensate for losses in the derivatives market incurred in the real market (Kazakova & Kuzminykh, 2017).…”