Templates travel because they offer a tractable format that can be used for model-building in a variety of domains. It is often because of this quality that a particular template is chosen. But one cannot assume that there are always templates ready to model a new phenomenon, and moreover, templates have also been designed at some point. A critical aspect of this designing process is the choice of the mathematical objects with which one hopes to capture this phenomenon. This means (...) that one has to assess which of the properties of different kinds of mathematical objects and which combinations of them are most appropriate. The selection of these objects is based on whether their properties enable the model to perform its function. This selection of mathematical objects is similar to the selection of materials in mechanical design. (shrink)

Real-world economies are open-ended dynamic systems consisting of heterogeneous interacting participants. Human participants are decision-makers who strategically take into account the past actions and potential future actions of other participants. All participants are forced to be locally constructive, meaning their actions at any given time must be based on their local states; and participant actions at any given time affect future local states. Taken together, these essential properties imply real-world economies are locally-constructive sequential games. This paper discusses a modeling (...) approach, Agent-based Computational Economics, that permits researchers to study economic systems from this point of view. ACE modeling principles and objectives are first concisely presented and explained. The remainder of the paper then highlights challenging issues and edgier explorations that ACE researchers are currently pursuing. (shrink)

The book will be useful for economists, finance and valuation professionals, market researchers, public policy analysts, data analysts, teachers or students in graduate-level classes. The book is aimed at students and beginners who are interested in forecasting modeling and analytics of economic processes and want to get an idea of its implementation.

This research aims at establishing the impact of information and communication technologies (ICT) on e-commerce development of industrial enterprises by means of economic and mathematical modelling. The goal was achieved using the following methods: theoretical generalization, analysis and synthesis (to critically analyse the scientific approaches of scientists regarding the expediency of using mathematical models in the context of enterprises’ e-commerce development), target, comparison and grouping (to reveal innovative methodological approach to assessing ICT impact on e-commerce development of industrial enterprises), (...) tabular, analytical and integral method (for summarizing the analysis results of enterprises readiness to implement ICT, ICT use in the activities of industrial enterprises of Ukraine and the analysis of e-commerce development), mathematical modelling (to build a regression model determining impact of changes in ICT use on the market share occupied by industrial enterprises), generalization (to determine promising directions of e-commerce developing of industrial enterprises). The implementation of a comprehensive approach to understanding the importance of ICT influence on e-commerce development of industrial enterprises will ensure acceleration of the digitalization of business processes, will contribute to the speed increase of enterprises response to customer requests, and increase the market share occupied by enterprises. A new vision of directions for developing e-commerce of industrial enterprises is suggested, which are determined by the need for enterprise rebranding, the development of e-commerce tools and technologies, the importance of outsourcing service automation and promotion of subscription trade. ICT is considered as integration factor that determines prospects for e-commerce development of industrial enterprises and contributes to increasing efficiency of online business management. Research results demonstrate that the use of economic and mathematical modelling is an important tool for assessing ICT impact, and its absence can negatively affect the accuracy and validity of online business management. (shrink)

The paper discusses the possibility of constructing economic models using the methodology of model construction in classical mechanics. At the same time, unlike the "econophysical" approach, the properties of economic models are derived without involvement of any equivalent physical properties, but with account of the types of symmetry existing in the economic system. It has been shown that at this approach practically all known mechanical variables have their "economic twins". The variational principle is formulated on the (...) basis of formal mathematical construction without involving the subjective factor common to the majority of models in economics. The dynamics of interaction of two companies has been studies in details, on the basis of which we can proceed to modeling of more complex and realistic economic systems. Prediction of the possibility of constructing economic theory on the basis of primary principles analogously to physics has been made. (shrink)

The topics of modeling and information come together in at least two ways. Computational modeling and simulation play an increasingly important role in science, across disciplines from mathematics through physics to economics and political science. The philosophical questions at issue are questions as to what modeling and simulation are adding, altering, or amplifying in terms of scientific information. What changes with regard to information acquisition, theoretical development, or empirical confirmation with contemporary tools of computational modeling? In (...) this sense the title of this article is read in the following way: What kind of information is modeling information? What kind of information does modeling give us? (shrink)

Since the sixties, computational modeling has become increasingly important in both the physical and the social sciences, particularly in physics, theoretical biology, sociology, and economics. Sine the eighties, philosophers too have begun to apply computational modeling to questions in logic, epistemology, philosophy of science, philosophy of mind, philosophy of language, philosophy of biology, ethics, and social and political philosophy. This chapter analyzes a selection of interesting examples in some of those areas.

Utility discounting in intertemporal economic modelling has been viewed as problematic, both for descriptive and normative reasons. However, positive utility discount rates can be defended normatively; in particular, it is rational for future utility to be discounted to take into account model-independent outcomes when decision-making under risk. The resultant values will tend to be smaller than descriptive rates under most probability assignments. This also allows us to address some objections that intertemporal considerations will be overdemanding. A principle for utility (...) discount rates is suggested which is rooted in probability discounting. Utility discounting is defended against objections from Parfit (1984) and Broome (2005); Broome (2012). A sample utility discount rate is estimated. [Open access]. (shrink)

The Quantum Economics Intelligence Initiative, spearheaded by Quantum Economist PhDs. Kaiola M Liu integrates insights from seminal thinkers like Einstein, Archimedes, Adam Smith, Nick Land, and Sun Tzu. By applying principles of quantum mechanics, this forward-looking project aims to redefine economic modeling, exploring real-world applications and potential benefits. The initiative encompasses foundational studies, economic model applications, incorporation of quantum computing, and analysis of contemporary economic philosophies. Keywords - Quantum Mechanics, Economics, Technological Advancements, Philosophy.

This study provides a basic introduction to agent-based modeling (ABM) as a powerful blend of classical and constructive mathematics, with a primary focus on its applicability for social science research. The typical goals of ABM social science researchers are discussed along with the culture-dish nature of their computer experiments. The applicability of ABM for science more generally is also considered, with special attention to physics. Finally, two distinct types of ABM applications are summarized in order to illustrate concretely the (...) duality of ABM: Real-world systems can not only be simulated with verisimilitude using ABM; they can also be efficiently and robustly designed and constructed on the basis of ABM principles. (shrink)

Scientists and engineers seek to understand how real-world systems work and could work better. Any modeling method devised for such purposes must simplify reality. Ideally, however, the modeling method should be flexible as well as logically rigorous; it should permit model simplifications to be appropriately tailored for the specific purpose at hand. Flexibility and logical rigor have been the two key goals motivating the development of Agent-based Computational Economics (ACE), a completely agent-based modeling method characterized by seven (...) specific modeling principles. This perspective provides an overview of ACE, a brief history of its development, and its role within a broader spectrum of experiment-based modeling methods. (shrink)

Economies are complicated systems encompassing micro behaviors, interaction patterns, and global regularities. Whether partial or general in scope, studies of economic systems must consider how to handle difficult real-world aspects such as asymmetric information, imperfect competition, strategic interaction, collective learning, and the possibility of multiple equilibria. Recent advances in analytical and computational tools are permitting new approaches to the quantitative study of these aspects. One such approach is Agent-based Computational Economics (ACE), the computational study of economic processes modeled (...) as dynamic systems of interacting agents. This chapter explores the potential advantages and disadvantages of ACE for the study of economic systems. General points are concretely illustrated using an ACE model of a two-sector decentralized market economy. Six issues are highlighted: Constructive understanding of production, pricing, and trade processes; the essential primacy of survival; strategic rivalry and market power; behavioral uncertainty and learning; the role of conventions and organizations; and the complex interactions among structural attributes, institutional arrangements, and behavioral dispositions. (shrink)

Economists use various models to explain why it is that firms are capable of pricing above marginal cost. In this paper, we will examine two of them: the Cournot and Bertrand duopoly models. Economists generally accept both models as good explanations of the phenomenon, but the two models contradict each other in various important ways. The puzzle is that two inconsistent explanations are both regarded as good explanations for the same phenomenon. This becomes especially worrisome when the two models are (...) offering divergent policy recommendations. This report presents that puzzle by laying out how the two models contradict each other in a myriad of ways and then offers five possible solutions to that puzzle from various economists, philosophers of science, and philosophers of economics. (shrink)

In recent years, there has been an increasing interest in the development of well-founded conceptual models for Service Management, Accounting Information Systems and Financial Reporting. Economic ex- changes are a central notion in these areas and they occupy a prominent position in frameworks such as the Resource-Event Action (REA) ISO Standard, service core ontologies (e.g., UFO-S) as well as financial stan- dards (e.g. OMG’s Financial Industry Business Ontology - FIBO). We present a core ontology for economic exchanges inspired (...) by a recent view on this phenomenon. According to this view, economic exchanges are based on an agreement on the actions that the agents are committed to perform. This view enables a unified treatment of economic exchanges, regardless the object of the transaction. We ground our core ontology on the Unified Foundational Ontology (UFO), discussing its formal and conceptual aspects, instantiating it as a reusable OntoUML model, and confronting it with the REA standard and the UFO-S service ontology. (shrink)

The explosive growth in computational power over the past several decades offers new tools and opportunities for economists. This handbook volume surveys recent research on Agent-based Computational Economics (ACE), the computational study of economic processes modeled as open-ended dynamic systems of interacting agents. Empirical referents for “agents” in ACE models can range from individuals or social groups with learning capabilities to physical world features with no cognitive function. Topics covered include: learning; empirical validation; network economics; social dynamics; financial markets; (...) innovation and technological change; organizations; market design; automated markets and trading agents; political economy; social-ecological systems; computational laboratory development; and general methodological issues. (shrink)

The epistemic value of models has traditionally been approached from a representational perspective. This paper argues that the artifactual approach evades the problem of accounting for representation and better accommodates the modal dimension of modeling. From an artifactual perspective, models are viewed as erotetic vehicles constrained by their construction and available representational tools. The modal dimension of modeling is approached through two case studies. The first portrays mathematical modeling in economics, while the other discusses the modeling (...) practice of synthetic biology, which exploits and combines models in various modes and media. Neither model intends to represent any actual target system. Rather, they are constructed to study possible mechanisms through the construction of a model system with built-in dependencies. (shrink)

Global processes significantly affect the mobility of the population. In the context of geopolitical transformation, globalization and quarantine restrictions of Covid-19, it is important to predict the development of the migration movement of countries that are developing. Therefore, the article is aimed at modelling migration changes according to alternative scenarios using the example of Ukraine. The theoretical and methodological basis of the research is formed by a number of scientific works of leading scientists from different countries, statistical information on migration (...) processes and socio-economic indicators of Ukraine’s development, economic, mathematical and scenario methods. In the course of the study, the main factors were identified that more affect the migration processes of Ukraine, taking into account the trends in the impact of Covid-19 on them. These include population size, life expectancy, GDP per capita, average monthly wages, and the volume of remittances from individuals to Ukraine. With the help of correlation-regression analysis, a multivariate econometric model of migration growth (reduction) has been built. This made it possible to study the absolute and relative influence of factors on the magnitude of the migration increase (decrease), determine the potential reserves for its increase (decrease), evaluate them using a comparative analysis and carry out predictive calculations of the volume of migration increase (decrease) in Ukraine. (shrink)

A new constructivist approach to modeling in economics and theory of consciousness is proposed. The state of elementary object is defined as a set of its measurable consumer properties. A proprietor's refusal or consent for the offered transaction is considered as a result of elementary economic measurement. Elementary (indivisible) technology, in which the object's consumer values are variable, in this case can be formalized as a generalized economic measurement. The algebra of such measurements has been constructed. It (...) has been shown that in the general case the quantummechanical formalism of the theory of selective measurements is required for description of such conditions. The economic analogs of the elementary slit experiments in physics have been created. The proposed approach can be also used for consciousness modeling. (shrink)

The paper explicates the stages of the author’s philosophical evolution in the light of Kopnin’s ideas and heritage. Starting from Kopnin’s understanding of dialectical materialism, the author has stated that category transformations of physics has opened from conceptualization of immutability to mutability and then to interaction, evolvement and emergence. He has connected the problem of physical cognition universals with an elaboration of the specific system of tools and methods of identifying, individuating and distinguishing objects from a scientific theory domain. The (...) role of vacuum conception and the idea of existence (actual and potential, observable and nonobservable, virtual and hidden) types were analyzed. In collaboration with S.Crymski heuristic and regulative functions of categories of substance, world as a whole as well as postulates of relativity and absoluteness, and anthropic and self-development principles were singled out. Elaborating Kopnin’s view of scientific theories as a practically effective and relatively true mapping of their domains, the author in collaboration with M. Burgin have originated the unified structure-nominative reconstruction (model) of scientific theory as a knowledge system. According to it, every scientific knowledge system includes hierarchically organized and complex subsystems that partially and separately have been studied by standard, structuralist, operationalist, problem-solving, axiological and other directions of the current philosophy of science. 1) The logico-linguistic subsystem represents and normalizes by means of different, including mathematical, languages and normalizes and logical calculi the knowledge available on objects under study. 2) The model-representing subsystem comprises peculiar to the knowledge system ways of their modeling and understanding. 3) The pragmatic-procedural subsystem contains general and unique to the knowledge system operations, methods, procedures, algorithms and programs. 4) From the viewpoint of the problem-heuristic subsystem, the knowledge system is a unique way of setting and resolving questions, problems, puzzles and tasks of cognition of objects into question. It also includes various heuristics and estimations (truth, consistency, beauty, efficacy, adequacy, heuristicity etc) of components and structures of the knowledge system. 5) The subsystem of links fixes interrelations between above-mentioned components, structures and subsystems of the knowledge system. The structure-nominative reconstruction has been used in the philosophical and comparative case-studies of mathematical, physical, economic, legal, political, pedagogical, social, and sociological theories. It has enlarged the collection of knowledge structures, connected, for instance, with a multitude of theoreticity levels and with an application of numerous mathematical languages. It has deepened the comprehension of relations between the main directions of current philosophy of science. They are interpreted as dealing mainly with isolated subsystems of scientific theory. This reconstruction has disclosed a variety of undetected knowledge structures, associated also, for instance, with principles of symmetry and supersymmetry and with laws of various levels and degrees. In cooperation with the physicist Olexander Gabovich the modified structure-nominative reconstruction is in the processes of development and justification. Ideas and concepts were also in the center of Kopnin’s cognitive activity. The author has suggested and elaborated the triplet model of concepts. According to it, any scientific concept is a dependent on cognitive situation, dynamical, multifunctional state of scientist’s thinking, and available knowledge system. A concept is modeled as being consisted from three interrelated structures. 1) The concept base characterizes objects falling under a concept as well as their properties and relations. In terms of volume and content the logical modeling reveals partially only the concept base. 2) The concept representing part includes structures and means (names, statements, abstract properties, quantitative values of object properties and relations, mathematical equations and their systems, theoretical models etc.) of object representation in the appropriate knowledge system. 3) The linkage unites a structures and procedures that connect components from the abovementioned structures. The partial cases of the triplet model are logical, information, two-tired, standard, exemplar, prototype, knowledge-dependent and other concept models. It has introduced the triplet classification that comprises several hundreds of concept types. Different kinds of fuzziness are distinguished. Even the most precise and exact concepts are fuzzy in some triplet aspect. The notions of relations between real scientific concepts are essentially extended. For example, the definition and strict analysis of such relations between concepts as formalization, quantification, mathematization, generalization, fuzzification, and various kinds of identity are proposed. The concepts «PLANET» and «ELEMENTARY PARTICLE» and some of their metamorphoses were analyzed in triplet terms. The Kopnin’s methodology and epistemology of cognition was being used for creating conception of the philosophy of law as elaborating of understanding, justification, estimating and criticizing legal system. The basic information on the major directions in current Western philosophy of law (legal realism, feminism, criticism, postmodernism, economical analysis of law etc.) is firstly introduced to the Ukrainian audience. The classification of more than fifty directions in modern legal philosophy is suggested. Some results of historical, linguistic, scientometric and philosophic-legal studies of the present state of Ukrainian academic science are given. (shrink)

The research material proposes the use of decision support information-analytical technology in discharge military personnel employment, which, in contrast to the usual processing of survey results, makes it possible to obtain more information for decision-making. Adherence to such an approach in the development of public administration mechanisms increases the likelihood that in the case of their implementation in the country there will be positive changes, as they will indirectly take into account the availability of necessary resources. Information and analytical technology (...) to support decisions in the field of labor economics substantiates the development of the example of discharged military personnel social welfare. According to the content, the developed decision support information-analytical technology in the field of labor economics provides for the following components: formation of social protection mechanisms; development of a questionnaire on the use of the appropriate mechanism; statistical analysis of survey results (generation of empirical distributions of answers to questions relative frequencies; comparison of answers medians; correspondences analysis; factor analysis; analysis of hierarchies); meaningful interpretation; decision making. (shrink)

Currently, the widely used notion of activity is increasingly present in computer science. However, because this notion is used in specific contexts, it becomes vague. Here, the notion of activity is scrutinized in various contexts and, accordingly, put in perspective. It is discussed through four scientific disciplines: computer science, biology, economics, and epistemology. The definition of activity usually used in simulation is extended to new qualitative and quantitative definitions. In computer science, biology and economics disciplines, the new simulation activity definition (...) is first applied critically. Then, activity is discussed generally. In epistemology, activity is discussed, in a prospective way, as a possible framework in models of human beliefs and knowledge. (shrink)

Credit risk, also known as default risk, is the likelihood of a corporation losing money if a business partner defaults. If the liabilities are not met under the terms of the contract, the firm may default, resulting in the loss of the company. There is no clear way to distinguish between organizations that will default and those that will not prior to default. We can only make probabilistic estimations of the risk of default at best. There are two types of (...) credit risk default models in this regard: structural and reduced-form models. Structural models are used to calculate the likelihood of a company defaulting based on its assets and liabilities. If the market worth of a company's assets is less than the debt it owes, it will default. Reduced form models often assume an external cause of default, such as a Poisson jump process, which is driven by a stochastic process. They model default as a random event with no regard for the balance sheet of the company. This paper provides a Review of credit risk default models. (shrink)

Purpose: To develop proposals on the directions of institutional support for the processes of creativity of the Ukrainian economy. Design/methodology/approach: The analysis of trends in the creativity of the Ukrainian economy is carried out and proposals are developed for conceptualizing institutional support for these processes. The authors set out to develop proposals for institutional support for creativity processes and offer recommendations for systematic updating of Ukrainian legislation in the areas of state regulation of high-tech business. The information base was the (...) information materials of the State Statistics Service of Ukraine, Ministry of Economic Development and Trade of Ukraine, the statistical databases of the European Commission, OECD and World Bank for the period 2014–2020. The research methodology is based on scientific tools that include comparative analysis and economic and mathematical modeling. Findings: Building a national program of public investment in creative development will allow us to systematically approach the issue of institutional support for technological breakthroughs. Research limitations/implications: Recommendations on the development and improvement of legislative instruments of deregulatory policy, harmonization with European standards are substantiated. Directions of systematic updating of legislation on guaranteeing foreign investment of creative projects and targeted investment of joint research projects of academic science and creative organizations are proposed. The implementation will allow a systematic approach to the issue of institutional support for the technological breakthrough of Ukraine. Originality/value: There is a need to step up institutional activities in the field of organizing research centers, introduce targeted investment in the academic science and research activity of creative organizations. (shrink)

Currently, under the conditions of permanent financial risks that hamper the sustainable economic growth in the financial sector, the development of evaluation and risk management methods both regulated by Basel II and III and others seem to be of special importance. The reputation risk is one of significant risks affecting reliability and credibility of commercial banks. The importance of reputation risk management and the quality of their assessment remain relevant as the probability of decrease in or loss of business (...) reputation influences the financial results and the degree of customers’, partners’ and stakeholders’ confidence. By means of imitating modeling based on Bayesian Networks and the fuzzy data analysis, the article characterizes the mechanism of reputation risk assessment and possible losses evaluation in banks by plotting normal and lognormal distribution functions. Monte-Carlo simulation is used to calculate the probability of losses caused by reputation risks. The degree of standardized histogram similarity is determined on the basis of the fuzzy data analysis applying Hamming distance method. The tree-like hierarchy based on the OWA-operator is used to aggregate the data with Fishburne's coefficients as the convolution scales. The mechanism takes into account the impact of criteria, such as return on equity, goodwill value, the risk assets ratio, the share of the productive assets in net assets, the efficiency ratio of interest bearing liabilities, the risk ratio of credit operations, the funding ratio and reliability index on the business reputation of the bank. The suggested methods and recommendations might be applied to develop the decision-making mechanism targeted at the implementation of reputation risk management system in commercial banks as well as to optimize risk management technologies. (shrink)

The guiding thread of the paper is the diagnosis that the advanced division of cognitive labor (that is, intellectual specialization) engenders a set of perennial, political and epistemic challenges (Millgram 2015) that, simultaneously, also generate opportunities for philosophy. In this paper, I re-characterize the nature of synthetic philosophy as a means to advance and institutionalize philosophy. For my definition of synthetic philosophy see section 2. In section 1, I treat Plato’s Republic as offering two models to represent philosophy's relationship to (...) the other sciences within the advanced division of labor. I highlight that for Plato intellectual specialization is central not just to economic, but also to political life. And, yet, that the very dispersion of scientific expertise, and its esoteric nature, also generates non-trivial challenges to the recognition and political utilization of knowledge. From Plato we can infer that in imperfect circumstances, philosophy’s self-constitution is, in part, a response to these challenges in political epistemology. However, how philosophy is institutionalized differs through time. In section 2, I re-introduce my conceptualization of synthetic philosophy and restate it. This makes visible that synthetic philosophy is already widely practiced in the profession as philosophy of the special sciences, PPE, formal modelling, public philosophy, etc. I use recent work by Dorst (2023) to illustrate synthetic philosophy and to identify some of the processes that give rise to the need for it. In sections 2-3, I contrast my account with the evolving ways that Philip Kitcher has conceptualized synthetic philosophy in order to make more precise the version promoted here. I do so not just because Kitcher and I use the same term, ‘synthetic philosophy,’ but because the temptations inherent in Kitcher’s approach should be resisted. -/- . (shrink)

Precision medicine and molecular systems medicine (MSM) are highly utilized and successful approaches to improve understanding, diagnosis, and treatment of many diseases from bench-to-bedside. Especially in the COVID-19 pandemic, molecular techniques and biotechnological innovation have proven to be of utmost importance for rapid developments in disease diagnostics and treatment, including DNA and RNA sequencing technology, treatment with drugs and natural products and vaccine development. The COVID-19 crisis, however, has also demonstrated the need for systemic thinking and transdisciplinarity and the limits (...) of MSM: the neglect of the bio-psycho-social systemic nature of humans and their context as the object of individual therapeutic and population-oriented interventions. COVID-19 illustrates how a medical problem requires a transdisciplinary approach in epidemiology, pathology, internal medicine, public health, environmental medicine, and socio-economic modeling. Regarding the need for conceptual integration of these different kinds of knowledge we suggest the application of general system theory (GST). This approach endorses an organism-centered view on health and disease, which according to Ludwig von Bertalanffy who was the founder of GST, we call Organismal Systems Medicine (OSM). We argue that systems science offers wider applications in the field of pathology and can contribute to an integrative systems medicine by (i) integration of evidence across functional and structural differentially scaled subsystems, (ii) conceptualization of complex multilevel systems, and (iii) suggesting mechanisms and non-linear relationships underlying the observed phenomena. We underline these points with a proposal on multi-level systems pathology including neurophysiology, endocrinology, immune system, genetics, and general metabolism. An integration of these areas is necessary to understand excess mortality rates and polypharmacological treatments. In the pandemic era this multi-level systems pathology is most important to assess potential vaccines, their effectiveness, short-, and long-time adverse effects. We further argue that these conceptual frameworks are not only valid in the COVID-19 era but also important to be integrated in a medicinal curriculum. (shrink)

As a moral foundation for vegetarianism and other consumer choices, act consequentialism can be appealing. When we justify our consumer and dietary choices this way, however, we face the problem that our individual actions rarely actually precipitate more just agricultural and economic practices. This threshold or individual impotence problem engaged by consequentialist vegetarians and their critics extends to morally motivated consumer decision-making more generally, anywhere a lag persists between individual moral actions taken and systemic moral progress made. Regan and (...) others press just this point against Singer's utilitarian basis for vegetarianism; recently Chartier criticizes act-consequentialist vegetarianism by identifying many factors weakening the connection between individual meat purchases and changes in animal production. While such factors are relevant to act-consequentialist moral reasoning, I argue, they need not defeat the act-consequentialist case for vegetarianism and consumer ethics. This is shown by offering a probabilistic account of the threshold issue and discussing the positive and negative role-modelling effects of our morally motivated dietary and consumer choices. (shrink)

USKALI MÄKI (Helsinki, 1951) is a philosopher of science and a social scientist, and one of the forerunners of the strong wave of research on the philosophy and methodology of economics that has been expanding during the last three decades. His research interests and academic contributions cover many topics in the philosophy of economics, such as realism and realisticness, idealisation, scientific modelling, causation, explanation, rhetoric, the sociology and economics of economics, and the foundations of new institutional and Austrian economics. He (...) is a coeditor of The handbook of economic methodology (1998); Economics and methodology: crossing boundaries (1998); Rationality, institutions and economic methodology (1993). And the editor of two compilations of essays that have become highly influential to the shaping of the field: The economic world view: studies in the ontology of economics (2001), and Fact and fiction in economics: realism, models, and social construction (2002). (shrink)

The primary goal of this research is to search for relevance in social knowledge with respect to the role played by social information in economic modeling. Social information is derived from social processes. We attempt to explore how social concepts and principles find applications in science of economics and how they could be used more efficiently to model the behavior of economic agents. In attempting to do so, we try to elucidate what social knowledge is and what (...) constitutes the body of social information per se. With the growing importance of digital knowledge and information in the society, our analysis sheds light on the role played by social elements in economic theory and modeling that furnishes important data and information about various social processes which can no longer be ignored, despite the preponderance of scientific and technical knowledge in the society. We review, from the point of view of Kenneth Arrow's perception of social knowledge, how knowledge of social processes could be employed more efficiently in economic modeling in dealing with practical economic problems that have much relevance to economic processes. This research takes an aim at that direction by elucidating the concept of social knowledge in its present context--the digital age--with the aim of advancing knowledge in this field. Finally, the study also provides general knowledge about the subject of social knowledge in the context of economic growth. (shrink)

The importance of corporate social responsibility is shaping investment decisions and entrepreneurial actions in diverse perspectives. The rapid growth of SMEs has tremendous impacts on the environment. Nonetheless, the economic emergence plan of Cameroon has prompted government support of SMEs through diverse projects. This saw economic growth increased to 3.8% and unemployment dropped to 4.3% caused by the expansion of private sector investments. The dilemma that necessitated this study is the response strategy of SMEs operators towards environmental sustainability. (...) This study, thus seeks to examine the effects of entrepreneurial intentions and actions on environmental sustainability. The research is a conclusive case study design supported by the philosophical underpins of objectivism ontology and positivism epistemology. Data was sourced from four hundred (400) SMEs operators purposively sampled from the Centre and Littoral regions of Cameroon using structured questionnaire. Data was analysed using the Structural Equation Modelling technique with the aid of statistical packages including: SPSS 24 and AMOS 23. The study revealed that entrepreneurial action has weak positive statistical significant impacts on environmental sustainability; whereas entrepreneurial intention has strong positive statistical significant effects on environmental sustainability. Entrepreneurial intention comprised of self-efficacy and perceived control whereas, entrepreneurial actions involved entrepreneurial alertness and uncertainty. This study concludes that entrepreneurs in Cameroon have sustainable intentions to protect the environment but; the current actions taken are inadequate. This research recommends that entrepreneurs should enhance efforts toward attaining the state of genuine sustainability. (shrink)

This is the first volume of the Encyclopedia of Neutrosophic Researchers, edited from materials offered by the authors who responded to the editor’s invitation. The authors are listed alphabetically. The introduction contains a short history of neutrosophics, together with links to the main papers and books. Neutrosophic set, neutrosophic logic, neutrosophic probability, neutrosophic statistics, neutrosophic measure, neutrosophic precalculus, neutrosophic calculus and so on are gaining significant attention in solving many real life problems that involve uncertainty, impreciseness, vagueness, incompleteness, inconsistent, and (...) indeterminacy. In the past years the fields of neutrosophics have been extended and applied in various fields, such as: artificial intelligence, data mining, soft computing, decision making in incomplete / indeterminate / inconsistent information systems, image processing, computational modelling, robotics, medical diagnosis, biomedical engineering, investment problems, economic forecasting, social science, humanistic and practical achievements. (shrink)

The article proposes a scientific and methodological approach to strategising the development of a manufacturing enterprise in a decentralised environment based on the principle of feedback. This approach involves taking into account the direct and feedback indicators of the enterprise, aimed at increasing its competitiveness and achieving sustainable development goals. The authors propose to assess the level of development of the production enterprise in decentralisation, taking into account the multiplier effect of interaction with the united territorial community on the basis (...) of the target approach (indicators are distributed according to the goals of the enterprise), taking into account the main directions of sustainable development component, each of which has its own system of evaluation indicators. The proposed methodological approach to assessing the level of development of a production enterprise in decentralisation allowed to assess the development of the enterprise in accordance with its qualitative and quantitative characteristics in each of the areas of sustainable development (social, economic, environmental, budget), taking into account their interaction levels. A scientific and methodological approach to modelling the management system of the dynamic state of the production enterprise in terms of decentralisation, which provides for the formation of a model of development of the production enterprise in cooperation with OTG on indicators of its development. The model of management of development of the industrial enterprise in the conditions of decentralisation for LLC TIS, which is located in the territory of the Vizyr UTC of the Odessa region is constructed. (shrink)

The importance of corporate social responsibility is shaping investment decisions and entrepreneurial actions in diverse perspectives. The rapid growth of SMEs has tremendous impacts on the environment. Nonetheless, the economic emergence plan of Cameroon has prompted government support of SMEs through diverse projects. This saw economic growth increased to 3.8% and unemployment dropped to 4.3% caused by the expansion of private sector investments. The dilemma that necessitated this study is the response strategy of SMEs operators towards environmental sustainability. (...) This study, thus seeks to examine the effects of entrepreneurial intentions and actions on environmental sustainability. The research is a conclusive case study design supported by the philosophical underpins of objectivism ontology and positivism epistemology. Data was sourced from four hundred (400) SMEs operators purposively sampled from the Centre and Littoral regions of Cameroon using structured questionnaire. Data was analysed using the Structural Equation Modelling technique with the aid of statistical packages including: SPSS 24 and AMOS 23. The study revealed that entrepreneurial action has weak positive statistical significant impacts on environmental sustainability; whereas entrepreneurial intention has strong positive statistical significant effects on environmental sustainability. Entrepreneurial intention comprised of self-efficacy and perceived control whereas, entrepreneurial actions involved entrepreneurial alertness and uncertainty. This study concludes that entrepreneurs in Cameroon have sustainable intentions to protect the environment but; the current actions taken are inadequate. This research recommends that entrepreneurs should enhance efforts toward attaining the state of genuine sustainability. (shrink)

Ecological economics is an interdisciplinary science that is primarily concerned with developing interventions to achieve sustainable ecological and economic systems. While ecological economists have, over the last few decades, made various empirical, theoretical, and conceptual advancements, there is one concept in particular that remains subject to confusion: critical natural capital. While critical natural capital denotes parts of the environment that are essential for the continued existence of our species, the meaning of terms commonly associated with this concept, such as (...) ‘non-substitutable’ and ‘impossible to substitute,’ require a clearer formulation then they tend to receive. With the help of equations and graphs, this article develops new definite account of critical natural capital that makes explicit what it means for objective environmental conditions to be essential for continued existence. The second main part of this article turns to the question of formally modeling the priority of conserving critical natural capital. While some ecological economists have maintained that, beyond a certain threshold, critical natural capital possesses absolute infinite value, absolute infinite utility models encounter significant problems. This article shows that a relative infinite utility model provides a better way to model the priority of conserving critical natural capital. (shrink)

Although the word 'sustainability' is used broadly, scientific approaches to sustainability fall into one of two competing paradigms. Following the influential Brundtland report of 1987. some theorists identify sustainability with some form of resource availability, and develop indicators for sustainability that stress capital depletion. This approach has spawned debates about the intersubstitutivity of capitals, with many environmental theorists arguing that at some point, depletion of natural capital cannot be offset by increases in human or social capital. The alternative approach is (...) grounded in stock and flow systems systems modeling, and defines sustainability through indicators that determine whether the system structure is robust (e.g. resists perturbation), resilient (recovers after disruption) and adaptive (capable of change in response to external conditions). Both paradigms have applications in economics and ecology. (shrink)

Cognitive sciences as an interdisciplinary field, involving scientific disciplines (such as computer science, linguistics, psychology, neuroscience, economics, etc.), philosophical disciplines (philosophy of language, philosophy of mind, analytic philosophy, etc.) and engineering (notably knowledge engineering), have a vast theoretical and practical content, some even conflicting. In this interdisciplinary context and on computational modeling, ontologies play a crucial role in communication between disciplines and also in a process of innovation of theories, models and experiments in cognitive sciences. We propose a model (...) for this process here. An ontological commitment is advocated as the framework of a scientific realism, which leads computational modeling to search for more realistic models, for a complex systems perspective of nature and cognition. In that way multiagent modeling of complex systems has been fulfilling an important role. (shrink)

Low-carbon agriculture is essential for protecting the global climate and sustainable agricultural economics. Since China is a predominantly agricultural country, the adoption of low-carbon agricultural technologies by local farmers is crucial. The past literature on low-carbon technologies has highlighted the influence of demographic, economic, and environmental factors, while the psychological factors have been underexplored. A questionnaire-based approach was used to assess the psychological process underlying the adoption of low-carbon agricultural technologies by 1,114 Chinese rice farmers in this paper, and (...) structural equation modeling (SEM) was empirically employed to test our theoretical model. (shrink)

Freedom, liberty and rights are terms that long have suffered from vagueness that allows a host of differing interpretations, most of them ideological and overly simplistic. Good, serious modeling descriptions of those terms would not overlook the necessary complexity involved in these social interactions. MacCallum’s idea of (political and social) triadic freedom is here extended to include resources, ability, externalities, benefits to the exerciser, and reasons for non-interference. Interference is described as a subset of freedoms with significant externalities. A (...) right is then described as a compound of a freedom protected by interferences. This provides a basis for the analysis of the game-theoretic economics of rights and when they will be produced. (shrink)

ANNOTATION Sardak S.E. Global Regulatory System of Human Resources Development. – Manuscript. Thesis for the Doctor of Economic Science academic degree with major in 08.00.02 – World Economy and international economic relations. – SHEE «Kyiv National Economic University named after Vadym Hetman», Kyiv, 2014. The preconditions and factors of the global economic system with the identified relevant subjects areas and mechanisms of regulation instruments have been investigated. The crucial role of humans in the global economic (...) system as a key factor of production, the main resource, the producer and the consumer of economic and social benefits that are exposed to global threats, problems, challenges, trends and subjects has been confirmed. There have been revealed the causes and consequences of the public institutions transformation under the influence of globalization, which formed a qualitatively new conditions for social and economic development that determine the need for further changes in the areas of conceptual guideline for the management of human resources development, optimization of tasks, state and international institutions activity forms, integration of efforts as for monitoring, planning and forecasting. The modern major instruments and spheres of international cooperation to ensure human development have been determined. The integrated characteristic of human resources and their role in social development both from the standpoint of their use in labour processes and as a medium of civilization and social utility with the help of the categorical classification system organizing and expanding which enables to design and apply the appropriate approaches at all managerial levels have been defined. The necessity and the concept of human resources development in the context of the content of managerial influence identifying (self-development, self-management and external control of development) at different administrative levels that ensures the growth of human capital to the limits of its potential have been analysed. The survey of human activity system aspects in the global world, taking into account the parametrization of the global environment, its structure, management and development have been realized. The formed methodology principles of managerial influence on the development of human resources with scientific schools, hardness degrees, available models, research and providing theoretical and practical implementation peculiarities for groups of countries and territories of the world taken into consideration have been examined. There have been noted civilization and national differences in the forms of managerial influence on the development of human resources, which lead to the formation of human resources development national control systems conditioned by different value public strategic guidelines, especially in relation to social security, education, national management and state migration policy. The current and future requirements for global human resources development which are proposed to be achieved by the development and formalization of global civilizational paradigm of social development due to social coordination interaction have been given. The influence of the institute of state on the human resources development has been evaluated and it has been proved that in the beginning of the XXI century in the global environment the institute of state is the ultimate guarantor of its citizens’ labour ability and vital activity renewal, that makes it the main instrument of managerial influence on human development. The methodology of countries and territories matrix positioning by human development qualitative criteria and population size quantitative parameters which allows to design unified managerial measures as for human resources for similar national economies in the context of global regulatory trends has been proposed. The strategic trends of improvement of human resources development in the national economy, taking into account the differences in the development of human resources in different countries and areas which vary and differ in their focus, content and ways of implementation for such groups. The varying criteria for evaluating the effectiveness of the global impact on human resources development, taking into account the natural, biological, technological, economic, social and management dimensions and the results of human resources development management in social and economic systems at various levels have been revealed. The periodization and the forecast of the global dynamics of human resources development by analyzing and modeling the values of the absolute and relative terms correlation character have been carried out, which enables to make their retrospective and prospective comparison and to find chronological boundaries of qualitatively different periods. The configuration of the human resource development global coordinate system as a set of interrelated principles, components, fields, tools, frameworks, management levels and forms of managerial influence that allows with the help of institutional means to adapt the state of human resources development to a globally varying environment. (shrink)

Analyzing and modeling interconnections between crucial factors of human development, rates of growth thereof and elasticity of the growth rates, the authors have defined specific periods of the development and have made a forecast for the dynamics of the human resources development. Those periods have been defined more exactly and arranged as follows: the first one – «Before Christ»; the second one – «Early Medieval» (1–1100 a.d.); the third one – «Advanced Medieval» (1101–1625); the forth one – «Pioneer’s Modernization» (...) (1626–1970); the fifth one – «Industrialization» (1871–2030) and the sixth one – «Informational society» – after 2030. The results received enable to make forecasts of the global factors dynamics, to find out unified solutions in socio-economic sphere, to define tendencies in social development and to build up unified strategic approaches for modeling global influence on human resources. (shrink)

This article introduces and defends the “pathological complexity thesis” as a hypothesis about the evolutionary origins of minimal consciousness, or sentience, that connects the study of animal consciousness closely with work in behavioral ecology and evolutionary biology. I argue that consciousness is an adaptive solution to a design problem that led to the extinction of complex multicellular animal life following the Avalon explosion and that was subsequently solved during the Cambrian explosion. This is the economic trade-off problem of having (...) to deal with a complex body with high degrees of freedom, what I call “pathological complexity.” By modeling the explosion of this computational complexity using the resources of state-based behavioral and life history theory we will be able to provide an evolutionary bottom-up framework to make sense of subjective experience and its function in nature by paying close attention to the ecological lifestyles of different animals. (shrink)

I investigate whether degreed beliefs are able to play the predictive, explanatory, and modeling roles that they are frequently taken to play. The investigation focuses on evidence—both from sources familiar in epistemology as well as recent work in behavioral economics and cognitive psychology—of variability in agents' apparent degrees of belief. Although such variability has been noticed before, there has been little philosophical discussion of its breadth or of the psychological mechanisms underlying it. Once these are appreciated, the inadequacy of (...) degrees of belief becomes clear. I offer a theoretical alternative to degrees of belief, what I call the filter theory. (shrink)

Geographic Information Science (GIS) is an interdisciplinary science aiming to detect and visually represent patterns in spatial data. GIS is used by businesses to determine where to open new stores and by conservation biologists to identify field study locations with relatively little anthropogenic influence. Products of GIS include topographic and thematic maps of the Earth’s surface, climate maps, and spatially referenced demographic graphs and charts. In addition to its social, political, and economic importance, GIS is of intrinsic philosophical interest (...) due to its methodological richness and because it is an instructive analogue to other sciences. This chapter works towards a philosophy of GIS and cartography, or PGISC. In particular, it examines practices of classifying geographic space, objects, and relations. By focusing on the use of natural kinds in data modeling and map generalization practices, I show how the making and using of kinds is contextual, fallible, plural, and purposive. (shrink)

This study aims to explore a demoethical model for sustainable development in modern society. It proposes an approach that focuses on organizing activities to improve sustainable development. Specifically, it presents a demoethical model relevant to Society 5.0 and Industry 5.0 organizations. The objective is to identify demoethical values that can drive sustainable development in the era of digitalization. Through a literature review and analysis, this study identifies key components of the demoethical model and provides practical recommendations for stakeholders involved in (...) digital transformation. The analysis of demoethical norms and phenomena, such as education, nurturing, mind, knowledge, science, and honest work, has enabled the identification of values that align with sustainable development in society. The results of the study demonstrate that the notion of a demoethical foundation for sustainability is rooted in the concept of spirituality as the basis for a new societal development scenario and its relationship with nature. The study shows that ideas about the demoethical basis of sustainability are based on the priority of spirituality as the basis of a new scenario for the development of society, as well as the integration of demographic, socio-economical, and ecological components in system-wide modeling. (shrink)

There are two fundamentally distinct kinds of biological theorizing. "Formal biology" focuses on the relations, captured in formal laws, among mathematically abstracted properties of abstract objects. Population genetics and theoretical mathematical ecology, which are cases of formal biology, thus share methods and goals with theoretical physics. "Compositional biology," on the other hand, is concerned with articulating the concrete structure, mechanisms, and function, through developmental and evolutionary time, of material parts and wholes. Molecular genetics, biochemistry, developmental biology, and physiology, which are (...) examples of compositional biology, are in serious need of philosophical attention. For example, the very concept of a "part" is understudied in both philosophy of biology and philosophy of science. ;My dissertation is an attempt to clarify the distinction between formal biology and compositional biology and, in so doing, provide a clear philosophical analysis, with case studies, of compositional biology. Given the social, economic, and medical importance of compositional biology, understanding it is urgent. For my investigation, I draw on the philosophical fields of metaphysics and epistemology, as well as philosophy of biology and philosophy of science. I suggest new ways of thinking about some classic philosophy of science issues, such as modeling, laws of nature, abstraction, explanation, and confirmation. I hint at the relevance of my study of two kinds of biological theorizing to debates concerning the disunity of science. (shrink)

This paper proposes that existing computational modeling research programs may be combined into platforms for the information of public policy. The main idea is that computational models at select levels of organization may be integrated in natural terms describing biological cognition, thereby normalizing a platform for predictive simulations able to account for both human and environmental costs associated with different action plans and institutional arrangements over short and long time spans while minimizing computational requirements. Building from established research programs, (...) the proposal aims to take advantage of current momentum in the direction of the integration of the cognitive with social and natural sciences, reduce start-up costs and increase speed of development. These are all important upshots given rising unease over the potential for AI and related technologies to shape the world going forward. (shrink)

The problem of building an effective system of interconnected and purposeful innovative changes in business management is solved in the article. The main purpose of the research is to improve the model of business excellence on the basis of interconnected and purposeful innovative changes in business management. Critical analysis of literature sources and approaches to solving the problem of building a perfect model of business emphasizes the diversity of applied methodological approaches and methods of management innovation. However, in terms of (...) business technologicalization, necessity to accelerate information exchange, development of innovation and, at the same time, development of new threats, the need on the basis of strategizing, intellectualization of management, partnership, compliance with the challenges of the external environment, communication efficiency, leadership transformation, balancing intermediate and final results, there is a need to transform business and management on the basis of strategizing, intellectualization of management, partnership interaction, compliance with the challenges of the external environment, communication efficiency, transformation of leadership, balancing intermediate and final results. Relevance of solving of this scientific issue is that the timely use of innovative tools and management methods in the implementation of strategic intentions and goals forms a high adaptability of companies to transformation processes occurring in their external and internal environment under the influence of digital technologies in business processes. The scientific-theoretical and methodological basis of the study were the following methods: abstract-logical and comparative analysis – to generalize theoretical approaches and confirm the practical importance of solving the problem of building a model of providing business excellence on the basis of interconnected and focused innovative changes in business management; system analysis and modelling – method of building a model of business excellence based on managerial innovation; system-analytical – method of balancing the interaction of the components providing business excellence; generalization – when drawing conclusions based on research results. The object of research is a system of interconnected and purposeful innovative changes in business management. The results of solving the problem of building a model of business excellence while balancing the interaction of the components of such provision and implementation of the process of digital transformation of the business model. The results of the research have practical value for business entities that seek to increase the effectiveness of interconnected and purposeful innovative changes in business management. (shrink)

Climatology is a paradigmatic complex systems science. Understanding the global climate involves tackling problems in physics, chemistry, economics, and many other disciplines. I argue that complex systems like the global climate are characterized by certain dynamical features that explain how those systems change over time. A complex system's dynamics are shaped by the interaction of many different components operating at many different temporal and spatial scales. Examining the multidisciplinary and holistic methods of climatology can help us better understand the nature (...) of complex systems in general. -/- Questions surrounding climate science can be divided into three rough categories: foundational, methodological, and evaluative questions. "How do we know that we can trust science?" is a paradigmatic foundational question (and a surprisingly difficult one to answer). Because the global climate is so complex, questions like "what makes a system complex?" also fall into this category. There are a number of existing definitions of `complexity,' and while all of them capture some aspects of what makes intuitively complex systems distinctive, none is entirely satisfactory. Most existing accounts of complexity have been developed to work with information-theoretic objects (signals, for instance) rather than the physical and social systems studied by scientists. -/- Dynamical complexity, a concept articulated in detail in the first third of the dissertation, is designed to bridge the gap between the mathematics of contemporary complexity theory (in particular the formalism of "effective complexity" developed by Gell-Mann and Lloyd [2003]) and a more general account of the structure of science generally. Dynamical complexity provides a physical interpretation of the formal tools of mathematical complexity theory, and thus can be used as a framework for thinking about general problems in the philosophy of science, including theories, explanation, and lawhood. -/- Methodological questions include questions about how climate science constructs its models, on what basis we trust those models, and how we might improve those models. In order to answer questions about climate modeling, it's important to understand what climate models look like and how they are constructed. Climate model families are significantly more diverse than are the model families of most other sciences (even sciences that study other complex systems). Existing climate models range from basic models that can be solved on paper to staggeringly complicated models that can only be analyzed using the most advanced supercomputers in the world. I introduce some of the central concepts in climatology by demonstrating how one of the most basic climate models might be constructed. I begin with the assumption that the Earth is a simple featureless blackbody which receives energy from the sun and releases it into space, and show how to model that assumption formally. I then gradually add other factors (e.g. albedo and the greenhouse effect) to the model, and show how each addition brings the model's prediction closer to agreement with observation. After constructing this basic model, I describe the so-called "complexity hierarchy" of the rest of climate models, and argue that the sense of "complexity" used in the climate modeling community is related to dynamical complexity. -/- With a clear understanding of the basics of climate modeling in hand, I then argue that foundational issues discussed early in the dissertation suggest that computation plays an irrevocably central role in climate modeling. "Science by simulation" is essential given the complexity of the global climate, but features of the climate system--the presence of non-linearities, feedback loops, and chaotic dynamics--put principled limits on the effectiveness of computational models. This tension is at the root of the staggering pluralism of the climate model hierarchy, and suggests that such pluralism is here to stay, rather than an artifact of our ignorance. Rather than attempting to converge on a single "best fit" climate model, we ought to embrace the diversity of climate models, and view each as a specialized tool designed to predict and explain a rather narrow range of phenomena. Understanding the climate system as a whole requires examining a number of different models, and correlating their outputs. This is the most significant methodological challenge of climatology. -/- Climatology's role contemporary political discourse raises an unusually high number of evaluative questions for a physical science. The two leading approaches to crafting policy surrounding climate change center on mitigation (i.e. stopping the changes from occurring) and adaptation (making post hoc changes to ameliorate the harm caused by those changes). Crafting an effective socio-political response to the threat of anthropogenic climate change, however, requires us to integrate multiple perspectives and values: the proper response will be just as diverse and pluralistic as the climate models themselves, and will incorporate aspects of both approaches. I conclude by offering some concrete recommendations about how to integrate this value pluralism into our socio-political decision making framework. (shrink)

The article examines the process of formation inventory of the enterprise and determines the optimal volume of commodity resources for sale. A generalization of author’s approaches to the formation and evaluation of inventories of the enterprise is carried out. The marketing-logistic approach was applied for the purpose of distribution groups of commodity resources due to the risk of non-fulfillment the order for the supply of goods of the enterprise. In order to ensure an effective process of commodity provision of the (...) enterprises, the costs associated with the formation of inventories are determined. The formalized scheme of the formation commodity provision and the process of optimization inventory of the enterprise is offered. The analysis the structure of the company’s inventory is carried out, the volume of goods turnover is defined, the stocks are grouped for various clustering characteristics. To conduct the study, statistical information was used on commodity resources of the enterprises, statistical methods (grouping, structure analysis, estimation of dynamic series), tools for assessing the efficiency of inventory use, HML-FMR clustering were used. The necessity of using XYZ and ABC analysis is indicated in order to obtain more reliable results and forecast values of the product support of the enterprise. Economic-mathematical modeling is applied and graphically shown the difference in the formation of commodity resources by various features of HML-FMR clustering. The calculations allow the enterprise to determine the optimal amount of commodity resources in accordance with the needs of consumers and their solvent demand, to plan financial resources for the formation of inventories, to develop assortment policy in accordance with demand for products and their implementation. The results of calculations the volume of merchandising of the enterprise, taking into account the HML-FMR clustering affect the formation of final financial performance of the enterprise — income and profits. (shrink)