IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v237y2014i1p231-244.html
   My bibliography  Save this article

Variational approach for a general financial equilibrium problem: The Deficit Formula, the Balance Law and the Liability Formula. A path to the economy recovery

Author

Listed:
  • Barbagallo, Annamaria
  • Daniele, Patrizia
  • Giuffrè, Sofia
  • Maugeri, Antonino

Abstract

Without using a technical language, but using the universal language of mathematics, we provide simple but significant laws, as Deficit Formula, Balance Law and Liability Formula, for the management of the world economy. Decisions, under these laws, for the recovery of the economy and for the good governance clearly appear. Further a simple but useful economical indicator E(t) is provided and the results are illustrated with a significant example.

Suggested Citation

  • Barbagallo, Annamaria & Daniele, Patrizia & Giuffrè, Sofia & Maugeri, Antonino, 2014. "Variational approach for a general financial equilibrium problem: The Deficit Formula, the Balance Law and the Liability Formula. A path to the economy recovery," European Journal of Operational Research, Elsevier, vol. 237(1), pages 231-244.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:1:p:231-244
    DOI: 10.1016/j.ejor.2014.01.033
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037722171400054X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.01.033?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Patrick Jaillet & Damien Lamberton & Bernard Lapeyre, 1990. "Variational inequalities and the pricing of American options," Post-Print hal-01667008, HAL.
    2. A. Nagurney, 2001. "Finance and variational inequalities-super-," Quantitative Finance, Taylor & Francis Journals, vol. 1(3), pages 309-317, March.
    3. Nagurney, Anna, 1994. "Variational inequalities in the analysis and computation of multi-sector, multi-instrument financial equilibria," Journal of Economic Dynamics and Control, Elsevier, vol. 18(1), pages 161-184, January.
    4. Cojocaru, Monica-Gabriela & Daniele, Patrizia & Nagurney, Anna, 2006. "Double-layered dynamics: A unified theory of projected dynamical systems and evolutionary variational inequalities," European Journal of Operational Research, Elsevier, vol. 175(1), pages 494-507, November.
    5. A. Maugeri & F. Raciti, 2010. "Remarks on infinite dimensional duality," Journal of Global Optimization, Springer, vol. 46(4), pages 581-588, April.
    6. Tourin, Agnes & Zariphopoulou, Thaleia, 1994. "Numerical Schemes for Investment Models with Singular Transactions," Computational Economics, Springer;Society for Computational Economics, vol. 7(4), pages 287-307.
    7. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    8. Daniele, Patrizia, 2010. "Evolutionary variational inequalities and applications to complex dynamic multi-level models," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 855-880, November.
    9. Patrizia Daniele, 2006. "Dynamic Networks and Evolutionary Variational Inequalities," Books, Edward Elgar Publishing, number 3516.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. E. Allevi & A. Gnudi & I. V. Konnov & G. Oggioni, 2018. "Evaluating the effects of environmental regulations on a closed-loop supply chain network: a variational inequality approach," Annals of Operations Research, Springer, vol. 261(1), pages 1-43, February.
    2. Ciarcià, Carla & Daniele, Patrizia, 2016. "New existence theorems for quasi-variational inequalities and applications to financial models," European Journal of Operational Research, Elsevier, vol. 251(1), pages 288-299.
    3. Didier Aussel & Rachana Gupta & Aparna Mehra, 2016. "Evolutionary Variational Inequality Formulation of the Generalized Nash Equilibrium Problem," Journal of Optimization Theory and Applications, Springer, vol. 169(1), pages 74-90, April.
    4. Patrizia Daniele & Sofia Giuffrè & Mariagrazia Lorino, 2016. "Functional inequalities, regularity and computation of the deficit and surplus variables in the financial equilibrium problem," Journal of Global Optimization, Springer, vol. 65(3), pages 575-596, July.
    5. Patrizia Daniele & Sofia Giuffrè, 2015. "Random Variational Inequalities and the Random Traffic Equilibrium Problem," Journal of Optimization Theory and Applications, Springer, vol. 167(1), pages 363-381, October.
    6. Patrizia Daniele & Mariagrazia Lorino & Cristina Mirabella, 2016. "The Financial Equilibrium Problem with a Markowitz-Type Memory Term and Adaptive Constraints," Journal of Optimization Theory and Applications, Springer, vol. 171(1), pages 276-296, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrizia Daniele & Sofia Giuffrè & Mariagrazia Lorino, 2016. "Functional inequalities, regularity and computation of the deficit and surplus variables in the financial equilibrium problem," Journal of Global Optimization, Springer, vol. 65(3), pages 575-596, July.
    2. Ciarcià, Carla & Daniele, Patrizia, 2016. "New existence theorems for quasi-variational inequalities and applications to financial models," European Journal of Operational Research, Elsevier, vol. 251(1), pages 288-299.
    3. Patrizia Daniele & Mariagrazia Lorino & Cristina Mirabella, 2016. "The Financial Equilibrium Problem with a Markowitz-Type Memory Term and Adaptive Constraints," Journal of Optimization Theory and Applications, Springer, vol. 171(1), pages 276-296, October.
    4. Patrizia Daniele & Sofia Giuffrè & Antonino Maugeri & Fabio Raciti, 2014. "Duality Theory and Applications to Unilateral Problems," Journal of Optimization Theory and Applications, Springer, vol. 162(3), pages 718-734, September.
    5. Anna Nagurney & Qiang Qiang, 2008. "An efficiency measure for dynamic networks modeled as evolutionary variational inequalities with application to the Internet and vulnerability analysis," Netnomics, Springer, vol. 9(1), pages 1-20, January.
    6. Gabriella Colajanni & Patrizia Daniele, 2022. "A Mathematical Network Model and a Solution Algorithm for IaaS Cloud Computing," Networks and Spatial Economics, Springer, vol. 22(2), pages 267-287, June.
    7. Georgia Fargetta & Laura R. M. Scrimali, 2023. "A sustainable dynamic closed-loop supply chain network equilibrium for collectibles markets," Computational Management Science, Springer, vol. 20(1), pages 1-30, December.
    8. Annamaria Barbagallo & Stéphane Pia, 2015. "Weighted Quasi-Variational Inequalities in Non-pivot Hilbert Spaces and Applications," Journal of Optimization Theory and Applications, Springer, vol. 164(3), pages 781-803, March.
    9. Maria Bernadette Donato & Monica Milasi & Laura Scrimali, 2011. "Walrasian Equilibrium Problem with Memory Term," Journal of Optimization Theory and Applications, Springer, vol. 151(1), pages 64-80, October.
    10. Detlef Seese & Christof Weinhardt & Frank Schlottmann (ed.), 2008. "Handbook on Information Technology in Finance," International Handbooks on Information Systems, Springer, number 978-3-540-49487-4, November.
    11. Chan, Chi Kin & Zhou, Yan & Wong, Kar Hung, 2018. "A dynamic equilibrium model of the oligopolistic closed-loop supply chain network under uncertain and time-dependent demands," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 325-354.
    12. Laura Scrimali, 2012. "Infinite Dimensional Duality Theory Applied to Investment Strategies in Environmental Policy," Journal of Optimization Theory and Applications, Springer, vol. 154(1), pages 258-277, July.
    13. Antonino Maugeri & Laura Scrimali, 2016. "A New Approach to Solve Convex Infinite-Dimensional Bilevel Problems: Application to the Pollution Emission Price Problem," Journal of Optimization Theory and Applications, Springer, vol. 169(2), pages 370-387, May.
    14. Laura Scrimali & Cristina Mirabella, 2018. "Cooperation in pollution control problems via evolutionary variational inequalities," Journal of Global Optimization, Springer, vol. 70(2), pages 455-476, February.
    15. Akosah, Nana Kwame & Alagidede, Imhotep Paul & Schaling, Eric, 2020. "Testing for asymmetry in monetary policy rule for small-open developing economies: Multiscale Bayesian quantile evidence from Ghana," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    16. Cui, Xueting & Zhu, Shushang & Sun, Xiaoling & Li, Duan, 2013. "Nonlinear portfolio selection using approximate parametric Value-at-Risk," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2124-2139.
    17. Peter A. Abken & Milind M. Shrikhande, 1997. "The role of currency derivatives in internationally diversified portfolios," Economic Review, Federal Reserve Bank of Atlanta, vol. 82(Q 3), pages 34-59.
    18. Leonard J. Mirman & Egas M. Salgueiro & Marc Santugini, 2013. "Integrating Real and Financial Decisions of the Firm," Cahiers de recherche 1333, CIRPEE.
    19. Dominique Guégan & Wayne Tarrant, 2012. "On the necessity of five risk measures," Annals of Finance, Springer, vol. 8(4), pages 533-552, November.
    20. Raffestin, Louis, 2014. "Diversification and systemic risk," Journal of Banking & Finance, Elsevier, vol. 46(C), pages 85-106.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:237:y:2014:i:1:p:231-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.