scholarly journals The Impact of Futures Trading Volume on the Domestic Currency Liquidity—Empirical Analysis on the Data from 1998 to 2004 Using VAR Model

2017 ◽  
Vol 07 (04) ◽  
pp. 57-68
Author(s):  
慧颖 蔡
Keyword(s):  
Empirical Analysis ◽  
Trading Volume ◽  
Var Model ◽  
Domestic Currency ◽  
Futures Trading ◽  
The Impact

HOW DOES BLOCKCHAIN PARTICIPATION AFFECT THE CRYPTOCURRENCY MARKET?

2020 ◽  
pp. 1-24
Author(s):  
YI LI ◽  
WEI ZHANG ◽  
PENGFEI WANG
Keyword(s):  
Trading Volume ◽  
Positive Impact ◽  
Granger Causality Test ◽  
Realized Volatility ◽  
Var Model ◽  
Alternative Measure ◽  
Theoretical Studies ◽  
Causality Test ◽  
Vector Autoregressive ◽  
The Impact

Taking the unique advantage of the cryptocurrency market setting, this paper examines the relationships between blockchain participation and returns, trading volume and realized volatility of main cryptocurrencies (i.e., Bitcoin, Ethereum and Litecoin). Dissimilar to previous theoretical studies that model the influencing factors on participation, we employ the number of unique from addresses 1 as the proxy for cryptocurrency investors’ blockchain participation and further explore the impact of such participation. By using vector autoregressive (VAR) model, we find that the blockchain participation has a significant and positive impact on the next day’s trading volume and realized volatility for the main cryptocurrencies. Our results are robust to the Granger causality test and alternative measure for blockchain participation.

scholarly journals Impact of Commodity Transaction Tax on Market Liquidity, Volatility, and Government Revenues: An Empirical Study for India

2019 ◽  
Vol 44 (1) ◽  
pp. 12-29 ◽  
Author(s):  
Sanjay Sehgal ◽  
Tarunika Jain Agrawal
Keyword(s):  
Trading Volume ◽  
Market Liquidity ◽  
Commodity Futures ◽  
Tax Revenue ◽  
Agricultural Commodity ◽  
Futures Trading ◽  
Executive Summary ◽  
The Government ◽  
Transaction Tax ◽  
The Impact

Executive Summary A commodity transaction tax (CTT) of 0.01 per cent is levied on non-agricultural commodity futures trading since 1 July 2013 by the Government of India. This article examines the impact of CTT on market liquidity, volatility and government tax revenues for the Indian commodities market. We use daily data of five sample commodities, namely gold, aluminium, copper, zinc and crude oil available from 1 May 2010 to 31 August 2016. It is found that CTT imposition has destroyed the parity of the Indian commodity futures market with the international markets as CTT is absent on COMEX, LME, NYMEX, and so on. Moreover, evidence of trade migration can be found by drawing a comparison across MCX and international exchanges. This argument is further substantiated by observing the decline in liquidity after the imposition of CTT. It should be further noted that parity with the equity market is also lost as the transaction taxes imposed in equity and commodity markets are not in line with the level of volatilities of the two markets. CTT has also failed to curb speculative pressure as average volatility on major commodities has risen significantly by about 33 per cent post its imposition. Considering the transaction tax, income tax and service tax aspects and decline in the trading volume attributed solely to the CTT imposition, it is found that CTT results in huge revenue loss to the exchequer. It is estimated that at the current CTT rate, government is losing an annual net tax revenue worth ₹30 billion. Even at a lower rate of 0.001 per cent (which is one-tenth of the current rate of 0.01%), the government’s fiscal loss is expected to be about ₹2.50 billion. Even if we make a conservative assumption that CTT accounts for only 25 per cent decline in the trading volumes, the optimal CTT rate, in terms of tax revenue collections, is found at 0.003 per cent, well below the current rate. There is, therefore, no justification for retaining CTT on the commodity futures trading in India as it leads to a huge revenue loss to the government, owing to reduced trading activity and trade migration. Withdrawal of CTT would be ideal for Indian commodities market development, improving its liquidity and making it more internationally competitive.

Overcoming stereotypes of renewable energy

2019 ◽  
pp. 124-136
Author(s):  
Victor D. Gazman
Keyword(s):  
Renewable Energy ◽  
Empirical Analysis ◽  
Energy Generation ◽  
New Paradigm ◽  
Financial Instrument ◽  
Promising Direction ◽  
Investment Projects ◽  
Power Stations ◽  
New Generation ◽  
The Impact

The article considers prerequisites for the formation of a new paradigm in the energy sector. The factors that may affect the imminent change of leadership among the energy generation are analyzed. The variability of the projects of creation and functioning of power stations is examined. The focus is made on problematic aspects of the new generation, especially, storage and supply of energy, achieving a system of parity that ensures balance in pricing generations. The author substantiates the principles of forming system of parities arising when comparing traditional and new generations. The article presents the results of an empirical analysis of the 215 projects for the construction of facilities for renewable energy. The significance and direction of the impact of these factors on the growth in investment volumes of transactions are determined. The author considers leasing as an effective financial instrument for overcoming stereotypes of renewable energy and as a promising direction for accelerated implementation of investment projects.

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