International Scientific Conference „Business and Management“, 11th International Scientific Conference „Business and Management 2020“

Font Size: 
Approach of scaling the level of government intervention in the financial market
Kristaps Freimanis, Maija Šenfelde

Last modified: 2020-06-16

Abstract


In the field of the economics’ regulation researchers so far have built the conceptual framework showing how the deadweight loss of market failures decrease and costs of the government intervention in-crease with the increased level of the government intervention. In order to quantify relationships between the level of intervention, intervention costs and the deadweight loss with econometric models it is im-portant to understand how to apply coordinates for the data points to be included in the modelling. The main goal of the research presented in this paper is to find the unit measure for the asis of the independentvariable, i.e. to shape the categorical scale corresponding to the level of intervention.

DOI: https://doi.org/10.3846/bm.2020.591


Keywords


categorical scale, deadweight loss, financial market regulation, market failure, government intervention

Full Text: PDF