Economic recessions, social networks, environmental damage in several large countries (eg. China, Brazil, U.S.), the Global Financial Crisis of 2007-2015 and cross-border spillovers continue to significantly affect economic systems, financial markets, social structures and environmental compliance worldwide. These have rekindled economists' and policy-makers' interest in the relationships among constitutions, risk regulation, foreign aid, political systems, government size, credit expansion and sustainable growth. Risk regulation remains highly ineffective as manifested by the failures of new financial regulations and government stimulus programs that were implemented during 2007-2020 in many developed countries and emerging markets countries. This book, the first of two volumes, addresses these issues in the context of the role of constitutional economics and economic psychology as tools for national and global sustainable growth and risk management. Furthermore, this volume analyzes the often symbiotic relationship between alternative sets of legal-institutional-constitutional rules that constrain the choices and activities of economic and political agents on one hand, and sustainable growth, financial regulation and the risk management of financial institutions on the other; and reviews the effects of constitutions and legal institutions on market dynamics (real estate; fixed-income, stocks; etc.) including volatility, market depth and liquidity. This book will help researchers develop better artificial intelligence and decision-systems models of geopolitical risk, public policy and international capital flows, all of which are increasingly relevant to investment managers, boards-of-directors and government officials.

Traditional research about Financial Stability and Sustainable Growth typically omits Earnings Management (as a broad class of misconduct), Complex Systems Theory, Mechanism Design Theory, Public Health, psychology issues, and the externalities and psychological effects of Fintech. Inequality, Environmental Pollution, Earnings Management opportunities, the varieties of complex Financial Instruments, Fintech, Regulatory Fragmentation, Regulatory Capture and real-financial sector-linkages are growing around the world, and these factors can have symbiotic relationships. Within Complex System theory framework, this book analyzes these foregoing issues, and introduces new behaviour theories, Enforcement Dichotomies, and critiques of models, regulations and theories in several dimensions. The issues analyzed can affect markets, and evolutions of systems, decision-making, "nternal Markets and risk-perception within government regulators, operating companies and investment entities, and thus they have Public Policy implications. The legal analysis uses applicable US case-law and statutes (which have been copied by many countries, and are similar to those of many common-law countries). Using Qualitative Reasoning, Capital Dynamics Theory (a new approach introduced in this book), Critical Theory and elements of Mechanism Design Theory, the book aims to enhance cross-disciplinary analysis of the above-mentioned issues; and to help researchers build better systems/Artificial-Intelligence/mathematical models in Financial Stability, Portfolio Management, Policy-Analysis, Asset Pricing, Contract Theory, Enforcement Theory and Fraud Detection. The primary audience for this book consists of university Professors, PHD students and PHD degree-holders (in industries, government agencies, financial services companies and research institutes). The book can be used as a primary or supplementary textbook for graduate courses in Regulation; Capital Markets; Law & Economics, International Political Economy and or Mechanism Design (Applied Math, Operations Research, Computer Science or Finance).

Illegal online file sharing costs companies tens of billions of dollars of lost revenues around the world annually and results in lost productivity, various psychological issues, and significant reduction of incentives to create and innovate. Legislative, technical, and enforcement efforts have failed. This book presents psychological theories about why people illegally share files online; analyzes and characterizes optimal sanctions for illegal online file sharing; introduces new models for pricing of network-access and digital-content to help reduce illegal online file sharing; introduces new content control and P2P systems; and explains why game theory does not work in pricing of network access.

Most research about financial stability and sustainable growth focuses on the financial sector and macroeconomics and neglects the real sector, microeconomics and psychology issues. Real-sector and financial-sectors linkages are increasing and are a foundation of economic/social/environmental/urban sustainability, given financial crises, noise, internet, "transition economics", disintermediation, demographics and inequality around the world. Within complex systems theory framework, this book analyses some multi-sided mechanisms and risk-perception that can have symbiotic relationships with financial stability, systemic risk and/or sustainable growth. Within the context of Regret Minimization, MN-Transferable Utility and WTAL, new theories-of-the-firm are developed that consider sustainable growth, price stability, globalization, financial stability and birth-to-death evolutions of firms. This book introduces new behaviour theories pertaining to real estate and intangibles, which can affect the evolutions of risk-taking and risk perception within organizations and investment entities. The chapters address elements of the dilemma of often divergent risk perceptions of, and risk-taking by corporate executives, regulators and investment managers.

Many emerging market countries are bank-based economies and are increasingly affected by geopolitical risks, U.S. dollar dynamics, regulations, preferential trade agreements (PTAs), MNCs (that often function like international organizations), social networks, labor dynamics, cross-border spillovers and the inefficient expansion of formal/informal microfinance. Country risks, informal economies (that account for 20-50 percent of the national economy of many emerging market countries), investor protection, enforcement commitment, compliance costs, sustainability (environmental, social, economic and political sustainability), economic growth, political stability, financial stability, geopolitical risk, social networks, household economics, inequality and international trade outcomes can vary dramatically across many DECs and LDECs due to these phenomena. The COVID-19 pandemic has illustrated the many problems inherent in political systems, economic policy and governments' emergency powers during pandemics/epidemics and economic/financial crisis. This second volume focuses on geopolitical risks that are intertwined with constitutional political economy and labor issues, alongside addressing some of the financial and constitutional crises that occurred in Europe, Asia and the U.S. during 2007-2020. This book provides analysis of complex systems and the preferences and reasoning of state/government and corporate actors in order to develop better artificial intelligence and decision-system models of geopolitical risk, public policy and international capital flows, all of which are increasingly important decision factors for investment managers, boards-of-directors and government officials.

Traditional research about Financial Stability and Sustainable Growth typically omits Earnings Management (as a broad class of misconduct), Complex Systems Theory, Mechanism Design Theory, Public Health, psychology issues, and the externalities and psychological effects of Fintech. Inequality, Environmental Pollution, Earnings Management opportunities, the varieties of complex Financial Instruments, Fintech, Regulatory Fragmentation, Regulatory Capture and real-financial sector-linkages are growing around the world, and these factors can have symbiotic relationships. Within Complex System theory framework, this book analyzes these foregoing issues, and introduces new behaviour theories, Enforcement Dichotomies, and critiques of models, regulations and theories in several dimensions. The issues analyzed can affect markets, and evolutions of systems, decision-making, "nternal Markets and risk-perception within government regulators, operating companies and investment entities, and thus they have Public Policy implications. The legal analysis uses applicable US case-law and statutes (which have been copied by many countries, and are similar to those of many common-law countries). Using Qualitative Reasoning, Capital Dynamics Theory (a new approach introduced in this book), Critical Theory and elements of Mechanism Design Theory, the book aims to enhance cross-disciplinary analysis of the above-mentioned issues; and to help researchers build better systems/Artificial-Intelligence/mathematical models in Financial Stability, Portfolio Management, Policy-Analysis, Asset Pricing, Contract Theory, Enforcement Theory and Fraud Detection. The primary audience for this book consists of university Professors, PHD students and PHD degree-holders (in industries, government agencies, financial services companies and research institutes). The book can be used as a primary or supplementary textbook for graduate courses in Regulation; Capital Markets; Law & Economics, International Political Economy and or Mechanism Design (Applied Math, Operations Research, Computer Science or Finance).

Illegal online file sharing costs companies tens of billions of dollars of lost revenues around the world annually and results in lost productivity, various psychological issues, and significant reduction of incentives to create and innovate. Legislative, technical, and enforcement efforts have failed. This book presents psychological theories about why people illegally share files online; analyzes and characterizes optimal sanctions for illegal online file sharing; introduces new models for pricing of network-access and digital-content to help reduce illegal online file sharing; introduces new content control and P2P systems; and explains why game theory does not work in pricing of network access.

Indices, index funds and ETFs are grossly inaccurate and inefficient and affect more than EURO120 trillion worth of securities, debts and commodities worldwide. This book analyzes the mathematical/statistical biases, misrepresentations, recursiveness, nonlinear risk and homomorphisms inherent in equity, debt, risk-adjusted, options-based, CDS and commodity indices - and by extension, associated index funds and ETFs. The book characterizes the "Popular-Index Ecosystems," a phenomenon that provides artificial price-support for financial instruments, and can cause systemic risk, financial instability, earnings management and inflation. The book explains why indices and strategic alliances invalidate Third-Generation Prospect Theory (PT3), related approaches and most theories of Intertemporal Asset Pricing. This book introduces three new decision models, and some new types of indices that are more efficient than existing stock/bond indices. The book explains why the Mean-Variance framework, the Put-Call Parity theorem, ICAPM/CAPM, the Sharpe Ratio, Treynor Ratio, Jensen's Alpha, the Information Ratio, and DEA-Based Performance Measures are wrong. Leveraged/inverse ETFs and synthetic ETFs are misleading and inaccurate and non-legislative methods that reduce index arbitrage and ETF arbitrage are introduced.

Many emerging market countries are bank-based economies and are increasingly affected by geopolitical risks, U.S. dollar dynamics, regulations, preferential trade agreements (PTAs), MNCs (that often function like international organizations), social networks, labor dynamics, cross-border spillovers and the inefficient expansion of formal/informal microfinance. Country risks, informal economies (that account for 20-50 percent of the national economy of many emerging market countries), investor protection, enforcement commitment, compliance costs, sustainability (environmental, social, economic and political sustainability), economic growth, political stability, financial stability, geopolitical risk, social networks, household economics, inequality and international trade outcomes can vary dramatically across many DECs and LDECs due to these phenomena. The COVID-19 pandemic has illustrated the many problems inherent in political systems, economic policy and governments' emergency powers during pandemics/epidemics and economic/financial crisis. This second volume focuses on geopolitical risks that are intertwined with constitutional political economy and labor issues, alongside addressing some of the financial and constitutional crises that occurred in Europe, Asia and the U.S. during 2007-2020. This book provides analysis of complex systems and the preferences and reasoning of state/government and corporate actors in order to develop better artificial intelligence and decision-system models of geopolitical risk, public policy and international capital flows, all of which are increasingly important decision factors for investment managers, boards-of-directors and government officials.

Economic recessions, social networks, environmental damage in several large countries (eg. China, Brazil, U.S.), the Global Financial Crisis of 2007-2015 and cross-border spillovers continue to significantly affect economic systems, financial markets, social structures and environmental compliance worldwide. These have rekindled economists' and policy-makers' interest in the relationships among constitutions, risk regulation, foreign aid, political systems, government size, credit expansion and sustainable growth. Risk regulation remains highly ineffective as manifested by the failures of new financial regulations and government stimulus programs that were implemented during 2007-2020 in many developed countries and emerging markets countries. This book, the first of two volumes, addresses these issues in the context of the role of constitutional economics and economic psychology as tools for national and global sustainable growth and risk management. Furthermore, this volume analyzes the often symbiotic relationship between alternative sets of legal-institutional-constitutional rules that constrain the choices and activities of economic and political agents on one hand, and sustainable growth, financial regulation and the risk management of financial institutions on the other; and reviews the effects of constitutions and legal institutions on market dynamics (real estate; fixed-income, stocks; etc.) including volatility, market depth and liquidity. This book will help researchers develop better artificial intelligence and decision-systems models of geopolitical risk, public policy and international capital flows, all of which are increasingly relevant to investment managers, boards-of-directors and government officials.

Current issues within industrial organization, mechanism design, political economy, and complex systems in the global accounting/consulting industry and global credit rating agency industry can have massive effects on international trade and international capital flows as these industries are some of the most international of all service industries. One major issue that is often overlooked is that NPLs, LRCs, and CRAs are significantly affected by both business processes and the nature and tenure of human-computer interactions (HCI) of the financial market ecosystem. Therefore, it is important to analyze the theories about business processes and the long-term impact of the use of computers on individuals and groups within the context of corporate strategy and vice versa. Through these theories one can better understand the changes technology has caused in the financial ecosystem and the way business models are shifting and developing to handle these changes. Complex Systems and Sustainability in the Global Auditing, Consulting, and Credit Rating Agency Industries analyzes and develops theories about public policy and ""inter-business"" processes that are designed and executed within the context of computer networks. It focuses on aspects of complex systems (including networks), mechanism-design, and behavioral game theory and introduces new models and ""informal algorithms"" that solve social-choice problems. It will also present new business/compensation models for the accounting/auditing, credit rating agency, and business-opportunities industries as well as analyze industry structure, structural changes, and antitrust problems. This book is essential for employees in the industry, financial services, research institutes, consulting firms, and government agencies, along with accountants, financial planners, auditors, consultants, practitioners, researchers, academicians, and students interested in industrial mathematics and theoretical computer science.