This paper presents how to use the Capability Maturity Model Integration (CMMI) in software engineering modeling processes. Any variation of CMMI, depending on the scope of application, can also be used to assess the process maturity of an organization. Regarding the Software Reliability Engineering (SRE) process, the activities in the SRE process have been briefly described, noting that the application of SRE in all software-based products leads to good control over the development process.
This study investigates the determinants of private sector investments in Turkey with a focus on democracy. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach and two different democracy indices along with the other determinants of private investment, we estimated a private investment function for the 1975-2014 period. Our main finding is that democracy has a profound positive impact on private investment. Moreover, the results show that: (i) public investment is a substitute to private investment; (ii) macroeconomic instability dissuades private investment; (iii) real interest is a serious impediment to private investment; (iv) financial development and GDP growth rate stimulate private investment.
Investors are interested in sector diversification on stock markets among other important portfolio topics. This paper looks at five sector indices on Croatian capital market as an example of a small, relatively illiquid market. Sector indices have been constructed at the beginning of 2013 and since then there is a lack of studies, which focus on sector diversification on Zagreb Stock Exchange (ZSE). Thus, the purpose of this paper is to evaluate the recent dynamics of risk and performance of five sector indices on ZSE by employing MGARCH (Multivariate Generalized Autoregressive Conditional Heteroskedasticity) models empirically. Output from the analysis is used to form guidance for investors on Croatian capital market. The results indicate that in the observed period from February 4th 2013 to October 13th 2015 portfolios based on MGARCH methodology outperform other portfolios in terms return and risk. Thus, it is advisable to use this methodology when making portfolio selection.
The paper examines relationships between selected stock market indices in Western Europe, Central Europe, and the United States. The study focuses on two periods, from January 1998 to August 2006 and from September 2006 to December 2016. The first one includes stock quotes from before the financial crisis while the second one covers the crisis and changes in the economic situation in post-crisis years. Relationships between stock market indices in developed economies were more frequent and durable than in Central Europe, although they were subject to changes. In our investigation into Granger causality relationships we observed changes in these relationships and in their direction for stock markets in Central Europe, while bidirectional relationships between indices in developed economies remained stable over time. Changes in relationships between indices, in particular long-term interdependences, may result from the impact of the 2008 financial crisis. The increased number of causality relationships for the markets in Central Europe may testify to the advancing integration of the EU common market.
This paper examines the return and volatility spillovers of different sectoral stock prices in Nigeria using monthly data from January 2007 to December 2016. We employ the Diebold and Yilmaz (2012) spillover approach and rolling sample analysis to capture the inherent secular and cyclical movements in the sector stocks market.We show that there is substantial difference between the behaviour of the sectoral stock return and volatility spillover indices over time. We find evidence of interdependence among sector stocks given the spillover indices. While the return spillover index reveals increased integration among the sectoral stocks, the volatility spillover index experiences significant bursts during major market crises. Interestingly, return and volatility spillovers exhibit both trends and bursts respectively.
The copula-GARCH approach provides a flexible and versatile method for modeling multivariate time series. In this study we focus on describing the credit risk dependence pattern between real and financial sectors as it is described by two representative iTraxx indices. Multi-stage estimation is used for parametric ARMA-GARCH-copula models. We derive critical values for the parameter estimates using asymptotic, bootstrap and copula sampling methods. The results obtained indicate a positive symmetric dependence structure with statistically significant tail dependence coefficients. Goodness-of-Fit tests indicate which model provides the best fit to data.
This study employs the recently developed Lagrange multiplier-based causality-in-variance test by Hafner and Herwartz (2006), to determine the volatility spillovers between interest rates and stock returns for the US, the euro area, the UK, and Japan. The investigation pays careful attention to volatility transmissions between stock returns and interest rates before and after these economies reached the Zero Lower Bound (ZLB), which is permitted via the use of Shadow Short Rates (SSR), used as a proxy for monetary policy decisions. The results based on daily data imply that while bidirectional causality is observed, the volatility spillover from interest rates to stock markets are more prominent for the full-sample, as well as the sub-samples covering the pre- and during-ZLB periods.
The study examines the impact of switching from direct to indirect monetary policy on industrial growth in Nigeria, using the annual time series data sourced from the Central Bank of Nigeria’s (CBN) statistical bulletin between 1960 and 2015. The study adopts the Autoregressive Distributed Lag (ARDL) bound testing approach developed by Pesaran, Shin and Smith (2001) for estimating the relevant relationships. The result of the long-run estimates shows that domestic credit, interest rate and trade balance have positive impact on industrial output while money supply, inflation and exchange rate have negative impact on industrial growth. The result of the short-run dynamics shows that change in the previous (one and second lagged) periods of indirect monetary policy (interest rate, money supply, domestic credit and exchange rate) and industrial output were negatively related to change in industrial output. The error correction term indicates the speed of adjustment of equilibrium to their long-run position, which was found to be negative and significant. The study recommends that policy makers use both conventional and non-conventional monetary policies to speed up industrial output growth and enhance economic recovery by manipulating the macro-economic fundamentals.
Residential development in Poland has gone through many changes over the last few decades. In the 1990s, housing cooperatives played a major role among investors in the residential market, whereas developers were only taking their first steps. Today the situation has reversed. In addition to private persons building homes for their own use, developers contribute the most to the supply of new housing. There are many factors that have led to this situation. It is noteworthy that many laws governing the real estate market, the construction market, the development of entrepreneurship, etc. have been either enacted or frequently amended over the last two decades, which may have significantly affected developers’ activities.
The article is an attempt to answer the question about whether and, if so, how strongly changes in the legal setting have influenced residential development activity in Poland.
In the paper, the mathematical model of demand and inventory is studied from the perspective of its applications in real business cases. The model is formulated with three difference equations of first order. Three scenarios focused on the last phase of the product life cycle, a decline, are investigated and commented upon.