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Basic income is often seen as a threat to the stability of labor markets. However, not only are concerns about mass withdrawal from the labor force unfounded, there is reason to believe that basic income would actually improve the functioning of labor markets. While there is little empirical evidence that can be used to evaluate basic income, behavioral evidence suggests that our risk-averse species likes to work and may become more productive if a basic income were introduced to reduce economic risk. This paper provides basic income activists with both a defense against negative labor market implications, as well as an introduction to why labor markets may actually improve with basic income.

This study aims to learn how the construction companies apply risk management practices and supply chain risk management to mitigate risk in this field of activities. The study tries to combine theory with practical findings. The methodology in this study is mainly based on analysis of information collected from a literature survey and interview carried out at three construction companies and one logistic provider company, to see how they apply risk management procedures and practices and supply chain risk management in their activities. It was realized that: All interviewed companies were aware of different kind of risks associated with their performance such as economic risk, environmental risk and last but not least health and safety risk. The complexity and uniqueness of each construction project causes that the experience from previously performed projects can be used only to small extent. Furthermore, companies have their own methods and tools for assessing and managing the risk. Instead of using commonly known risk tools and models, they intuitively predict the probability of different scenarios and try to ensure their operations by for example buying insurance or adding extra clauses in the contract.

Jon Danielsson discusses the use of capital ratios and macroprudential regulation and describes the limitations of each policy: How banks can inflate capital ratios, how capital requirements fail to reduce the risk of aggregate shocks and how Basel III regulations burden smaller banks relative to larger banks. Moreover, Danielsson discusses the pros and cons of putting macroprudential regulations in the hands of a central bank, the possibility that this policy may turn out to be procyclical and the dangers faced to the credibility of a central bank that attempts to assess the economic risk of political decisions.

This paper reviews the possibility of price risk limitation, which is conducive to farmers’ income stabilization. The attempts to control price risk in both the agricultural and horticultural sectors started a long time ago. The price is the most important factor bounding supply and demand on the market. Prices of agri-food products are volatile and derive from many factors, which are unable to be predicted in practice. The influence of many variables is, furthermore, also volatile and emerges in varying intensity. Price risk in the farmers’ case results from the fact that the production decisions are made mostly under the influence of current prices, but products are sold at future prices. It means that the risk in agriculture is multiplied, due to the impossibility of correction of ongoing production. Effects of all risk factors, as well as their correlations, are focused on price. Price volatility, together with the negative effects it causes, is able to destabilize farmers’ incomes, and put them off investments or optimal use of resources, which in consequence may lead to a retreat from the sector. It is crucial to provide to the agriculture sector solutions supporting farmers in taking their own economic risk. The most important thing in market stabilization seems to be its organization in both a vertical and horizontal way with special attention paid to farmers’ cooperation.

Published studies have documented increased rates of adverse drug events, hospitalizations, mortality, and higher healthcare costs associated with inappropriate medication use among the population of older adults, in addition to various clinical, psycho-social, and economic risk factors. These risk factors are often directly or indirectly linked to ageism. In particular, inappropriate prescribing, polypharmacy/polyherbacy, and medication nonadherence substantially contribute to the rising prevalence of drug-related problems in older patients, such as cognitive impairment, impaired balance, risk of falls, and hospitalizations. These phenomena are closely connected. They present both risk factors and negative consequences of suboptimal prescribing and lead to a complicated net of multiple pharmacotherapeutic risks. This chapter examines inappropriate medication use (inappropriate prescribing, polypharmacy/polyherbacy, and medication nonadherence) among the older population and highlights their direct and indirect associations with ageism.

This paper is devoted to the research of the region’s competitiveness in the direction of determining its leading positions among other regions with the aim of determining the permissible scope of regional foreign trade flows in terms of economic security of the country. For conducting the analysis of regional export-import flows, regional trade indicators and their thresholds were introduced and considered. The economic-mathematical model of quantitative analysis of risk and discovering the boundary limits of foreign trade flows of the region are worked out. The foreign trade flows of the regional leader – Ivano-Frankivsk region of the Carpathian region – on the basis of two-dimensional normal distribution were designed, and the level of the threshold values of the indicators of foreign trade operations of the region from the point of view of economic risk was determined. The method of building an ellipse of scattering of foreign trade operations of the region – the region of regional foreign trade flows concerning the leading position of the region in the context of economic security for a comparative assessment of the competitiveness and economic security of the regions – is generalized.

In this chapter Agboraw and Jones explore theories of natural resource scarcity and economic growth. By examining how natural resources fit within current theory the issues of how scarcity of resources, or resource prices, link to a better understanding of economic risk is outlined.

The previous sections of this book deal with microeconomic and macroeconomic theory. This book contributes quite specifically to economic risk theory by clarifying the consequences of risk owners running out of capital in certain instances because of sudden, unexpected events so that they are in danger of having to accept unwanted, unnecessarily high financing costs associated with a risk event.

The latest studies on the impacts of the crisis on business sustainability and performance have illustrated that there are major factors inside business architect, considered as key solutions for strategies out of global recession. In this context, proactive organizational culture also provides top managers with opportunities to implement strategies out of a global recession while adopting competencies for forecasting and evaluating economic risk within an interdisciplinary approach. Businesses (trying) to locate strategies out of global recession firstly should evaluate internal resources such as skilled workers and managers. In this study, it is aimed to demonstrate the importance of proactive organizational culture in the banking sector as a strategic kit for developing effective ways out of global recession.

The recent global financial crisis has generated considerable adverse economic repercussions around the world. It has also resulted in acute awareness of the variability of key economic indicators whose correlation with economic growth and population welfare underscores the need to manage risk nationally and internationally. Developing and small economies have proven to be highly vulnerable to economic adversities of a global nature in the absence of coping mechanisms that could take the form of compensation or aid. Arab countries and Sub-Saharan Africa (SSA) share this vulnerability to varying degrees and can be expected to suffer from it in the future but could, it is argued, reduce their respective levels of exposure through enhanced economic collaboration in trade and investment. The episode of the crisis has revealed that for governments and households the variability of income is as important a concern as its level. Therefore, it is expected that future economic policy will pay more attention to reducing economic risk than was the case in the past.

Suppose financial markets are not empirically “perfect.” Further suppose that “regulation” of financial markets is required for any financial market to operate toward the economic ideal of market perfection. And suppose the practice of regulation should be based upon a theory of regulation (regulatory principles) which can be empirically shown to have worked in financial history. Then what kind of regulatory theory could this be and how constructed and how verified? The goal is a cross-disciplinary theory of regulation—which can prescriptively direct financial markets toward the ideal of economic perfection. The economic ideal is for any financial market to operate with transparent financial information, rational financial behavior, effective financial performance, and integrity in economic risk. And this is a traditional idea in banking regulation.