Issue #4 (Volume 17 2019)

The problem of determining the value of statistical life in Ukraine in order to find ways to improve it is an urgent one now. The current level of value is analyzed, which is a direct consequence of the poor quality of life of a citizen, hence his low level. The description of the basic theoretical and methodological approaches to the estimation of the cost of human life is given. Based on the analysis, a number of hypotheses have been advanced about the use of statistical calculations to achieve the modeling objectives. Model calculations are based on the example of Zaporozhye Oblast statistics for 2018–2019. The article elaborates the approach to the estimation of the economic equivalent of the cost of living on the basis of demographic indicators and average per capita income, and also analyzes the possibilities of their application in the realities of the national economy. Using Statistica, the regression equation parameters were determined for statistical data of population distribution of Zaporizhzhia region by age groups for 2018. The calculation parameters were also found using the Excel office application, using the Solution Finder option to justify the quantitative range of metric values. It is proved that the proposed approach to modeling and calculations are simpler and more efficient than the calculation methods proposed earlier. The study concluded that the value of statistical life in Ukraine is significantly undervalued.

Methods of calculating the approximate price of options using instruments of spectral analysis, singular and regular wave theory in the context of influence of fast and slow acting factors are developed. By combining methods from the spectral theory of singular and regular disturbances, one can approximate the price of derivative financial instruments as a schedule of its own functions. The article uses the theory of spectral analysis and the singular and regular theory of perturbations, which are applied to the short-term interest rates described by the Vasicek model with multidimensional stochastic volatility. The approximate price of derivatives and their profitability are calculated. Applying the Sturm-Liouville theory, the Fredholm alternative, and the analysis of singular and regular disturbances in different time scales, explicit formulas were obtained for the approximation of bond prices and yields based on the development of their own functions and eigenvalues of self-adjoint operators using boundary value problems for singular and regular perturbations. The theorem for estimating the accuracy of derivatives price approximation is established. Such a technique, in contrast to existing ones, makes it possible to study the stock market dynamics and to monitor the financial flows in the market. This greatly facilitates the statistical evaluation of their parameters in the process of monitoring the derivatives pricing and the study of volatility behavior for the profitability analysis and taking strategic management decisions on the stock market transactions.

Trends in the development of Ukrainian mining companies have shown that it is important to increase their financial potential. This necessitates an assessment of the financial capacity of business entities to determine the directions, methods for attracting additional and optimizing existing financial resources. The aim of this research is to determine a methodological approach to determining the level of financial potential of economic entities through the use of mathematical and statistical methods to identify the current financial status of economic entities and financial reserves of development. General scientific and special research methods, analysis and synthesis, graphical analysis, taxonomic analysis, cluster analysis, as well as abstract and logical methods were used to achieve the goal. Theoretical approaches to defining the essence of the concepts of “potential”, “financial potential of economic entities” were systematized to specify the boundaries of each of the concepts, its components. Definition of the essence of the “financial potential of economic entities” concept was proposed. A set of financial indicators to assess the level of financial potential through a priori ranking based on the analysis of literature sources was developed. The selected financial indicators were grouped according to the financial potential components; the integral indicators for each group were calculated. Business entities in the mining industry in Ukraine were grouped into clusters according to calculated taxonomic indicators. Besides, the level of financial potential for each cluster was determined. The methodological approach to the diagnosis of the level of financial potential of economic entities was developed using mathematical and statistical methods. This made it possible to identify trends in the development of financial potential, which allows forming measures to increase it.

The article deals with the application of optimal portfolio theory and pair trading theory on the metals futures market. Advantages of the futures market over the spot market include relatively small initial price, low transaction costs, and high volatility. The main aim of the study is to explore the potential of both strategies for effective trading. The following financial instruments were chosen as the inputs of the models: futures on industrial metals (aluminum, copper, nickel, zinc, lead, tin), futures on precious metals (gold and silver). When building the optimal portfolio, it was decided to include Dow Jones Index futures and S&P Index futures among metals. This is because these instruments are extremely volatile and may play the role of a hedge in the portfolio. A drawdown indicator was used to assess the effectiveness of each strategy. The results show that both strategies can be applied on the real-life market. The final choice will depend on the level of risk taking by investors and the desired value of return.

Since gained its independence in 1991, energy management has become the most important factor in the development of Kazakhstan’s economic and foreign policy. This is due to the presence of widespread deposits of natural energy resources in the bowels of Kazakhstan. This forms the energy security and essential basis for the economic independence of the Republic of Kazakhstan. The study, first of all, looks at Kazakhstan’s foreign policy and the links between foreign policy and energy sources. In particular, attention is paid to the role of oil in shaping Kazakhstan’s foreign policy as an active participant in the highly competitive energy resources market. The energy potential of Kazakhstan, the entry of Kazakh oil into the world market and the obstacles created by Russia for Kazakhstan in this process are investigated next. Other problems in the region are analyzed, including border issues with neighboring countries, as well as the impact of energy demand in China on Kazakhstan’s foreign policy. In this regard, the main focus of the study is the analysis of Kazakhstan’s energy resources rich in oil reserves, and the analysis of the multilateral energy policy of the Astana Government since independence and has been gained since.