We investigate the socioeconomic correlates of positive-sum thinking, defined as the belief that economic and social interactions can generate mutually beneficial outcomes rather than purely redistributive gains. Positive-sum beliefs are relevant not only for individual attitudes but also for economic development, since they may support trust, cooperation, innovation, trade openness, entrepreneurship, and demand for pro-development institutions. Using representative Italian survey data, we document that secondary education, entrepreneurship, engagement in the third sector, retirement, and having more than one child are positively associated with positive-sum thinking. We interpret these associations through a generativity lens, according to which some socioeconomic roles may expose individuals to situations in which actions create value both for themselves and for others. Overall, the findings are consistent with the idea that beliefs about economic interactions are related not only to ideology, but also to experiential exposure to socially and economically generative activities. More broadly, the findings suggest a possible direction for future research on cumulative social, occupational, relational, and institutional exposures (social exposome) that may be associated with whether individuals perceive economic life as zero-sum or positive-sum.
Stringent climate regulations are necessary to achieve robust mitigation targets, putting carbon-intensive activities under pressure and increasing the risk perceived in financial markets. This paper empirically investigates how transition risk is priced into European firms' risk and creditworthiness, using five-year credit default swap (CDS) spreads and Merton's Distance to Default (DtD). The sample comprises European listed companies covered by the EU Emissions Trading System (ETS). Evidence suggests that the ETS carbon price and verified emissions increase credit risk, whereas disclosing emissions reduces it. We find heterogeneous effects across the two indicators, which could indicate different ways in which transition risk is channelled to bond markets. Furthermore, the divergent effects between voluntary and compliance-based measurement of environmental performance could indicate underpricing of emissions relocated outside regulated jurisdictions.
Given the highly globalized financial ecosystem, it is paramount to evaluate banking efficiency and convergence dynamics; such an analysis helps to identify efficiency gaps and tailor strategies oriented towards optimal operational and financial performance to ensure the competitiveness of business players in the market. This two-stage research aims to investigate the cost and profit efficiency (CE and PE), and convergence dynamics in Pakistan’s banking industry between 2006 and 2020. Our first-stage analysis applying stochastic frontiers analysis reveals that the overall banking sector’s average CE and PE were demonstrated to be 75.33 and 71.94
This paper examines dynamic connectedness and volatility spillovers among equity markets of an emerging economy (India's Nifty50) and a developed economy (US S P500), gold, Bitcoin, and Economic Policy Uncertainty (EPU) over 2017–2024. Using a Time-Varying Parameter Vector Autoregression (TVP-VAR) and novel connectedness measures by Antonakakis and Gabauer (2017) based on it in two model specifications (Model I: Nifty50, EPU, Gold, Bitcoin; Model II: S P500, EPU, Gold, Bitcoin), we trace evolving interdependencies through crises, the COVID-19 pandemic, cryptocurrency cycles, and geopolitical shocks. Results indicate both equity markets are net receiver of spillovers from other variables in the system but S P500 receives volatility in far more magnitude than Nifty50. EPU in both models is more likely to reflect macro-financial stress than drive it. Gold, on the other hand, consistently acts as a flight-to-safety asset for Indian equity market but propagates large persistent spillovers into the US equity markets. Spillovers from Bitcoin to other variables in both models remain consistently high, highlighting the increasing sensitivity of equity markets of not just developed nations but also emerging market economies to volatility in cryptocurrency market. Results also show a significant rise in spillovers from other variables in the system to Nifty50 returns post 2021 while the opposite is true for S P500. Although both equity markets are sensitive to global shocks, the S P500 remains more entangled with other assets. The results emphasise the need for an adaptive regulatory framework, especially in emerging markets, to reduce volatility brought on by cryptocurrencies and gold price fluctuations.
Unprecedented growth of decentralized digital currencies has paved the way for several categories of digital assets that have emerged in the contemporary financial landscape. Each class of digital assets has unique role in the financial ecosystem. Green cryptocurrencies address environmental concern; stable coins offer liquidity and financial stability whereas DeFi tokens offer financial services to users through smart contracts without involving financial intermediaries. High connectedness among digital assets makes them more vulnerable to systemic shocks. This study aims to investigate the connectedness among green cryptocurrencies, stablecoins and DeFi tokens under normal and extreme market conditions. It is framed around crucial events that have caused structural change in the digital market such as TerraLuna crash, FTX collapse and USDC depeg, covering the data from 2021 to 2025. Connectedness and spillover effects are mostly studied at the individual level, while group-level effects have not received sufficient attention. This study fills this gap by investigating the connectedness among green cryptocurrencies, stablecoin, and DeFi tokens groups at both the individual and aggregate levels, employing a Quantile Vector Autoregressive (QVAR) framework that captures normal and extreme market conditions. The results show that connectedness is higher under extreme market conditions (5th quantile: 82.33; 95th quantile: 82.69) than under normal market conditions (50th quantile: 51.26). Moreover, the sectoral analysis reveals that green cryptocurrencies and DeFi tokens consistently act as net transmitters whereas stable coins group stand as net receiver and stabilizer under all market conditions. The results offer useful implications for market participants, especially portfolio managers and policy makers.
