Profit Cycle Dynamics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Profit Cycle Dynamics write by Kawika Paul Pierson. This book was released on 2011. Profit Cycle Dynamics available in PDF, EPUB and Kindle. My thesis consists of three essays investigating the existence, causes, and mitigation of profit cycles at an industry level. The first essay examines profit cycles by proposing that the industry-specific features of how competition acts on a firm are important determinants of how mean reversion manifests in firm earnings. The evidence suggests that because competition has inertia, caused by the time to build productive capacity specific to each industry, earnings do not smoothly revert to the mean, but instead cycle around it. Since these findings affect research that uses expected earnings models, lags of capital expenditure are used as a proxy for competition in a regression model of firm earnings and are shown to be significant determinants of the earnings reported. The second essay seeks to explain why aggregate airline industry profits have displayed cyclicality since deregulation in 1978. In order to better understand the causes of these profit cycles, I build a large-scale model of the airline industry that includes more endogenous feedbacks than previous models, as well as formulations for several strategies that have been employed by airlines to mitigate the cycles. While I find that, consistent with earlier research, the delay in acquiring capacity is an important determinant of the behavior of airline profits, I also show that multiple negative feedback loops are involved in the intensity and periodicity of the profit cycle in the airline industry. Specifically, analysis of my model suggests that the growing reliance on yield management as a tool for determining ticket prices has exacerbated the volatility of airline industry profits. The third essay focuses on the insurance industry, where the delay in building productive capacity is short. I build and analyze a parsimonious model of the property-casualty insurance industry, and show results which suggest that delays in adjusting the characteristics of underwritten insurance policies are responsible for the oscillatory behavior. Simulations where the industry increases both the target level of capital reserves, and the attention paid to the adequacy of that level, show significantly reduced profit variance.
The Airline Profit Cycle
The Airline Profit Cycle - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Airline Profit Cycle write by Eva-Maria Cronrath. This book was released on 2017-07-06. The Airline Profit Cycle available in PDF, EPUB and Kindle. The airline industry has generally followed a growth trend since its inception but the industry’s financial situation is not as healthy as rising passenger numbers might suggest. This book addresses the question of why airline profits are cyclical and examines the causes and dynamics that determine the profit cycle’s shape.
On the Modeling of the Income Distribution Business Cycle Dynamics
On the Modeling of the Income Distribution Business Cycle Dynamics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook On the Modeling of the Income Distribution Business Cycle Dynamics write by . This book was released on 2007. On the Modeling of the Income Distribution Business Cycle Dynamics available in PDF, EPUB and Kindle.
Business Cycle Dynamics
Business Cycle Dynamics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Business Cycle Dynamics write by Iryna Sushko. This book was released on 2006-08-13. Business Cycle Dynamics available in PDF, EPUB and Kindle. Business cycle theory has been one of the fastest growing fields in modern nonlinear economic dynamics. This book presents new mathematical methods for global analysis which have not previously been available in this easily accessible form. In addition it contains a presentation of full analyses of several models left open in the 1950s when the tools then available did not permit more systematic analysis.
The Airline Profit Cycle
The Airline Profit Cycle - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Airline Profit Cycle write by Eva-Maria Cronrath. This book was released on 2017-07-06. The Airline Profit Cycle available in PDF, EPUB and Kindle. The air transport industry has high economic impact; it supports more than 60 million jobs worldwide. Since the early years of commercial air travel, passenger numbers have grown tremendously. However, for decades airlines’ financial results have been swinging between profits and losses. The airline industry’s aggregate net average profit between 1970 and 2010 was close to zero, which implies bankruptcies and layoffs in downturns. The profit cycle’s amplitude has been rising over time, which means that problems have become increasingly severe and also shows that the industry may not have learned from the past. More stable financial results could not only facilitate airline management decisions and improve investors’ confidence but also preserve employment. This book offers a thorough understanding of the airline profit cycle’s causes and drivers, and it presents measures to achieve a higher and more stable profitability level. This is the first in-depth examination of the airline profit cycle. The airline industry is modelled as a complex dynamic system, which is used for quantitative simulations of ‘what if’ scenarios. These experiments reveal that the general economic environment, such as GDP or fuel price developments, influence the airline industry’s profitability pattern as well as certain regulations or aircraft manufactures’ policies. Yet despite all circumstances, simulations show that airlines’ own management decisions are sufficient to generate higher and more stable profits in the industry. This book is useful for aviation industry decision makers, investors, policy makers, and researchers because it explains why the airline industry earns or loses money. This knowledge will advance forecasting and market intelligence. Furthermore, the book offers practitioners different suggestions to sustainably improve the airline industry’s profitability. The book is also recommended as a case study for system analysis as well as industry cyclicality at graduate or postgraduate level for courses such as engineering, economics, or management.
