Assessing the nexus between COVID-19 pandemic-driven economic crisis and economic policy: lesson learned and challenges.

This study examines China's budgetary policy during the COVID-19 pandemic as a result of China's insufficient ability to deal with a new crisis when the epidemic struck in March 2020 and as a result of the economic crisis that began in China in March 2020. In order to better comprehend China's economic status during COVID-19, the study relies on secondary data. The fiscal response of emerging market economies like India is less than in advanced economies. However, it is generally considered to be in line with the average for emerging market economies. As a result of the Disaster Management authority imposing a rigorous lockdown, unemployment rose, the trade cycle was interrupted, and manufacturing and service activities were affected. According to the study's findings, China's economic policies, namely its fiscal policy, responded in the years leading up to 2019 by increasing health expenditure, income transfer, welfare payments, subsidies, and reducing short-term unemployment. As a result of the COVID-19 pandemic, China's government has adopted a number of measures to minimize the damage to the economy. This article also focuses on China's numerous budgetary actions with COVID-19.

The Geography of Information Acquisition

Using detailed data on company visits by Chinese mutual funds, we provide direct evidence of mutual fund information acquisition activities and the consequent informational advantages mutual funds establish in local firms. Mutual funds are more likely to visit local and nearby firms both in and outside of their portfolios, but the ease of travel between fund and firm locations can substantially alleviate geographic distance constraints. Company visits by mutual funds are strongly associated with both fund trading activities and fund trading performance. Our results show that geographic constraints and costly information acquisition amplify information asymmetry in financial markets.

Financing SMEs and business development as new post Covid-19 economic recovery determinants

This study explores the relationship between the business environment, economic growth, and funding sources of Chinese small- and medium-sized enterprises (SMEs) to determine the relevance of the business environment for technological SMEs. The agency theory was used as a theoretical framework to describe how asymmetric information among SMEs and borrowers affects SMEs’ financial decisions as well as China’s investment climate and GDP growth. A binary logistic test was used to assess the financing of SMEs and business development for economic recovery after the pandemic in China. Data from the World Economic Forum and Development Bank were examined. According to the results, funding (e.g., formal and informal) under the banking structure and tax regulation may potentially boost standard credit choices and lower casual credit choices. Consequently, it has demonstrated a considerable impact on GDP growth for technologically small and medium-sized enterprises. This study is the first to examine the asymmetric information and institutional theory regarding funding a café. These findings are essential for business leaders and policymakers concerned with the financial health of small and medium-sized enterprises. Policy implications for important stakeholders are also included in this study.

Information Flow Between Crude Palm Oil and Crude Oil Futures

This study finds asymmetric information flow from the crude palm oil (CPO) futures to the West Texas Intermediate (WTI) crude oil futures market despite the CPO futures market's low liquidity and small market capitalization. Our finding is robust regardless of the 2019 Coronavirus outbreak and the asymmetric information flow becomes even unilateral considering the exchange rate risk on the Malaysian Ringgit. Finally, we explain the asymmetric information flow from the CPO futures to WTI futures market given that the impact of speculation on market efficiency crowds out that of liquidity. © Published under licence by IOP Publishing Ltd.

Moving from Incomplete Information to Asymmetric Information: Cross Country Analysis of COVID-19 Pandemic

COVID-19 pandemic is a massive global health crisis. The individual as well as the policy makers have to face various trade-offs to maximize their self-interests. Therefore, the policies should be devised in such a way to maximize social welfare and optimal delivery of public goods such as healthcare, means of livelihood, etc. The researchers have provided a conceptual framework on the given issue by discussing the whereabouts stages of incomplete inform ation and asymmetric inform ation during C OVI D-19 which can lead to market failure. Through multiple regression analysis, the models are prepared by researchers to study various parameters such as total cases, life expectancy, hand-washing facilities, testing, age older (70-year, 65-year & median age), hospital beds, GDP per capita, etc. to evaluate the total number of deaths of COVID-19 patients in the sample countries.

Information asymmetry, an obstacle to government support in the time of COVID-19 in Mexico

The COVID-19 pandemic has paralyzed businesses, causing a global economic crisis. In this paper, the support that the Mexican government intends to give to companies that fell into crisis is analyzed. The problem lies in a lack of knowledge of these companies: those that were in crisis before the epidemic and those that went into crisis because of it. To avoid economic and social losses, an asymmetric game is presented, the results show a mechanism to incorporate signals and improve uncertainty. The analysis deduces a threshold that determines a percentage of companies to support, showing that it is optimal to support 46% of the approximately 4 million MSMEs that exist in Mexico. The scarce official information limits the results, in addition to the fact that the model only shows a resource allocation mechanism and not an equilibrium, since the company player only emits an exogenous signal.