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In addition, labor rates often appear to be a company's most malleable financial variable.
This boils down to writing a relationship between a financial variable (sales, volume, profits or margins) and a weather index (temperature, precipitation, wind speed, etc. or any combination).
However, during the planning of new small hydro-power plants, the dependency of physical, technical, legal and financial variable on space is often not assessed.
Mr Buffett harrumphs that derivatives are dangerous timebombs: he even calls them financial weapons of mass destruction.There is no disputing that derivatives in essence, contracts such as futures or options, usually linked to a financial variable, that trigger payments at some future date are increasingly complex, nor that top bosses often fail to grasp the risks they involve.
Model 2 is taken as final model which uses only financial variable.
We include farm size (total farm sales) as an indicator of financial variable and also wealth effect on off-farm labor participation.
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But there has been a peculiar disconnect between Fed policy and the financial variables that affect housing and trade.
We extend the concept to incorporate key financial variables such as cash flow and critical financial thresholds.
The interest in this study is to identify the contextual variables within a firm, which affect quality performance and other financial variables.
Using the same information, the Board will then calibrate the paths of the macroeconomic and financial variables in the scenario to reflect these risks.
We expect that the proposed models can describe more truthfully the dynamic time-varying behavior of economic and financial variables and potentially improve out-of-sample forecasts significantly.
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