Dear authors and readers,

The first issue 2019 of Asian Journal of Economics and Banking (AJEB) has been published. The electronic version is soon to appear on the new website of AJEB.

We, at AJEB, now welcome new article submissions for the next issues (September 2019 and March 2020). All manuscripts should be submitted to

Point of contact: 028-38210238.

THE ISSUE 1 (March, 2019) OF AJEB:



       Asian Journal of Economics and Banking (AJEB) is an open access, peerreviewed journal which publishes top-quality, original research in economics, business administration, and banking and finance.
       AJEB welcomes theoretical and empirical contributions including original papers, reviews, case studies, policy implications, etc. Special attention is devoted to research dealing with Asian economies, particularly, Asian financial system and its banking sector. Research papers which apply new mathematical, statistical, and econometric methods are warmly welcomed.
       AJEB encourages contributions from academics, scholars, student researchers and especially early career researchers.
       AJEB is edited by an international board of editors and associate editors within and outside Asian countries. This ensures access to prestigious referees and thus guarantees a high intellectual standard of published research. Editors are committed to making prompt and fair publication decisions on all submissions.
       There are no fees or charges associated with submission or publishing with AJEB.


Nguyen Ngoc Thach
Banking University Ho Chi Minh City, Vietnam

Associate Editors
Hung T. Nguyen
New Mexico State University, USA
& Chiang Mai University, Thailand
Vladik Kreinovich
University of Texas at El Paso, USA

      Editorial Advisory Board

Bazikov Aleksandr A.(Russia)
Luis Alvarez (Finland)
William Briggs (USA)
Boualem Dejhiche (Sweden)
Doan Thanh Ha (Vietnam)
Emmanuel Haven (Canada)
Polina Khrennikova (UK)
Vladik Kreinovich (USA)
Poom Kumam (Thailand)
Roman Matousek (UK)
Akira Namatame (Japan)

Hung T. Nguyen (USA & Thailand)
Paavo Salminen (Finland)
Galit Shmueli (Taiwan)
Songsak Sriboonchitta (Thailand)
Michio Sugeno (Japan)
Bui Huu Toan (Vietnam)
David Trafimov (USA)
Lanh T. Tran (USA)
Nguyen Duc Trung (Vietnam)
Yukalov Vyacheslav (Russia)
Berlin Wu (Taiwan)


1. Toward Improved Models for Decision Making in Economics.
Hung T. Nguyen.
(Department of Mathematical Sciences, New Mexico State University, USA & Faculty of Economics, Chiang Mai University, Thailand)

Abstract. We elaborate upon four major revelations in statistical science toward improving traditional models for decision-making in social science, in particular in economics. These revelations concern "how to repair statistical inference procedures based on the notion of p-values?", "how to correctly obtain predictive modeling?", "how to improve expected utility theory in economics?", and "how to faithfully model economic dynamics?".

Bayesian statistics, Bohmian mechanics, Decision-making, Econometric models, Expected utility, Finance, Machine learning, Predictions, P-values, Quantum mechanics, Quantum probability

JEL classification
MSC2010 classification
60A99, 62C99

2. Use of Symmetries in Economics: An Overview.
Vladik Kreinovich1, Olga Kosheleva1, Nguyen Ngoc Thach2 and Nguyen Duc Trung2.
(1University of Texas at El Paso El Paso, Texas 79968, USA and
 2Banking University HCMC, Ho Chi Minh City, Vietnam)

Abstract. In this paper, we show that many semi-heuristic econometric formulas can be derived from the natural symmetry requirements. The list of such formulas includes many famous formulas provided by Nobel-prize winners, such as Hurwicz optimism-pessimism criterion for decision making under uncertainty, McFadden’s formula for probabilistic decision making, Nash’s formula for bargaining solution – as well as Cobb Douglas formula for production, gravity model for trade, etc.

Additivity, Armax, Cobb-Douglas formula, Gravity model for trade, Nash’s bargaining solution, Optimism pessimism criterion, Probabistic decision making, Shift-invariance, Symmetry

JEL classification
C10, C18, C44, C51, D71, D81, F17

3. Reality-Based Probability & Statistics: Solving the Evidential Crisis.
William M. Briggs.
(Independent Researcher, New York, NY, USA)

Abstract. It is past time to abandon significance testing. In case there is any reluctance to embrace this decision, proofs against the validity of testing to make decisions or to identify cause are given. In their place, models should be cast in their reality-based, predictive form. This form can be used for model selection, observable predictions, or for explaining outcomes. Cause is the ultimate explanation; yet the understanding of cause in modeling is severely lacking. All models should undergo formal verification, where their predictions are tested against competitors and against reality.

Artificial intelligence, Cause, Decision making, Evidence, Falsification, Machine learning, Model selection, Philosophy of probability, Prediction, Proper scores, P-values, Skill scores, Tests of stationarity, Verification

JEL classification

4. Quantum Probability Based Decision Making in Finance: from Individual Preferences to Market Outcomes.
Polina Khrennikova.
(School of Business, University of Leicester, Leicester, LE1 7RH, UK)

Abstract. This paper surveys the main directions of the applications in finance of a generalized probability calculus that is derived from the axiomatics of quantum physics, see monographs by [32], [12], [20]. Recently, subjective expected utility with QP (quantum probability) measures of agents’ uncertainty and contextuality in preferences was formalized in [3]. The projective measurement scheme that is at the core of QP relaxes some of the core axioms of classical probability, namely the commutativity and distributivity of events. Hence, QP captures well real decision making scenarios, where agents can have ambiguous and state dependent beliefs. In [8] agents’ make comparison between lotteries and interference effects between prospects are present that denote risk perceptions from the ambiguity about prospect realisation in the selection process. The notion of non-commuting lottery observables has the substantial to explain paradoxical behaviour of individual investors, characterised my myopia in asset return evaluation, as well as inter-asset valuation. Moreover, the interference term of agents’ comparison state can provide a quantitative description of the disposition effect from agents’ contextual utility perception.
Some of the implications of non-classicality in beliefs for the composite market outcomes can be also modelled with the aid of QP. For instance, the emergence of speculative bubbles from investors’ sentiment in asset pricing is elaborated in [36] and [37].

Behavioural finance, Belief state, Complementary of observables, Decision operator, Disposition effect, Interference effects, Investor sentiment, Quantum probability, Subjective expected utility

JEL classification
D01, D53, D81, D83, D84, G40

5. The Mechanics of Physics in Finance and Economics: Pitfalls from Education and Other Issues
Emmanuel Haven.
(Memorial University, St. John’s, NewFoundland, Canada and IQSCS, UK)

Abstract. This contribution discusses attempts to answer the question how finance/economics and physics may join together as disciplines to uncover new advances in knowledge. We discuss pitfalls and opportunities from such collaboration.

Decision making, Information measure, Physics, Statistical mechanics, Wave function

JEL classification

6. The Effects of Public Expenditure on Economic Growth in Asia Countries: A Bayesian Model Averaging Approach
Nguyen Ngoc Thach1, Le Hoang Anh2 and Pham Thi Ha An3
(1Banking University HCMC, Ho Chi Minh City, Vietnam;
 2HCMC University of Food Industry, Ho Chi Minh City, Vietnam and;
3Van Lang University, Ho Chi Minh City, Vietnam)

Abstract. The impact of public expenditure on economic growth is a topic that has been of great interest to many researchers, e.g., [1], [10], [14], [23], [33]. However, the studies on this impact illustrate that the results are inconsistent. Besides, certain explanatory variables which should be included in the model were not specified. This ambiguity affects the reliability of the results. Using Bayesian Model Averaging (BMA) method with the data obtained from 43 Asian countries in the period 2004-2016, we estimate the impact of public expenditure on economic growth with a large number of explanatory variables included in the model. The research results show that public expenditure has a negative impact on the economic growth in Asian countries. On the other hand, the components of public expenditure have a weak impact on economic growth. The empirical results confirm that since the majority of Asian countries are developing countries with a large proportion of state-owned sectors and low governance quality, large scale of public expenditure does not have positive effects on the economic growth. Based on the research results, this study provides policy implications to improve governance quality and efficiency of public expenditures in Asian countries.

Bayesian model averaging, Economic growth, Public expenditure

JEL classification
C11, E02, E62, H50

7. Offshoring Medium-Skilled Jobs and Wage Inequality in Task-Based Approach From Practical to Theoretical Perspectives.
Vo Thi Ngoc Ha
(Banking Department, Banking University HCMC, Ho Chi Minh City, Vietnam)

Abstract. The last two decades has seen job polarization and the rapid increase in wage inequality emerging as a trend in many developed countries. Among hypotheses about the influence of globalization, task offshoring has been receiving high attention from several researchers. Employing the descriptive and critical review as a research method, the paper provides summary, classification and evaluation of both theoretical and empirical literature on offshoring medium-skilled job tasks and wage inequality in the task-based approach. The paper also identifies patterns and trends in the literature as well as lessons drawn from previous studies and provides implications for future research.

Inequality, Middle-skilled labor, Offshoring, Polarization, Task assignment

JEL classification
A1, F16, J1


Thanks much for your collaborations!
The Editorial Board




ISSN: 2588-1396
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