The evaluation of the African Development Bank by accounting utility functions

Abstract

The application of the accounting utility function to banking activity is the main interest of the research. In line with the sensitivity of the banking sector to economic crises, the activities of central banks in Europe and North America compared with those of the African Development Bank are analyzing by a common indicator: accounting utility. The exchange rates of the Euro and the XDR (Special Drawing Rights) against the US dollar are guiding variables of the research. This economic experiment involves three actors in an Edgeworth box, which acts as an accounting laboratory. The accounting utility function measures the banking positions taken by the players in the laboratory. In this way, there are three types of utilities to explain their activities: real, symmetrical and group, linked to the reflexive, reciprocal and transitive relationships of players. The annual determinants obtained are alternative indicators to assess how they deal with economic shocks to conduct their monetary policies. The conclusions summarize the significant advances achieved in sections and justify that there are effects of decision tactics on the annual accounts.