Template-Type: ReDIF-Article 1.0 Author-Name: Jakub Kučera Title: Definition, Benefits and Risks of High-Frequency Trading Abstract: The paper deals with high-frequency algorithmic trading (HFT), which has recently come to dominate some financial markets, e.g. the US equity markets. The author first attempts to establish a clear definition of high-frequency trading. With the most important characteristics having been analysed, it is concluded that such a definition would not bring more clarity into the debate over HFT. Strategies pursued by traders should be given consideration instead. On this account, the text proceeds with the examination of the most common strategies. Afterwards, the question is raised whether the rise of highfrequency algorithmic traders has resulted in more efficient financial markets. Based on robust evidence from academic research, important market participants and exchanges, HFT indeed seems to improve market quality by narrowing spreads and providing additional liquidity - the market-making strategy is mainly responsible for the latter. Issues such as possible system risks (flash crashes, herd behaviour) are also discussed. Keywords: high-frequency trading, algorithmic trading, definition, market quality Classification-JEL: G10, G14 Pages: 3-30 Volume: 2013 Issue: 5 Year: 2013 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=413.pdf File-URL: http://www.vse.cz/aop/413 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:5:id:413:p:3-30 Template-Type: ReDIF-Article 1.0 Author-Name: Milan Bouda Title: Estimation of the New Keynesian Phillips Curve in the Czech Environment Abstract: The paper deals with the estimation of the New Keynesian Phillips curve (NKPC). First, the history of the Phillips curve and the NKPC is outlined. Next, similar research and papers regarding the NKPC are mentioned. The main goal of the paper is to estimate the parameters of the NKPC using the Bayesian techniques. These techniques are widely used for the DSGE model estimation and this paper contains links to the source foreign literature. The NKPC is estimated as part of a fully calibrated Small Open Economy (SOE) DSGE model. The SOE DSGE model consists of households, firms, the government and the central bank. The estimation is performed on the Czech data and the period is from 2001Q1 to 2012Q2. The first output of the paper is the parameter estimates of the NKPC. The main finding is that the future expected inflation plays a crucial role in setting the level of inflation. Moreover, a shock decomposition of domestic and imported inflation is performed and the main output is that the domestic monetary policy shock causes crucial changes in the level of both domestic and imported inflation. Keywords: New Keynesian Phillips curve, Dynare, Bayesian estimation, Shock decomposition, Small Open Economy Classification-JEL: E17, O47 Pages: 31-46 Volume: 2013 Issue: 5 Year: 2013 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=414.pdf File-URL: http://www.vse.cz/aop/414 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:5:id:414:p:31-46 Template-Type: ReDIF-Article 1.0 Author-Name: Ivana Malá Title: The Use of Finite Mixtures of Probability Distributions for Modelling the Distribution of the Duration of Unemployment in the Czech Republic Abstract: Unemployment belongs to the most serious economic and social problems of developed countries. Usually, the rate of unemployment is analysed. Another problem is the duration of unemployment and especially long-term unemployment. The unemployment duration in the Czech Republic in 2010 is analysed in the paper. The model uses data from the Labour Force Sample Survey, which is performed quarterly by the Czech Statistical Office. The probability distribution of unemployment duration is modelled with the use of finite mixtures of lognormal distributions with the observable components of membership, gender and education. The observations are right and interval-censored, exact values of the unemployment duration are not included in the data. Both parametric and non-parametric Kaplan-Meier methods are used to estimate the survival function. The estimated survival functions are compared graphically and medians are evaluated for each component. A positive effect of education on the duration of unemployment is found. Also, a greater median unemployment duration is found for women than for men. All the computations are made in the R software. Keywords: survival analysis, censored data, unemployment duration, mixture of probability distributions, Kaplan-Meier estimator Classification-JEL: C41, J64 Pages: 47-63 Volume: 2013 Issue: 5 Year: 2013 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=415.pdf File-URL: http://www.vse.cz/aop/415 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:5:id:415:p:47-63 Template-Type: ReDIF-Article 1.0 Author-Name: Hana Švejdarová Author-Name: Eva Cudlínová Title: Economic Value of Cultural Landscape, Non-Production Services of a Territory, and Non-Market Valuation Methods. A Survey Focused on Determining which Landscape Functions are Valuated Most Frequently and which Methods are Used Abstract: Almost every landscape fulfils various important functions for human society. Nevertheless, planning does not always allocate individual functions the significance that they ought to receive in comparison with others. A typical example is undervaluing landscape services that cannot be expressed in market terms. However, there are means to correct this imbalance. A landscape´s non-market services can be expressed using nonmarket evaluation methods. As a basis for assessing the importance of multi-functional land use, a systematic overview of the various functions of a landscape is presented here. Furthermore, there is a brief description of the non-market evaluation methods that are suitable for evaluating important non-production landscape functions. The core of this work is a search in three flagship periodicals in the field of environmental economics. There is a review of papers applying non-market valuation methods to landscape services, which gives a firmly based picture of the possibilities for evaluating the non-market services of a landscape, the means most commonly used for this evaluation, the intensity of the work that went into developing them, and the increasing importance and prestige of these methods. Keywords: non-market valuation, landscape services, environmental economics, non-production value, function of an area, value of an ecosystem Classification-JEL: Q510, Q570 Pages: 64-81 Volume: 2013 Issue: 5 Year: 2013 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=416.pdf File-URL: http://www.vse.cz/aop/416 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:5:id:416:p:64-81 Template-Type: ReDIF-Article 1.0 Author-Name: Věra Höppnerová Title: Phraseology of the Professional German Language of Foreign Trade Abstract: Not only business correspondence, but the language of foreign trade as a whole is rich in various types of phraseological phenomena. The article deals with the most common noun, verbal and adverbial structures, phrases and sentences specific to business correspondence and collocations in the field of professional communication. When studying a certain type of professional language, knowing how terms, specific phrases and whole sentences may be linked is of paramount importance. Keywords: phraseology, foreign trade, business correspondence, collocations Classification-JEL: 219 Pages: 82-92 Volume: 2013 Issue: 5 Year: 2013 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=417.pdf File-URL: http://www.vse.cz/aop/417 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2013:y:2013:i:5:id:417:p:82-92