Template-Type: ReDIF-Article 1.0 Author-Name: Martina Jiránková Title: Industrial Policy of BRICS Countries as an Instrument of State Capitalism Abstract: The article deals with industrial policy in the BRICS countries, which is an important instrument of their development. First, the importance of industrial policy is stated. There are numerous approaches to it: the extreme ones are the neoliberal approach, advocating no interventions of the state in the market; the other extreme is interventions either directly by subsidies to chosen branches or indirectly by building institutional surroundings which are comfortable for industrial development. The development of theoretical approaches to industrial policy is also discussed: from structuralists to new structuralists, who try to connect a market as the main mechanism with an industrial policy. Industrial policies practised in Brazil, Russia, India, China and South Africa are then described. Some statistical data are given which illustrate the position of the BRICS countries in the present-day world as for their industrial performance. China seems to be the relatively most successful in this respect. Finally, some questions concerning state capitalism and industrial policy are discussed. Keywords: state capitalism, industrial policy, BRICS, global value chains Classification-JEL: F59, F63 Pages: 3-21 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=565.pdf File-URL: http://www.vse.cz/aop/565 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:565:p:3-21 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/565 Template-Type: ReDIF-Article 1.0 Author-Name: Zbyněk Revenda Title: Cash in the Czech Republic: Trend Analysis 2003-2015 Abstract: Electronization of banking services is a strong reason for relative growth of cashless payments. The importance of cash, i.e., banknotes and coins, for realizing transactions should decrease. An analysis for the Czech Republic in the period 2003-2015 confirms this. Demand of nonbank entities for cash is associated mainly with liquidity, banks’ credibility and technological sophistication. Illegal transactions also form part of the demand. Zero return on cash counteracts demand, but it has little meaning with the decline in interest rates on bank deposits. The total stock of cash in the analyzed period rises, but its relative importance declines. Demand deposits are also liquid assets of households and enterprises. Cash compared with demand deposits clearly confirms the declining importance. Its share was the highest in 2004, at 30 %. It fell to less than 18 % in 2015. We found a similar tendency in the comparison of cash with other variables. Barring unforeseen circumstances such as complete collapse of computer networks or severe banking crisis, the author assumes that the relative importance of cash must decline in the long term. Some theoretical aspects of cash and cashless money are also discussed. Keywords: monetary policy, central bank, bank reserves, cash, demand deposits, demand for money, monetary base, monetary aggregates Classification-JEL: E4, E5 Pages: 22-35 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=566.pdf File-URL: http://www.vse.cz/aop/566 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:566:p:22-35 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/566 Template-Type: ReDIF-Article 1.0 Author-Name: Dagmar Blatná Title: Analysis of the Sustainable Growth Indicator in the Area of Climate Change from the Point of View of Europe 2020 Strategy Performance Abstract: The objective of this paper is to present the results of an analysis of the indicator Greenhouse gas emissions (GGE). The GGE is one of the headline indicators tracked under the EU’s main socioeconomic strategy until the year 2020 - the EUROPE 2020 strategy for smart, sustainable and inclusive growth. In the area of sustainable growth, the Resource-efficient Europe initiative was established. For 2020, the EU has made a unilateral commitment to reduce overall greenhouse gas emissions from its 28 member states by 20 % compared to 1990 levels. The GGE indicator shows total man-made emissions of the so-called Kyoto basket of greenhouse gases. It presents annual total emissions in relation to those observed in 1990. The aggregate greenhouse gas emissions are expressed in units of CO2 equivalent. The development of the GGE indicator in the EU and in the Czech Republic from 2000 to 2014 from the point of view of the ability to achieve the Strategy objectives is analyzed. In terms of the level of the analyzed indicator, the set of the EU countries can be divided into two significantly different groups - the euro area and the non-euro area; or into groups by the year of their joining the EU. Analyses of the dependency between the growth of GGE and the GDP growth for both the set of the 28 EU countries and the Czech Republic are presented as well. Keywords: indicator of sustainable growth, greenhouse gas emissions, Strategy EUROPE 2020 Classification-JEL: C22, O44, Q56 Pages: 36-50 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=567.pdf File-URL: http://www.vse.cz/aop/567 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:567:p:36-50 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/567 Template-Type: ReDIF-Article 1.0 Author-Name: Petr Houdek Author-Name: Petr Koblovský Author-Name: Jan Plaček Author-Name: Luboš Smrčka Title: Causality Illusion and Overconfidence in Predicting (Quasi)Stochastic Financial Events Abstract: We argue that individuals systematically interpret sequences of events in a causal manner. The aim of this article is to show that people do so even if they are aware of the stochastic nature of the respective sequence. The bias can explain some anomalous behaviour of investors in financial markets. Small as well as professional investors may illusorily perceive causality of former random success and future yield. Laboratory experiments testing the interpretation of stochastically occurring events in financial designs as well as analyses of real trading data from financial markets confirm that investors indeed interpret (quasi)random events casually; they make incorrect predictions and they egocentrically allocate responsibility for their success. The causality illusion induces overconfidence, inefficient investment and risk seeking. In the conclusion, we discuss factors that may limit effects of the causality illusion and suggest future areas for research. Keywords: overconfidence, stochasticity, illusive causality, hot hand, risk taking, self-attribution Classification-JEL: D14, D83, G02, G11, G17 Pages: 51-63 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=568.pdf File-URL: http://www.vse.cz/aop/568 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:568:p:51-63 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/568 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Fiala Author-Name: Oldřich Starý Author-Name: Helena Fialová Author-Name: Adéla Holasová Author-Name: Martina Fialová Title: Economic Rationality in the Ultimatum Game Abstract: Rigorous application of experimental methodology to the interdisciplinary research of economic decision making is the main purpose of our work. In this paper, we introduce the main decisionmaking theories and outline economic rationality. We explain why we find it useful to discriminate between the “irrational” and “non-rational” components of decision making. We offer an oriented interdisciplinary point of view on economic rationality. In the applied section, we describe the main features of the Ultimatum game and summarize the up-to-date theories explaining the non-rational course of the game. We discuss in detail the reported relations between the nominal value of the stakes and the distribution of the offers and responses. We introduce the blinded, randomized Ultimatum game experiment that we conducted in our laboratory. We stress the importance of anonymity of the study subjects and the difference in salience of a factual reward against a hypothetical reward. We present the results of our study, showing that a duly chosen non-monetary reward, directly inconvertible into money, leads to a different offer distribution in the Ultimatum game without the necessity to invest excessive sums of money in the rewards. We compare our results to research published by other authors. According to our theory, the rational, non-rational and irrational components contribute to the decision making in Ultimatum differently depending on the different reward stakes. Keywords: value, ultimatum game, rational decision making, expected utility Classification-JEL: C7, C9, D8 Pages: 64-78 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=569.pdf File-URL: http://www.vse.cz/aop/569 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:569:p:64-78 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/569 Template-Type: ReDIF-Article 1.0 Author-Name: Pavel Sirůček Title: Half-Forgotten Personalities of Economic Thought - O. R. Lange Abstract: O. R. Lange, a Polish economist, statistician, econometrician, sociologist, politician and diplomat was classified as a reformist Marxist. He became famous for studies on planning and socialist economies. Lange demonstrates and proves the possibility of the existence of an effective socialist system. He also analyzed capitalist economy, e.g., the issue of cyclical fluctuations and unemployment. Keywords: theory of socialism, planning theory, O. R. Lange, possibilities of socialism Classification-JEL: B40, B51, C10, P21, P26 Pages: 79-88 Volume: 2017 Issue: 1 Year: 2017 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=570.pdf File-URL: http://www.vse.cz/aop/570 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2017:y:2017:i:1:id:570:p:79-88 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/570