Template-Type: ReDIF-Article 1.0 Author-Name: Barbora Šútorová Author-Name: Petr Teplý Title: The Level of Capital and the Value of EU Banks under Basel III Abstract: The 2007-2009 global financial turmoil was exacerbated by a low level of financial market regulátory coordination. Historical experience has shown that despite implementing regulations, supervision and macroeconomic policies, the financial industry regularly experiences crises. Consequently, a similar impact might be expected from the Basel III new bank regulatory framework. The aim of this paper is two-fold; in the first part dedicated to theory we describe the Basel III regulatory standards and argue that this regulation is not sufficient and will not prevent financial markets from experiencing future crises. Moreover, we discuss implementation of new banking regulation in Europe: the Capital Requirements Directive IV and stricter capital requirements for European banks set by the European Banking Authority in 2011. In the second part, we focus on an empirical analysis of the impact of stricter capital requirements as defined in the Basel III framework on the market value of European banks. Our analysis employs the fixed effects methodology on the financial data collected from 172 banks listed on European stock exchanges during the 2005-2011 period. We conclude that the impact of the Basel III regulation on the value of bank shares will probably be perceived negatively by the market, which could be reflected in a drop in the market value of the observed banks. Keywords: regulation, bank, Basel III, capital, fixed effects methodology, market value Classification-JEL: G18, G21, G32 Pages: 143-161 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=477.pdf File-URL: http://www.vse.cz/pep/477 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:477:p:143-161 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/477 Template-Type: ReDIF-Article 1.0 Author-Name: Lain-Tze Tee Author-Name: Soo-Wah Low Author-Name: Si-Roei Kew Author-Name: Noor A. Ghazali Title: Financial Development and Innovation Activity: Evidence from Selected East Asian Countries Abstract: This paper examines the role of financial development in promoting innovation-related activity using panel data for seven East Asian countries for the period from 1998-2009. On overall financial development, we find that, financial sector size and the overall activity of banks and stock market exert positive influences on patent applications. In particular, our results show that all measures of banking development are positively and significantly related to the number of patent applications after controlling for variables known to affect innovative activities. Interestingly, we find no evidence that variation in patent applications is affected by a country´s stock market development. The findings suggest that banking sector plays important roles in supporting innovation activity in East Asian countries. Keywords: financial development, patents, banking development, stock market development, innovative activities Classification-JEL: G10, G15, G20 Pages: 162-180 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=478.pdf File-URL: http://www.vse.cz/pep/478 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:478:p:162-180 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/478 Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Mazurek Title: Are TIMSS Scores Suitable Proxies for Nations´ Human Capital? Abstract: To express human capital of nations proxies, such as literacy rates, school-enrollment rates or years of schooling are used. The aim of this article is to explore another possibility: to relate country´s human capital to its outcome in TIMSS (The Third International Mathematics and Science Study), large international study of students´ achievements in mathematics and science literacy from 1995. The relationship between TIMSS scores and GDP growth during 2000-2010 and GDP per capita in 2010 is examined and TIMSS are compared with other proxies of human capital, namely primary, secondary and tertiary school-enrollment rates from 1990, 1995 and 2000. The main result is that the correlation between TIMSS scores and GDP per capita in 2010 is statistically significant at α = 0.01 level, and this relationship is stronger than that for school-enrollment rates. Also, linear models explaining GDP growth with TIMSS were found more statistically significant than models without TIMSS. These results indicate that TIMSS scores might be considered a suitable proxy for nations´ human capital after one or one and a half decade. Keywords: economic growth, GDP per capita, human capital, TIMSS, TIMSS scores Classification-JEL: C31, E01, I25 Pages: 181-197 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=479.pdf File-URL: http://www.vse.cz/pep/479 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:479:p:181-197 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/479 Template-Type: ReDIF-Article 1.0 Author-Name: Saeed Alaei Author-Name: Masoud Behravesh Author-Name: Nayere Karegar Title: Analysis of Production - Inventory Decisions in a Decentralized Supply Chain Abstract: Many contracts, such as buy-back policy, cost- and revenue- sharing policies, are widely applied in the literature for supply chain coordination problem. However, the additional gain from coordination may not necessarily cover the extra administrative costs incurred by applying these contracts. In this paper, a production inventory problem is considered in a two-level supply chain. The problém is formulated as a Stackelberg game. Then, the retail fixed mark-up (RFM) policy is examined in order to investigate its performance on supply chain. We apply this policy because of its lower administrative costs compared to other policies. We found that RFM policy is not capable of coordinating the channel; however, it leads to considerable improvements over the channel. For example, it is shown that it improves each member´s profit and leads to Pareto improvement over Stackelberg policy. Besides, its average efficiency is about 96% of that of integrated policy approach. Keywords: decentralized decision making, retail fixed mark-up (RFM), pricing decisions, supply chain coordination Classification-JEL: C44, P11, R32 Pages: 198-216 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=480.pdf File-URL: http://www.vse.cz/pep/480 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:480:p:198-216 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/480 Template-Type: ReDIF-Article 1.0 Author-Name: Vladan Holcner Author-Name: Marek Sedlačik Author-Name: Jaroslav Michálek Author-Name: Jakub Odehnal Title: Transaction Costs in International Armaments Cooperation Abstract: The aim of this paper is to examine and provide new evidence on changes in the costs and other determinants of economic rationality of international sharing of armaments projects. Based on current transaction costs theory, it defines individual and collective transaction costs of a weapon systems club. Using results of questionnaire survey, gathering expectations of international expert armaments community, there are analysed relations anticipated among those determinants, which are decisive for the amount of project costs. Results of these analyses indicate general anticipation of decreased total project costs in case of international sharing of armaments projects, along with increased project transparency, which can be viewed as one of the generators of decreased total costs. Transaction costs have indicated an unchanged level or a moderate decrease. Their individual component is to decrease. On the other hand, collective transaction costs are to grow, however, up to the extent of the decrease of individual transaction costs. Keywords: transaction costs, defense, armaments, international cooperation, factor analysis, non-parametric statistics Classification-JEL: C4, F5, H7, H8 Pages: 217-232 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=481.pdf File-URL: http://www.vse.cz/pep/481 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:481:p:217-232 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/481 Template-Type: ReDIF-Article 1.0 Author-Name: Lu Wencong Author-Name: Cheng Ying Author-Name: Mohummed Shofi Ullah Mazumder Title: Competent Alternative Model for the Peasants´ Medical Expenditures in China: A Case of New Rural Cooperative Medical Service System (Nrcms) in Zhejiang Province Abstract: The New Rural Cooperative Medical Service System (NRCMS) in China has been established to ensure improved medical care support for all categories of Chinese peasants to offset their burden of excessive medical care expenditures. The primary aim of this paper is to identify an appropriate alternative modelling approach for the patients´ medical expenditures. Data were collected from Jiaojiang city through cluster and multistage random sampling procedure, which was comprised of 4,630 enrolled rural people under NRCMS. The paper presented the first comparison of common econometric medical expenditures modelling approaches. Major findings reveal that the Generalized Linear Model (GLM) predictive accuracy appears to be better than the Finite Mixture Model (FMM) and GLM (log link) was the best performer among all approaches. It may be attributed due to the structural difference of medical expenditures between China and other developing countries compared to the developed countries. This suggests that the Chinese government may find an alternative to choose GLM approach among others to minimize the peasants´ medical expenditures under NRCMS. Keywords: New Rural Cooperative Medical Service System (NRCMS), Patients´ Medical Expenditures,, Generalized Linear Model (GLM) and Finite Mixture Model (FMM) Classification-JEL: C52, H51, I18 Pages: 233-249 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=482.pdf File-URL: http://www.vse.cz/pep/482 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:482:p:233-249 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/482 Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Balcar Author-Name: Lenka Janíčková Author-Name: Lenka Filipová Title: What General Competencies Are Required from the Czech Labour Force? Abstract: Knowledge of employers´ requirements on competencies of job applicants is highly important in the process of human capital accumulation. This paper focuses on the general competencies since they can be applied in a wide range of jobs or tasks and increase an individual´s employability. First, employers´ requirements on general competencies are identified and described on the basis of 3,822 job advertisements published online. Second, the econometric analysis is used in order to test hypothesis whether examined demand for general competencies is really general or if it differs significantly with respect to required education and firm characteristics. The results of our probit regressions proved that the requirements on examined general skills significantly differ according to the education required and some categories of NACE and ownership of the firms. Keywords: General competencies, soft competencies, job advertisements, probit model Classification-JEL: J23, J24 Pages: 250-265 Volume: 2014 Issue: 2 Year: 2014 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=483.pdf File-URL: http://www.vse.cz/pep/483 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2014:y:2014:i:2:id:483:p:250-265 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/483