Template-Type: ReDIF-Article 1.0
Author-Name: Hacer Simay Karaalp-Orhan
Author-Name: Orhan Sevcan Günes
Title: Effect of Foreign Trade on Real Wages: Case of Turkey
Abstract: The main objective of this article is to test the existence of Stolper-Samuelson theorem between Turkey and EU-15 countries for the period 2005-2014. According to the results, a significant relationship is found between exports and real wages especially in the labour and raw intensive sectors of Turkish exports, where Turkey is relatively labour and raw abundant in comparison with the EU-15. Test results indicate a long-run relationship between exports of manufacture of wearing apparel, food, textiles and real wages, a unidirectional Granger causality relationship is found from exports to wages in manufacture of wearing apparel and food. The international trade between Turkey and the EU-15 validates to some extent the Stolper-Samuelson theorem.
Keywords: exports, Granger causality, Turkey, real wages, weak exogenity
Classification-JEL: C32, F14, J31, L60
Pages: 411-426
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=559.pdf
File-URL: http://www.vse.cz/pep/559
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:559:p:411-426
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Template-Type: ReDIF-Article 1.0
Author-Name: Mato Njavro
Author-Name: Petra Posedel
Author-Name: Maruška Vizek
Title: Regime Switching Behaviour of Real Estate and Equity Prices in Emerging Countries
Abstract: The aim of this paper is to examine the interaction patterns between equity and real estate returns in 8 emerging economies from Central and Southeastern Europe. For that purpose we apply the TAR model entailing two regimes and endogenously determined threshold, delay parameter, and lag length. The results suggest that in all the countries, the interaction between equity and real estate returns is subject to regime switching in at least one direction. Equity returns in general seem to be much more sensitive to real estate returns changes, while the reaction of real estate returns to changes in equity returns is not always present and it is much more subdued and delayed. In the majority of the countries, the value of the threshold is large and negative suggesting that equity returns (real estate returns) react differently to large negative changes of real estate returns (equity returns) when compared to changes of different magnitudes and alternative signs. Equity returns react more strongly to large negative changes of the real estate returns than to small negative or positive real estate returns changes, while the reaction of the real estate returns to the equity returns changes varies across countries, making neither regime more prevalent.
Keywords: emerging economies, real estate prices, equity prices, regime switching, TAR model
Classification-JEL: C33, F21, G11, G15, R31
Pages: 396-410
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=560.pdf
File-URL: http://www.vse.cz/pep/560
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:560:p:396-410
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Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Polyák
Title: Euro Adoption and Export: A Case Study of the Czech Republic, Slovakia and Old EU Member States
Abstract: The present paper is focussed on the impact of introducing the common European currency on export performance. Our objective is to explore the impact of introducing the common European currency on the export performance of Slovakia in comparison to the Czech Republic and the old EU member states. Our fi ndings suggest that the export performance and other export-related indicators evolved largely in parallel in both countries. Positive trade effects brought about by the introduction of the euro are rather moderate - up to 5%. The results to some extent do confirm the existence of the so called "Rose effect" - the effect that two countries sharing the same currency trade more than they would otherwise.
Keywords: competitiveness, export, Czech Republic, Slovakia, euro adoption
Classification-JEL: F14, F15
Pages: 427-444
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=568.pdf
File-URL: http://www.vse.cz/pep/568
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:568:p:427-444
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Template-Type: ReDIF-Article 1.0
Author-Name: Tatiana Chudá
Author-Name: Petr Janský
Title: The Impact of Fat Tax: Progressive in Health, but Regressive in Income?
Abstract: Health-motivated taxes have spread over the world to reduce increasing obesity and corresponding health care costs. These taxes have not yet been implemented in the Czech Republic, in contrast to some other, mainly European countries. However, the introduction of a fat tax has been discussed frequently in the Czech Republic during the last few years; here, we provide empirical evidence in order for this public debate to be better informed. We use detailed microeconomic data to estimate the impact of potential fat taxes on household expenditure and government revenues in the Czech Republic. We evaluate the impact of three types of fat taxes: ad valorem, specific per kilogram of product and specific per kilogram of fat. We simulate these in such a way that they all raise the same budget revenues as a 10% ad valorem tax on fat-rich products. Accounting for higher food expenditures in the aggregate national accounts than in the detailed microeconomic data results into higher budget revenues, 7.3 and 6.1 billion Czech korunas, respectively. Overall we find, and thus confirm the overwhelming evidence from other countries, that fat taxes are regressive in income.
Keywords: Czech Republic, households, fat tax, tax policy, food, health, obesity, government revenues
Classification-JEL: D12, H20, I18
Pages: 445-458
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=569.pdf
File-URL: http://www.vse.cz/pep/569
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:569:p:445-458
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Template-Type: ReDIF-Article 1.0
Author-Name: Tao Chen
Title: Logo Color, Earnings Management and Firm Value
Abstract: I document a new channel that can be used by managers who can take advantage of investors preference for logo colours to influence their perception of the financial reports and thus indirectly affect firm value. Evidence suggests that firms having warm colours as a major logo colour, fewer colours used in the logo, and recognizable elements in the logo are associated with lower earnings management and higher firm value. My findings remain stable across different robustness checks.
Keywords: logo, colour, earnings management, firm value
Classification-JEL: G02, G32, M41
Pages: 459-475
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=570.pdf
File-URL: http://www.vse.cz/pep/570
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:570:p:459-475
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Template-Type: ReDIF-Article 1.0
Author-Name: Marek Loužek
Title: The Economic Approach to Science
Abstract: The paper poses the question whether the economics of science could be the key to economic methodology. First, the sociology of science, which tries to put science in social context, is described. Then, the economic approach to science inspired by Bartley, Wible, Tullock, Stigler and Becker is explained. We point out that knowledge originates in the competitive process of scientific criticism in similar way as economic wealth originates in the competitive market process and the competition among many individuals.
Keywords: economics of science, philosophy of science, sociology of science
Classification-JEL: A11, A14, I21
Pages: 494-506
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=571.pdf
File-URL: http://www.vse.cz/pep/571
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:571:p:494-506
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Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid-Mihaela Dragotă
Author-Name: Delia Tatu-Cornea
Author-Name: Narcis Tulbure
Title: Determinants of Development of the Mutual Fund Industry: A Socio-Cultural Approach
Abstract: The mutual fund industry has grown considerably in many countries since the 1990s. Its evolution has been explained primarily in terms of its economic and financial determinants. We draw on a dynamic set of measures for socio-cultural values to explain the differential development of mutual funds across the world. Using a sample of 38 countries for the period 1996-2009, we find a positive relation between the perception of happiness and the size of the mutual fund industry. Freedom of choice, a feature of countries that are dominated by individualistic behaviours and values, has a positive impact on the development of the industry. We also explain the positive relation between individuals’ preference for private ownership and the development of mutual funds. Moreover, we prove that the industry is larger in developed countries with greater stock market liquidity, with low ratios of remittance infl ows to GDP, and in which the industry is older.
Keywords: financial development, mutual funds, socio-cultural values
Classification-JEL: A13, G23, Z13
Pages: 476-493
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=572.pdf
File-URL: http://www.vse.cz/pep/572
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:572:p:476-493
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Template-Type: ReDIF-Article 1.0
Author-Name: Mateusz Machaj
Title: Can the Taylor Rule be a Good Guidance for Policy? The Case of 2001-2008 Real Estate Bubble
Abstract: John Taylor (2009) argues that if the Federal Reserve had followed his famous monetary-policy rule, the severe recession that resulted from the real estate bubble could have been avoided. While one may agree with Taylor’s empirical analysis and accept his demonstration that his proposed rule would lead to a more stable economic environment, it is unclear whether central banks are capable of avoiding bubbles by simply following the Taylor rule. One can construct various Taylor rules from the data. Some of those rules model what the Federal Reserve actually did. Following the specific type of Taylor rule recommended by John Taylor would in fact amount to a better monetary policy, but only because it calls for setting interest rates higher. In the second section, we introduce Taylor rules. In the third section, we apply these rules to monetary policy since 2001. The fourth section situates the Taylor rule in the Wicksellian Framework of interest rates and macroeconomic stability. In the fifth section, we discuss the effects of policy rules on macroeconomic stability.
Keywords: monetary policy, Taylor Rule, crisis of 2008, business cycle theory
Classification-JEL: E3, E5
Pages: 381-395
Volume: 2016
Issue: 4
Year: 2016
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=573.pdf
File-URL: http://www.vse.cz/pep/573
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2016:y:2016:i:4:id:573:p:381-395
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