Template-Type: ReDIF-Article 1.0
Author-Name: Kun Su
Author-Name: Rui Wan
Title: Income, Charitable Giving, and Perception Bias
Abstract: This paper analyses income and charitable giving from the perspective of perception bias. We show that perception bias affects charitable giving through its effects on warm glow, while inequality aversion counteracts these effects. Donors’ perception bias regarding a recipient’s situation does not necessarily decrease their charitable giving. pecifically, perception bias regarding the recipients’ effort and life shock decreases donors’ charitable giving. Perception bias regarding the recipients’ ability decreases donors’ giving to charities designed to help low-ability recipients but increases their giving to charities designed to help high-ability recipients. We also show that perception bias increases with donors’ income. Fundraising professionals shall allocate more efforts to those who do not care about inequality that much when correcting the donors’ perception bias; focus their efforts on correcting the donors’ perception bias, especially for rich donors, when raising money for charities with low-ability recipients; but increase donors’ perception bias regarding the recipients’ ability when raising money for charities with high-ability recipients.
Keywords: charitable giving, inequality aversion, perception bias, warm glow
Classification-JEL: D63, D64
Pages: 40-54
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=637.pdf
File-URL: http://www.vse.cz/pep/637
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:637:p:40-54
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/637

Template-Type: ReDIF-Article 1.0
Author-Name: Iryna Gauger
Author-Name: Katarzyna Śledziewska
Title: Is a Model of Comprehensive Regionalism Trade-Increasing for V4 Countries? Sectoral Approach
Abstract: This paper aims to identify the impact of a “deep” (economic union) and “shallow” (Common Commercial Policy) integration on 4 Visegrad countries’ trade with the EU and non-EU industrialized countries. Trade flows are analysed on the basis of sectors over the period of 1995-2011: the gravity model also utilizes sectoral value-added and sectoral output as proxies for the market size. The impact of regional trade agreements (RTAs) is evaluated for 17 WIOD sectors based on the research methodology developed by Baldwin (2006), Flam and Nordstrom (2003) and Fernandes (2006). Contrary to the mentioned research studies, this paper uses a more advanced econometric technique - the Poisson pseudo-maximum-likelihood method displayed in Silva and Tenreyro (2006). This paper concludes that both “deep” and “shallow” trade arrangements have a more pronounced effect on Visegrad high value-added product exports than on Visegrad low value-added product exports. Common Commercial Policy’s trade effects on RTAs, for instance in the case of Mexico and Turkey, are comparable to its trade effects with EU countries. The Common Commercial Policy’s effect on RTAs is almost absent in low-value-added product sectors of Visegrad countries. Thus, we conclude that integration with the EU influenced Visegrad countries’ trade of higher value-added goods with both the EU and non-EU industrialized countries.
Keywords: regionalism, Visegrad, EU effect, FTA effect, sectoral trade
Classification-JEL: F13, F15
Pages: 21-39
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=639.pdf
File-URL: http://www.vse.cz/pep/639
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:639:p:21-39
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/639

Template-Type: ReDIF-Article 1.0
Author-Name: Jan Bastin
Title: Risk-Based Investing in the German Stock Market
Abstract: The article shows properties of risk-based portfolios in the German stock market. Those systematic strategies use different approaches to weight stocks in portfolios. We present theoretical and empirical characteristics of five risk-based equity investments: the equal-weighted, minimum variance, maximum diversification and risk parity (equal risk budgeting and equal risk contribution) portfolios. Risk-based portfolios outperformed the market-cap weighted CDAX index with a lower level of risk in the period 2002-2015. Their excess returns relative to the CDAX index can be explained with Scherer’s five-factor model; with Fama-French and low-risk anomaly factors. R2s of different strategies range from 77% to 92%.
Keywords: risk, German stock market, CDAX index, risk-based portfolio, returns, multifactor model
Classification-JEL: G10, G11
Pages: 55-72
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=643.pdf
File-URL: http://www.vse.cz/pep/643
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:643:p:55-72
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/643

Template-Type: ReDIF-Article 1.0
Author-Name: Tomáš Evan
Author-Name: Pavla Vozárová
Author-Name: Ilya Bolotov
Title: Some Effects of Intellectual Property Protection on National Economies: Theoretical and Econometric Study
Abstract: This paper aims to theoretically derive and afterwards econometrically assess the impact of intellectual property protection (IPP) on national economies. The authors’ main hypothesis is that by creating a form of non-market protection, IPP limits free competition and has no positive effects on national economies and the world economy in general. The hypothesis is tested through estimation of relationship between charges for the use of intellectual property and 1) gross domestic product, 2) GDP growth, 3) unemployment, 4) exports of high-tech products, 5) FDI outflow, and 6) expenses on research and development in a panel dataset of 146 countries in years 2005-2014 based Arellano-Bond estimator for dynamic panel models. The data tells us that changes in these charges have not a significant impact on the studied indicators, which counts against claims of positive impact of IPP on economies and growth.
Keywords: dynamic panel, intellectual property, economic theory
Classification-JEL: C22, C23, D40, O34, O40
Pages: 73-91
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=644.pdf
File-URL: http://www.vse.cz/pep/644
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:644:p:73-91
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/644

Template-Type: ReDIF-Article 1.0
Author-Name: Karolína Vozková
Author-Name: Petr Teplý
Title: Determinants of Bank Fee Income in the EU Banking Industry - Does Market Concentration Matter?
Abstract: In this paper, we analyse the key determinants of bank fee and commission income in the European Union with a special emphasis on market concentration. On a sample of 258 EU banks during the 2007-2014 period, we apply System Generalized Method of Moments. First, we argue that the banks facing higher competition tend to expand more aggressively into non-traditional activities, and therefore they report a higher share of fee income in total income. Second, we found that a higher equity to assets ratio is related with higher shares of fee income since the bank needs more capital to prevent or manage the potential risks of the non-traditional activities. Finally, a high deposits to assets ratio tends to increase the fee income share, which may be possibly attributed to relatively high switching costs and to close depositor-bank relationship in the EU banks.
Keywords: market concentration, bank, generalized method of moments, fee and commission income, Herfindahl index
Classification-JEL: C23, G21, L25
Pages: 3-20
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=645.pdf
File-URL: http://www.vse.cz/pep/645
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:645:p:3-20
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/645

Template-Type: ReDIF-Article 1.0
Author-Name: Sinem Guler Kangalli Uyar
Author-Name: Umut Uyar
Title: Quantile Parameter Heterogeneity in the Finance-Growth Relation: The Case of OECD Countries
Abstract: This paper seeks to investigate the effect of financial development on growth in OECD countries during 1999-2014. The aim of the analysis is to study the dependence of growth on given financial development indicators along quantiles of the conditional growth distribution, taking into account the effect played by each country over time. For the purpose of the empirical analysis, it performed the instrumental variable quantile regression panel data (IV-QRPD) model suggested by Powell (2016). The findings of IV-QRPD model indicated that the effect of finance on growth is changing along quantiles of the conditional growth distribution. That is to say, we provide some evidence that high-growth OECD countries react to the changes in financial development less than low-growth countries.
Keywords: economic growth, financial development, panel quantile regression, instrumental variable
Classification-JEL: C21, C23, G10, O16, O40
Pages: 92-112
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=646.pdf
File-URL: http://www.vse.cz/pep/646
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:646:p:92-112
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/646

Template-Type: ReDIF-Article 1.0
Author-Name: Jan-Jan Soon
Title: Effects of EU Expansion on Migrants’ Employment and Income: A Natural Experiment
Abstract: With the European Union expansion in 2004 providing a unique form of natural experiment, this paper uses the European Values Study data and the difference-in-differences estimation to identify causal effects of the EU expansion on migrants’ employment chances and income. Estimation results suggest that the expansion has increased migrants’ employment chances and income. The probability of having a full-time employment for a male migrant in the postexpansion period increases by about 7.7 percentage points. The increase in income for male migrants is higher than that of their female counterparts after the expansion. When the income distribution is broken down into quantiles, estimation results show that male migrants at lower ends of the income distribution experience higher increase in income. At the highest end of the income distribution, there is no evidence that the expansion has any significant effect on either male or female migrants´ income.
Keywords: employment, European Union expansion, migrant, income, difference-in-differences, quantile regression, natural experiment
Classification-JEL: C21, J15, J61
Pages: 113-128
Volume: 2018
Issue: 1
Year: 2018
File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=648.pdf
File-URL: http://www.vse.cz/pep/648
File-Format: text/html
Handle: RePEc:prg:jnlpep:v:2018:y:2018:i:1:id:648:p:113-128
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/648