Prague Economic Papers, 2018 (vol. 27), issue 4
Original contributions, Original article, Research article
Economic Sentiment Level versus the Quality of Life in European Union Member States
Robert Skikiewicz, Krzysztof Blonski
Prague Economic Papers 2018, 27(4):379-396 | DOI: 10.18267/j.pep.658 
The purpose of this paper is to evaluate the interplay between variables pertaining to the satis-faction of life and economic sentiments of citizens of selected European countries. The analysis of the connections will be conducted based on existing subjective primary data. The data in question are results of international comparative surveys (European Social Survey, ESS; the OECD's Better Life Initiative) and results of consumer economic sentiment surveys ordered by the European Commission. The research procedure also benefitted from the selected items of literature available in the form of books and articles. Population economic sentiments are subject...
Performance Factors of Czech Companies Identified Using Statistical Pattern Recognition: Interpretation of Results
Ondřej Částek
Prague Economic Papers 2018, 27(4):397-416 | DOI: 10.18267/j.pep.659
The paper interprets factors of corporate performance identified by means of statistical pattern recognition techniques. A Dependency-Aware Feature algorithm with non-linear regression model ranked 74 potential factors of corporate performance according to their contribution to corporate performance prediction. This paper brings consecutive statistical analyses, which interpret the effects of Strategy, FDI, Share of Export, Top Management Performance Pay, and Workers' Performance Pay on corporate performance. Furthermore, the analyses reveal strong mutual moderating interdependencies. On the national scale, the paper brings evidence that the companies...
The Validity of Purchasing Power Parity in BRICS Countries
Burak Güriş, Muhammed Tiraşoğlu
Prague Economic Papers 2018, 27(4):417-426 | DOI: 10.18267/j.pep.654
It is observed that purchasing power parity (PPP) as one of the controversial and most interesting topics of international macroeconomics literature is tested by using different econometric methods for certain countries and/or country groups by many researchers. The validity of PPP is important in terms of being a common exchange rate used in international comparison. In this context, the validity of relative purchasing power parities in the BRICS countries (Brazil, Russia, India, China and South Africa) were analysed for the January 1993-March 2015 period. Non-linear stationarity analysis was used in the study. According to the findings of the analysis,...
The CCCTB Allocation Formula Game: The Performance of Economics Sectors
Kateřina Krchnivá, Danuše Nerudová
Prague Economic Papers 2018, 27(4):427-448 | DOI: 10.18267/j.pep.660
The implementation of the Common Consolidated Corporate Tax Base (hereinafter CCCTB) in the European Union will probably have an impact on tax revenues of the concerned states since the distribution of the group tax base shall reflect the capacity to earn income by individual group members. This is secured by the employing of the allocation formula containing three factors that shall reflect the profit generating process of individual companies. The paper analyses the explanatory power of the proposed CCCTB formula on the data sample of group companies with a link to the Czech Republic - either parent or subsidiary company in the group covered in dataset...
Price Level Stabilization: Hayek contra Mainstream Economics
Pavel Potužák
Prague Economic Papers 2018, 27(4):449-478 | DOI: 10.18267/j.pep.668
The doctrine of beneficial effects of price level stabilization is an integral part of modern mainstream economics. In the 1920s and 1930s, Friedrich August von Hayek questioned this monetary policy regime, and stressed injection effects of the newly created money aimed at price level stabilization in the economy with expanding natural output. This paper compares the Hayekian theory with mainstream economics. A simple graphical apparatus is used to clarify major differences between the two theories. Standard textbook models are applied to show why the Hayekian approach favours secular deflation over price level stabilization which may lead to the boom-bust...
Institutions as a Mediator of the Effect of Crossborder Mergers & Acquisitions on Domestic Investment
Jelena Zvezdanović Lobanova, Davorin Kračun, Alenka Kavkler
Prague Economic Papers 2018, 27(4):479-493 | DOI: 10.18267/j.pep.665
In this article we analyse the impact of the interaction between cross-border mergers and acquisitions and the quality of the institutional setting on domestic investment using panel data for 22 European transition countries from 2000 to 2014. We investigate whether the progress and durability of institutional reforms have a crucial influence on the economic performance of cross-border mergers and acquisitions in transition countries. Our empirical findings indicate that contemporaneous cross-border mergers and acquisitions have a crowding-out effect on domestic investment in the year of merger or acquisition, but the influence of their lagged level...
A Nonlinear Supply-Driven Input-Output Model
Nooraddin Sharify
Prague Economic Papers 2018, 27(4):494-502 | DOI: 10.18267/j.pep.657
One of the major limitations of the supply-driven input-output (I-O) Ghosh model concerns its linear production function. Using the I-O table, this paper replaces the linear production function with the Cobb-Douglas (CD) production function within the supply-driven model. The two models are compared both theoretically and empirically. Nonlinear production function, relative substitutability of primary factors, and variability of the proportion of intermediate inputs over product levels are the characteristics of the proposed model. The consideration of sectors' Solow residual as Total Factor Productivity (TFP) of sectors is yet another...