Prague Economic Papers, 2015 (vol. 24), issue 3

Credit Value Adjustment and Economic Motivation to Trade on PXE

Igor Paholok

Prague Economic Papers 2015, 24(3):245-259 | DOI: 10.18267/j.pep.517  

Electricity forward contracts can normally be traded in two ways in the Czech Republic: OTC forwards, which means bilaterally or bilaterally through a broker, and futures through the Power Exchange Central Europe. Each way has its own economic pros and cons. As the most crucial point, a counterparty risk and costs of funding are usually mentioned. Contracts traded on the power exchange bear less or no credit risk, as every deal is paired via central counterparty. On the other hand, the power exchange requires a margin deposit and daily profit and loss settlement which might increase funding costs. The fact that the counterparty risk is lower for exchange...

FDI to EU15 and New Member States: Comparative Analysis of Inflow Determinants

Viktorija Igošina

Prague Economic Papers 2015, 24(3):260-273 | DOI: 10.18267/j.pep.518  

Wide range of academic studies and economic practice are showing strong correlation between GDP growth and FDI flows. Moreover, there is a number of cases when FDI inflows were positively impacting economic development. That provides grounds and needs for profound research in the area of investment determinants. The main objective of this paper is to classify FDI determinants in the EU countries. All assuming that there are differences between the two groups - old and new member states. The econometrical approach of gravity modelling was chosen as the most appropriate methodology to analyse panel data set. Panel is depicting FDI flows coming from the...

The Improvement of Unemployment Rate Predictions Accuracy

Mihaela Simionescu

Prague Economic Papers 2015, 24(3):274-286 | DOI: 10.18267/j.pep.519  

This research is related to the assessment of alternative unemployment rate predictions for the Romanian economy, the forecasts being provided by three anonymous forecasters: F1, F2 and F3. F3 provided the most accurate forecasts for the horizon 2001-2014, while F2 predictions are the less accurate according to U1 Theil's statistic and according to a new method that has not been used before in literature in this context. The multi-criteria ranking was applied to make a hierarchy of the forecasters regarding the accuracy and five important accuracy measures were taken into account at the same time: mean errors, mean squared error, root mean squared...

A Model of German Spot Power Market

Jiří Šumbera, Martin Dlouhý

Prague Economic Papers 2015, 24(3):287-306 | DOI: 10.18267/j.pep.520  

This paper aims to model the day-ahead prices on the German EPEX SPOT exchange during the year 2011 using a fundamental mixed-integer programming model with focus on the changes in the volatility of prices. A model of the German market is built from publicly available data. Various constraints on the supply side such as operational characteristics of power plants are described, characterized and ultimately formulated as constraints of a cost-minimization problem. Unknown power plant characteristics are estimated by expert opinions or are inferred indirectly from other data. Several scenarios testing the impact of constraints and modelling approaches...

Financial Position of Czech Employees at the Beginning of the 3rd Millennium according to Educational Attainment

Diana Bílková

Prague Economic Papers 2015, 24(3):307-331 | DOI: 10.18267/j.pep.521  

The present paper deals with the development of wage distribution by educational attainment in the Czech Republic in the years 2003-2012, analysing fifty wage distributions as the object of research and the gross monthly wage in CZK as the research variable. It examines the development of wage distribution in time and the gross monthly wage in relation to the level of educational attainment. It also pursues the development of the minimum wage in the monitored period. The author pays special attention to the lowest guaranteed wage levels classified according to wage classes and work capability assessment, comparing the minimum wage to the wage of subsistence....

Consumer's Behaviour in East Slovakia after Euro Introduction during the Crisis

Eva Litavcová, Robert Bucki, Róbert Štefko, Petr Suchánek, Sylvia Jenčová

Prague Economic Papers 2015, 24(3):332-353 | DOI: 10.18267/j.pep.522  

The paper highlights the results of the survey of potential retail customers. The survey emphasizes the relationship between their responses to the chosen marketing pricing strategies and the perception of the introduction of the euro and the crisis. The multi-dimensional techniques were used to implement input data concerning perceptions of the euro introduction and the crisis in order to create a segmentation of respondents dividing them into: optimists, pessimists, crisispessimists, euro-pessimists, profiteers. It was subsequently proven that the responses of the members of these segments to the chosen pricing strategies EDLP (Every Day Low Pricing),...

An Empirical Analysis of Factors Affecting Prices of Intangible Assets: A Preliminary Testing in Consumer Durables Sector

Pavel Svačina

Prague Economic Papers 2015, 24(3):354-363 | DOI: 10.18267/j.pep.523  

In the last few decades, a valuation of intangible assets is an activity of particular importance, not only because of growing number of transactions with intangibles but for accurate financial reporting as well. In this discipline, a special area is dedicated to the research of different factors that affect the value of intangibles. Royalty rate, a price of the licensed intangible, is a typical measure of an intangible asset's value. This research paper aims at testing empirically selected factors that have been identified by theoretical literature as well as by licensing practice as relevant in determining the level of royalty rates. For this purpose,...

A Noteworthy Book on the Financial Crisis and Personal Finance

Marek Loužek

Prague Economic Papers 2015, 24(3):364-367 | DOI: 10.18267/j.pep.524