Showing papers in "ACTA VŠFS in 2015"

Social and Provision Models of Pension Insurance and Savings

Abstract: The social models (welfare regimes) typology makes it possible to understand the basic pension scheme concepts, key role of social policy in this regard, determined on the basis of public choice. However, pension provision systems also play a significant role in practice; provision model of a pension pillar or tier may considerably affect the results of application of the relevant social model. Analyses confirm the failure of annuity markets – not even government regulation could successfully reduce annuity costs to a sustainable level in any country, comparable to the provision of public pensions. Therefore, the private sector can only offer pensions savings, moreover with crucial government regulation. Occupational schemes converge to either mandatory or quasi-mandatory schemes throughout the world, or transform to workplace pensions as a new provision model that represents a soft compulsion neoliberal system in combination with auto-enrolment. In addition to analyzing social and provision models from the general perspective, with key emphasis on representative countries’ experience, the paper concentrates on individual pillars of the Czech pension system that have recently undergone a number of reforms, usually resulting in no improvement in their efficiency. All pension pillars in the Czech Republic are thus in need of a major reform.

Ohlson´s Model and its Prediction Ability in Comparison withSelected Bankruptcy Models in Conditions of Czech SMEs

Abstract: In this paper are presented the results of a study examining the ability of Ohlson’s Logit model assessing and predicting the financial condition development of SMEs in comparison with the other models outcomes. Ohlson´s model was created using logit regression, which allows in the evaluation of the financial situation involve qualitative and discrete variables. The aim of the study is to determine whether the method used to derive the model influences the final assessment of the financial condition and indication of bankruptcy. The solution is based on the comparison of the resulting assessment of these four models, value of which were calculated on the same sample of Czech firms. As compared models were selected Z-score model, derived in the terms of US enterprises, IN05 model, which was derived in the conditions of Czech companies and Taffer´s model, derived in the conditions of UK firms. The sample consisted of 1996 small and medium firms in the manufacturing industry in Czech Republic. Data were obtained from the database of Albertina for the period of the years 2012 and 2013. It was found that the assessment of the firm´s financial situation matches in case of the results of Ohlson´s model and Taffler´s model, greater differences were found between the resulting values of Ohlson´s and Taffler´s model on one side and IN05 and Altman's model on the other side. Ohlson´s model and the Taffler´s model confirmed a good financial situation of companies in about 90 per cent of firms, Altman´s model and IN05 model in about 40 per cent of firms. The influence of the method used to derive the model on the assessment of the financial condition of companies was not proven.

A Perception of a Town: Inhabitants´ Values and Preferences ofthe Moravian-Silesian Region, the Czech Republic

Abstract: The overall objective of the towns is their sustainable development, but it is not possible to exactly define it. It is a subjective idea and it is closely related to a value system and preferences of inhabitants. The aim of this study is to evaluate 15 selected areas for living in a town and mainly define a perception and evaluation of Environment as well as the Appearance of public spaces and relations between these areas and image of the town. There is the evaluation of the current situation and proposals for changes in these areas. There is also a position of Environment in the overall ranking of 15 areas that are important for residents. Data for this study were obtained from a survey in six district towns of the Moravian-Silesian Region, 452 people were questioned in February 2014. Respondents evaluated the current situation in 15 selected areas and they also suggested proposals for changes in these areas. Results of the study show that the Environment was ranked with regarding to the typology of the chosen town. But the results of the evaluation of the current environmental situation in the towns were so different that they cannot be averaged for the whole region.

A Robust Search for Determinants of Price Convergence in European Union – Known “Suspects” or New “Villains”?

Abstract: The article sheds some light on the problem of determinants of comparative price levels in the EU. A thorough search for determinants is carried out with help of the Bayesian approach (Bayesian model averaging). This state-of-the-art econometric approach allows researchers to deal with problems such as model uncertainty and open-endedness. Consequently, these cause problems with empirical modelling when using ‘classical’ approaches (e.g. cross-sectional estimations). We utilize dataset consisting of a broad range of variables both already utilized in empirical studies and new ones associated with broadly defined institutional environment and covering the period 1997–2011 for EU-26. Our benchmark results confirm the importance of some ‘traditional’ determinants such as labour costs and output gap and broadly defined environment (institutional factors) including a monetary regime. An extension of the basic model so that a potentially differentiated impact of determinants in old and new EU member states can be accommodated does not provide sufficient evidence for differentiated effects of individual price level determinants in new and old EU member states.

Information Acquisition and Excessive Risk: Impact of PolicyRate and Market Volatility

Abstract: Excessive risk-taking of financial agents drew a lot of attention in the aftermath of the financial crisis. Low interest rates and subdued market volatility during the Great Moderation are sometimes blamed for stimulating risk-taking and leading to the recent financial crisis. In recent years, with many central banks around the world conducting the policy of low interest rates and mitigating market risks, it has been debatable whether this policy contributes to the building up of another credit boom. This paper addresses this issue by focusing on information acquisition by the financial agents. We build a theoretical model which captures excessive risk taking in response to changes in policy rate and market volatility. This excessive risk takes the form of an increased risk appetite of the agents, but also of decreased incentives to acquire information about risky assets. As a result, with market risk being reduced, agents tend to acquire more risk in their portfolios then they would with the higher market risk. The same forces increase portfolio risk when the safe interest rate is falling. The robustness of the results is considered with different learning rules.

Risks of Mortgage Loans in the Czech Republic

Abstract: Indebtedness through mortgage loans is dominant of household debt in the Czech Republic. The gradual increase in the household debt level may also entail increasing credit risk assumed by banks in connection with their credit exposure to this sector. The objective of the paper is to verify the risk and identify factors that affect the credit risk development in the Czech Republic. We look for correlation between the risk development and the interest rate development. Furthermore, we verify links between the risk and the development of real estate collateral value. The paper does confirm that there are real risks associated with the potential increase in interest rates. No significant risks have been confirmed with regard to the current development of the residential property value. The paper also strives to provide an identification and verification of risks stemming from individual banks’ internal processes. It features a detailed analysis of the internal factors (aspects) comprising revenue, competition, as well as distribution.

Integrational Models and Forms of Inter-State Public-PrivatePartnership: Aspects of Financial Convergence

Abstract: In the article we examined the main models and forms of public-private partnership,their role in the socio-economic development and deepening of financial convergence of countries-participants of the partnership. The attention was paid to decentralization of inter-state forms of public-private partnership as the basis of cross-border and transnational partnership. The scientific research, described in this publication, have found their practical application in the realization of the project within Euro-region “Bug”. This project has founded a joined Ukrainian – Polish institution of labor migration administration and also of granting necessary permissions for realization activities within Ukraine.