scispace - formally typeset
Search or ask a question

Showing papers in "Czech Journal of Economics and Finance in 2000"


Posted Content
TL;DR: The main points discussed at the seminar "Economics as an Imperial Science", held by the Czech Economic Association in November 1999, were summarized in this article, where the authors presented the standard textbook neoclassical axiomatic approach to preferences and argued that the theory of preferences is the hard core of what people are able to sensibly articulate about their own decisions and behavior.
Abstract: This article summarizes the main points discussed at the seminar ?Economics as an Imperial Science,? held by the Czech Economic Association in November 1999. The seminar was devoted to the theory of preferences and its extensions to ?non-economic? topics, a research agenda coined by Prof. Gary Becker, the 1992 Nobel Memorial Prize Winner. There were two main speakers. Dr. Dusan Toiska (CD-F, a.s.) presented the standard textbook neoclassical axiomatic approach to preferences. He argued that the theory of preferences is the hard core of what people are able to sensibly articulate about their own decisions and behavior. Prof. Ivo. Straka (Prague School of Economics) was more critical of Prof. Becker?s attempts to extend the theory of preferences to non-economic areas of research. He argued that Prof. Becker?s approach obscures the definition of capital and the distinction between consumption and investment, which lessens our understanding of reality. Other seminar discussions focused on various issues, including the definition of science, the role of mathematics in economics, and McKloskey?s concept of economics as a rhetorical space.

55 citations


Posted Content
TL;DR: The Public Finance Department of the University of Economics in Prague (VSE Praha) recently held an international conference on Theoretical and Practical Aspects of Public Finance The main topics discussed were the public and the taxation sectors' respective decentralization, efficiency, and financial instruments as discussed by the authors.
Abstract: The Public Finance Department of the University of Economics in Prague (VSE Praha) recently held an international conference on Theoretical and Practical Aspects of Public Finance The main topics discussed were the public and the taxation sectors' respective decentralization, efficiency, and financial instruments Economists from England, Czech Republic, Scotland, Italy, Belgium, Russia, Slovenia, Turkey, Slovakia, and several international organizations were present

12 citations


Posted Content
TL;DR: In this article, the role of foreign direct investment (FDI) in the economic transition of the Czech Republic in the period 1993-1998, specifically in the Czech manufacturing, was analyzed.
Abstract: This paper analyzes the role foreign direct investment (FDI) played in the economic transition of the Czech Republic in the period 1993-1998, specifically in the Czech manufacturing. The author uses a firm-level data set supplied by Czech manufacturing industry during these years. FDI?s impact on manufacturing firms? total factor productivity growth is examined, and the author analyzes the spillover effect of FDI on the performances of firms in other sectors associated with foreign investment. The results suggest that firms with foreign participation achieved higher productivity growth rates than domestically owned firms in the period under study. Among firms with foreign participation, ?green-field? enterprises performed slightly better in terms of total factor productivity growth than firms created through mergers and acquisitions. FDI?s spillover effect, however, is found to be statistically insignificant, which does not support the hypothesis that foreign presence positively affects the productivity growth of domestically owned firms.

9 citations


Posted Content
TL;DR: In this paper, the authors demonstrate the importance of incorporating contingent liabilities into the analysis of the Czech Republic's budget and show that when explicit expenditures are shifted off budget or replaced by guarantees, achieved fiscal balance is an illusion.
Abstract: The article demonstrates the importance of incorporating contingent liabilities into fiscal analysis. When explicit expenditures are shifted off budget or replaced by guarantees, achieved fiscal balance is an illusion. In the Czech Republic, fiscal adjustment may have been overstated by some three to four percent of annual GDP during the 1990's. A stabilization program accompanied by a build-up of contingent liabilities, particularly, state guarantees and obligations to cover liabilities emerging from directed credit and from the purchases of bad assets by state-sponsored agencies, may not be sustainable. The study concludes that the government of the Czech Republic should aim at reducing its overall fiscal vulnerability rather than the budget deficit, develop a more effective strategy to resolve the problem of hidden debt, and enhance the public-finance institutional framework to create adequate incentives for policy makers in dealing with contingent liabilities.

4 citations


Posted Content
TL;DR: In this article, the efficiency of the Czech financial market in view of the market's reaction to a recent series of interest rate cuts implemented by the Czech central bank has been investigated.
Abstract: This article investigates the efficiency of the Czech financial market in view of the market?s reaction to a recent series of interest rate cuts implemented by the Czech central bank. An efficient market would, at least partially, anticipate interest rate cuts and rapidly adjust. While the domestic stock and foreign exchange markets generally do not react on the Czech National Bank?s interest rate changes, changes to the central bank?s key repo rate do affect Czech interest rates. In line with model expectations, the response of the shorter rates is relatively stronger. The reaction of Czech interest rates, however, appear to be grossly inefficient. Rate movements in anticipation of official rate changes are virtually absent. Moreover, adjustments to rate changes take several days?even in the case of shorter rates, which are influenced more directly by the central bank?s repurchase rate it takes up to five working days to fully adjust to a rate change.

3 citations


Posted Content
TL;DR: In this article, the authors examine competition in network industries in the Czech Republic and make an assessment of national regulatory policies and their relationship to current EU recommendations, concluding that the current state of regulation is far from desired.
Abstract: The paper examines competition in network industries in the Czech Republic in making an assessment of national regulatory policies and their relationship to current EU recommendations. The author first considers the legal framework in which businesses operate and, if any, the degree (and form) of the regulation of exclusively provided services. Secondly, and in regards to the latter, the author considers how price policies and pricing may be influenced by the implementation of a competitive environment. If competition is introduced without the accompanying proper regulation of incumbent behavior, the resulting market may be a competitive one with monopolistic prices: the incumbent left with the power to expropriate rents in such a pseudo competitive market. The government of the Czech Republic should see to the careful implementation of EU directives in the national legal system. The current state of regulation in the Czech Republic is far from desired.

2 citations


Posted Content
TL;DR: This article explored preliminary evidence from the post-communist economies of Eastern Europe and the former Soviet Union using data from 25 countries between 1991 and 1996, and found that the standard public-finance framework has limited applicability to the transition economies It is more fruitful to examine how political institutions affect financial policy.
Abstract: The financial systems of developing countries tend to be restricted or repressed by burdensome reserve requirements, interest-rate ceilings, foreign-exchange regulations, constraints on banks? balance sheets, and the heavy financial-sector taxation This article explores preliminary evidence from the post-communist economies of Eastern Europe and the former Soviet Union Using data from 25 countries between 1991 and 1996, we find that the standard public-finance framework has limited applicability to the transition economies It is more fruitful to examine how political institutions affect financial policy Our findings suggest that post-communist governments may adopt repressive financial controls to ensure the survival of those in power In countries where the pre-reform elite are abundant in legislative bodies and where interparty competition is low, such elite have perpetuated a system of implicit subsidies The main beneficiaries of these policies are large, formerly state-owned industries with close financial links to the largest commercial banks These results lend support to the claim that the commercial banks have taken over the role of the old planning ministries

2 citations


Posted Content
TL;DR: In this paper, the authors analyzed the relationship between taxes and selected macroeconomic variables (especially, GDP and wage growth) and presented several linear regression models for the short-term estimation of tax revenues conditional to no structural changes in the fiscal framework.
Abstract: This article deals with the forecasting of the main tax revenues in the Czech economy. The authors analyze the relationship between taxes (value added, excise, corporate income, personal income, and social-security contributions) and selected macroeconomic variables (especially, GDP and wage growth). Several linear regression models are presented. They tend to be viable and suitable for the short-term estimation of tax revenues conditional to no structural changes in the fiscal framework. The authors, in emphasizing the difficulties associated with the predictability of budget resources, shed light upon the fiscal processes in the Czech economy.

2 citations


Posted Content
TL;DR: The authors analyzes the structural and cyclical parts of Czech public budget deficits and concludes that public budgets were in structural deficit as early as 1994, and proposes three methods toward estimating the potential output of the Czech economy and demonstrate how these estimates lead to different conclusions vis-a-vis fiscal policy.
Abstract: The paper analyzes the fiscal position of Czech public budgets. It focuses on the structural and the cyclical parts of the budget deficits and concludes that public budgets were in structural deficit as early as 1994. The authors propose three methods toward estimating the potential output of the Czech economy and demonstrate how these estimates lead to different conclusions vis-a-vis fiscal policy. Their analysis shows that the Czech economy under-performs with respect to its perceived convergence with the European Union. The authors also adjust the official budget numbers for one-off privatization revenues. These revenues considered, public budgets appear significantly less balanced, and recent practice suggests a mounting budgetary dependence on privatization revenues.

1 citations


Posted Content
TL;DR: HolUB et al. as mentioned in this paper discuss the issues involved in the construction of a monetary conditions index for the Czech Republic and conclude that MCI can be useful for measuring the monetary stance vis-a-vis the target, but better still is a frequent publication of inflation forecasts and the methodology behind such forecasts on the part of the central bank.
Abstract: Monetary Conditions IndicatorsMartin CIHAK ? International Monetary Fund, Washington, D.C.Tomas HOLUB ? Czech National Bank; Faculty of Social Sciences, Charles University, PragueThe article provides an overview of foreign-language (non-Czech) literature on monetary conditions indices. The authors also discuss the issues involved in the construction of a monetary conditions index for the Czech Republic. They argue that if a monetary conditions index is to have any use for practical monetary policy, one must first distinguish two components of monetary policy stance: the monetary policy stance vis-a-vis the monetary policy target, and the monetary policy target itself. They conclude that MCI can be useful for measuring the monetary stance vis-a-vis the target, but better still is a frequent publication of inflation forecasts and the methodology behind such forecasts on the part of the central bank.

1 citations


Posted Content
TL;DR: According to the main speaker at the CERGE UK, Princeton University, Stipan Jurajda as mentioned in this paper, a larger part of the total differential between the wages of men and women in the Czech Republic can be attributed to pure wage discrimination.
Abstract: The article summarizes the main points discussed at the seminar? Women vs. Men in the Czech Labour Market? held by the Czech Economic Association in January 2000. The main speaker, Dr. Stipan Jurajda (CERGE UK, Princeton University), presented his current working paper, which analyses gender wage differentials in the Czech Republic using detailed microeconomic data. According to the key finding of Jurajda?s paper, a larger part?roughly two-thirds?of the total differential between the wages of men and women in the Czech Republic can be attributed to pure wage discrimination. This conclusion differs from the conclusions of similar studies undertaken in other countries, which suggested that segregation is more important in explaining gender wage disparity. Dr. Jurajda's model, however, does not control for the influence of motherhood, as the data remain scarce.

Posted Content
TL;DR: In this paper, the impact of the introduction of the euro on derivatives exchanges in Europe is analyzed and summarizes several considerations, including the effects on the underlying assets, changes in territorial structure, and volumes of trade between January 1997 and October 1999.
Abstract: The article analyzes and summarizes several considerations the impact the introduction of the euro had on derivatives exchanges in Europe. It further outlines perspectives of potential developments. The author has divided the analysis into three parts according to the main types of exchange-traded contracts: short- and long-term interest-rates and index derivatives. The effects on the underlying assets, changes in territorial structure, and volumes of trade between January 1997 and October 1999 are discussed in each part.The main findings suggest that trade volumes are centering on the only underlying asset for any type of derivatives. The benchmark for short-term interest-rate derivatives became Euribor; for long-term interest-rate derivatives it was the German Bund; and among euro indexes are dominant Stoxx indices. Moreover, the trade in Euribor derivatives is largely concentrated in London (Liffe); however, Bund derivatives are mostly traded in Frankfurt (Eurex).