Showing papers on "Purchasing power published in 2018"

Strategic purchasing and health system efficiency: a comparison of two financing schemes in Thailand.

Abstract: Strategic purchasing is an essential health financing function. This paper compares the strategic purchasing practices of Thailand's two tax-financed health insurance schemes, the Universal Coverage Scheme (UCS) and the Civil Servant Medical Benefit Scheme (CSMBS), and identifies factors contributing to successful universal health coverage outcomes by analysing the relationships between the purchaser and government, providers and members. The study uses a cross-sectional mixed-methods design, including document review and interviews with 56 key informants. The Comptroller General Department (CGD) of Ministry of Finance manages CSMBS as one among civil servant welfare programmes. Their purchasing is passive. Fee for service payment for outpatient care has resulted in rapid cost escalation and overspending of their annual budget. In contrast, National Health Security Office (NHSO) manages purchasing for UCS, which undertakes a range of strategic purchasing actions, including applying closed ended provider payment, promoting primary healthcare's gate keeping functions, exercising collective purchasing power and engaging views of members in decision making process. This difference in purchasing arrangements resulted in expenditure per CSMBS member being 4 times higher than UCS in 2014. The governance of the purchaser organization, the design of the purchasing arrangements including incentives and use of information, and the institutional capacities to implement purchasing functions are essential for effective strategic purchasing which can improve health system efficiency as a whole.

Crypto‐currencies – an introduction to not‐so‐funny moneys

Abstract: This paper introduces the distributed ledger technology of crypto-currencies. We aim to increase public understanding of these technologies, highlight some of the risks involved in using cryptocurrencies, and discuss some of the potential implications of these technologies for consumers, financial systems, monetary policy and financial regulation. Crypto-currencies have no physical existence, but are best thought of as electronic accounting systems that keep track of people’s transactions and hence remaining purchasing power. Cryptocurrencies are typically decentralised, with no central authority responsible for maintaining the ledger and no central authority responsible for maintaining the code used to implement the ledger system, unlike the ledgers maintained by commercial banks for example. As crypto-currencies are denominated in their own unit of account, they are like foreign currencies relative to traditional fiat currencies, such as dollars and pounds.

Other People’s Money: Money’s Perceived Purchasing Power Is Smaller for Others Than for the Self

Abstract: Nine studies find that people believe their money has greater purchasing power than the same quantity of others’ money. Using a variety of products from socks to clocks to chocolates, we found that participants thought the same amount of money could buy more when it belonged to themselves versus others – a pattern that extended to undesirable products. Participants also believed their money – in the form of donations, taxes, fines, and fees – would help charities/governments more than others’ money. We tested six mechanisms based on psychological distance, the endowment effect, wishful thinking, better-than-average biases, pain-of-payment, and beliefs about product preferences. Only a psychological distance mechanism received support. Specifically, we found that the perceived purchasing power of other people’s money decreased logarithmically as others’ psychological distance from the self increased, consistent with psychological distance’s subadditive property. Further supporting a psychological distance mechanism, we found that framing one’s own money as distant (vs. near) reduced the self-other difference in perceived purchasing power. Our results suggest that beliefs about the value of money depend on who owns it, and we discuss implications for marketing, management, psychology, and economics.

Opinion: Valuation, liquidity price, and stability of cryptocurrencies.

Abstract: The spectacular rise of Bitcoin's price has attracted the attention of many, including government regulators and speculators and those who wish to use a virtual currency, often with little trace or record (1). On October 13, 2017, Bitcoin's market capitalization (the number of Bitcoins multiplied by the trading price) surpassed both Goldman Sachs and Morgan Stanley as it catapulted past $96 billion, a ninefold increase over the previous year (Fig. 1). Governments have floundered as they scramble to control cryptocurrencies (2⇓–4). Fig. 1. Bitcoin and other cryptocurrencies are not likely to remain stable. Image courtesy of Shutterstock/PixieMe. Many currencies and speculative instruments have evolved in modern times. However, we believe that the basic requirements for currencies and speculative assets are mutually exclusive. The former requires stability, namely, that tomorrow's purchasing power of the given currency should be nearly identical to today's. Prolonged stability, however, usually terminates the speculative interest in an asset. Thus far, Bitcoin, Ethereum, and some other cryptocurrencies seem to satisfy the conditions for speculation. But, in our opinion, stability will not easily materialize. We argue that an asset that has no value by traditional measures will tend to trade at a price that is determined largely by the fraction, L , of the amount of dollars available for the asset divided by the total number of units of the asset. This conclusion is deduced from mathematical modeling and economics experiments that we discuss below. Both strongly suggest that stability will be lacking, so the cryptocurrencies may be simply a mechanism for a transfer of wealth from the late-comers to the early entrants and nimble traders. From an academic perspective, there is a growing sense that this is a new bubble, much like those before: the housing bubble of 2008, the Internet bubble of 1999, the … [↵][1]1To whom correspondence should be addressed. Email: carey_caginalp{at}alumni.brown.edu. [1]: #xref-corresp-1-1

The Constitution and Nature of Money

Abstract: I take the opportunity to elaborate and clarify the positioning theory of money in response to the critique of it provided by Geoffrey Ingham.

“Broad-based Employee Stock Ownership and Profit Sharing: History, Evidence, and Policy Implications,”

Abstract: The purpose of this paper is to review the historical background for broad-based ownership in the USA, the development of forms of employee ownership and profit sharing in the USA, the research literature on employee ownership and profit sharing and related employee participation, the development of policy and options for new policies.,It is a literature review.,There are four reasons to be interested in employee stock ownership and profit sharing today: first, employee share ownership and profit sharing can increase worker pay and wealth and broaden the overall distribution of income and wealth, a key ingredient for a successful democracy. To be a tool for reducing inequality, employee stock ownership and profit sharing must be spread more widely and meaningfully than it is today. Second, employee share ownership and profit sharing provide incentives for more effort, cooperation, information sharing and innovation that can improve workplace performance and company productivity. Third, employee share ownership and profit sharing can save jobs by enhancing firm survival and employment stability, with wider economic benefits that come from decreasing unemployment. Fourth, employee share ownership and profit sharing can create more harmonious workplaces with greater corporate transparency and increased worker involvement in their work lives through access to information and participation in workplace decisions.,Growth has been extraordinarily sluggish in the recovery from the Great Recession and has weakened in advanced countries over a longer period, leading some analysts to believe that the authors have entered a new economic era of small to modest growth. This may turn out to be true, which will increase the importance of growth-enhancing policies. The evidence that firms with employee stock ownership and/or profit-sharing perform better than others suggests that policies that extend ownership would boost the country’s lagging growth rate. The evidence that employee share ownership firms preserve jobs and survive recessions better than others suggests that policies that extend ownership could help stabilize the economy when the next recession comes down the pike.,Because there may be informational or institutional barriers about the benefits of ownership and sharing and the ways firms can introduce such programs that government can help overcome. Government has often played a role in promoting performance-enhancing work practices to enhance overall economy-wide outcomes from higher productivity and innovation, such as the long history of agricultural extension services (since 1887) to spread information on best practices in farming, and employer education on safety practices conducted by the Occupational Safety and Health Administration.,Because of the “externalities” – effects that extend beyond the firm and its members – that greater ownership/profit sharing can bring us. If employee ownership and profit sharing lead to fewer layoffs and firm closures, this can reduce recession-created drops in consumer purchasing power and aggregate demand; government expenditures on unemployment compensation and other forms of support; decreased tax base for supporting schools and infrastructure; and potentially harmful social and personal effects, such as marital breakups and alcohol abuse. Apart from unemployment, more broadly shared prosperity and lower inequality may also have wider benefits for macroeconomic growth, stability and societal outcomes, as described by a number of social scientists. To the extent the ownership and profit sharing is a public good, a nudge in policy to consider the idea makes sense.,Because it is hard to find policy options that are as bipartisan as the shares policy. In The Citizens’ Share, and in other articles and venues, the authors lay out the areas in which there is evidence or logic for in-depth development of, and experimentation with, several broad policy directions, with the details to be worked out by members of Congress based on their deliberations.

Macroeconomic Environment and Taxes Revenues in Pakistan: An Application of ARDL Approach

Abstract: Taxation intends to raise the necessary funds for government expenditures, redistribution of income and stabilization of the economy, influence the allocation of resources and to overcome the externalities. Taxation is also supportive of the process of stable economic growth. This study has examined the impact of macroeconomic situations on tax revenues in the case of Pakistan over the period of 1975 to 2016. The study has very interesting results as unemployment has a positive and significant impact on tax revenues. There is a positive and significant relationship between money supply tax revenues. Inflation has negative and significant relation with tax revenues in the case of Pakistan. The study shows that Pakistan needs a sound macroeconomic environment for enhancing tax revenues. A country with stable macroeconomic situations would create greater opportunities for investment and more jobs are created. This would further enhance purchasing power on the part of consumers and bearing taxes burden become easy for them. Moreover, there is a dire need of tax education to the masses.

Debt as Money

Abstract: Money is positioned bank debt. This is a thesis I have previously defended in this journal. In the current paper, I elaborate the thesis and provide further grounding for it, especially in the light of criticism by others. In so doing, I examine how positioned bank debt as money works and how, in one case at least, it originally emerged

The Consumer Demand Estimating and Purchasing Strategies Optimizing of FMCG Retailers Based on Geographic Methods

Abstract: The fast-moving consumer goods (FMCG) industry is expected to grow dramatically given the rapid increase in purchasing power of Chinese consumers over recent years. In order to facilitate the sustainable development of the Chinese FMCG market, it is important for FMCG retailers to understand the provincial market demand and make out flexible purchasing strategies. This paper proposes a new combination of geographic methods to estimate market demand at the micro-scale through historical sales data. Based on the consumer demand of regions and the sales performance of nearby regions, this study also proposes a method to decide what kinds of optimizing purchasing strategies should be adopted for the retailers in different areas, the positive strategies or the conservative strategies. The sales data of FMCG retailers in Guiyang was used in the experiment, and the results showed that their theoretical sales could be improved by over 6.5% and 10.2 under two strategies. The findings indicate that this study can provide practical guidance for retailers to estimate the market demand, and develop suitable optimizing purchasing strategies, thus improving the profit of retails and decreasing the risk of products waste.

Working in Venezuela: How the Crisis has Affected the Labor Conditions.

Abstract: Background: Venezuela, the country with the largest oil reserves in the world, is facing the worst economic, social and political crisis in its history; which has notably affected the quality of life of the workforce and the entire population. Objectives: Identify and analyze the main social factors derived from the Venezuelan crisis, which are affecting the workers’ health and working conditions. Methods: Document study. Several sources of information from the last twenty years were consulted, ranging from public statistics and reports, newspaper articles, and results of scientific research. The information gathered was carefully studied to ensure that only reliable sources were used to ultimately reach valid conclusions. Results: Both workers from the formal and informal sector and their families are struggling to fulfill their basic needs. Low salaries and soaring inflation have resulted in a dramatic reduction in the purchasing power of the people. General violence and high prices of basic goods are some of the major problems affecting workers both inside and outside of their working environment. Being a formal employee is no longer a guarantee for an acceptable quality of life. As a result, over 1.6 million Venezuelans have left their country since 2015 in a migration crisis never seen before in Latin America. Conclusion: Quality of life and wellbeing of most of the Venezuelan population has being deteriorated in the last 5 years and Occupational Safety and Health (OSH) is not a priority for enterprises in the middle of the economic emergency and general deterioration of daily life. Despite the relevance of this problem, research on the subject is very limited. Recent and pertinent data is needed to properly identify and measure the risks and negative consequences that workers and families are exposed caused by the ongoing crisis.

The Role of Small and Intermediate Urban Centres in Regional and Rural Development: Assumptions and Evidence

Abstract: The role of small and intermediate urban centres in the distribution of services and goods is at the heart of growth centre and central place policies and programmes. Two main factors influence the role of small and intermediate urban centres as providers of services and goods to their rural region. First is the nature of rural economic activities and, related to this, the income levels and purchasing power of the rural population. Second is the capacity of local enterprises to develop to meet this demand and the demand from those living in the urban centre. The most effective and rational spatial strategy for promoting rural development is to develop a well-articulated, integrated and balanced urban hierarchy. The virtuous circle of rural—urban development envisions a mutually reinforcing pattern of linkages between an urban centre and its hinterland, which spurs the growth of both agriculture and non-farm activities.

Analyzing of consumer price index influence on inflation by multiple linear regression

Abstract: Inflation is one of the most important indicator for economy and markets. Inflation represents a rate of rising of general level of prices for goods and services in regard to the currency falls of purchasing power. Although there many investigation of inflation phenomenon there is still missing gap about the factors analyzing which have influence on inflation. In this paper is applied multiple regression analysis to determine how consumer price index, monetary aggregates, discount rate, exchange rate affect inflation.

What factors explain the price of top quality wines

Abstract: Given the growing supply of wines and the large number of new consumers with purchasing power but lacking knowledge of the subtleties of high-quality wines, expert opinions are used for consumers as proxies for quality This study aims to determine the determinants of prices in top-quality wine market The authors also seek to estimate the role for country of origin, grape, producing region and winery in prices And, finally, the authors try to show how countries, regions and wineries can help increase their position in international rankings,The authors try to answer: What factors explain the price of top-quality wines (defined as best rated in a standardized ranking)? To some extent, in the hands of producers influence prices, which imply long-term decisions or large investments in land and marketing Other variables that consumer value does affect prices The authors try also to detect undervalued or overvalued wines, grapes, regions, wineries or producer countries The authors estimate an econometric model of hedonic prices using a 14-year sample of the Wine Spectator’s 100 top-rated wines for the American market between 2003 and 2016, totaling 1,400 observations The sample is a great cross-section because each wine is unique,The authors’ contribution is twofold: the determination of the price explanatory values and the identification and attribution of price differences by country, grape, region and winery Also, the authors detected grapes, countries, regions and wineries which are overvalued or undervalued with respect to the average prediction of the model,The findings are useful to understand the role of price explanatory variables, as well as for making policy and managerial decisions From the model, collective or managerial actions can be derived to increase particular wines’ positions in international rankings The proxy for “quality” in the study is not the only possible definition,In some cases, managerial choices could be conditioned by the policies or history There is some room for collective action and public policies to improve regions’ and countries’ reputation,There are clear synergies for policies that can raise the prestige of countries and regions and their spillovers on the brand name reputation of individual wineries,The results, policy and managerial implications are of interest for business, countries interested in improving their position in international rankings and for consumers to make more informed decisions

From Income to Household Welfare: Lessons from Refrigerator Ownership in India

Abstract: This paper draws implications for the energy and education policies in developing countries based on the insights derived from studying the determinants of household refrigerator ownership in India. In our study the failure of the government policies to ensure reliable public services such as uninterrupted power supply and improving female education levels turn out to be the key stumbling blocks to raising household welfare in India. While a threshold level of household income is necessary for a purchase of a consumer durable, it is not a sufficient condition. Our results for the determinants of refrigerator ownership in India suggest that, even when households have sufficient purchasing power, the duration of a complementary good (electricity for >17 h per day) is critical for the ownership, all else held constant. Also, females in households tend to derive greater utility from the refrigerator usage due to its impact on lowering household burden of work and easing women’s entry into the labour market. Our results confirm the hypothesis that when women bargaining power is proxied by the level of education, households with a female with higher level of education have higher probability of refrigerator ownership.

Cryptocurrency As An Alternative Currency In Malaysia: Issues and Challenges

Abstract: Fintech (or financial technology) is the current driving force behind innovations in the financial services industry. One of the most debated innovations is cryptocurrency, or digital currency, which uses blockchain technology to make a direct electronic payment between two people possible, without going through a third party (like a bank) or expensive intermediaries in order to save costs. This future money is pressurising central banks to manage the looming threat of redundancy as it overshadows fiat currency in a world of infinite fintech possibilities. Bitcoin, being the first decentralised cryptocurrency, will be the focus of this research. This digital currency is not produced by minting money in an unlimited supply, but through a virtual mining process designed to control the supply of money and make it more valuable. The increasing pace in financial innovation is pushing regulators to make a change in the way they define money and what money can be. Traditionally money is used to serve as a medium of exchange, legal tender for repayment of debt, standard of value, unit of accounting measure and a means to save or store purchasing power. Bitcoin may not fulfill all the functions of money but its scarcity value, anonymity (or pseudonymity), transparency, and autonomy from the government, make it attractive to users who are speculators, traders, merchants, consumers and netizens disenchanted with fiat money. Despite the alluring features of Bitcoin, it is not spared from potential abuses such as webcrimes, tax evasion, fraud, online black markets, money laundering and terrorism financing. In this paper, a forensic examination of Bitcoins benefits and risks will help regulators decide whether to adopt cryptocurrency and provide an appropriate framework to regulate it based on other jurisdictions approach. This paper recommends that Malaysia should fully embrace cryptocurrency due to global trends - the Islamic Development Bank is developing Shariah compliant contracts using blockchain technology; China is leading the drive to develop its own national cryptocurrency to complement fiat money; and a Shariah-compliant cryptocurrency has already entered the market backed by gold (Onegram). Financial and regulatory architectures in Malaysia should accommodate these changes to remain relevant. In addition, future research is recommended focusing on developing a Shariah compliant national cryptocurrency that is unique to Malaysia.

The impact of social trends: teenagers’ attitudes for organic food market in Thailand

Abstract: Purpose The purpose of this paper is to investigate teenagers’ preferences, attitudes, and purchasing power towards organic foods in markets and to explain influences of teenagers’ choices and purchasing intentions on organic foods. Design/methodology/approach A paper-based and a web-based survey were conducted among 557 teenagers in Thailand. A choice experiment logit model was used to identify factors influencing decision in purchasing. Findings The study found that teen consumers were likely to buy ready-to-cook organic food items instead of conventional food items because of health and food safety concerned under their budget constraints. The willingness to pay found organic food items (eggs, pork, chicken) had negative impact but organic opinion had positive impact. The attitudes on high price of organic food items were positive impact because of production process, quality, and quantity of products. Research limitations/implications Teenagers’ consumption impacted on food demands in supermarkets and convenient stores because of their attitudes and behaviours in purchasing. The desired food characteristics should be good quality, safety for consumers, and available in the market nationwide. The supported policies for expanding organic markets were benefits for organic farmers to be sustainable farming. Originality/value This study examined the impacts of economic conditions and the premium quality healthy food products on teenagers’ food motivation.

Technologies of money in the Middle Ages: the 'Principles of Minting'

Abstract: The paper discusses which options medieval political authorities had to satisfy the demand for complex currencies. It distinguishes several models, each of which caused problems: A first one, where the basic unit was supplemented by a range of other denominations whose weight and purity where exactly proportional. While this did not take the proportionally larger labour costs involved in the production of small change into account, the second model did: here, small change had an over proportionally high content of base metal. In consequence, the stable numerical ratios between units of the same currency began to shift. The third option involved using gold for high purchasing power coins; a strategy that made currencies vulnerable to changes in the relative market prices of gold and silver. Again, the outcome was a that the numerical ratios between units of the same currency became instable. The paper discusses how political authorities chose between these options, how they supplied their mints with the necessary bullion and how minting was organised.

Trade Policy and Democracy for Development in Central African Countries

Abstract: This article shows that trade policy and democracy positively affect economic development. A panel of 11 Central Africa economies with 176 observations from 1995 to 2010 is used to econometrically test this hypothesis. The use of Generalised Least Squares (GLS) shows that there is a link between economic development, captured using Human Development Indicators (HDI), democracy, imports, exports, inflation and regional integration. Inflation and exports negatively affect the well-being of the population. An increase in the inflation rate causes a reduction in purchasing power. An increase in the exports of commodities tends to decrease the quantity of goods available for the country of origin. Imports have a positive effect on HDI probably because this variable tends to increase the quantity of goods available. Imports and democracy have a positive effect on the level of development in Central African countries. The findings are important to policy makers Central Africa who seek to increase trade within, between and with other democratic countries.

Public food procurement from smallholder farmers: literature review and best practices

Abstract: "Governments in all parts of the world use their purchasing power to advance social, economic and environmental goals. In a similar vein, public food procurement has also been used to promote a number of positive outcomes. There is growing interest among countries and international institutions in using public food purchases to promote the integration of smallholders into markets and strengthen rural livelihoods. Despite the expansion of public food procurement from smallholder farmers, research into these novel strategies is still limited. This paper will address some of the research gaps by identifying best practices in promoting smallholder participation in public food procurement. It reviews the body of available literature in the field and draws key lessons learned. The findings can assist policymakers in the design and implementation of public food procurement initiatives targeted at smallholders".

Smart Specialization: theory and brief case studies

Abstract: The ‘Smart specialization’ (SS) project of the European Union is both an innovative project and an ongoing experiment on industrial and innovation policy, probably the biggest such experiment globally. This approach makes it possible to rediscover mechanisms that have been extremely successful creating wealth in the past, and may contribute importantly to the eradication of poverty also in the future. An important aspect of this project is that it emphasizes the importance of solving the problems of relative poverty and backwardness by interfering in the productive sector of the relatively poor areas, not by transfer of purchasing power from other and richer geographical areas. Rather than alleviating the symptoms of poverty through transfers (focusing on the poor as consumers), the Smart Specialization approach attacks the causes of poverty in the realm of production (focusing on the poor as producers). This reflects the original intention from Maastricht that the European Union should avoid becoming a ‘transfer union’. In the end, in the opinion of this author, a better understanding of smart and less smart specialization would also bring us closer to comprehend the uneven financial flows within the European Union, often originating in the productive sector.

A Novel Methodological Approach to Estimate the Impact of Natural Hazard-Induced Disasters on Country/Region-Level Economic Growth

Abstract: With the increased frequency of extreme weather events and large-scale disasters, extensive societal and economic losses incur every year due to damage of infrastructure and private properties, business disruptions, fatalities, homelessness, and severe health-related issues. In this article, we analyze the economic and disaster data from 1970 through 2010 to investigate the impact of disasters on country/region-level economic growth. We leveraged a random parameter modeling approach to develop the growth-econometrics model that identifies risk factors significantly influencing the country/region-level economic growth in the face of natural hazard-induced disasters, while controlling for country/region- and time-specific unobserved heterogeneities. We found that disaster intensity in terms of fatalities and homelessness, and economic characteristics such as openness to trade and a government’s consumption share of purchasing power parity (PPP), are the significant risk factors that randomly vary for different countries/regions. Other significant factors found to be significant include population, real gross domestic product (GDP), and investment share of PPP converted GDP per capita. We also found that flood is the most devastating disaster to affect country/region-level economic growth. This growth-econometrics model will help in the policy and decision making of governments related to the investment needs for pre- and post-disaster risk mitigation and response planning strategies, to better protect nations and minimize disaster-induced economic impacts.

A Framework for the Development of a National Crypto-Currency

Abstract: This paper seeks to provide a conceptual framework as to whether a central bank or a monetary authority should issue a crypto-currency given available technology and what are the consequences of doing so. Under the fiat standard the value and purchasing power of money has experienced an exponential decay, whilst prices have increased exponentially. Typically, a central bank is responsible for monetary and financial stability, including settlement and payment mechanisms. A proposed methodology is provided that involves both quantitative and qualitative analysis to measure the comparative monetary performance, stress testing and impact assessment of a new crypto-currency that includes backing by gold, silver and a basket of commodities. The scope of the proposed framework involves a monetary economic analysis, supported by a technological investigation, under the framework of Shari’ah compliance, to explore an impact assessment of the adoption of a national crypto-currency. The significance of this study is that, it provides a framework for the development of a new national crypto-currency, which retains its’ store of value in terms of monetary performance and price stability, that would also investigate whether it’s implementation is viable.

Local Food Prices, SNAP Purchasing Power, and Child Health

Abstract: The Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) is one of the most important elements of the social safety net. Unlike most other safety net programs, SNAP varies little across states and over time, which creates challenges for quasi-experimental evaluation. Notably, SNAP benefits are fixed across 48 states; but local food prices vary, leading to geographic variation in the real value – or purchasing power – of SNAP benefits. In this study, we provide the first estimates that leverage variation in SNAP purchasing power across markets to examine effects of SNAP on child health. We link panel data on regional food prices to National Health Interview Survey data and use a fixed effects framework to estimate the relationship between local purchasing power of SNAP and children’s health and health care utilization. We find that lower SNAP purchasing power leads to lower utilization of preventive health care and more days of school missed due to illness. We find no effect on reported health status.

An overview of the theoretical bases of banking competition in bulgaria

Abstract: Competition is an indicator of how many market players are in a given market, what products they offer and what element of the marketing mix they will be. In this quest for supremacy, the main winners are also consumers because they have a greater choice of quality of goods and services and the opportunity to take advantage of the newer technologies in the business. For a branch to function well, there is a need for a competitive force to drive it. Successful business means keeping up with your competitors and even trying to keep ahead of them. In this way, the business is experiencing the phenomenon of a continuous "race" that is profitable for both entrepreneurs and consumers. The banking sector in Bulgaria is a typical example of a sector with a strong competitive environment. There are many banks with a certain range of banking products to meet the needs of different customer circles. Trends in the development of the banking market depend on many factors: market structure, legal framework, differentiation of various banking products, purchasing power of the population, etc. The topicality of the topic is reinforced by the fact that the Bulgarian banking system in the near future and is yet to become part of the European Banking Union. This implies new banking regulations and corresponding new rules in the financial services market.

A note on estimating income inequality across countries using PPP exchange rates

Abstract: The use of exchange rates based on Purchasing Power Parities to compare incomes across countries and over time has now become standard practice. But there are reasons to believe that this could lead to excessively inflated incomes for poorer countries and in some cases also inflate the extent of real changes over time. Estimates of gross domestic product growth in the Chinese and Indian economies in recent years provide examples of this.JEL Codes: I32, N35, P52

A Non-Linear Analysis of Gibson’s Paradox

Abstract: Keynes (1930) considered the Gibson’s relation as “most completely established empirical fact”. In contrast to the previous literature, this paper adopts a multivariate, nonlinear framework to analyse Gibson’s paradox in the Netherlands over the period 1800-2012. Specifically, SSA (Singular Spectrum Analysis) and MSSA (Multichannel Singular Spectrum Analysis) techniques are used. It is shown that changes in monetary policy regimes or volatility in the price of gold by themselves cannot account for the behaviour of government bond yields and prices over the last 200 years. However, the inclusion of changes in the real rate of return on capital, M1, primary credit rate, expected inflation, and money purchasing power enables a nonlinear model to account for a sizeable percentage of the total variance of Dutch bond yields. This is a novel study of the Gibson’s paradox using a non-linear approach unravelling the multidimensional nature of the paradox. The results should assist policy makers in setting monetary policy and help to better understand the behaviour of financial institutions on the markets. Central banks, should however evaluate the implication of this study in setting inflation targeting goals. Results of this study are also expected to stimulate further research on the bank credit policies by managing interest rates.DOI: http://dx.doi.org/10.5755/j01.ee.29.4.20403

The Hydra revisited: expectations and perceptions of the impact of the EU-Korea free trade agreement

Abstract: On 1 July 2011, a free trade agreement was provisionally implemented between the EU and South Korea. At the time, there were clear expectations within the EU business community in Seoul about the likely impact of the deal, including an increase in EU exports, the dismantling of tariff and existing non-tariff barriers (NTBs), the possible emergence of new NTBs, the further development of mechanisms for discussion and problem-solving mechanisms, and a shift in Koreans’ perceptions of all imported EU goods as luxury items. Interviews conducted with expatriate executives, diplomats and trade officials in Seoul in 2015 revealed the extent to which these expectations have been fulfilled and also highlighted the importance of broad economic and social trends in the strong performance of EU exports since 2011. These included the maturing of the Korean economy and the growing need for high-end industrial goods, and the Koreans’ increasing purchasing power and the concomitant desire to engage in displays of wealth. In addition to contributing to the general academic debate on the impact of free trade agreements (FTAs) and adding specific colour to the case of the EU-Korea FTA, this research will play an important role in shaping responses to the shifting economic, social and cultural trends that will impact the future outcomes of this key trade deal between the EU and Korea. It will also inform the EC’s discussions with current and future free trade agreement partners and its analysis of the various factors influencing the actual and perceived success or failure of those deals.

Management Economic Environment of Non-profit Organizations

Abstract: The crisis of 2008-2009 and the decline of the gross domestic product in 2015 – 2016, showed that Russia is in a difficult and completely new stage of socio-economic development. The potential of using pre-crisis model of economic growth based on the rapid increase in lending and the growth of domestic demand, is considerably restricted. Rosstat data show that the Federal budget of Russia in 2015 was executed with a deficit of $ 1.9 trillion. rubles, or 2.6% of GDP, while in 2016 the budget deficit is projected at 2.9 trillion. rubles, or 3.5% of GDP. In addition, the reduced purchasing power of the population, which becomes a barrier to crisis exit. Thus, the decline in real income of the population of Russia in 2015-2016 is estimated at 5-6% annually. In conditions of economic turbulence, declining living standards of the population social policy is one of the core units of modern government regulation. The output state on the path of sustainable and balanced socio-economic development requires more intensive use of all resources, and transition to an innovative stage of development and modernization of the economy with the formation of adequate social infrastructure. In the framework of implementation of social policy the government is increasingly using the potential of non-profit organizations that are able, with appropriate support, to play a significant role at local, regional, and Federal levels. The nonprofit sector of the economy are the source of all sorts of social innovations, namely the non-profit organization to a great extent help in solving socially important problems, and provide the people with social services, build a dialogue between authorities and population focus of the Executive bodies on the issues of individual groups of citizens and society as a whole, form the democratic principles of organizing society. In addition, the nonprofit sector contributes to the country's GDP (about 1%) and has more than 226 thousand organizations that operate at local, regional and Federal levels, providing jobs for more than 1 % of the population. Consumers of services in the Russian nonprofit sector are more than 40 million people. However, in foreign countries, the proportion of the nonprofit sector in GDP is about 6%, while the number of people employed in the nonprofit sector about 7% of the total working population. Such low levels of participation of the Russian non-profit sector in the economy allow to speak about necessity of search for new development drivers of non-commercial organizations in Russia. Currently, there is a transformation of all aspects of the activities of the organizations of the nonprofit sector. This change of the civil legislation in part of improvement of legal forms, procedures of state registration and control of funding non-profit organizations, and taxation. Active development of the nonprofit sector is a considerable dependence on tax regulation of the nonprofit sector by providing, first of all, tax privileges and preferences, as well as from the balanced tax policy of the state against entities that are interrelated with non-profit organizations.

A case study on Malaysia and Singapore: Nexus amongst competitiveness, cost of living, wages, purchasing power and liveability

Abstract: Malaysia and Singapore had parted more than five decades ago Much of the existing literature concerned about the bilateral ties between two economies focusing on the political economy perspective This paper aims to provide insights on the economic development and prospects of Malaysia and Singapore at the national level In addition, this paper also makes a pioneering attempt at conducting a comprehensive comparative analysis between Malaysia and Singapore at the city level,This paper offers a case study of Malaysia and Singapore by assessing their national economic competitiveness, urban standards of living and quality of life The paper leverages on a series of indices such as the competitiveness index for ASEAN-10, the cost of living, wages and purchasing power of ordinary residents, as well as the liveable cities index to perform the analysis,In terms of national competitiveness, the analysis shows that Singapore and Malaysia have been leading the ASEAN region from 2000 onwards, being the top- and second-ranked, respectively Malaysia still lags Singapore in several aspects such as attractiveness to foreign investors and standard of living, education and social stability despite insignificant differences in the ranking City-level analysis shows that the cost of living in Singapore is almost double of that in Kuala Lumpur, although living in Singapore is more affordable owing to the higher wage rate received by the ordinary citizens,This paper contributes to the literature in several ways First, this paper assesses economic development in Singapore and Malaysia instead of focusing on cross-straits relations Second, the study reflects the view that the improvement of standards of living and quality of life for ordinary residents is paramount to economic development The competitiveness index and city-level benchmarks used in the paper reflect the standards of living and the quality-of-life dimensions Third, the focus on city-level analysis in addition to conventional national-level analysis helps to provide policymakers with practical policy implications against the backdrop of rapid urbanisation