* The authors would like to thank the Ipsos Agency for the data that have made this work possible. They also wish to thank Velimir Šonje, Željko Ivanković, Danijela Dolenec, Vojmir Franičević and other colleagues who took part in two roundtables held in Zagreb, in April 2016, at the Economic Institute and Matica hrvatska. We are particularly grateful to Slavica Singer and Nataša Šarlija, who put at our disposal county-level TEA data. Last but not least, we are indebted to two anonymous reviewers of the journal, whose remarks and critical suggestions helped us to remove at least some of this paper’s shortcomings. ** Received: June 1, 2016 Accepted: October 5, 2016
{"title":"Addendum: In search of the egalitarian syndrome: cultural inertia in Croatia?","authors":"I. Burić, A. Štulhofer","doi":"10.3326/FINTP.40.4.1A","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.1A","url":null,"abstract":"* The authors would like to thank the Ipsos Agency for the data that have made this work possible. They also wish to thank Velimir Šonje, Željko Ivanković, Danijela Dolenec, Vojmir Franičević and other colleagues who took part in two roundtables held in Zagreb, in April 2016, at the Economic Institute and Matica hrvatska. We are particularly grateful to Slavica Singer and Nataša Šarlija, who put at our disposal county-level TEA data. Last but not least, we are indebted to two anonymous reviewers of the journal, whose remarks and critical suggestions helped us to remove at least some of this paper’s shortcomings. ** Received: June 1, 2016 Accepted: October 5, 2016","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85709383","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the present study, we make an effort to enhance the practical advantages of the life-cycle pension model. We observe that previous studies are based on a “switching†approach, that is, on the assumption that when a pension fund member reaches a certain age, his accumulated savings are fully switched to another fund with a lower risk profile; we suggest an “accumulating†approach, according to which, at the same age, the member’s previously accumulated wealth continues to be invested in the same fund, while his new regular pension contributions start being directed to another (less risky) fund. We consider a hypothetical (average) Israeli employee, analyze two age-dependent life-cycle investment distributions of his pension savings, and perform a comparison between the two approaches to the life-cycle model by employing an estimation-based and a simulation-based technique. The results demonstrate that the “accumulating†approach provides: (i) higher estimated annualized real returns and real accumulated savings; (ii) significantly higher simulated mean and median values of real accumulated savings. Moreover, we document that, though the “accumulating†approach increases the standard deviation of total savings, it does not lead to critically low pension wealth levels even for relatively unfavorable sequences of financial assets’ returns. Therefore, we conclude that the “accumulating†approach to the life-cycle model has a potential significantly to increase pension fund members’ total accumulated wealth relatively to the common “switching†approach, without significantly increasing the members’ risk.
{"title":"Accumulating approach to the life-cycle pension model: practical advantages","authors":"Y. Azoulay, A. Kudryavtsev, S. Shahrabani","doi":"10.3326/FINTP.40.4.3","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.3","url":null,"abstract":"In the present study, we make an effort to enhance the practical advantages of the life-cycle pension model. We observe that previous studies are based on a “switching†approach, that is, on the assumption that when a pension fund member reaches a certain age, his accumulated savings are fully switched to another fund with a lower risk profile; we suggest an “accumulating†approach, according to which, at the same age, the member’s previously accumulated wealth continues to be invested in the same fund, while his new regular pension contributions start being directed to another (less risky) fund. We consider a hypothetical (average) Israeli employee, analyze two age-dependent life-cycle investment distributions of his pension savings, and perform a comparison between the two approaches to the life-cycle model by employing an estimation-based and a simulation-based technique. The results demonstrate that the “accumulating†approach provides: (i) higher estimated annualized real returns and real accumulated savings; (ii) significantly higher simulated mean and median values of real accumulated savings. Moreover, we document that, though the “accumulating†approach increases the standard deviation of total savings, it does not lead to critically low pension wealth levels even for relatively unfavorable sequences of financial assets’ returns. Therefore, we conclude that the “accumulating†approach to the life-cycle model has a potential significantly to increase pension fund members’ total accumulated wealth relatively to the common “switching†approach, without significantly increasing the members’ risk.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79008453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"List of articles published in “Financial Theory and Practice”, vol. 40, 2016","authors":"Martina Fabris","doi":"10.3326/FINTP.40.4.7","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.7","url":null,"abstract":"","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73545873","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In 1970, Josip Zupanov presented his Egalitarian Syndrome Theory (EST) to account for the country’s suboptimal socioeconomic development. The theory was operationalized only recently (Stulhofer and Buric, 2015), which enabled an assessment of the persistence of egalitarian syndrome, as well as the testing of its hypothesized (negative) association with indicators of social development. Using data from a 2015 national probability survey, this study aimed to provide additional validation of the multidimensional measure of the egalitarian syndrome, including age and gender invariance testing, as well as to explore the hypothesized negative association with county-level development indices. The findings support Zupanov’s theoretical assumptions. Rural vs. urban residence, education and occupation, but not participants’ age, were significant predictors of the support for egalitarian syndrome. Significant negative associations were observed between the acceptance of values associated with the egalitarian syndrome and county-level development and competitiveness scores, GDP and early entrepreneurial activity. Although our study was not designed to test the causal relationship between radical egalitarianism and socioeconomic development, the findings suggest that the widespread prevalence of the egalitarian syndrome may be a problem for the country’s socio-economic development.
{"title":"In search of the egalitarian syndrome: cultural inertia in Croatia?","authors":"I. Burić, A. Štulhofer","doi":"10.3326/FINTP.40.4.1","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.1","url":null,"abstract":"In 1970, Josip Zupanov presented his Egalitarian Syndrome Theory (EST) to account for the country’s suboptimal socioeconomic development. The theory was operationalized only recently (Stulhofer and Buric, 2015), which enabled an assessment of the persistence of egalitarian syndrome, as well as the testing of its hypothesized (negative) association with indicators of social development. Using data from a 2015 national probability survey, this study aimed to provide additional validation of the multidimensional measure of the egalitarian syndrome, including age and gender invariance testing, as well as to explore the hypothesized negative association with county-level development indices. The findings support Zupanov’s theoretical assumptions. Rural vs. urban residence, education and occupation, but not participants’ age, were significant predictors of the support for egalitarian syndrome. Significant negative associations were observed between the acceptance of values associated with the egalitarian syndrome and county-level development and competitiveness scores, GDP and early entrepreneurial activity. Although our study was not designed to test the causal relationship between radical egalitarianism and socioeconomic development, the findings suggest that the widespread prevalence of the egalitarian syndrome may be a problem for the country’s socio-economic development.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75777238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Population aging is a process that shapes the economic environment in most of the developed economies. Thus, understanding the dynamics between public finance and the demographic variables enables policy-makers to adapt and to ameliorate their medium-term budgetary frameworks. The aim of this paper is to examine the fiscal implications of the demographic shift using panel data on 25 EU countries in the period from 1995 until 2014. In order to qualify the findings of previous literature, this paper considers the demographic variables as endogenous and applies the system GMM estimator to obtain the elasticity of several public finance categories with respect to population aging. The results indicate significant and positive impacts of the elderly share on expenditure for pensions and social protection. The higher positive impact on overall public expenditure compared with total government revenue confirms the negative effect of population aging on budget balance. An increase in the young population has a significant impact only on health expenditure.
{"title":"The impact of population aging on public finance in the European Union","authors":"Mateo Žokalj","doi":"10.3326/FINTP.40.4.2","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.2","url":null,"abstract":"Population aging is a process that shapes the economic environment in most of the developed economies. Thus, understanding the dynamics between public finance and the demographic variables enables policy-makers to adapt and to ameliorate their medium-term budgetary frameworks. The aim of this paper is to examine the fiscal implications of the demographic shift using panel data on 25 EU countries in the period from 1995 until 2014. In order to qualify the findings of previous literature, this paper considers the demographic variables as endogenous and applies the system GMM estimator to obtain the elasticity of several public finance categories with respect to population aging. The results indicate significant and positive impacts of the elderly share on expenditure for pensions and social protection. The higher positive impact on overall public expenditure compared with total government revenue confirms the negative effect of population aging on budget balance. An increase in the young population has a significant impact only on health expenditure.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79376397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This exploratory study takes a new look at the tax systems of countries in the Organisation of Economic Co-operation and Development (OECD). We measure a country’s tax system using time-series cross-sectional data on tax collection variables as well as a cross-sectional metric assessing tax administration and enforcement. More specifically, we examine the countries’ (i) overall tax burden, (ii) income tax reliance, and (iii) fiscal decentralization as well as some “non-rate†variables related to tax administration and enforcement. The purpose is to compare European Union (EU) member states and those countries in the eurozone with other OECD countries and over time in order to test (1) whether EU member states and eurozone countries have tax systems that are more similar to each other than to other countries, and (2) whether some tax harmonization is taking place - within the EU (eurozone) and other countries. The descriptive analysis and graphical representation, as well as first empirical tests, show that the tax systems of EU member states and eurozone countries are significantly different from other countries’tax systems. Yet, we do not find much tax harmonization in the EU (eurozone) countries over time. Future research might delve more into the question what drives harmonization with the intention of eventually formulating policy strategies.
{"title":"Tax harmonization in the European Union and the eurozone: a multilateral analysis of tax systems","authors":"Sonja E. Pippin, M. Tosun","doi":"10.3326/FINTP.40.4.4","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.4","url":null,"abstract":"This exploratory study takes a new look at the tax systems of countries in the Organisation of Economic Co-operation and Development (OECD). We measure a country’s tax system using time-series cross-sectional data on tax collection variables as well as a cross-sectional metric assessing tax administration and enforcement. More specifically, we examine the countries’ (i) overall tax burden, (ii) income tax reliance, and (iii) fiscal decentralization as well as some “non-rate†variables related to tax administration and enforcement. The purpose is to compare European Union (EU) member states and those countries in the eurozone with other OECD countries and over time in order to test (1) whether EU member states and eurozone countries have tax systems that are more similar to each other than to other countries, and (2) whether some tax harmonization is taking place - within the EU (eurozone) and other countries. The descriptive analysis and graphical representation, as well as first empirical tests, show that the tax systems of EU member states and eurozone countries are significantly different from other countries’tax systems. Yet, we do not find much tax harmonization in the EU (eurozone) countries over time. Future research might delve more into the question what drives harmonization with the intention of eventually formulating policy strategies.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88667707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Book review: Limits of a Post-Soviet State: How Informality Replaces, Renegotiates, and Reshapes Governance in Contemporary Ukraine / Abel Polese","authors":"P. Bejaković","doi":"10.3326/FINTP.40.4.5","DOIUrl":"https://doi.org/10.3326/FINTP.40.4.5","url":null,"abstract":"","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81024575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper suggests that Luhmann’s theory of social systems and evolution offers a powerful approach for analyzing law and the economy. It considers Yugoslavia and some Central European countries before and after 1990. Luhmann’s concept of evolution stands in stark contrast to mainstream economic theory. It enables us to clarify the concept of transformation. A transformation became necessary because communism was an evolutionary dead end. According to this view, in postcommunism the primacy of functional differentiation needs to be reestablished because it was partially reversed under communist rule. In these circumstances, the popular call for “sufficient†public control over the market is asking for the impossible. Post-communist law is bound to fall behind the evolution of markets. This causes economic problems and retards financial deepening.
{"title":"The evolution of law under communism and post-communism: a system-theory analysis in the spirit of Luhmann","authors":"Bruno Schönfelder","doi":"10.3326/FINTP.40.3.1","DOIUrl":"https://doi.org/10.3326/FINTP.40.3.1","url":null,"abstract":"The paper suggests that Luhmann’s theory of social systems and evolution offers a powerful approach for analyzing law and the economy. It considers Yugoslavia and some Central European countries before and after 1990. Luhmann’s concept of evolution stands in stark contrast to mainstream economic theory. It enables us to clarify the concept of transformation. A transformation became necessary because communism was an evolutionary dead end. According to this view, in postcommunism the primacy of functional differentiation needs to be reestablished because it was partially reversed under communist rule. In these circumstances, the popular call for “sufficient†public control over the market is asking for the impossible. Post-communist law is bound to fall behind the evolution of markets. This causes economic problems and retards financial deepening.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74177253","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financijske institucije i tržišta Europske unije - regulacija i supervizija","authors":"Ana Grdović Gnip","doi":"10.3326/FINTP.40.3.4","DOIUrl":"https://doi.org/10.3326/FINTP.40.3.4","url":null,"abstract":"","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73281612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper provides a systematic review of what is known about the financial transactions tax, its practical application in EU countries and elsewhere in the world and its impacts on financial markets. A special emphasis is placed on the outlook for the taxation of financial transactions in the EU and the possibilities and constraints in the Republic of Croatia. The results of the analysis show the propensity of countries to the taxation of financial transactions, particularly because speculations on the financial markets before the outbreak of the crisis enabled high economic rents to be generated, while during the crisis period, failed speculations were paid for with ample government support because of the fear that the stability of the financial sector would be distorted. Analysis of the possibility of taxing the Croatian capital market according to the proposed European model shows that the inclusion of the Republic of Croatia in the common taxation procedure would be justified, although the revenue from such a tax would be relatively small.
{"title":"Financial transactions taxation in the European Union and Croatia","authors":"Massimo Milevoj","doi":"10.3326/FINTP.40.3.2","DOIUrl":"https://doi.org/10.3326/FINTP.40.3.2","url":null,"abstract":"The paper provides a systematic review of what is known about the financial transactions tax, its practical application in EU countries and elsewhere in the world and its impacts on financial markets. A special emphasis is placed on the outlook for the taxation of financial transactions in the EU and the possibilities and constraints in the Republic of Croatia. The results of the analysis show the propensity of countries to the taxation of financial transactions, particularly because speculations on the financial markets before the outbreak of the crisis enabled high economic rents to be generated, while during the crisis period, failed speculations were paid for with ample government support because of the fear that the stability of the financial sector would be distorted. Analysis of the possibility of taxing the Croatian capital market according to the proposed European model shows that the inclusion of the Republic of Croatia in the common taxation procedure would be justified, although the revenue from such a tax would be relatively small.","PeriodicalId":30016,"journal":{"name":"Financial Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2016-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87966463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：