Research background: The trade sector is considered to be the power of economy, in developing countries in particular. With regard to the Czech Republic, this field of the national economy constitutes the second most significant employer and, at the same time, the second most significant contributor to GNP. Apart from traditional methods of business analyzing and identifying leaders, artificial neural networks are widely used. These networks have become more popular in the field of economy, although their potential has yet to be fully exploited. Purpose of the article: The aim of this article is to analyze the trade sector in the Czech Republic using Kohonen networks and to identify the leaders in this field. Methods: The data set consists of complete financial statements of 11,604 enterprises that engaged in trade activities in the Czech Republic in 2016. The data set is subjected to cluster analysis using Kohonen networks. Individual clusters are subjected to the analysis of absolute indicators and return on equity which, apart from other, shows a special attraction of individual clusters to potential investors. Average and absolute quantities of individual clusters are also analyzed, which means that the most successful clusters of enterprises in the trade sector are indicated. Findings & Value added: The results show that a relatively small group of enter-prises enormously influences the development of the trade sector, including the whole economy. The results of analyzing 319 enterprises showed that it is possible to predict the future development of the trade sector. Nevertheless, it is also evident that the trade sector did not go well in 2016, which means that investments of owners are minimal.
{"title":"The application of Kohonen networks for identification of leaders in the trade sector in Czechia","authors":"J. Vrbka, E. Nica, Ivana Podhorska","doi":"10.24136/eq.2019.034","DOIUrl":"https://doi.org/10.24136/eq.2019.034","url":null,"abstract":"Research background: The trade sector is considered to be the power of economy, in developing countries in particular. With regard to the Czech Republic, this field of the national economy constitutes the second most significant employer and, at the same time, the second most significant contributor to GNP. Apart from traditional methods of business analyzing and identifying leaders, artificial neural networks are widely used. These networks have become more popular in the field of economy, although their potential has yet to be fully exploited. Purpose of the article: The aim of this article is to analyze the trade sector in the Czech Republic using Kohonen networks and to identify the leaders in this field. Methods: The data set consists of complete financial statements of 11,604 enterprises that engaged in trade activities in the Czech Republic in 2016. The data set is subjected to cluster analysis using Kohonen networks. Individual clusters are subjected to the analysis of absolute indicators and return on equity which, apart from other, shows a special attraction of individual clusters to potential investors. Average and absolute quantities of individual clusters are also analyzed, which means that the most successful clusters of enterprises in the trade sector are indicated. Findings & Value added: The results show that a relatively small group of enter-prises enormously influences the development of the trade sector, including the whole economy. The results of analyzing 319 enterprises showed that it is possible to predict the future development of the trade sector. Nevertheless, it is also evident that the trade sector did not go well in 2016, which means that investments of owners are minimal.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46524645","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}
Research background: There is no doubt that innovation is an important source of economic growth. In the assessment of the innovative activity of Polish industrial processing enterprises, two opposing views can be found. The first indicates the exogenous shock resulting from the global financial crisis and the associated innovation crisis and the subsequent period of innovative pessimism. The second shows the Polish economy as the European Green Island due to strong and uninterrupted economic growth over the past 27 years, controlled inflation, and reduction of unemployment as well as increase of the citizens’ well-being. In these conditions, an interesting research gap appeared, which is worth filling, at the centre of which there are factors determining the innovative activity of enterprises, and in particular the role and importance of innovation barriers in various phases of the business cycle. Purpose of the article: The aim of the research is to determine the impact of innovation barriers and degrees of their importance on the innovation activity of Polish industrial processing enterprises during the business cycle. The time frame of the analysis covers three phases of the cycle: the prosperity period of 2004–2006, the global financial crisis of 2008–2010 and the recovery from 2012–2014. Methods: Pearson’s ?2 independence test and correspondence analysis were used for data analysis. The research results are presented in a graphical form of biplots that describe the coexistence of three types of variables: (1) types of enterprises and ownership sectors, (2) effects or objectives of innovative activity, and (3) innovation barriers and reasons for the lack of innovation. The basis of calculations were three databases covering the mentioned periods. Findings & Value added: High resistance of innovative activity of Polish industrial processing enterprises to economic fluctuations has been demonstrated. Innovation barriers and degrees of their importance had little impact on the operations of enterprises in the first of the analysed periods, when prosperity was booming. The impact of the global financial crisis on innovation activities proved to be counterintuitive, as enterprises have continuously achieved their goals and the importance of innovation barriers has diminished even more. In the third period, innovation barriers no longer had any significance for the innovation activities of enterprises. The phenomenon of a gradual decline in the importance of innovation barriers, regardless of the phases of the business cycle, was called the Polish Green Island Effect. The relationship found is a peculiarity which is probably unprecedented in recent world economic history.
{"title":"Do barriers to innovation impact changes in innovation activities of firms during business cycle? The effect of the Polish green island","authors":"A. Jakimowicz, D. Rzeczkowski","doi":"10.24136/eq.2019.030","DOIUrl":"https://doi.org/10.24136/eq.2019.030","url":null,"abstract":"Research background: There is no doubt that innovation is an important source of economic growth. In the assessment of the innovative activity of Polish industrial processing enterprises, two opposing views can be found. The first indicates the exogenous shock resulting from the global financial crisis and the associated innovation crisis and the subsequent period of innovative pessimism. The second shows the Polish economy as the European Green Island due to strong and uninterrupted economic growth over the past 27 years, controlled inflation, and reduction of unemployment as well as increase of the citizens’ well-being. In these conditions, an interesting research gap appeared, which is worth filling, at the centre of which there are factors determining the innovative activity of enterprises, and in particular the role and importance of innovation barriers in various phases of the business cycle. Purpose of the article: The aim of the research is to determine the impact of innovation barriers and degrees of their importance on the innovation activity of Polish industrial processing enterprises during the business cycle. The time frame of the analysis covers three phases of the cycle: the prosperity period of 2004–2006, the global financial crisis of 2008–2010 and the recovery from 2012–2014. Methods: Pearson’s ?2 independence test and correspondence analysis were used for data analysis. The research results are presented in a graphical form of biplots that describe the coexistence of three types of variables: (1) types of enterprises and ownership sectors, (2) effects or objectives of innovative activity, and (3) innovation barriers and reasons for the lack of innovation. The basis of calculations were three databases covering the mentioned periods. Findings & Value added: High resistance of innovative activity of Polish industrial processing enterprises to economic fluctuations has been demonstrated. Innovation barriers and degrees of their importance had little impact on the operations of enterprises in the first of the analysed periods, when prosperity was booming. The impact of the global financial crisis on innovation activities proved to be counterintuitive, as enterprises have continuously achieved their goals and the importance of innovation barriers has diminished even more. In the third period, innovation barriers no longer had any significance for the innovation activities of enterprises. The phenomenon of a gradual decline in the importance of innovation barriers, regardless of the phases of the business cycle, was called the Polish Green Island Effect. The relationship found is a peculiarity which is probably unprecedented in recent world economic history.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45071644","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}
Research background: Total factor productivity (TFP) determines how efficiently and intensely the available inputs are used and combined in production process. Improvement of TFP performance requires identification of its determinants, thus enabling policy actions to focus on them. Since the ability to create and absorb innovation is considered as a crucial factor of economic development, the investigation of the impact of the level of regional innovative performance on TFP distribution across EU regions is an important research problem. Purpose of the article: The aim of the paper is twofold. Firstly, we attempt to develop a theoretical framework for the analysis of the impact of innovation on TFP. Secondly, we assess TFP levels for regions in the EU and investigate whether innovations account for the observed regional disparities in TFP. Methods: The research sample consists of 202 European Union (EU) regions at NUTS 1 and NUTS 2 level from 22 countries. The regional data on GDP, employment and gross fixed capital formation come from the Eurostat. The source of data on the level of innovativeness of European regions is the Regional Innovation Scoreboard. To calculate TFP, we use the multiplicatively-complete Fare-Primont index. In turn, to examine the impact of innovation on TFP, we employ the spatially-lagged X model. Findings & Value added: Our findings show a high degree of dispersion in TFP across EU regions. We find a positive impact of regional innovation performance on TFP. Although theoretical papers on economic development and regional economics suggest that improvements in TFP are key to regional economic performance, and that innovations are crucial to gain such productivity effects, there is a dearth of empirical studies on the link between innovation and TFP at the regional level. Therefore, our paper attempts to fill this gap by providing the evidence of positive effect of innovation externalities on TFP in European regions.
{"title":"The relationship between TFP and innovation performance: evidence from EU regions","authors":"T. Kijek, A. Matras-Bolibok","doi":"10.24136/eq.2019.032","DOIUrl":"https://doi.org/10.24136/eq.2019.032","url":null,"abstract":"Research background: Total factor productivity (TFP) determines how efficiently and intensely the available inputs are used and combined in production process. Improvement of TFP performance requires identification of its determinants, thus enabling policy actions to focus on them. Since the ability to create and absorb innovation is considered as a crucial factor of economic development, the investigation of the impact of the level of regional innovative performance on TFP distribution across EU regions is an important research problem. Purpose of the article: The aim of the paper is twofold. Firstly, we attempt to develop a theoretical framework for the analysis of the impact of innovation on TFP. Secondly, we assess TFP levels for regions in the EU and investigate whether innovations account for the observed regional disparities in TFP. Methods: The research sample consists of 202 European Union (EU) regions at NUTS 1 and NUTS 2 level from 22 countries. The regional data on GDP, employment and gross fixed capital formation come from the Eurostat. The source of data on the level of innovativeness of European regions is the Regional Innovation Scoreboard. To calculate TFP, we use the multiplicatively-complete Fare-Primont index. In turn, to examine the impact of innovation on TFP, we employ the spatially-lagged X model. Findings & Value added: Our findings show a high degree of dispersion in TFP across EU regions. We find a positive impact of regional innovation performance on TFP. Although theoretical papers on economic development and regional economics suggest that improvements in TFP are key to regional economic performance, and that innovations are crucial to gain such productivity effects, there is a dearth of empirical studies on the link between innovation and TFP at the regional level. Therefore, our paper attempts to fill this gap by providing the evidence of positive effect of innovation externalities on TFP in European regions.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42466475","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}
Research background: Independent fiscal councils are an example of new fiscal institutions, the number of which has rapidly increased around the world, including the EU countries since the global financial crisis of 2008–09. A further deterioration of public finance has provoked many economists to intensify disputes regarding the optimal shape, functions and effectiveness of fiscal councils responsible for promoting sound fiscal policy. Given this, a research focus on independent fiscal councils, active in the public debate in Europe, seems intellectually attractive. Purpose of the article: This article aims to explore the impact of Independent Fiscal Councils on fiscal performance, paying particular attention to their mandate, tasks and institutional models which can strengthen the achievement of fiscal discipline in the EU countries. In connection with this, the question arises about the effectiveness of fiscal councils, especially in the case of institutions that were compulsorily created under the external pressure (at the European level) and found no strong political support in national parliaments. Methods: Descriptive analysis along with panel data analysis were implemented to show the role of fiscal councils in enhancing fiscal discipline in the EU countries in years 2006–17 on the basis of data collected by the European Commission. Findings & Value added: The improvement in fiscal performance and better macroeconomic and budgetary forecasts can be achieved thanks to well-designed fiscal councils supported by appropriate fiscal rules. The conducted analysis confirms that independent fiscal councils are the useful mechanism introducing indirect social control over government revenues and expenditures. This means greater fiscal transparency and lower fiscal illusion between the government and the electorate. Due to the increase in the transparency of public finance, it is possible to reduce the ‘partisan’ deficit bias that contributes to public debt growth. The empirical research extends the existing knowledge on the role of fiscal councils and their impact on fiscal performance.
{"title":"The role of independent fiscal councils in improving fiscal performance of the European Union countries","authors":"A. Wildowicz-Giegiel","doi":"10.24136/eq.2019.029","DOIUrl":"https://doi.org/10.24136/eq.2019.029","url":null,"abstract":"Research background: Independent fiscal councils are an example of new fiscal institutions, the number of which has rapidly increased around the world, including the EU countries since the global financial crisis of 2008–09. A further deterioration of public finance has provoked many economists to intensify disputes regarding the optimal shape, functions and effectiveness of fiscal councils responsible for promoting sound fiscal policy. Given this, a research focus on independent fiscal councils, active in the public debate in Europe, seems intellectually attractive. Purpose of the article: This article aims to explore the impact of Independent Fiscal Councils on fiscal performance, paying particular attention to their mandate, tasks and institutional models which can strengthen the achievement of fiscal discipline in the EU countries. In connection with this, the question arises about the effectiveness of fiscal councils, especially in the case of institutions that were compulsorily created under the external pressure (at the European level) and found no strong political support in national parliaments. Methods: Descriptive analysis along with panel data analysis were implemented to show the role of fiscal councils in enhancing fiscal discipline in the EU countries in years 2006–17 on the basis of data collected by the European Commission. Findings & Value added: The improvement in fiscal performance and better macroeconomic and budgetary forecasts can be achieved thanks to well-designed fiscal councils supported by appropriate fiscal rules. The conducted analysis confirms that independent fiscal councils are the useful mechanism introducing indirect social control over government revenues and expenditures. This means greater fiscal transparency and lower fiscal illusion between the government and the electorate. Due to the increase in the transparency of public finance, it is possible to reduce the ‘partisan’ deficit bias that contributes to public debt growth. The empirical research extends the existing knowledge on the role of fiscal councils and their impact on fiscal performance.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49538320","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}
Research background: Preparation for retirement is a major concern for the people in the workforce as they have to encounter considerable difficulties in making the right investment decisions for their retirement. Purpose of the article: This research extends the literature on personal finance by investigating the impact of both financial literacy levels and pension knowledge on employees’ investment choice decision for their retirement, while in previous literature the role of these factors has mainly been explored separately. Methods: To conduct the research, a survey questionnaire was applied to collect data in three main regions of Vietnam comprising Northern, Central and Southern Vietnam. Data collection was made in 2018, in which 427 valid questionnaires were used for data analysis from 700 questionnaires. Two estimation methods are employed for analysis in this study, including a linear probability model (LPM) and two-stage least squares (2SLS) model. The findings of this research remain significant after the Two-Stage Least Squares (2SLS) regression model is used as an estimation technique to eliminate potential bias caused by endogenous problems. Finding & Value added: The results show that basic financial literacy level and pension knowledge are principal factors which significantly increase the probability of exercising retirement investment choice of employees, while advanced financial literacy level factor has a significant effect on choosing growth investing options for their retirement. Further, this research finds that there is no correlation between employees’ financial risk tolerance and their retirement investment choice. Furthermore, the study proposes and offers new evidence that pension knowledge is a decisive factor providing employees with encouragement to exercise retirement investment choice and those who consult with financial advisors tend to take part in growth investing option.
{"title":"The role of financial literacy in retirement investment choice","authors":"T. Nguyen, J. Polách, I. Vozňáková","doi":"10.24136/eq.2019.027","DOIUrl":"https://doi.org/10.24136/eq.2019.027","url":null,"abstract":"Research background: Preparation for retirement is a major concern for the people in the workforce as they have to encounter considerable difficulties in making the right investment decisions for their retirement. Purpose of the article: This research extends the literature on personal finance by investigating the impact of both financial literacy levels and pension knowledge on employees’ investment choice decision for their retirement, while in previous literature the role of these factors has mainly been explored separately. Methods: To conduct the research, a survey questionnaire was applied to collect data in three main regions of Vietnam comprising Northern, Central and Southern Vietnam. Data collection was made in 2018, in which 427 valid questionnaires were used for data analysis from 700 questionnaires. Two estimation methods are employed for analysis in this study, including a linear probability model (LPM) and two-stage least squares (2SLS) model. The findings of this research remain significant after the Two-Stage Least Squares (2SLS) regression model is used as an estimation technique to eliminate potential bias caused by endogenous problems. Finding & Value added: The results show that basic financial literacy level and pension knowledge are principal factors which significantly increase the probability of exercising retirement investment choice of employees, while advanced financial literacy level factor has a significant effect on choosing growth investing options for their retirement. Further, this research finds that there is no correlation between employees’ financial risk tolerance and their retirement investment choice. Furthermore, the study proposes and offers new evidence that pension knowledge is a decisive factor providing employees with encouragement to exercise retirement investment choice and those who consult with financial advisors tend to take part in growth investing option.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48120587","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}
Research background: The paper presents the issue of total factor productivity in the manufacturing industry in Poland. It has been assumed that total factor productivity (TFP) is a synthetic measure of efficiency of the production process and a measure of the impact of technical progress on the rate of economic growth. Purpose of the article: The main aim of the paper is to assess the differentiation in the level of total factor productivity (TFP) occurring among the Section C manufacturing divisions in Poland. In particular, the paper raises the issue of measuring and analysing the relationship between expenditure on research and development and the level of TFP in manufacturing divisions in Poland. Methods: In the presented research, the TFP level was determined by using the two-factor Cobb-Douglas production function, while econometric panel models were used to assess the studied relationship. Findings & Value added: The presented considerations show that manufacturing divisions in Poland are diversified in terms of total factor productivity. Generally, manufacturing divisions with high R&D intensity, i.e. divisions classified as so-called high-tech ones, are characterised by a high TFP level. The econometric analysis carried out allows us to conclude that expenditure on R&D incurred in manufacturing enterprises significantly affects the level of TFP.
{"title":"The impact of research and development activity on the TFP level in manufacturing in Poland","authors":"E. Roszko-Wójtowicz, M. Grzelak, I. Laskowska","doi":"10.24136/eq.2019.033","DOIUrl":"https://doi.org/10.24136/eq.2019.033","url":null,"abstract":"Research background: The paper presents the issue of total factor productivity in the manufacturing industry in Poland. It has been assumed that total factor productivity (TFP) is a synthetic measure of efficiency of the production process and a measure of the impact of technical progress on the rate of economic growth. Purpose of the article: The main aim of the paper is to assess the differentiation in the level of total factor productivity (TFP) occurring among the Section C manufacturing divisions in Poland. In particular, the paper raises the issue of measuring and analysing the relationship between expenditure on research and development and the level of TFP in manufacturing divisions in Poland. Methods: In the presented research, the TFP level was determined by using the two-factor Cobb-Douglas production function, while econometric panel models were used to assess the studied relationship. Findings & Value added: The presented considerations show that manufacturing divisions in Poland are diversified in terms of total factor productivity. Generally, manufacturing divisions with high R&D intensity, i.e. divisions classified as so-called high-tech ones, are characterised by a high TFP level. The econometric analysis carried out allows us to conclude that expenditure on R&D incurred in manufacturing enterprises significantly affects the level of TFP.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44453009","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}
Research background: One of the principal contributions of Maynard Keynes’s General Theory was identification of the phenomenon of involuntary unemployment, due (on account of adverse expectations and confidence on the part of potential buyers) to a want of demand for the quantity of output which a fully-employed labour force was capable of producing. Such unemployment, he insisted — contrary to conventional opinion — was not due to workers pricing themselves out of work by demanding wages higher than employers could afford. Far from unemployed workers being themselves responsible for their plight, they were, in reality, victims of circumstances beyond their control. Keynes’s understanding was, for many years, widely accepted by academics, policy-makers and the general public. In recent times, however, mainstream macroeconomic theory has shown a regrettable tendency to return to old modes of thinking. Blame for unemployment is again put on the workforce, whose alleged misunderstanding or slow response to change are said to imply seeking employment on unrealistic terms. A more extreme view is that worklessness may reflect a deliberate choice of leisure. To anyone sceptical of the validity of such analyses there is a clear need to recover the Keynesian understanding of the possibility not just of frictional or voluntary, but also of involuntary unemployment. Purpose of the article: Ezra Davar, recognising that it is important not to lose sight of the idea of involuntary unemployment, has recently attempted in this Journal to explain Keynes’s concept. Unfortunately, however, he fails to recognise that Keynes accounted for involuntary unemployment as resulting from deficiency of aggregate demand for output, not as the consequence of any supply-side factor. In attributing involuntary unemployment to a peculiarity in the labour supply function Davar quite misses Keynes’s point, and in fact identifies as involuntary unemployment a situation of what Keynes would have described as “voluntary” employment. The objective of the present note is to clear up this misunderstanding.
{"title":"A Misinterpretation of Keynes's Concept of Involuntary Unemployment","authors":"Roy H. Grieve","doi":"10.24136/EQ.2018.017","DOIUrl":"https://doi.org/10.24136/EQ.2018.017","url":null,"abstract":"Research background: One of the principal contributions of Maynard Keynes’s General Theory was identification of the phenomenon of involuntary unemployment, due (on account of adverse expectations and confidence on the part of potential buyers) to a want of demand for the quantity of output which a fully-employed labour force was capable of producing. Such unemployment, he insisted — contrary to conventional opinion — was not due to workers pricing themselves out of work by demanding wages higher than employers could afford. Far from unemployed workers being themselves responsible for their plight, they were, in reality, victims of circumstances beyond their control. Keynes’s understanding was, for many years, widely accepted by academics, policy-makers and the general public. In recent times, however, mainstream macroeconomic theory has shown a regrettable tendency to return to old modes of thinking. Blame for unemployment is again put on the workforce, whose alleged misunderstanding or slow response to change are said to imply seeking employment on unrealistic terms. A more extreme view is that worklessness may reflect a deliberate choice of leisure. To anyone sceptical of the validity of such analyses there is a clear need to recover the Keynesian understanding of the possibility not just of frictional or voluntary, but also of involuntary unemployment. Purpose of the article: Ezra Davar, recognising that it is important not to lose sight of the idea of involuntary unemployment, has recently attempted in this Journal to explain Keynes’s concept. Unfortunately, however, he fails to recognise that Keynes accounted for involuntary unemployment as resulting from deficiency of aggregate demand for output, not as the consequence of any supply-side factor. In attributing involuntary unemployment to a peculiarity in the labour supply function Davar quite misses Keynes’s point, and in fact identifies as involuntary unemployment a situation of what Keynes would have described as “voluntary” employment. The objective of the present note is to clear up this misunderstanding.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41448599","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}
Research background: The European Union currently provides financial support to the Member States through various financial tools from European Structural and Investment Funds 2014–2020, and previously from the EU Structural Funds. In both terminologies, the funds represent the main instrument of EU Cohesion Policy to sustain territorial development, to increase competitiveness and to eliminate regional disparities. The overall impact of EU Funds depends on the structure of funding and absorption capacity of the country. Purpose of the article: The efficiency of funding across the EU Member States is a fundamental issue for EU development as a whole. The Author considers deter-mining the efficiency of EU Funds as an issue of high importance, and therefore this paper provides a contribution to the debate on the role of EU Cohesion Policy in the Member States. The paper focuses on territorial effects of relevant EU Funds in programming period 2007–2013 in infrastructure through efficiency analysis. Methods: Efficiency analysis is based on data at the country level, originating from ex-post evaluation of Cohesion Policy programmes 2007–2013 and representing the input and output variables to analyse whether the goal of fostering growth in the target countries have been achieved with the funds provided, and whether or not more resources generated stronger growth effects in transport accessibility. The paper deals with comparative cross-country analysis, descriptive analysis of dataset and multiple-criteria approach of Data Envelopment Analysis (DEA) in the form of output-oriented BCC VRS model of efficiency and output-oriented APM VRS subsequently model of super-efficiency. Findings & Value added: The paper aims to test the factors of two inputs and five outputs, trying to elucidate the differences obtained by the Member States in effective use of the European Regional Development Fund and the Cohesion Fund in the transport sector. The paper determines if the countries have been more efficient in increasing their levels of competitive advantages linked with transport. Preliminary results reveal that most countries with a lower amount of funding achieve higher efficiency, especially countries in a group of so-called “old EU Member States”, i.e. group EU15.
{"title":"The main achievements of the EU structural funds 2007-2013 in the EU member states: efficiency analysis of transport sector","authors":"L. Melecký","doi":"10.24136/EQ.2018.015","DOIUrl":"https://doi.org/10.24136/EQ.2018.015","url":null,"abstract":"Research background: The European Union currently provides financial support to the Member States through various financial tools from European Structural and Investment Funds 2014–2020, and previously from the EU Structural Funds. In both terminologies, the funds represent the main instrument of EU Cohesion Policy to sustain territorial development, to increase competitiveness and to eliminate regional disparities. The overall impact of EU Funds depends on the structure of funding and absorption capacity of the country. \u0000Purpose of the article: The efficiency of funding across the EU Member States is a fundamental issue for EU development as a whole. The Author considers deter-mining the efficiency of EU Funds as an issue of high importance, and therefore this paper provides a contribution to the debate on the role of EU Cohesion Policy in the Member States. The paper focuses on territorial effects of relevant EU Funds in programming period 2007–2013 in infrastructure through efficiency analysis. \u0000Methods: Efficiency analysis is based on data at the country level, originating from ex-post evaluation of Cohesion Policy programmes 2007–2013 and representing the input and output variables to analyse whether the goal of fostering growth in the target countries have been achieved with the funds provided, and whether or not more resources generated stronger growth effects in transport accessibility. The paper deals with comparative cross-country analysis, descriptive analysis of dataset and multiple-criteria approach of Data Envelopment Analysis (DEA) in the form of output-oriented BCC VRS model of efficiency and output-oriented APM VRS subsequently model of super-efficiency. \u0000Findings & Value added: The paper aims to test the factors of two inputs and five outputs, trying to elucidate the differences obtained by the Member States in effective use of the European Regional Development Fund and the Cohesion Fund in the transport sector. The paper determines if the countries have been more efficient in increasing their levels of competitive advantages linked with transport. Preliminary results reveal that most countries with a lower amount of funding achieve higher efficiency, especially countries in a group of so-called “old EU Member States”, i.e. group EU15.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47181227","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}
Research background: Information infrastructure is a very important pillar within a knowledge-based economy. The widespread use of information and communication technologies facilitates effective communication, dissemination and processing of information and knowledge. It also creates new opportunities for the effective use of knowledge and information in building competitive advantage. Information infrastructure is also a significant determinant in the development of territorial units, and therefore it affects the regional dimension of building the knowledge-based economy in Poland. Purpose of the article: The purpose of the study was to evaluate regional differentiation of the level of information infrastructure in Poland, and changes which occurred in this respect between 2010 and 2015. An attempt was made to provide an answer to the following question: Are regional differences in the level of information infrastructure in Poland increasing or decreasing, i.e. is a regional divergence or a regional convergence process taking place in this respect? Methods: Taxonomic methods were used, including linear ordering based on a synthetic variable and a method of grouping linearly-ordered objects. Findings & Value added: The regional differentiation of the level of information infra-structure in Poland has slightly decreased, which means, that a slow convergence process has taken place in this respect. This fact is confirmed by the value of the variation coefficient, which fell from a level of 17.6% in 2010 to a level of 14.4% in 2015. Convergence processes were observed in twelve provinces. In the case of seven of them, they had the nature of a catching-up effect, and in the case of the remaining five — a lagging-behind effect. Divergence processes were observed in four provinces. The Dolnośląskie and Mazowieckie Provinces distanced themselves from other areas of the country. In the Malopolskie and Opolskie Provinces a marginalisation effect was observed.
{"title":"Information Infrastructure as a Pillar of the Knowledge-based Economy - an Analysis of Regional Differentiation in Poland","authors":"Wioletta Wierzbicka","doi":"10.24136/EQ.2018.007","DOIUrl":"https://doi.org/10.24136/EQ.2018.007","url":null,"abstract":"Research background: Information infrastructure is a very important pillar within a knowledge-based economy. The widespread use of information and communication technologies facilitates effective communication, dissemination and processing of information and knowledge. It also creates new opportunities for the effective use of knowledge and information in building competitive advantage. Information infrastructure is also a significant determinant in the development of territorial units, and therefore it affects the regional dimension of building the knowledge-based economy in Poland. \u0000Purpose of the article: The purpose of the study was to evaluate regional differentiation of the level of information infrastructure in Poland, and changes which occurred in this respect between 2010 and 2015. An attempt was made to provide an answer to the following question: Are regional differences in the level of information infrastructure in Poland increasing or decreasing, i.e. is a regional divergence or a regional convergence process taking place in this respect? \u0000Methods: Taxonomic methods were used, including linear ordering based on a synthetic variable and a method of grouping linearly-ordered objects. \u0000Findings & Value added: The regional differentiation of the level of information infra-structure in Poland has slightly decreased, which means, that a slow convergence process has taken place in this respect. This fact is confirmed by the value of the variation coefficient, which fell from a level of 17.6% in 2010 to a level of 14.4% in 2015. Convergence processes were observed in twelve provinces. In the case of seven of them, they had the nature of a catching-up effect, and in the case of the remaining five — a lagging-behind effect. Divergence processes were observed in four provinces. The Dolnośląskie and Mazowieckie Provinces distanced themselves from other areas of the country. In the Malopolskie and Opolskie Provinces a marginalisation effect was observed.","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2018-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46219117","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}
Research background: This paper extends the early papers by Brander (1981) and Brander and Krugman (1983) who used a simple partial equilibrium Cournot duopoly to a full general equilibrium setting. The explanations of intra-industry trade can be based either on oligopolistic reciprocal dumping idea (Brander, 1981) or product differentiation (Dixit and Norman, 1980; Krugman, 1979, 1980, 1981; Lancaster, 1980; Helpman, 1981). In this paper we combine both explanations in a unified general equilibrium model. Purpose of the article: We develop a two-sector, one-factor general equilibrium model, in which the first sector produces a differentiated good under monopolistic competition and the second sector produces a homogenous good under Cournot oligopolistic competition. In this paper, we study how competition between domestic and foreign firms resulting from trade liberalization affects intra-industry trade in both sectors. Methods: The paper develops a two-sector model based on several assumptions. Consumers have a two-tier utility function of the Cobb-Douglas-Spence-Dixit-Stiglitz form. Firms operate in two sectors and produce goods under increasing returns to scale resulting from the existence of fixed costs. One sector produces homogenous good under Cournot competition, and the second one produces a differentiated product in under Chamberlinian monopolistic competition. Free entry is assumed in both sectors. Labor is assumed to be the only factor of production with perfect mobility and full employment. Findings & Value added: In contrast to previous papers, our study is based on a full general equilibrium Cournot oligopoly framework with many firms. Moreover, we endogenize the number of firms and study the resulting trading equilibria. Therefore, this paper can be regarded as the extension and unification of the early papers by Brander (1981), Brander and Krugman (1983) and Krugman (1979, 1980).
研究背景：本文将Brander（1981）、Brander和Krugman（1983）早期使用简单的部分均衡Cournot双头垄断的论文扩展到完全的一般均衡设置。产业内贸易的解释可以基于寡头互惠倾销思想（Brander，1981）或产品差异化（Dixit和Norman，1980；克鲁格曼，1979、1980、1981；兰卡斯特，1980；Helpman，1981）。在本文中，我们将这两种解释结合在一个统一的一般均衡模型中。本文的目的：我们建立了一个两部门、一因素的一般均衡模型，其中第一部门在垄断竞争下产生差异化商品，第二部门在库诺寡头竞争下产生同质商品。在本文中，我们研究了贸易自由化导致的国内外企业之间的竞争如何影响这两个部门的产业内贸易。方法：本文在几个假设的基础上建立了一个两部门模型。消费者具有Cobb Douglas Spence Dixit Stiglitz形式的双层效用函数。公司在两个部门运营，并在固定成本存在的情况下，以不断增加的规模回报率生产商品。一个部门在库诺竞争下生产同质产品，第二个部门在Chamberlinian垄断竞争下生产差异化产品。这两个部门都假定可以自由进入。劳动力被认为是唯一具有完美流动性和充分就业的生产要素。研究结果和附加值：与以前的论文相比，我们的研究是基于对许多公司的完全一般均衡古诺寡头垄断框架。此外，我们将企业数量内生，并研究由此产生的交易均衡。因此，本文可以看作是Brander（1981）、Brander和Krugman（1983）和Krug曼（19791980）早期论文的延伸和统一。
{"title":"Intra-industry trade in differentiated and homogenous commodities: Brander and Krugman models unified","authors":"A. Cieślik, Leszek Wincenciak","doi":"10.24136/EQ.2018.002","DOIUrl":"https://doi.org/10.24136/EQ.2018.002","url":null,"abstract":"Research background: This paper extends the early papers by Brander (1981) and Brander and Krugman (1983) who used a simple partial equilibrium Cournot duopoly to a full general equilibrium setting. The explanations of intra-industry trade can be based either on oligopolistic reciprocal dumping idea (Brander, 1981) or product differentiation (Dixit and Norman, 1980; Krugman, 1979, 1980, 1981; Lancaster, 1980; Helpman, 1981). In this paper we combine both explanations in a unified general equilibrium model. Purpose of the article: We develop a two-sector, one-factor general equilibrium model, in which the first sector produces a differentiated good under monopolistic competition and the second sector produces a homogenous good under Cournot oligopolistic competition. In this paper, we study how competition between domestic and foreign firms resulting from trade liberalization affects intra-industry trade in both sectors. Methods: The paper develops a two-sector model based on several assumptions. Consumers have a two-tier utility function of the Cobb-Douglas-Spence-Dixit-Stiglitz form. Firms operate in two sectors and produce goods under increasing returns to scale resulting from the existence of fixed costs. One sector produces homogenous good under Cournot competition, and the second one produces a differentiated product in under Chamberlinian monopolistic competition. Free entry is assumed in both sectors. Labor is assumed to be the only factor of production with perfect mobility and full employment. Findings & Value added: In contrast to previous papers, our study is based on a full general equilibrium Cournot oligopoly framework with many firms. Moreover, we endogenize the number of firms and study the resulting trading equilibria. Therefore, this paper can be regarded as the extension and unification of the early papers by Brander (1981), Brander and Krugman (1983) and Krugman (1979, 1980).","PeriodicalId":45768,"journal":{"name":"Equilibrium-Quarterly Journal of Economics and Economic Policy","volume":null,"pages":null},"PeriodicalIF":5.7,"publicationDate":"2018-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48004396","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}
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