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Isaac Kwesi Ampah and Balázs Kotosz

Abstract

The spending patterns of governments in the world especially developing economies have changed significantly over the last several decades. The main objective of this paper is analysing the relationship between government expenditures and growth in Burkina Faso’s economy. The study focuses on testing the various versions of Wagner’s hypothesis using the Burkina Faso data between 1960-2015 by an Autoregressive-Distributed Lag (ARDL) model. Cointegration tests, the long-run parameters and causality tests found valid Keynesian and Wagnerian relationship, but results are sensitive to the variable definition; the use of relative and absolute measures, local and international currency leads to a different conclusion.

Open access

Iuliana Maria Ursu and Raluca Simina Bilti

Abstract

The present study aim is to deliver a succinct overview of the existing literature concerning economic systems, and in particular financial systemsfrom the Econobiology, or the “evolutionary economics” perspective, mainly treated within the Adaptive Market Hypothesis, and the Econophysics perspective.In the heterodox frame, both the A.M.H. and the Econophysics are trying to explain the complexity of financial markets from a „bottom up” perspective, hence „macroscopic” properties are viewed as the result of interactions at the level of the ‘microscopic’ constituents (Rickles, 2011, p.531-565). Given the expanded level of information we can access nowadays, we consider that an important attention should be given to the inclusion of both perspectives as explanatory frameworks of the financial markets.

Open access

Sotirios K. Bellos

Abstract

We analyze empirically whether IMF financial assistance in 31 transition countries, during the transition and the post-transition period, has achieved the purposes stated in the IMF's own articles of agreement, namely employment enhancement, confidence provision and export promotion. By employing panel data and impact evaluation analysis, we find that IMF presence persistently fails to be correlated with upgrades in sovereign rating, FDI attraction and employment improvement. By focusing on specific IMF policies, we present some intriguing results, which reveal whether these individual policies actually contribute to the achievement of the official IMF purposes or not.

Open access

Bogdan Dima and Ştefana Maria Dima

Abstract

This article employs three different measures of life satisfaction viewed as proxy for social utility, in order to test for the possible non-linear interactions between the quality of public governance, as reflected by the World Bank indicators, and globalization, as captured by the KOF index, for a dataset of 99 countries for a time span between 2001 and 2010. We conclude that efficient and trustworthy public policies may enhance life satisfaction. Moreover, there may occur a synergy effect between ‘good’ governance and globalization (especially for those components describing social globalization), while there is no substitute for the failure of public policies, in terms of human development and growth (with the effects on human development being substantially more important than those corresponding to the increase in national wealth).

Open access

Liudmyla Yu. Vozna

Abstract

This article deals with the notion of entropy in its applicability to economics. Briefly, it regards some classical cases of such a use as the labour concept of Podolinsky and the bioeconomics of Georgescu-Roegen. This article also attempts to apply the concept of entropy to the analysis of market structures in the example of the perfect competition model. Thus, the article asserts that if we compare different entropy concepts with the main characteristics of a market with perfect competition, we must conclude that the latter is a structure with the maximum level of entropy. But maximum entropy means the system’s death. So, as a system, a perfectly competitive market cannot exist. Despite economists recognise the unreality of such a market from an empirical point of view, the application of the entropy concept helps us to repeat this approval also as a methodological one. The use of the entropy concept as a methodological instrument helps to question some other economic models, too.

Open access

Guido Ortona

Abstract

The usual, pessimistic interpretation of Arrow’s General Possibility Theorem (often “Impossibility” in textbooks) is excessive. The impossibility defined by Arrow occurs only in presence of a tie or of a cycle. These cases are rare or very rare, and their presence may be assessed ex post. If they occur it is necessary to resort to a second-best rule, but this two-stage procedure does not induce strategic behavior, nor impeaches the use of the Condorcet rule (in observance of the axioms) in all the others.

The paper conclusions sustain that implementation of modern management systems to government’s public institutions should deal with a different behavior used to know at companies. In this respect, the paper high-lights different aspects between companies and public institutions behavior admitting similarities on organizational structure and internal procedures.

Open access

Tomáš Nikodym, Lukáš Nikodym and Tereza Pušová

Abstract

The paper focuses on the proposals of post-war order in Czechoslovakia and its theoretical analysis. While there exists a wide range of studies, both Czech and foreign, dedicated to the history of Czechoslovakia in the post-war period, a majority of the studies deals with political development. Then the interpretations of the failure of President Beneš’ “distinct model of socialism” are purely political – weakness of President Beneš and democratic elites, the aggressive politics of Communist party, influence of Soviet diplomacy, etc. On the other hand, economic studies are only descriptive without theoretical analysis of proposed post-war order. Our paper offers different interpretation of the fall of Czechoslovak democratic regime (1945–1948). Using the framework of Austrian school, we are trying to show the institutional incompatibility of proposed post-war order. Special emphasis is put on the relation of freedom, democracy and socialist economic planning.

Open access

Eleftherios Makedonas, Sotirios Bellos and Subasat Turan

Abstract

An arduous debate has developed around the question of whether the multiple IMF’s ‘stabilization’ interventions in developing countries have actually met one of the most important of its initial programmatic goals, i.e., the provision of resources to members, with a view to eliminating temporary Balance of Payments maladjustments, avoiding at the same time destroying ‘national or international prosperity’. More importantly, there have been many voices claiming that these programs have rather accentuated poverty than alleviated it. We explore this claim both theoretically and empirically. Our results show an unequivocal negative relationship between IMF lending and poverty in the developing world.

Open access

Lucian Pasca

Abstract

While the interpretation of the EMH has changed over the last 50 years, its meaningfulness continues to define our view on how financial markets work. Competing approaches such as BFT and ACT have been proven to be in particular cases of an infinite spectrum of market states; all come under the framework of the AMH. The flexible framework of the AMH enables a trans-disciplinary approach for the study of financial system dynamics. An evolutionary and contextual view on financial systems allows researchers to use techniques and instruments from quantum mechanics and statistical physics to quantify volatility and provide an interpretation to the cognitive processes underlying investor decision making. Such a context also enables to tackle the interpretation of information processing at a cognitive level through consideration of quantum effects in the price formation mechanism.

Open access

Romar Correa

Abstract

We revisit the Stockholm School of Economics with first principles. The objective is a rendition of a cumulative Myrdal-Wicksell process. To that end, we derive heterogeneous responses of consumers and producers to changes in the state of the world and define a Myrdal-Keynes equilibrium.