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Hypothetical bias and framing effect in the valuation of private consumer goods

Abstract

In a laboratory experiment, I examined two behavioural effects: hypothetical bias and the framing effect. I elicited willingness to pay (WTP) for a cosmetic product, and manipulated framing conditions (positive vs. negative attribute framing) and incentives to reveal the actual valuation (hypothetical vs. real). I demonstrated that hypothetical bias has a significant impact on WTP values; however, the framing effect has no effect on the valuation of the product. Similarly, I found no interaction between the two effects. This observation contributes to claims that hypothetical research methods lead to equally reliable data as those based on consequential choices.

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The Myth of Austerity. Empirical Evidence from the Eurozone Countries

Abstract

The paper discusses the impact of austerity policy on economic performance in the eurozone countries after the global crisis that occurred in 2007-08. The undertaken fiscal consolidation efforts to cut government expenditure and increase government taxes which begun in 2010, aimed to return sustainability in public finance as the rapid growth in sovereign debt was observed in many economies, especially in the South Europe. The implemented austerity policy under the external pressure not only amplified recession but also caused the further deterioration of public finance characterized by large deficits and increasing public debt. Based on the literature and empirical findings, the issue of austerity policy and its potential consequences on growth is examined. The research aim is to explore both advantages and disadvantages of austerity, focusing on the macroeconomic conditions which accompanied it and the impact of such policy on economic growth in the eurozone countries. The hypothesis of the negative influence of austerity on economic performance is verified on the basis of recent economic literature and conducted empirical research. Both descriptive analysis and dynamic panel regression based on two-step Generalized Method of Moments was used. Data from 2010-17 for the eurozone countries served to prove the existence of a key negative relationship between austerity policy and economic growth in economies that experienced deep great recession. The conducted analysis confirmed that austerity initiated to reduce the public debt to GDP doesn’t contribute to macroeconomic stabilization, adversely affecting potential output. Contrary to widely held opinion, this allows us to claim that austerity is not a good remedy for economies suffering from recession.

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Poland’s Economic Performance in Global and Long-term Perspective: Surprises so far and Risks in the Years Ahead

island” phenomenon, which refers to the absence of an economy-wide recession in Poland during the recent world- wide financial crisis. In the year 2009 the GDP of the EU declined by 4.4% from the level in 2008, and by about 6% from the trend. Poland’s GDP in 2009 increased by 1.7%, declining from the trend by only 2%. This official interpretation claimed government credit for that much better performance. In my interpretation this much better performance of the Polish economy in 2009 was caused mainly by the following three factors: Excessively expansionary

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The Role of Energy in a Real Business Cycle Model with an Endogenous Capital Utilization Rate in a Government Sector: Lessons from Bulgaria (1999–2016)

generate labor income. Hours supplied to the representative firm are rewarded at the hourly wage rate of w t , so pre-tax labor income equals w t h t . Lastly, the household owns the firm in the economy and has a legal claim on all the firm’s profit, π t . Next, the household’s problem can be now simplified to (2.6) max { c t , u t , h t , k t + 1 } t = 0 ∞ E 0 ∑ t = 0 ∞ β t { [ c t ψ ( 1 − h t ) 1 − ψ ] 1 − σ 1 − σ } , $$\underset{\left\{ {{c}_{t}},{{u}_{t}},{{h}_{t}},{{k}_{t+1}} \right\}_{t=0}^{\infty }}{\mathop{\max }}\,{{E}_{0}}\sum

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Robustness of Support Vector Machines in Algorithmic Trading on Cryptocurrency Market

. Estimates based on the data provided by: www.coinmarketcap and World Bank: data.worldbank.org/indicator/CM.MKT.TRAD.CD. USA stock market cap for 2017 equals 32.121 trillion USD. Nowadays, the total market cap of the cryptocurrency market is undergoing 4 times decline if compared to the peak at the end of the year. The recent decreasing trend may reflect investors’ sentiment, which has been impacted by negative news concerning new market regulations and ICOs frauds. Additionally, there are some claims that the highs of 2017 may have been manipulated and artificially

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Damages for Personal Injuries – in Labour and Service Law

between the breach of legal duties and the occurrence of damage. To claim compensation, all these assumptions must be performed at the same time; if any of these are missing, the claim shall not arise. The state is obliged to compensate the soldier not only for the damage caused by the breach of his duty but also for the damage caused to him by another entity (another soldier or another person). Compensation for the loss of salary for a period of inability to perform their duties In order to preserve the principle of compensation for actual damage sustained as a

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International Court Jurisdiction in Disputes Concerning Unlawful Use of Trademarks on the Internet

is needed because of the specific nature of internet as a tool capable of transferring double-sided information regardless of state borders. Unlike Goldsmith, they reach conclusion that the court jurisdiction cannot be examined by substantial effect criteria on the territory of the affected state. Johnson and Post state, that the relationship between the two communicators can have an impact everywhere, so every court of every state could claim its jurisdiction. This situation cannot be acceptable, because it would create the unreal criterion that everyone would

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Parents with an Unemployed Adult Child: Consumption, Income, and Savings Effects

supply, all of the dependent variables that we measure are household summaries; we only need to observe one parent to capture any changes to partner behavior. Table 1 summarizes all of the matched mothers in our sample, together and separated into three age groups: working age (less than 62 years old), the retirement windo This is defined by Social Security, the early retirement age is 62 years old; and after age 70, there is no longer a financial incentive to delay claiming. (age 62-70), and retired (older than 70). We will use this grouping in subgroup analysis

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Actuarial Neutrality and Financial Incentives for Early Retirement in the Austrian Pension System

“right” ones. Actuarial fairness is based on the concept of fairness over the whole lifespan. The idea is that an individual accumulates pension wealth with his or her own contributions. Pension entitlement is then based on one’s contributions to the system and the expected duration of the pension claim. This means that the person expects, at the beginning of the contributions, to receive the same amount of the cumulated pension as the payout as he or she has contributed over his or her working lifetime. This requirement is not met by the Austrian pension system. In

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