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Abstract

Two problems appear to be most topical in conjunction with mortgage valuation practices during an economic crisis: the assessment of sustainable long-term mortgage values and the assessment of liquidation discounts to prevailing market values which would provide for the most advantageous liquidation/quick sale strategy. This paper addresses the latter issue, which has traditionally proven intractable to analytical modeling. Apart from reviewing some research devoted to the subject of liquidation value modeling, predominantly from the Eastern European perspective, where this issue has, for years, commanded a particular economic interest, this paper synthesizes the best features of this research and builds on it to propose its own model, which lays equal emphasis on both the sellerside and demand-side perspectives. The first perspective accounts for the financial interests of a lender in forced sale disposals, while the latter perspective engages economic analysis on the side of market feasibility of identified efficient lender disposal strategies. By negotiating both perspectives, an optimal analytic solution to the issue of liquidation value discounts can be obtained. This is achieved by what we call a SI-MI framework which is developed throughout the paper.

We also adapt this framework specifically to the mortgage banking context where we use it to bring to light some rarely discussed linkages between the LTV policies of a bank and its mortgage liquidation strategies. This also allows us to propose a model and an LTV formula which can help organize thinking about optimal LTV policies in credit issuing processes.

We hope that, with the re-appearance of liquidation value basis/premise of valuation as a recognized international basis of valuation in the new edition of the International Valuation Standards (IVS 2017), the findings of this paper will become topical.

Abstract

The aim of the paper is to analyze the possibilities of the automotive industry development in the V4 countries in the near future. Automotive is one of the most important industries in the Czech Republic, Hungary, Poland and Slovakia. However, it faces significant challenges on both the demand and supply side. The shortage of qualified and relatively cheap labour force, once the important comparative advantage of these countries is becoming a major problem in sustaining the competitiveness. Meanwhile the rise of protectionist policies and trade tensions also pose a significant threat to the exportoriented industry. The third important source of change is the technological advancement. Industry 4.0, electromobility and self-driving cars are reshaping the whole business model. In order to stay competitive, the V4 countries have to take all these factors in account and try to adjust their policies to these changes in environment.

Abstract

This paper proposes a dynamic economic model with wealth accumulation and human capital accumulation with elastic labor supply. The economic system consists of one production sector and one education sector. Our model is a synthesis of three main models in economic theory: Solow’s one sector neoclassical growth mode, the Uzawa-Lucas two sector model, and Arrow’s learning by doing model. The model also includes Zhang’s idea about creative leisure or learning by consuming. Demand and supply of education in our model are determined by market mechanism. The model describes dynamic interdependence among wealth accumulation, human capital accumulation, division of labor, and time distribution among leisure, education and work under perfect competition. We simulate the model and examine effects of changes in the total productivity of the education sector, the total productivity of the production sector, the propensity to obtain education, and learning efficiency in school.

Abstract

The main purpose of the paper is to present some of the mechanisms connected with the functioning of the Polish housing market, with due regard to demand and supply volatility as well as the changing financial conditions at the time of the global financial crisis of the first decade of the present century. Special attention is given to the financial and legal regulations concerning the housing market, which were introduced in response to the economic downturn.

On the basis of research conducted by the authors, as well as available reports and statistics for 2007-2013, the article will explore market phenomena (the size and pattern of demand, supply and prices on the housing market, and the changes they undergo) on the one hand, and the legal and financial regulatory changes directly affecting them, on the other. It will also study the effects of the implementation of the recommendations made by the Polish Financial Supervision Authority (KNF) by banks in the wake of the global financial crisis. These cause banks to tighten their credit policies and, accordingly, have an impact on their loan portfolios. Information from secondary sources has also been used, notably from the Central Statistical Office (GUS), the KNF, the National Bank of Poland (NBP), as well as the Polish Bank Association (ZBP) and the Credit Information Bureau (BIK). Changes that occurred during the period of economic crisis in the availability of housing have also been examined.

Abstract

The paper presents analysis of the achieved development level of the housing market in Serbia. Various factors that have shaped demand and supply are systematized and their impact over the last decade was analysed and monitored. As important ones demographic, macroeconomic and financial factors are singled out and a special importance is given to the analysis of specific historical and socio-political circumstances that have influenced the development of the housing market during the period of analysis.

References Blanchard, O. J., and Quah, D., 1989. The Dynamic Effects of Aggregate Demand and Supply Disturbances. The American Economic Review, 79(4), 655-673. Gârlă, E., 2014. Pragul insecurităţii economice. Analele Academiei de Studii Economice a Moldovei(2), 142-145. Gârlă, E., 2015. Ştiinţificitatea strategiilor de dezvoltare economică: Academia de Studii Economice a Moldovei. Gârlă, E., and Pârţachi, I., 2015. Sustainable development. Human development index Romanian rural tourism in the context of sustainable development: present and prospects (Vol. XXXVII

Abstract

This article analyses the demand and supply aspects of the determinants of CPI inflation in Lithuania in 1998-2008. Content analysis was used to identify and group significant demand and supply inflation factors and using RGT, objectively assess and generalize the results. Pair linear correlation analysis confirmed the significance for CPI inflation of the factors identified through content analysis, and both research methods reliably and effectively helped to identify factors for regression models of inflation. Content analysis revealed that the causes of inflation most often mentioned and traditionally regarded as significant in the economic literature are factors such as money and wages, capital, competition and monopolies, and so on. Pair correlation research showed the significance for inflation of supply and demand factors such as income distribution, income levels, taxes, saving, human capital and labour productivity as well as exports and imports - things which content analysis gave only average or little mention. Regression models confirmed and helped to concretize the significance for inflation of the identified demand and supply factors. The results of the research show that inconsistent monetary and general government expenditure policies reinforce private consumption and capital shocks. Note that human capital and employment, which changed little during the analysed period, did not show the large significance for inflation that they are commonly thought to have.

Abstract

One of the most important synthetist of the practical socialist theory is János Kornai. In his works he tempted to describe the working mechanism of the socialist economy in actual practice.

The first part of the paper is to gather special keywords and analytical tools of Kornai’s description. As economist, the main tool is the description of demand and supply without the mathematical formalization of demand and supply functions, and without any Marshall crosses. Instead of them, the theory is based on quantity (stock, slack, shortage, forced substitution), on friction (caused by rigidity, resistance, and information asymmetry), and on soft budget constraint.

In the second part, we investigate if the tools and keywords correspond to economic streams. The first apprehension is that economy (either capitalist or socialist) is declared to be far from Walrasian equilibrium. The conservators of this “non-equilibrium” steady-state are the different forms of friction. The rigidity is one of the main keywords of the New Keynesian theory, surpassing price rigidity that was headstone of Keynes’s General Theory. Kornai attends to the adjustment of quantity (and not, or barely price), but he applies neoclassical analytical tool set (marginal analysis, comparative statics to separate substitution and income effect, etc.) in some (but rare) formal analysis. The soft budget constraint theorem determines the impossibility of neoclassical results because under those conditions the demand theoretically is not limited, but it is in reality. The removal of this contradiction requires devices borrowed from other social sciences.

Finally, the third part sets a question: the characteristics of Kornai’s description may be interpreted as the specialty of socialism (i.e. Kornai had no choice, the practical socialism has classical, neoclassical and new Keynesian features), or it is just his own logic that made his analyses such mixed. The answer is double. As Kornai did not take on the mathematical formalization of his theory, he had not to pin down himself to any theoretical economic school. His works about the socialist economy are decisively descriptive, as a non-market economy cannot be seen through the applied neoclassical algebra.

Nové zdroje inovací - výzvy pro českou ekonomiku a její postavení v globální ekonomice

Globalizace v současné době, zčásti i v důsledku ekonomické krize, přechází do druhé fáze a mezi odborníky se začíná hovořit o tzv. globalizaci 2.0. Ta znamená nejen další silnější propojení světové ekonomiky, ale zejména posilování pozice rozvíjejících se zemí nejen z pohledu výroby, ale především z pohledu spotřeby. Hlavní centra nabídky a poptávky se proměňujía výroba a spotřeba se opět začínají více organizovat ve stejné lokalitě. Rychle se rozvíjející ekonomiky a jejich velmi početná populace se tak podle odborníků i manažerů některých velkých korporací stanou hlavním motorem budoucí poptávky (spotřeby). A tedy i zdrojem pro nové inovace (inovace totiž začíná i končí u zákazníka), které budou díky své jednoduchosti, snadnému použití i nižším nákladům pronikat i na vyspělé trhy. Cílem tohoto článku je jednoduše zhodnotit, jak si v tomto kontextu stojí Česko a také jaké má tato proměna důsledky pro podporu inovací a konkurenceschopnosti.

in ERGO

Abstract

The Romanian natural gas market is still in its infancy regarding the manners in which the demand and supply match. We are frequently talking about market liquidity or about its dynamic behavior, without considering the monthly losses of the national natural gas system operator that derive from the very lack of matching the supply and demand. The present article proposes a method of overlaying the two in a manner that is feasible for the Romanian natural gas market of 2017, a method that will encapsulate the usage of OBAs (operational balancing agreements) in correlation with a model of allocating the demand and supply as a restricted all-pairs shortest path problem. Based on authors experience, five main variables will be examined: point-of-entry (location and time), volume, time and location of delivery, as well as other sets of data that are particular to this sector. This article will tackle the area of usability of OBAs between suppliers and the degrees of sustainability that such a model offers for clients, therefore the resilience of the system will be analyzed through an optimized transfer of information and accessibility to assets. Due to the complex nature of demand in energy markets and the different requirements set by clients, in which an energy resource can be requested by different sets of users, we will conceive a model that can be applied for natural gas, but also for electric energy production and industrial clients. The scope of this endeavor is to create a tool that will minimize the monthly losses of the national natural gas system operator, as well as its distributors, by allocating, in a fair and unbiased way, the responsibility of fulfilling the requested demand in a certain time unit.