Template-Type: ReDIF-Paper 1.0
Author-Name: Hana Florianová
Author-Name-First: Hana
Author-Name-Last: Florianová
Author-Email: hanaflorianovaa@gmail.com
Author-Workplace-Name: Masaryk University
Title: The portfolio selection for a hedging strategy
Abstract: Every trader or investor who holds financial instruments has different approach to a portfolio selection. In this paper we focus on a delta-gamma-hedging strategy using an alternative protective collar strategy for shares and warrants approach. We compose a portfolio constiting of shares and warrants. We choose them based on four criteria - liquidity, volatility, correlation and amount. We get nine shares which meet our criteria and warrants which have these shares as underlying assets, the tenth instrument is gold and warrant on gold, representing defensive asset. We make portfolios delta-gamma-neutral and follow their performance in one month period starting in October 2016. The hypothesis stated is that for decreasing shares our strategy will generate above-average profit. In the observed period our strategy resulted in 1.21% profit, while benchmark was -0.7% in loss. That makes approximately 14% profit per year, even though only seven shares were decreasing while the others were increasing in the observed period. We consider this strategy to be successful. However, it is suitable for bearish trend on capital markets and we ommited taxes and spreads.
Length: 8 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 1-8
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=001&rid=7430
File-Function: First version, 2017
Number: 4507430
Classification-JEL: 
Keywords: portfolio, warrant, strategy, bearish trend
Handle: RePEc:sek:iefpro:4507430
Template-Type: ReDIF-Paper 1.0
Author-Name: Tomá? Frömmel
Author-Name-First: Tomá?
Author-Name-Last: Frömmel
Author-Email: tomasfrommel@gmail.com
Author-Workplace-Name: University of Economics Prague, Department of Economics
Title: The Austrian business cycle theory, rational expectations and historical time
Abstract: This paper formulates the Austrian business cycle theory in historical time, considering institutional context of the central bank policy. Since central banks intervene permanently in credit markets, entrepreneurs may be fooled by their policies and an artificial boom may be initiated. Hence, the Austrian business cycle theory is able to explain the course of business cycle of current economies even if the rational expectations hypothesis holds.This paper formulates the Austrian business cycle theory in historical time, considering institutional context of the central bank policy. Since central banks intervene permanently in credit markets, entrepreneurs may be fooled by their policies and an artificial boom may be initiated. Hence, the Austrian business cycle theory is able to explain the course of business cycle of current economies even if the rational expectations hypothesis holds.
Length: 8 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 9-16
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=002&rid=7343
File-Function: First version, 2017
Number: 4507343
Classification-JEL: D84, E32, E52
Keywords: Business cycle, Austrian business cycle theory, rational expectations, historical time
Handle: RePEc:sek:iefpro:4507343
Template-Type: ReDIF-Paper 1.0
Author-Name: Luká? Frýd
Author-Name-First: Luká?
Author-Name-Last: Frýd
Author-Email: lukas.fryd@gmail.com
Author-Workplace-Name:  University of Economics, Prague
Title: A wavelet transformation approach to crude oil price and CZK/USD exchange rate dependence
Abstract: In this paper, we contribute to the literature on the dependency between oil price returns and CZK/USD exchange rate returns. Oil price is one of the most important determinants for an explanation of the long-term behaviour of exchange rates, especially for USD dollar. The oil shock transmission mechanism is through the exchange rate channel and so the deeply understanding of this process is essential not only for investors but also for monetary authority. We utilised wavelet transform analysis so that we can analyse the dependency in the time-frequency domain. Our analysis finds that the connection between returns time series changes in time and scales. The major implications of our findings are important for effective monetary policies aimed at controlling inflationary pressures.
Length: 9 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 17-25
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=003&rid=7429
File-Function: First version, 2017
Number: 4507429
Classification-JEL: C22, F40, C58
Keywords: wavelet, wavelet coherence, oil price, dependence
Handle: RePEc:sek:iefpro:4507429
Template-Type: ReDIF-Paper 1.0
Author-Name: Zi-Yi Guo
Author-Name-First: Zi-Yi
Author-Name-Last: Guo
Author-Email: zachguo0824@gmail.com
Author-Workplace-Name: Wells Fargo Bank, N.A.
Title: A Stochastic Factor Model for Risk Management of Commodity Derivatives
Abstract: In the last two years, the world crude oil prices have dropped dramatically, and consequently the oil market has become very volatile and risky. Since energy markets play very important roles in the international economy and have led several global economic crises, risk management of energy products prices becomes very important for both academicians and market participants. We apply Schwartz and Smith?s model (2000) to calculate risk measures of Brent oil futures contracts and light sweet crude oil (WTI) futures contracts. The model includes a long-term factor and a short-term factor. We show that the two factors explain the Samuelson effect well and the model present well goodness of fit. Our backtesting results demonstrate that the models provide satisfactory risk measures for listed crude oil futures contracts. A simple estimation method possessing quick convergence is developed.
Length: 17 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 26-42
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=004&rid=7452
File-Function: First version, 2017
Number: 4507452
Classification-JEL: C58, G13, G32
Keywords: Factor model, Samuelson effect, value-at-risk, least square estimation.
Handle: RePEc:sek:iefpro:4507452
Template-Type: ReDIF-Paper 1.0
Author-Name: Zi-Yi Guo
Author-Name-First: Zi-Yi
Author-Name-Last: Guo
Author-Email: zachguo0824@gmail.com
Author-Workplace-Name: Wells Fargo Bank, N.A.
Title: International Real Business Cycle Models with Incomplete Information
Abstract: Standard international real business cycle (IRBC) models formulated by Backus, Kehoe, and Kydland (BKK, 1992) have been considered a natural starting point to assess the quantitative implications of dynamic stochastic general equilibrium (DSGE) models in an open economy environment. Since the standard IRBC model under assumptions of flexible prices and perfect competition cannot replicate all the observed characteristics of international business cycles, a number of extended models with more realistic features have been developed in the past two decades. We introduce a noisy information structure into an otherwise standard international real business cycle model with two countries.  When domestic firms observe current foreign technology with some noise, predictions of the model on international correlation can be very different from those of a standard perfect information model. We show that the model can explain: (i) positive output correlation both in complete and incomplete market models; (ii) consumption correlation smaller than output correlation with an introduction of information-constrained consumers; and (iii) observation of both positive and negative productivity-hours correlation in two countries.
Length: 28 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 43-70
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=005&rid=7458
File-Function: First version, 2017
Number: 4507458
Classification-JEL: E32, F41, G15
Keywords: Cross-country correlations; Imperfect information; Incomplete markets
Handle: RePEc:sek:iefpro:4507458
Template-Type: ReDIF-Paper 1.0
Author-Name: Jan Hanousek
Author-Name-First: Jan
Author-Name-Last: Hanousek
Author-Email: jan.hanousek@cerge-ei.cz
Author-Workplace-Name: CERGE-EI
Author-Name: Evzen Kocenda
Author-Name-First: Evzen
Author-Name-Last: Kocenda
Author-Email: evzen.kocenda@fsv.cuni.cz
Author-Workplace-Name: Charles University, Institute of Economic Studies
Author-Name: Pavla Vozarova
Author-Name-First: Pavla
Author-Name-Last: Vozarova
Author-Email: pavla.vozarova@icloud.com
Author-Workplace-Name: Czech Technical University in Prague
Title: HORIZONTAL CROWDING-OUT VERSUS VERTICAL SYNERGIES UNDER THE MNE PRESENCE
Abstract: In this paper we provide a comprehensive analysis of the impact of the multinational enterprises (MNEs) and foreign direct investment (FDI) on domestic firms in Europe. We build on the theoretical model of Markusen and Venables (1999) and modify it to better reflect reality and to capture international industrial linkages. For empirical part we build a unique and large database that covers 30 European countries over 2001 - 2013. Rich data are combined from the Amadeus, UN Comtrade and BACI sources. Our results do not show evidence for a pure spillover effect when other channels are controlled for. However, on a more detailed level we show that MNE?s presence significantly affects domestic firms both in terms of changing market structure and productivity improvements. On other hand, change in sourcing patterns often results in that domestic firms are crowded-out. However, those domestic firms, that are able to withstand this double competition, receive additional benefits stemming from their interaction with downstream MNEs in form of productivity spillovers. We also document existence of trade (export) spillovers for both upstream and downstream levels. Despite that impact of the MNEs presence is not unambiguous the existence of positive production and trade spillovers is overwhelming.
Length: 46 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 71-116
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=006&rid=7366
File-Function: First version, 2017
Number: 4507366
Classification-JEL: F23, F15, F21
Keywords: multinational enterprise (MNE); foreign direct investment (FDI); European firms; spillovers; international trade
Handle: RePEc:sek:iefpro:4507366
Template-Type: ReDIF-Paper 1.0
Author-Name: Mark  Iarovyi
Author-Name-First: Mark 
Author-Name-Last: Iarovyi
Author-Email: mark.iarovyi@phd.unibocconi.it
Author-Workplace-Name: Bocconi University
Author-Name: sasson Bar Yosef
Author-Name-First: sasson
Author-Name-Last: Bar Yosef
Author-Email: sasson.baryosef@unibocconi.it
Author-Workplace-Name: Hebrew University
Author-Name: Itzhak Venezia
Author-Name-First: Itzhak
Author-Name-Last: Venezia
Author-Email: itzhakvenezia@gmail.com
Author-Workplace-Name: Tel Aviv Yaffo Academic College
Title: Implied Maturity Mismatches and Investor Disagreement 
Abstract: Maturity mismatches (MMs) expose banks to interest rate risk and thus add to the uncertainty and ambiguity of their performance. Given the significance of interest rate risk for banking operations, we study to what extent higher MMs and the increased ambiguity concomitant with them contribute  to investor disagreement proxied by trading volume in the banks' equity. We overcome infrequency and opacity of accounting disclosures, which obscure their economic usefulness and the accurate measurements of MMs, by resorting to implied MMs, computed as stock return sensitivities to interest rate changes. We find that implied MMs are positively associated with trading volume, and that the role of returns in this relationship is minimal or null. 
Length: 28 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 117-144
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=007&rid=7072
File-Function: First version, 2017
Number: 4507072
Classification-JEL: G12, G14, G21
Keywords: Asset-liability mismatch, maturity mismatch, trading volume, investor disagreement
Handle: RePEc:sek:iefpro:4507072
Template-Type: ReDIF-Paper 1.0
Author-Name: Bozena Kaderabkova
Author-Name-First: Bozena
Author-Name-Last: Kaderabkova
Author-Email: bozena.kaderabkova@centrum.cz
Author-Workplace-Name: Czech Technical University in Prague
Author-Name: Ond?ej Ptá?ek
Author-Name-First: Ond?ej
Author-Name-Last: Ptá?ek
Author-Email: ondrej.ptacek@vse.cz
Author-Workplace-Name: University of Economics, Prague, Faculty of Economics
Title: Later Stage and Growth Capital in the Czech Republic
Abstract: The paper analyses later stage venture capital and growth capital investment activity in the Czech Republic. These segments of private equity investments follow up with early stage venture capital segments such as start-up capital. Our earlier research has shown that the development of the Czech venture capital market does not comply with European activity over 2007-2015. This paper further enhances the research for this following private equity segments and provides comparison with early stage venture capital market development. The later stage and growth capital investments follow the overall European trends with only more substantial jumps in investment activity caused by relatively more important occurance of larger transactions due to smaller market size.
Length: 10 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 145-154
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=008&rid=7446
File-Function: First version, 2017
Number: 4507446
Classification-JEL: G24
Keywords: venture capital, growth capital, asset management, private equity, financial markets, market failure, government failure
Handle: RePEc:sek:iefpro:4507446
Template-Type: ReDIF-Paper 1.0
Author-Name: I Doun  Kuo
Author-Name-First: I Doun 
Author-Name-Last: Kuo
Author-Email: idkuo@thu.edu.tw
Author-Workplace-Name: Tunghai University
Title: Irrationality and Term Structure Anomaly
Abstract: Campbell and Shiller (1991) find the presence of term structure anomaly, in which the slope of the term structure predicts inconsistently to the change in yield of longer-term bonds over the life of shorter-term bonds during 1952-1987. Focusing on the post Campbell and Shiller period, our findings suggest that the anomaly is not only attributed to term premia, but also relates to expectation errors. We found that macroeconomic surprises and irrationality from investors? behavior are important determinants of expectation errors. These factors are capable of explaining the rejection of the expectation hypothesis and the US term structure anomaly in long-term securities.
Length: 23 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 155-177
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=009&rid=7033
File-Function: First version, 2017
Number: 4507033
Classification-JEL: E43, G12, G14
Keywords: Irrationality; Term structure anomaly: Expectation hypothesis; Term structure of interest rates
Handle: RePEc:sek:iefpro:4507033
Template-Type: ReDIF-Paper 1.0
Author-Name: Lucie Kureková
Author-Name-First: Lucie
Author-Name-Last: Kureková
Author-Email: xkurl06@vse.cz
Author-Workplace-Name: Office of Government
Author-Name: Pavlína Hejduková
Author-Name-First: Pavlína
Author-Name-Last: Hejduková
Author-Email: pahejdu@kfu.zcu.cz
Author-Workplace-Name: University of West Bohemia, Faculty of Economics, Department of Finance and Accounting
Title: INTER-REGIONAL MIGRATION IN CZ AND SK: THE EMPIRICAL STUDY OF PANEL DATA AT NUTS3 LEVEL 
Abstract: The aim of this paper is to define the relationship between migration, income, and unemployment rates, and therefore estimate these relationships using vector autoregression and the Granger causality test. This study focused on inter-regional migration at NUTS3 level in the Czech and Slovak Republics. The analysed period is from the year 2004 to 2013, and the final panel data is set for one variable, and therefore contains a total of 220 observations. According to the results, the regional migration in the Czech and Slovak Republics was determined by income differences and it is in accordance with the neoclassical theory. The causal relation was not confirmed for differences in unemployment rate. The changes of income and unemployment rates in the Czech Republic and Slovakia were not caused by migration. These results do not support conclusions of the neoclassical model of migration.
Length: 11 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 178-188
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=010&rid=7339
File-Function: First version, 2017
Number: 4507339
Classification-JEL: C01, J60, F02
Keywords: globalization, migration, panel data, Granger Causality Test, economic indicators, NUTS3
Handle: RePEc:sek:iefpro:4507339
Template-Type: ReDIF-Paper 1.0
Author-Name: Jacek Liwinski
Author-Name-First: Jacek
Author-Name-Last: Liwinski
Author-Email: jacek.liwinski@wp.pl
Author-Workplace-Name: University of Warsaw
Title: Are school-provided skills useful at work? Results of the Wiles test
Abstract: Although it has been over 40 years since labour economists started testing human capital vs. signalling explanation of the wage premium from education, the debate is still going on and authors keep on proposing new methods of testing. The human capital theory postulates that investment in education enhances the productive capacity of individuals, while according to the signalling hypothesis the value of a graduation diploma follows from the fact that it signals innate abilities of its holder. We apply the approach proposed by Wiles to test for the signalling hypothesis and, in particular, to find out if there is a positive relation between education and productivity. For this purpose, we construct a job match index based on information if school provided knowledge and skills are useful at work and the job performed is relevant to the field of study. Then we check if the quality of job matching is related to wages of graduates in Poland. To answer this question, a wage equation was estimated using OLS on the basis of data from a representative, nationwide tracer survey of Poles who left secondary schools or graduated from higher education institutions over the period of 1998-2005. We find out that knowledge and skills acquired in the course of formal education bring wage benefits only to university graduates. Besides, this group receives a wage premium, which may be attributed to their high innate abilities. In sum, the outcomes are consistent with the weak signalling hypothesis, since they show that tertiary education signals a high level of innate abilities and at the same time it provides knowledge and skills which enhance individual productivity at work. Besides, we find evidence of the strong signalling hypothesis with regard to the secondary vocational schools leavers. 
Length: 13 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 189-201
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=011&rid=7121
File-Function: First version, 2017
Number: 4507121
Classification-JEL: J24, J31
Keywords: education, human capital, signalling, job matching, wage equation
Handle: RePEc:sek:iefpro:4507121
Template-Type: ReDIF-Paper 1.0
Author-Name: Daniela Majercakova
Author-Name-First: Daniela
Author-Name-Last: Majercakova
Author-Email: daniela.majercakova@gmail.com
Author-Workplace-Name: Comenius University in Bratislava, Faculty of Management FM CU
Author-Name: Ludomir Slahor 
Author-Name-First: Ludomir
Author-Name-Last: Slahor 
Author-Email: ludomir.slahor@fm.uniba.sk
Author-Workplace-Name: Comenius University in Bratislava, Faculty of Management FM CU
Author-Name: Alexandra  Mittelman 
Author-Name-First: Alexandra 
Author-Name-Last: Mittelman 
Author-Email: alexandra.mittelman@fm.uniba.sk
Author-Workplace-Name: Comenius University in Bratislava, Faculty of Management FM CU
Title: Comparative analysis of Islamic bonds and conventional bonds in the chosen countries 
Abstract: Islamic bonds can be marked as one of the most succesful instruments of the Islamic financial sector, which is possible to define briefly as the attempt to connect the religious principles and financial entrepreneurship. At the beginning, Islamic bonds had the character of the specific instrument, that appeared occasionally at some local markets. By the time, Islamic bonds gained bigger and bigger market share. Nowadays, the market sukuk, has the raising number of foreign investors from banks and corporations. The organization AAOIFI defines sukuk as the certificates of the similar value, which, after the final underwriting, authorize to accept the nominal value of certificates and its usage for the planned investments to tangible assets, rights and services or to the sufficient capital for projects or other investment activities. Another point that puts the accent on the knowledge of this instrument is the increasing population of muslim citizens in the european countries, what creates the basic assumptions for the growing demand for the instruments of islamic financial products, the need for the knowledge of the basic and also more detailed approaches and the philosophy of this financial market. On the other hand, this segment is obstructed by a number of problematic factors which restrict remarkably the future possible development.The aim of this paper is to specify more closely the features of Islamic bonds (sukuk) and to perform on this theoretical basis the comparative analysis with the conventional bonds. For their comparison, we are going to use the calculations of the value at risk. The data used with the comparison consist of the monthly prices of the public and company sukuk and bonds taken from he database Bloomberg. Although the weekly prices are more exact in substituing the market prices, where the position of the portfolio can be liquid, despite of this fact, we used the monthly prices because of the restriction of availability of the daily time chains in the case of sukuk. We also had the limited number of countries, regarding the fact that the trading with sukuk is on the primary market in the majority of cases restricted. That is why we have chosen United Arab Emirates (Dubai) and Malaysia, as the countries from which  we have chosen public and company sukuk and bonds for their analysis and comparison.
Length: 13 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 202-214
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=012&rid=7314
File-Function: First version, 2017
Number: 4507314
Classification-JEL: G15, G24
Keywords: bond, sukuk, Value at Risk, factor
Handle: RePEc:sek:iefpro:4507314
Template-Type: ReDIF-Paper 1.0
Author-Name: Lukas Maslo
Author-Name-First: Lukas
Author-Name-Last: Maslo
Author-Email: lukas.maslo@vse.cz
Author-Workplace-Name: University of Economics, Prague
Title: A Just Price: Objections and Suggested Solutions
Abstract: This paper examines the concept of a just price not as a historical but as theoretical problem. After a detailed exposition of the scholastic theory of value, price and commutative justice, the author identifies four main subjective-value-based objections to the concept of a just price and settles them one after another. These objections are 1) an apparent self-contradiction consisting in stating a subjective nature of utility and, at the same time, equality of value in exchange; 2) how can a voluntary exchange be unjust; 3) how can a just price be found in an isolated exchange of a unique good; 4) a missing satisfactory definition of a just price. The author suggests to settle the first objection by identifying the ontological status of the objective value. Leaning on a distinction of an objective value in use (virtuositas) and subjective desirability (complacibilitas) made by Saint Bernardino of Sienna and Saint Antonino of Florence, the author asserts that while complacibilitas is a potentiality of subjective desirability resting in an individual, virtuositas is a potentiality of usefulness resting in a thing. On account of this, a following solution is suggested: a particular usefulness is not purely subjective because it does not depend on a subjective perception of an individual; it is a metaphysical accident of a thing, not a metaphysical accident of an individual; a particular usefulness is not purely objective, either, because it is a relation to an individua; thus, equality in exchange means equality of potentiality of usefulness which is not a particular usefulness but a set of all usefulnesses concealed in the potentiality of the thing, even though they have not yet been actuated.  The author suggests to settle the second objection by providing a logical proof for the assertion that an exchange in which one party suffers an unjust price is not a voluntary exchange and, on the grounds of this, the author demonstrates that an unjust exchange cannot be a voluntary exchange. Finally, the author suggests a definition of a just price which is applicable to any exchange, whether a competitive price exists or not.
Length: 19 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 215-233
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=013&rid=7449
File-Function: First version, 2017
Number: 4507449
Classification-JEL: A12, B11, D46
Keywords: just price, commutative justice, value, potentiality, act, metaphysical accident, virtuositas, complacibilitas 
Handle: RePEc:sek:iefpro:4507449
Template-Type: ReDIF-Paper 1.0
Author-Name: Ignas Mikalauskas
Author-Name-First: Ignas
Author-Name-Last: Mikalauskas
Author-Email: ignas.mikalauskas@gmail.com
Author-Workplace-Name: Vilnius University
Title: The costs of innovative renewable energy sources in modern society
Abstract: The importance of technological advances reaches each and every one.  New innovations drive the world we live in, form societies and economies around us. One of the main and primitive questions to every day human is whether or not he can afford a new technology, for a manufacturer ? can he make a profit of selling it, for an environmentalist ? how will it impact the future? One thing is certain ? none of that can be answered if it?s unknown whether the technology is reachable to every day user, starting from the price of the technology itself, including different levels of investments, ending with the costs of actually installing the technologies to common households worldwide, for green, economically growing and sustainable future.
Length: 11 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 234-244
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=014&rid=7196
File-Function: First version, 2017
Number: 4507196
Classification-JEL: 
Keywords: renewable energy, innovative renewable energy sources, cost of energy
Handle: RePEc:sek:iefpro:4507196
Template-Type: ReDIF-Paper 1.0
Author-Name: Asta Mikalauskiene
Author-Name-First: Asta
Author-Name-Last: Mikalauskiene
Author-Email: asta.mikalauskiene@khf.vu.lt
Author-Workplace-Name: Vilnius University
Author-Name: Dalia Streimikiene
Author-Name-First: Dalia
Author-Name-Last: Streimikiene
Author-Email: dalia.streimikiene@khf.vu.lt
Author-Workplace-Name: Vilnius University
Title: The main drivers of GHG emission reduction in Baltic States
Abstract: Lithuania, Latvia and Estonia successfully implemented Kyoto protocol commitments in the period from 2008 to 2012. Moreover, targets of the Europe 2020 strategy, in which countries committed to reduce the greenhouse gas emissions of 1990 by 20% until 2020 are also achievable for Lithuania, Latvia and Estonia. It is forecasted that the reduction of GHG emissions in 2020 in the Baltic States will be much higher than EU average target.  Baltic States have achieved significant reduction of GHG emissions during 1990-2015, especially in energy sector which is the major sources of GHG emissions in Baltic States. During the period 1990?2013, Lithuania?s gross domestic product (GDP) per capita increased by 56.8 per cent, while GHG emissions per GDP and GHG emissions per capita decreased by 66.7 and 47.8 per cent, respectively. The major reason for the decrease in per capita emissions are the structural changes in the energy sector. At the same period, Latvia?s population decreased by 24.4 per cent, GDP per capita increased by 64.0 per cent, while GHG emissions per GDP and GHG emissions per capita decreased by 66.4 and 44.8 per cent, respectively. Latvia?s economy grew rapidly in the period 2000?2007, with a GDP increase of 82.0 per cent. Economic growth rates and climatic conditions have been the most important drivers for GHG emissions trends in Latvia. Estonia?s gross domestic product (GDP) per capita increased by 85.1 per cent, while GHG emissions per GDP and GHG emissions per capita decreased by 65.1 and 35.3 per cent, respectively. Such significant GHG emission reduction in Estonia was driven by restructuring of the economy and efficiency improvement in the energy industry and energy demand sectors. There is a significant decoupling of emissions from economic growth in all three countries however countries have very different energy supply balances and implemented various climate change mitigation policies.
Length: 13 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 245-257
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=015&rid=7194
File-Function: First version, 2017
Number: 4507194
Classification-JEL: 
Keywords: GHG emissions, drivers, energy sector, Baltic States
Handle: RePEc:sek:iefpro:4507194
Template-Type: ReDIF-Paper 1.0
Author-Name: Rimona Palas
Author-Name-First: Rimona
Author-Name-Last: Palas
Author-Email: rimona@clb.ac.il
Author-Workplace-Name: College of Business and Law
Author-Name: Amos Baranes
Author-Name-First: Amos
Author-Name-Last: Baranes
Author-Email: amos@drbaranes.com
Author-Workplace-Name: Peres Academic Center
Title: The Prediction of Earnings Movement Using Mandated XBRL data ? Industry Analysis
Abstract: The immediate availability and easy accessibility of the XBRL filings will allow researchers and investors, especially small investors, to implement investment strategies based on this information.  The objective of this study is to examine whether previous studies, predicting the direction of movement of earnings, are still relevant when using the newly SEC required, XBRL database (standardized financial reporting system). The study analyzes NYSE companies' XBRL quarterly data, from 2011 to 2015, using a two-step Logit regression model. The model is then used to arrive at the probability of the directional movement of earnings between current quarter and subsequent quarter, adjusted for a drift. Additional models are created by dividing the sample into industry membership (based on SIC codes).The results classified the companies as ones that would realize an increase in earnings or a decrease in earnings. The final model indicated a significant ability to predict subsequent earnings changes. The predictions appear to be correct on average about 70.7% of the time (higher than those of previous studies based on COMPUSTAT). The industry based models, although do not increase the accuracy of the model (an average of 68%) do increase the portfolio size. In other words, the model, based on industry, is able to classify more companies with a higher probability.These results suggest that XBRL data can be used as a means for forecasting movements in earnings, and creating a profitable investment strategy.
Length: 18 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 258-275
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=016&rid=7381
File-Function: First version, 2017
Number: 4507381
Classification-JEL: F37
Keywords: accounting information, earnings prediction, investment strategy, XBRL, industry analysis
Handle: RePEc:sek:iefpro:4507381
Template-Type: ReDIF-Paper 1.0
Author-Name: Mikulas Pichanic
Author-Name-First: Mikulas
Author-Name-Last: Pichanic
Author-Email: pichanic@vse.cz
Author-Workplace-Name: University of Economics, Prague
Author-Name: Anna Stankova
Author-Name-First: Anna
Author-Name-Last: Stankova
Author-Email: stankova@vse.cz
Author-Workplace-Name: University of Economics, Prague
Title: The Czech Government?s Strategy for Fighting Inequality
Abstract: Defenders of globalization often argue that, whatever distress it may cause for the rich-world workers, it has been good for poor or less affluent countries. The inequality as measured by the distribution of income between the rich and poor countries, has globally narrowed. But within each country, the story is less pleasing. We may use three different arguments to support this conclusion: 1) differentiation among workers. A-skilled workers in rich countries; B-low skilled workers in rich countries; C-high-skilled workers in poor countries; D-low-skilled workers in poor countries. The new slogan originating in the Silicon Valley works with the ?gig economy? and with the appearance of the new workers category - contract workers. 2) growth of crony capitalism (measured by the crony capitalism index). 3) social and economic mobility. The authors came to the conclusion that inequality of workers in the Central European post-communist countries will never reach the income level corresponding to their counterparts of groups A and B in the developed economies of the EU and the inequality in the Czech Republic contrary to the general accepted opinion about egalitarian society has been growing.
Length: 11 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 276-286
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=017&rid=7375
File-Function: First version, 2017
Number: 4507375
Classification-JEL: D60, D31, D33
Keywords: Keywords: Globalization, Inequality, Income, Gig Economy, Categories of Workers, Crony Capitalism, Automated Systems
Handle: RePEc:sek:iefpro:4507375
Template-Type: ReDIF-Paper 1.0
Author-Name: Tatiana Polonyankina
Author-Name-First: Tatiana
Author-Name-Last: Polonyankina
Author-Email: tatiana.polonyankina@vse.cz
Author-Workplace-Name: University of Economics, Prague
Title: DOES THE GRAVITY MODEL WORK FOR THE MODELLING OF MIGRATION BETWEEN EUROPEAN COUNTRIES FROM 2011 TO 2014?
Abstract: The gravity model is an interesting adaptation of Newton's law of gravitation, in which the effect of gravity is used to describe the spatial interactions between economic units. The force of interaction is supposed to be positively influenced by the size of the units (the push factor) and negatively by the distance between them (the pull factor). The model is used to estimate the dependence of migration on the GDP, as well as the distance between European countries. Based on the gravity model, the GWP of both (source and host) countries, is expected to be a push factor and the distance is expected to be a pull factor. However, in economic theory, the impact of the GDP of a source country is expected to be negative, the opposite to the gravity model. The goal of the paper is to test which of the two is valid for eight European countries from 2011 to 2014.
Length: 9 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 287-295
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=018&rid=7428
File-Function: First version, 2017
Number: 4507428
Classification-JEL: F22, C23, C52
Keywords: gravity model, spatial dependence, migration, model selection, random effects, panel data
Handle: RePEc:sek:iefpro:4507428
Template-Type: ReDIF-Paper 1.0
Author-Name: Pavel  Potuzak
Author-Name-First: Pavel 
Author-Name-Last: Potuzak
Author-Email: pavel.potuzak@vse.cz
Author-Workplace-Name: University of Economics, Prague
Title: Zero time preference and eternal postponement of consumption
Abstract: Ludwig von Mises in his magnum opus Human Action claimed that the absence of time preference would lead the consumer to postpone the act of consumption to indefinite future. Olson and Bailey (1981) demonstrated that zero time preference is consistent with positive real interest rate and positive present consumption if the marginal utility of consumption is rapidly decreasing and the income endowment is rising over time.This paper shows that zero time preference does not restrict present consumption to nil even if positive interest rate enables future consumption to be very large. Dynamic neoclassical model is applied to confirm that low intertemporal elasticity of substitution leads to positive present consumption even in the case of patient consumers. Determinants of the optimum present consumption are derived, and it is proved that labour income might not be increasing over time to confirm the approach of Olson and Bailey and to disprove the Mises theory. 
Length: 15 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 296-310
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=019&rid=7367
File-Function: First version, 2017
Number: 4507367
Classification-JEL: E21, B53, D90
Keywords: time preference, Ludwig von Mises, postponement of consumption, intertemporal elasticity of substitution 
Handle: RePEc:sek:iefpro:4507367
Template-Type: ReDIF-Paper 1.0
Author-Name: Sonia Quiroga
Author-Name-First: Sonia
Author-Name-Last: Quiroga
Author-Email: sonia.quiroga@uah.es
Author-Workplace-Name: University of Alcala
Author-Name: Cristina Suárez
Author-Name-First: Cristina
Author-Name-Last: Suárez
Author-Email: cristina.suarez@uah.es
Author-Workplace-Name: Universidad de Alcalá
Author-Name: Juan Diego Solís
Author-Name-First: Juan Diego
Author-Name-Last: Solís
Author-Email: jdsa@ce.unanleon.edu.ni
Author-Workplace-Name: Universidad Nacional Autónoma de Nicaragua-León
Author-Name: Pablo Martínez-Juárez
Author-Name-First: Pablo
Author-Name-Last: Martínez-Juárez
Author-Email: p.martinez.juarez@gmail.com
Author-Workplace-Name: Universidad de Alcalá
Title: A microeconometric analysis of climate change drivers for coffee crops transition to cacao in Mesoamerican countries
Abstract: Climate change will have a permanent impact over Mesoamerican agricultural sector. Present day crops such as coffee may not be enough to secure agricultural subsistence levels, therefore, the first stages of crop diversification are being observed in countries such as Nicaragua. Implementation of new crops such as cocoa may lead to new impacts over the environmental structure of the Mesoamerican ecosystem. These impacts may be of different, nature, but being diversification an already undergoing process attention must be paid to the underlying motivation and decision-making processes involved. This study analyses subjacent motivations and contexts that lead to the potential incorporation of cocoa crops in present-day Nicaraguan coffee farms. In order to achieve that, three main motivations were identified: climatic, economic and governmental. An econometric analyse was performed over the variables that affect farmers? motivations and decisions, in order first to analyse this decision-making process, and second, to understand how social and climatic evolution over the next decades will impact the context under which agricultural output is shaped. It was found that climatic perspectives are most closely affecting the smallholders? decision of incorporating cocoa plantations into their farms. Therefore, climate change will most certainly have a major role in the reshaping of agricultural structure in most of Nicaraguan geography. Moreover, results show a lower impact of market conditions and public subsidies over farmers? choices and decisions. These results favour the intuition that risk-reduction is a preferred strategy among Nicaraguan smallholders. 
Length: 16 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 311-326
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=020&rid=7415
File-Function: First version, 2017
Number: 4507415
Classification-JEL: F64, C10, Q15
Keywords: farmers perceptions analysis, climate risk adaptation, crop diversification, behavioural economics
Handle: RePEc:sek:iefpro:4507415
Template-Type: ReDIF-Paper 1.0
Author-Name: Sonia Quiroga
Author-Name-First: Sonia
Author-Name-Last: Quiroga
Author-Email: sonia.quiroga@uah.es
Author-Workplace-Name: University of Alcala
Author-Name: Emilio Cerdá
Author-Name-First: Emilio
Author-Name-Last: Cerdá
Author-Email: ecerdate@ccee.ucm.es
Author-Workplace-Name: Universidad Complutense de Madrid
Title: Exploring farmers? selection of crop protection levels as an adaptation strategy to climate risks
Abstract: Among the challenges facing the European Union agricultural sector in the coming years, the impacts of climate change could lead to much greater variability in farmers? incomes. In this context, the insurance industry will have to develop new instruments to cover farmers? incomes against losses due to meteorological factors. Some protective technologies that farmers can use for climate risk management have associated costs that vary as a function of the losses involved. These sorts of instruments compete with other less flexible instruments such as crop insurance. We here analyse an issue of decision-making, where the farmer can decide how much to invest in protection, as in situations where the farmer chooses which portion of a loss to protect in the case of adverse weather conditions, and we propose optimal management to mitigate the increasing negative effects of climate uncertainty. By analysing the optimal policy in a continuous choice situation, we consider whether farmers, as part of their crop management duties, should opt to protect some portion of their harvest value with available technologies, or whether they should protect the entire crop. To analyse this decision-making problem, we employ the cost-loss ratio model and take risk aversion into account.
Length: 27 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 327-353
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=021&rid=7414
File-Function: First version, 2017
Number: 4507414
Classification-JEL: Q00, C44, Q54
Keywords: Crop yield protection, climate risks, information value, cost-loss ratio, decision models 
Handle: RePEc:sek:iefpro:4507414
Template-Type: ReDIF-Paper 1.0
Author-Name: Anca Tamas
Author-Name-First: Anca
Author-Name-Last: Tamas
Author-Email: anca.tamas@rei.ase.ro
Author-Workplace-Name: Center of International Business and Economics, Bucharest University of Economic Studies
Author-Name: Ruxandra Popescu
Author-Name-First: Ruxandra
Author-Name-Last: Popescu
Author-Email: ruxandra.popescu@rei.ase.ro
Author-Workplace-Name: Bucharest University of Economic Studies
Title: The advantages of using Best-Worst Model for hybrid products
Abstract: Purpose-the aim of this paper is to highlight the advantages of using Best-Worst Model to find out the importance of country of origin of hybrid products for specialistsDesign/Methodology/Approach-quantitative methods: questionnaires. SPSS was used for computing the scores and to check out if the gender or age has an influence on the scores.Findings- for specialists or consumers familiar with products, country of origin is of low importance, it is less important comparing to price or quality and it doesn?t have a significant effect on buying intention.Practical implications-the paper is very for researchers, it was proved that Best-Worst Model is more objective than other types of survey.Originality/Value-the application of the Best-Worst Model on specific categories of goods.
Length: 10 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 354-363
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=022&rid=7471
File-Function: First version, 2017
Number: 4507471
Classification-JEL: B41, C83
Keywords: Best-Worst Model, consumer behavior, hybrid products
Handle: RePEc:sek:iefpro:4507471
Template-Type: ReDIF-Paper 1.0
Author-Name: Simona V?eti?ková
Author-Name-First: Simona
Author-Name-Last: V?eti?ková
Author-Email: xvses00@vse.cz
Author-Workplace-Name: University of Economics, Faculty of Economics, Department of Economics,  Prague
Title: The Government Expenditure Structure and Economic growth
Abstract: This article examines the effect of the government expenditure structure on the economic growth. The objective is to determine which components of public expenditures are growth enhancing and which growth retarding. The theoretical model is set into the endogenous growth framework and describes the growth mechanism of productive and unproductive government expenditures. The growth impact of public spending composition is analysed for 18 European countries from 1996 to 2012. The empirical part is based on the panel data analysis. The empirical findings suggest that reallocating public resources towards education and health can promote growth. On the contrary higher expenditures on social spending and defence are likely to be growth-retarding.  
Length: 18 pages
Creation-Date: 2017-04
Publication-Status: Published in Proceedings of the Proceedings of the 7th Economics & Finance Conference, Tel Aviv, Apr 2017, pages 364-381
File-URL: https://iises.net/proceedings/7th-economics-finance-conference-tel-aviv-israel/table-of-content/detail?cid=45&iid=023&rid=7467
File-Function: First version, 2017
Number: 4507467
Classification-JEL: E62, H10, H50
Keywords: Government expenditure, Economic growth, Endogenous growth theory
Handle: RePEc:sek:iefpro:4507467