Template-Type: ReDIF-Article 1.0
Author-Name: Jan Cadil
Author-Name-First: Jan
Author-Name-Last: Cadil
Author-Email: jan.cadil@unicorncollege.cz
Author-Workplace-Name: Unicorn College and University of Economics, Prague
Title: AGGREGATE PRODUCTION FUNCTION AND INCOME IDENTITY? EMPIRICAL ANALYSIS
Abstract: Aggregate production function, especially in its Cobb-Douglas and more general CES form, is still very popular among economists. However there is a huge and long-standing critique regarding the function. The core of the criticism which prevailed until these days is that not only the Cobb-Douglas but also CES aggregate production functions are nothing more than income identity in disguise. Such fact would have serious implications for contemporary macroeconomics ? both theory and practice. In this paper we estimated Cobb-Douglas and CES production functions in traditional way. Then we used capital and labour services instead of capital stock and labour. We came to conclusion that to get statistically sound results when elasticities equal factor shares, it is necessary to use the latter approach to deal with the factor´s utilization. However doing so revealed that such modified estimate is really only an estimate of income identity in disguise as predicted by the critique.
Classification-JEL: O00, E23, E25
Keywords: Aggregate production function, Income identity, Capital services, Labour services
Journal: International Journal of Economic Sciences
Pages: 1-17
Volume: 6
Issue: 1
Year: 2017
Month: May
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1223
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1223?download=1
Handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Tomislav Herceg
Author-Name-First: Tomislav
Author-Name-Last: Herceg
Author-Email: therceg@net.efzg.hr
Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb
Author-Name: Iva Vuksanovic
Author-Name-First: Iva
Author-Name-Last: Vuksanovic
Author-Email: ivav@ekof.bg.ac.rs
Author-Workplace-Name: Faculty of Economics Belgrade, University of Belgrade
Title: Technological progress in Croatian perennial agriculture
Abstract: The agricultural sector in Croatia has declined or stagnated since the 1980s. Despite the high subsidies and EU accession, it failed to improve its production level, but the underlying causes of the subsidy inefficiency remain unclear. Trade liberalization and bear prices of agricultural products in the EU are some of the frequently cited arguments. On the other hand, government interventions in the form of direct subsidies have always been significant. Following the prevailing theoretical body of literature, we assumed that these interventions were at least in part aimed at achieving sustainable competitive position of the agriculture sector vis-à-vis foreign markets. Therefore, this paper analyzes Croatian perennial agriculture in detail with the aim to reveal whether subsidies in this sector led to technological progress and productivity increase. A panel data set for all Croatian legal entities doing business in the field of perennial agriculture in the 2008-2014 period was used to construct a production function in order to extract the total factor productivity and determine whether the K/L ratio is properly set. It is shown that the K/L ratio is entirely inadequate, while also indicating the decreasing returns to scale which should have been overcome with technological progress (TFP). The TFP in perennial agriculture remained constant throughout the period despite the changes in subsidies. Moreover, the majority of perennial subsectors have displayed significant decrease in the TFP. Finally, a TFP model was built to determine the factors that affect the TFP growth. By employing a set of 301 variables which describe the companies? internal and external properties, only two remained significant: export and subsidies, but with almost inexistent effect, revealing that exports and current subsidy distribution cannot be a drive for perennial or for non-perennial agriculture growth in Croatia. 
Classification-JEL: D24, Q13
Keywords: Total factor productivity, perennial agriculture, Croatia, sectoral policies, agricultural subsidies, Cobb-Douglas production function.
Journal: International Journal of Economic Sciences
Pages: 18-32
Volume: 6
Issue: 1
Year: 2017
Month: May
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-913
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-913?download=2
Handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:18-32
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Vorlicek
Author-Name-First: Jan
Author-Name-Last: Vorlicek
Author-Email: j.h.vorlicek@seznam.cz
Author-Workplace-Name: College of Business and Law
Author-Name: Klara Cermakova
Author-Name-First: Klara
Author-Name-Last: Cermakova
Author-Email: klara.cermakova@vse.cz
Author-Workplace-Name: University of Economics in Prague
Title: Strategic Behavior as the Cause of Business Cycles 
Abstract: This paper is aimed to present theory of ?natural strategic cycles? showing that the cyclical development of economic performance (among other causes economic theory has been processed) can be caused also by cyclical evolution of the proportions of various strategies used by different actors in society. We use game theory as theoretical background. The existence of various games gives us an explanation of why there are so many different cycles with different duration. We assume that the theory of strategic cycle can be used to explain e.g. speculative bubble on stock exchange or long-term cycles that are still somehow difficult to grasp.
Classification-JEL: C71, E03
Keywords: Business cycles, strategic cycles, games theory
Journal: International Journal of Economic Sciences
Pages: 33-40
Volume: 6
Issue: 1
Year: 2017
Month: May
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1200
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1200?download=3
Handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:33-40
Template-Type: ReDIF-Article 1.0
Author-Name: william  vukson
Author-Name-First: william 
Author-Name-Last: vukson
Author-Email: g7research@eol.ca
Author-Workplace-Name: Centre for Automotive Sustainability
Title: intereset Rate Uncertainty and FDI Pre-Globalisation
Abstract: Exchange Rate uncertainty prior to the Euro were deemed an important impediment to Foreign Direct Investment Flows. This paper confirms that they were the main cause preventing optimal Private Corporate Sustainability during this era. This paper was researched with several industries in mind; automotive; textile and manufacturing sectors. It continues to serve as a key pillar for private sustainability goals in the automotive sector. Exchange Rate Uncertainty supercedes the effects of tax rate differentials and real wage rate differentials. The methodology used was OLS econometric techniques and the data was transformed into annual growth rates in order to achieve scientific  compatibilities in my research methodology. 
Classification-JEL: F21
Keywords: Exchange Rates; Uncertainty; Private Sustainability; Corporate Growth; 1970s; 1980s; Nixon, Reagan; Carter; Giscard d'Estaing; Helmut Schmidt; Snake Agreement; EMU; ERM; 
Journal: International Journal of Economic Sciences
Pages: 41-78
Volume: 6
Issue: 1
Year: 2017
Month: May
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1148
File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1148?download=4
Handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:41-78