Záznam přidán/aktualizován: 11. března 2022 v 09.52 hod.
Valuation of Equity Release Contracts in Czech Republic, Republic of Poland and Slovak Republic
Agnieszka Marciniuk, Emília Zimková, Vlastimil Farkašovský, Colin W. Lawson
Prague Economic Papers 2020, 29(5):505-521 | DOI: 10.18267/j.pep.743
An ageing European population and, therefore, a rising dependency ratio of retirees to the working population, strongly suggests that a pension funding gap will be a key social issue in future. Yet many older people have significant real estate assets that they could access using equity release products. They could sell their assets in exchange for lifelong or temporary monthly payments. Equity release products are relatively new to Poland, but are not yet offered by commercial banks in Czechia and Slovakia. This paper estimates the potential benefits of marriage reverse annuity, and reverse mortgage contracts, using the Svensson model function, and...
Dynamic Efficiency in World Economy
Kevin Luo, Tomoko Kinugasa, Kai Kajitani
Prague Economic Papers 2020, 29(5):522-544 | DOI: 10.18267/j.pep.746
Based on the AMSZ (1989) criterion, we exploit comprehensive datasets to estimate the dynamic efficiency of world economy. The results reveal that the representative econo-mies conform to a "U-shaped pattern" in their evolution of capital accumulation. That is, a period of decreasing efficiency (over-accumulation) followed by increasing efficiency (de-accumulation). Contrary to previous evidence, the bias-corrected estimates show that major economies have been inconsistently dynamically efficient. As a prime example, China today is unquestionably in a state of severe dynamic inefficiency, and the inefficient status is likely to continue in near future....
Interest Rates and Household Saving Behaviour: An Empirical Puzzle and a Solution Using Czech Data
Ondřej Badura
Prague Economic Papers 2020, 29(5):545-560 | DOI: 10.18267/j.pep.741
This paper investigates the transmission from interest rates to household saving behaviour when introducing two main innovations of analysing this relationship. The first one is based on the use of a set of client interest rates instead of one monetary policy rate. This step enables us to distinguish impacts of the substitution and income effects in more detail. The second major innovation lies in the division of households into income categories, which provides us with more observations and thus makes it possible to conduct this analysis even for a single country. Using the generalized method of moments for the dynamic panel data, we analyse Czech...
Commuting Time and Life Satisfaction of High School Students in the Czech Republic, Italy and Slovenia
Julius Janáček, Václav Rybáček
Prague Economic Papers 2020, 29(5):561-574 | DOI: 10.18267/j.pep.744
This study is a contribution to research into the relationship between commuting and life satisfaction. Our focus is on high school students. The research is based on a questionnaire survey among students in three countries: the Czech Republic, Italy and Slovenia. The analysis is conducted using six OLS regression models: three countries and both boys and girls in each country. The results show significant variance between the countries as far as the relation between commuting time and life satisfaction is concerned. A strong relation has been found only in the case of the Czech Republic. Possible reasons for this disparity include differences in the...
Social Welfare Effects of Progressive Income Taxation under Increasing Inequality
Saša Ranđelović, Marko Vladisavljević
Prague Economic Papers 2020, 29(5):575-599 | DOI: 10.18267/j.pep.750
During the 2008 economic crisis, labour market inactivity, unemployment and work informality in Serbia rose substantially, triggering a salient increase in Gini-measured inequality (by 4.3 pp), while income tax progressivity remained very low. Using the micro-simulation and utility function estimation techniques on 2007 and 2012 household survey data for Serbia, we compare the social welfare effects of a hypothetical shift from flat to progressive taxation, before and after the crisis. We find that a shift from flat to progressive tax and the consequent behavioural response lead to a reduction in inequality, a rise in total labour supply and an increase...
The Effects of Economic Policy Uncertainty on Export: A Gravity Model Approach
Fei Jia, Xiaoyong Huang, Xiangyun Xu, Haoyu Sun
Prague Economic Papers 2020, 29(5):600-622 | DOI: 10.18267/j.pep.754
We use a gravity model that accounts for multilateral resistance terms (MRT) to examine the impact of economic policy uncertainty (EPU) on a country's export. Empirical analysis based on data from 20 countries that traded with one another (creating 380 pairs of importing-exporting countries) over the period 2002-2016 shows that the export of a country is negatively associated with the EPU of its corresponding importing country, but not with the EPU of the exporting country itself. This effect remains qualitatively unchanged regardless whether the exporting country is a developed or a developing economy and whether it focuses on commodities or non-commodities,...