nep-tra New Economics Papers
on Transition Economics
Issue of 2013‒05‒22
nine papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Too many skew normal distributions? The practitioner’s perspective By Wojciech Charemza; Carlos Diaz Vela; Svetlana Makarova
  2. Linkages between the Eurozone and the South-Eastern European Countries: A VECMX* Analysis By Minoas Koukouritakis; Athanasios Papadopoulos; Andreas Yannopoulos
  3. Testimony before the US-China Economic Security Review Commission: China's Agriculture Policy and US Access to China's Market By Dermot J. Hayes
  4. Making sense of “weakness” of post-communist civil society: Individual vs. organized engagement in civil advocacy in the Czech Republic By Jirí Navrátil
  5. The influence of regulatory and institutional framework and shareholder structure upon risk of financial institutions in Central Europe By Dorota Skała
  6. Inflation Persistence in Central and Eastern European Countries By Zsolt Darvas; Balázs Varga
  7. Systematic anchoring of global innovation processes and new industry formation – the emergence of on-site water recycling in China By Binz , Christian; Truffer , Bernhard; Coenen , Lars
  8. Labor Market Laws and Intra-European Migration: The Role of the State in Shaping Destination Choices By John Palmer; Mariola Pytlikova
  9. Municipal expenditures efficiency with emphasis on the competitiveness and type of company: Case study on waste management expenditures in the South Moravian Region By Jana Soukopová; Ivan Malý

  1. By: Wojciech Charemza; Carlos Diaz Vela; Svetlana Makarova
    Abstract: The paper tackles the issue of possible misspecification in fitting skew normal distributions to empirical data. It is shown, through numerical experiments, that it is easy to choose a distribution which is different from this which actually generated the sample, if the minimum distance criterion is used. It is suggested that, in case of similar values of distance measures obtained for different distributions, the choice should be made on the grounds of parameters’ interpretation rather than the goodness of fit. This is supported by empirical evidence of fitting different skew normal distributions to the estimated monthly inflation uncertainties for Belarus, Poland, Russia and Ukraine.
    Keywords: skew normal distribution; simulated minimum distance estimators; inflation uncertainties; monetary policy in Eastern Europe
    JEL: C46 E52 E37
    Date: 2013–05
  2. By: Minoas Koukouritakis (Department of Economics, University of Crete, Greece); Athanasios Papadopoulos (Department of Economics, University of Crete, Greece); Andreas Yannopoulos (Department of Economics, University of Crete)
    Abstract: In the present paper we assess the impact of the Eurozone�s economic policies on specific South-Eastern European countries, namely Bulgaria, Croatia, Cyprus, Greece, Romania, Slovenia and Turkey. Since these countries are connected to the EU or the Eurozone and the economic interdependence among them is evolving, we carried out our analysis using the VECMX* framework. Our results indicate that the transition economies in our sample react in a similar manner to changes in international macroeconomic policies. Cyprus and Greece react also in a similar way, but these responses are very small in magnitude. Finally, Turkey behaves in a different way, probably due to the inflationary pressures in its economy. In general, there is evidence of linkages and interdependence among the EU or Eurozone members of the region.
    Keywords: South-Eastern Europe, Monetary Transmission, VECMX* Model, Generalised Impulse Responses.
    JEL: E43 F15 F42
    Date: 2013–02–15
  3. By: Dermot J. Hayes (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI))
    Abstract: Testimony before the US-China Economic and Security Review Commission on April 25, 2013, by Dermot Hayes, professor of Economics and Finance, Iowa State University. Testimony covers impacts on food demand from China's rising incomes and urbanization; the viability of China's attempt to remain self-sufficient in meat and key staple crop production under inherent supply constraints, and the possible technological- and policy-based measures they may pursue in regard of such constraints; and, the main challenges to US-China agricultural trade in the short, medium, and long term.
    Date: 2013–05
  4. By: Jirí Navrátil (Department of Public Economics, Masaryk University)
    Abstract: Starting point of this paper is alleged weakness of civil society in Central-Eastern European countries as often demonstrated by sparse organizational infrastructure, low membership in civil society organizations (CSOs), or insufficient community activism and privatism of citizens in these countries. This paper focuses on the Czech Republic and claims, first, that there is a considerable discrepancy in the citizens´ engagement in organized civil society activities depending on whether these are perceived as political (advocacy) or not, and second, that the gap between organized and individual engagement within the field of civil advocacy does not necessarily stem (only) from the “legacy of communism” but (also) from the dissidents´ conception of “non-political” civil society. The paper deals with the empirical analysis of EVS data, original survey data (N=800), and focus group interviews. It aims at understanding what the motives of citizens and advocacy CSOs for keeping their distance are. Furthermore, the paper attempts to sketch more general causes of this disconnectedness through illustrating the roots of the conflict between the categories of collective/individual and political/ethical in the Czech history of thinking about civil society.
    Keywords: Civil society, democracy, civil participation, non-governmental organizations, Czech Republic.
    JEL: D72 L31
    Date: 2012–12
  5. By: Dorota Skała (Department of Finance, WNEiZ, University of Szczecin.)
    Abstract: We study the effects of broadening the safety net on bank risk taking in Central Europe, using individual bank data and time-varying regulatory data. Further, we analyse the shareholder structure and its links with risk, as well as possible modifications it may introduce to the moral hazard incentives produced by the financial safety net. We find that more extensive deposit insurance schemes and state aid granted to the financial sector induce higher levels of risk in individual banks. The shareholder structure does not significantly influence the risk levels, although some evidence for higher risk of government-owned institutions is identified. Majority ownership in the form of other financial institutions not only does not alleviate the moral hazard, but makes it more acute, at least in some risk specifications.
    Keywords: Bank risk taking, moral hazard, transition economies
    JEL: G21 G28 G32
    Date: 2013
  6. By: Zsolt Darvas; Balázs Varga (OTP Fund Management and Corvinus University of Budapest)
    Abstract: This paper studies inflation persistence with time-varying-coefficient autoregressions for twelve Central-European countries, in comparison with the US and the euro-area. Inflation persistence tends to be higher in times of high inflation. Since the oil price shocks, inflation persistence declined both in the US and euro-area. In most central and eastern European countries, for which our time period covers 1993-2012, inflation persistence has also declined, with the main exceptions of the Czech Republic, Slovakia and Slovenia, where persistence seems to be rather stable. We also concluded that the OLS estimate of an autoregression is likely upward biased when the parameters change.
    Keywords: inflation persistence, flexible least squares, Kalman-filter, time-varying coefficient models
    JEL: C22 E31
    Date: 2013–02
  7. By: Binz , Christian (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Truffer , Bernhard (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Coenen , Lars (CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU), Norway)
    Abstract: Understanding why and where emerging industries locate in today’s globalizing economy is a much debated topic, especially in the context of the recent evolutionary turn in economic geography. This paper proposes a new perspective based on the technological innovation system (TIS) approach. It argues that existing theories on industry formation could be extended with a systemic and multi-scalar view on the social construction processes in the very early industry formation phase. It hypothesizes that regions which successfully locate new industries combine the build-up of a territorial embedded TIS with drawing on innovation dynamics from other regions of a globally distributed TIS. A respective analytical framework is introduced and exemplified with a case study on on-site water recycling technology, based on interviews with 40 experts in Beijing, Shanghai and Xi’an, China. Our data suggests that a considerable on-site water recycling industry developed only in Beijing, which seen from existing theories on industry formation provided the least favorable initial conditions. Its success appears to be explainable with a local innovation system build-up process that recurrently and effectively anchored global TIS dynamics in its local context. We conclude by discussing how the proposed framework can enhance the understanding of industry formation and argue for a systemic innovation policy approach for supporting new industries
    Keywords: Industry formation; anchoring; technological innovation system; clean-tech industry; on-site water technology
    JEL: O31
    Date: 2013–03–03
  8. By: John Palmer (Princeton University); Mariola Pytlikova (Danish Institute of Governmental Research (KORA) and CReAM London)
    Abstract: This article investigates the relationship between migrants' destination choices and the formal labor market access afforded by multiple potential host countries in the context of the EU's eastward enlargement. We use an index of labor market access laws combined with data on migration from new EU member states into the existing states of the EU and EFTA from 2004 through 2010 to test whether (1) migrants are attracted to destinations that give them greater formal labor market access, and (2) migration flows to any given destination are influenced by the labor market policies of competing destinations. Our data support both propositions: Migration between origin/destination pairs was positively associated with the loosening of destination labor market restrictions while negatively associated with the loosening of competing destinations' labor market restrictions. These relationships hold even when economic indicators, social welfare spending, and existing immigrant stocks are modeled. By combining rich EU data with a unique approach to evaluating competing legal regimes, the analysis helps us better understand how law shapes migration in a multi-destination world.
    Date: 2013–05
  9. By: Jana Soukopová; Ivan Malý (Department of Public Economics, Masaryk University)
    Abstract: This paper, based on the analysis of current municipal expenditures on waste management, compares expenditure per capita and examines the impacts of competitive environment and type of waste management company (character of ownership) on the expenditure efficiency. Expenditures are compared by the number of competing companies in neighbouring municipalities by the districts and municipality size groups. First part of the paper briefly describes current situation around environmental protection municipal expenditure in Czech Republic and explains reason why the area of current municipal waste management expenditure has been chosen for the efficiency evaluation. Second part is dedicated to the idea of the efficiency evaluation methodology which is based on Cost-efficiency Analysis (CEA) and assessing the impact of a competitiveness and type of company to the efficiency. Evaluation and comparison is performed on the all 673 South Moravian municipalities for each of the years in the five-year period ended 2011.
    Keywords: competitiveness; efficiency; current municipal expenditure; the South Moravian Region
    JEL: H59
    Date: 2012–12

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