Volume 14 (2014): Issue 2 (June 2014)

The trade off efficiency and equity issue, which is represented by income redistribution, becomes increasingly debated not only in economic and social, but also in political dimension. Solution of this trade-off problem is projected into the implementation of social policy and results achieved in macroeconomics policy, with the goal to define the optimal scope and character of the income redistribution processes. The submitted empirical study responds to this problem through the investigation of research question focused on the existence of a relationship between the social protection expenditure (expenditure on policy of family, old age and unemployment) and the achieved level of socio-economic development (quantified by Human Development Index HDI). The existence of this relationship is statistically tested in a sample of 15 countries. The research sample is heterogeneous in relation to the analyzed indicators, and it contains countries with a different level of economics development and income redistribution policy. Based on the results of quantitative analysis in most surveyed countries, impact of social protection expenditure on the reached level of economic development was confirmed. The correlation between the social protection expenditure and socio-economic development is positive in the case of the family and old-age pension policy, and negative in the case of employment policy

This paper estimate the differential impact of first-price sealed-bid (first-price) auctions relative to English auctions on auction revenue. While there is a theoretical literature on the potential outcomes of first-price relative to English auction, there is a paucity of articles that empirically estimate this relationship. The answer to this question is important not only to economists but also those designing auction for practical application. Using a unique dataset from tax lien auctions in Illinois, I empirically test the effect of a switch in auction type from English to first-price. I find auction revenue is greatly increased, by as much as 22 percent, under the first-price auction. The results are supported by a within county difference-in-difference model specification and are robust when restricting the sample across various specifications

The terms of reference for this study were to outline an inability of market principles to satisfy needs with a focus on natural determination of individuals. The author tries to define causes of market failures in satisfying of basic human needs and outlines a way how to overcome the problems stated. In the first part, evidence of elemental dissatisfaction is collected as the ground for improvements, namely an inequality as the highest hurdle on the way to satisfying of needs. The subsequent chapters analyze the role of market, especially in the context of four antagonistic relationships - macro and micro level; inequality and commonness. Chapters deal with the fact that profit maximization principally impedes satisfaction of fundamental human needs. Furthermore, mainstream development policies on macro-level are discussed. On the examples of foreign investments and market integration, the archetypal solutions for boosting economies, it is shown that in a strict economic sense, no investments principally cannot be measure to satisfy of basic human needs in a global scale. The paper indicates that general priorities of human beings are beyond the frame of contemporary economic configuration

In this paper I present the historical, theoretical and empirical background of DSGE models. I show that the fundament of these models lies in optimizing agents framework and argue which impulses fueled the development of DSGE models. I demonstrate the evolution of DSGE models with an accent on the role and effects of the monetary policy, using distinction between RBC models and New Keynesian models. I explain the paradigm shift from the RBC models to the New Keynesian models by pointing out the main pitfalls of the RBC models and showing how adding nominal rigidities to the otherwise standard RBC models enhances empirical properties of these models. I also discuss how nominal rigidities are modeled in New Keynesian DSGE models and what the pros and cons of different approaches are. Finally, I review the most important New Keynesian theories of nominal rigidities and some of the empirical evidence on price and wage rigidities

Rail transport is an environmentally friendly form of passenger transport which can be utilized effectively also in urban and suburban transport systems. The paper describes the urban and suburban rail transport system including comparison of selected Czech (Prague, Brno and Ostrava) and German metropolitan regions (Munich, Nuremberg and Dresden). Its aim is to analyze the importance of various factors influencing the differences between the situation in Germany and in the Czech Republic. Therefore, the research question is whether these differences are primarily caused by a different liberalization stage, or whether they are a result of other factors such as available infrastructure, investment level, rail transport services budget, structure and activity of ordering bodies and coordinators or geographical context. The supply of city and suburban rail transport is quite good in Germany and in the Czech Republic, although trains in Munich, Nuremberg and Dresden run more frequently, faster and are better interconnected with car transport. German rail transport sector is at a higher stage of liberalization, and tendering procedures are the preferred selection method for contractor carriers. However, a degree of liberalization of the railway sector is not the key marker indicating a better standard of urban and suburban rail transport in Germany because it is the high standard which is achieved as the consequence of the professional activity of the ordering bodies and train service coordinators in combination with geographical conditions, available financial sources and effective transport infrastructure. On the other hand, the importance of liberalization cannot be totally overlooked as tenders are a tool for the ordering bodies to strongly affect the price and quality of transport services in their area. The supply of better quality and attractive transport to passengers could increase the usage of rail transport in metropolitan regions and could have indirect but important socio-economic impacts