Template-Type: ReDIF-Article 1.0 Author-Name: Ondrej Bednar Author-Name-First: Ondrej Author-Name-Last: Bednar Author-Email: Ondrej.bednar@vse.cz Author-Workplace-Name: Prague University of Economics and Business Title: The Causal Impact of the Rapid Czech Interest Rate Hike on the Czech Exchange Rate Assessed by the Bayesian Structural Time Series Model Abstract: I have employed the Bayesian Structural Time Series model to assess the recent interest rate hike by the Czech Central Bank and its causal impact on the Koruna exchange rate. By forecasting exchange rate time series in the absence of the intervention we can subtract the observed values from the prediction and estimate the causal effect. The results show that the impact was little and time limited in one model specification and none in the second version. It implies that the Czech Central Bank possesses the ability to diverge significantly from the Eurozone benchmark interest rate at least in the short term. It also shows that the interest rate hike will not be able to curb global inflation forces on the domestic price level. Classification-JEL: F39, A10 Keywords: monetary policy, exchange rate, optimum currency area Journal: International Journal of Economic Sciences Pages: 1-17 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116987 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116987?download=1 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:1-17 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Cecrdlova Author-Name-First: Andrea Author-Name-Last: Cecrdlova Author-Email: Andrea.cecrdlova@vse.cz Author-Workplace-Name: Prague University of Economics and Business Title: Comparison of the Approach of the Czech National Bank and the European Central Bank to the Effects of the Global Financial Crisis Abstract: The latest global crisis, which fully erupted in 2008, can have a significant impact on central banks credibility in the long run. During the last crisis, monetary authorities encountered zero interest rate levels and, as a result, started to use non-standard monetary policy instruments. The Czech National Bank decided to use a less standard instrument in November 2013, when it started to intervene on the foreign exchange market in order to keep the Czech currency at level 27 CZK / EUR. However, the European Central Bank also adopted a non-standard instrument, when chose a path of quantitative easing in 2015 in order to support the euro area economy by purchasing financial assets. The question remains whether the approach of Czech National Bank or the approach of European Central Bank in the crisis and post-crisis period was a more appropriate alternative. With the passage of time from the global financial crisis, it is already possible to compare the approaches of these two central banks and at least partially assess what approach was more appropriate under the given conditions. When comparing the central banks approaches to the crisis, the Czech National Bank was better, both in terms of the rate of interest rate cuts and the resulting inflation with regard to the choice of a non-standard monetary policy instrument. The recent financial crisis has revealed the application of moral hazard in practice, both on behalf of the European Central Bank and the Czech National Bank, which may have a significant impact on their credibility and independence in the coming years. Classification-JEL: E31, E42, E52 Keywords: Monetary policy, Unconventional monetary instruments, Central bank, CNB, ECB, Exchange rate commitment, Quantitative Easing, Moral hazard Journal: International Journal of Economic Sciences Pages: 18-46 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116989 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116989?download=2 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:18-46 Template-Type: ReDIF-Article 1.0 Author-Name: Eduard Hromada Author-Name-First: Eduard Author-Name-Last: Hromada Author-Email: eduard.hromada@fsv.cvut.cz Author-Workplace-Name: Czech Technical University in Prague, Faculty of Civil Engineering Author-Name: Klara Cermakova Author-Name-First: Klara Author-Name-Last: Cermakova Author-Email: klara.cermakova@vse.cz Author-Workplace-Name: Prague University of Economics and Business Title: FINANCIAL UNAVAILABILITY OF HOUSING IN THE CZECH REPUBLIC AND RECOMMENDATIONS FOR ITS SOLUTION Abstract: The paper deals with the issue of unavailability housing in the Czech Republic, which affects an increasing number of people. As a result of the covid-19 pandemic, there has been a significant increase in property prices and widening the price to income gap, which mainly affects young people. This paper describes the basic causes of this undesirable phenomenon in society and provides recommendations that should be quickly adopted by the state and municipalities to improve the situation as we see a risk of an increase in social tension in society and a deterioration in the availability of employment for low-income professions. Classification-JEL: O18, R21, R31 Keywords: Housing, financial unavailability of housing, mortgages, real estate prices, employment, regional disparities. Journal: International Journal of Economic Sciences Pages: 47-58 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116991 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116991?download=3 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:47-58 Template-Type: ReDIF-Article 1.0 Author-Name: Emilie Jasova Author-Name-First: Emilie Author-Name-Last: Jasova Author-Email: entropa@seznam.cz Author-Workplace-Name: University of Finance and Administration Author-Name: Bozena Kaderabkova Author-Name-First: Bozena Author-Name-Last: Kaderabkova Author-Email: kaderabb@vse.cz Author-Workplace-Name: Prague University of Economics and Business Title: Ambiguous effects of minimum wage tool of labour markets regulation – key study of V4 countries Abstract: In this paper we analyze the effect of minimum wage change on selected labour market indicators such as duration of employment, hours worked, unemployment by education or profession or long-term unemployment. Our research is based on Eurostat and OECD data for V4 countries. The hypothesis discussed is whether the effect of minimum wage increase is positive or negative and we discuss the issue of economic regulation more generally. The output values of the regressions coefficients of all the V4 countries showed that the effects are more positive than negative. Mapping the overall intensity of effects of the minimum wage on selected indicator of the labour market in the Czech Republic and Hungary indicated a low sensitivity. The effects were very weak in Slovakia and Poland. The results of the analysis complied with the results of the domestic and international research in 13 cases and the results were different in 6 cases. Slightly more often they confirmed more positive effects of the minimum wage on selected indicators of the labour market than negative effects. Classification-JEL: E24, E32, E37 Keywords: minimum wage, rate of unemployment by educational attainment, long-term unemployment, average hours actually worked per week, temporary employees Journal: International Journal of Economic Sciences Pages: 59-86 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116992 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116992?download=4 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:59-86 Template-Type: ReDIF-Article 1.0 Author-Name: Lucie Kurekova Author-Name-First: Lucie Author-Name-Last: Kurekova Author-Email: kurekova@kfu.zcu.cz Author-Workplace-Name: University of West Bohemia, Faculty of Economics Author-Name: Pavlina Hejdukova Author-Name-First: Pavlina Author-Name-Last: Hejdukova Author-Email: pahejdu@kfu.zcu.cz Author-Workplace-Name: University of West Bohemia, Faculty of Economics Title: Multilevel research of migration with a focus on internal migration Abstract: In the research of migration, we can encounter the application of multidisciplinary approaches with the use of knowledge from existing theories, which implies the need for statistical reporting. It is not always easy to determine who a migrant is, and studies exploring migration can be dividing up according to many criteria. Contemporary literature contains a whole score of studies dealing with migration, its determinants and impacts on the economy, etc. However, there are very few studies dealing primarily with regional (i.e. internal) migration in comparison to the number of studies analyzing international migration. The goal of this study is to point out problems in reporting migration and to propose a strategy to analyze migration based on multilevel research of migration while making this strategy applicable to internal migration. Classification-JEL: J61, J21, E27 Keywords: Migration, labor market, statistical indicators, model Journal: International Journal of Economic Sciences Pages: 87-103 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116986 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116986?download=5 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:87-103 Template-Type: ReDIF-Article 1.0 Author-Name: Petr Malecek Author-Name-First: Petr Author-Name-Last: Malecek Author-Email: petrxmalecek@gmail.com Author-Workplace-Name: Alpiq Energy SE and University of Economics and Business Title: EFFECTS OF DEMOGRAPHIC STRUCTURE IN GROWTH ACCOUNTING AND LABOUR MARKET DECOMPOSITIONS Abstract: Impact of demographic structure on labor market and macroeconomic aggregates might be pronounced in some countries. Despite this fact, only a handful of approaches dealing with quantifications such effects have been derived so far. The aim of this paper is therefore to fill this methodological gap and to introduce methodological approaches for capturing changes in demographic structure, with many applications in growth accounting and labor market decompositions. Firstly, a novel additive decomposition will be presented, as an alternative to traditional models using fixed population weights. This will be followed by the presentation of a multiplicative decomposition, which can be applied to all kinds of growth accounting exercises based on multiplicative identities. Classification-JEL: J11, C02 Keywords: demographics; demographic structure; labour market; decomposition; growth accounting Journal: International Journal of Economic Sciences Pages: 104-114 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116985 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116985?download=6 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:104-114 Template-Type: ReDIF-Article 1.0 Author-Name: Pavel Potužák Author-Name-First: Pavel Author-Name-Last: Potužák Author-Email: pavel.potuzak@vse.cz Author-Workplace-Name: Prague University of Business and Ecoomics Title: The Optimum Allocation of Consumption of the Fisherian Shipwrecked Sailors Abstract: The theory of interest of Irving Fisher was designed to explain positive, zero, and negative interest rate. One of the intertemporal equilibria with the zero interest is an economy with a given supply of hardtacks for shipwrecked sailors. Hardtacks can be fully saved for the future, but their stock cannot be enlarged by production. Fisher presented several streams of consumption of hardtacks over time. This paper shows that the Fisherian paths are not consistent with the dynamic optimization model. Different trajectories of the optimum consumption are calculated and sketched. Their shape depends on the value of the subjective discount rate, the intertemporal elasticity of substitution in consumption, and the lifetime horizon of the shipwrecked sailors. None of them resemble the original Fisher examples. Classification-JEL: B25, B53, E43 Keywords: Time preference, theory of interest, Fisher Journal: International Journal of Economic Sciences Pages: 115-126 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116990 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116990?download=7 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:115-126 Template-Type: ReDIF-Article 1.0 Author-Name: Jiri Rotschedl Author-Name-First: Jiri Author-Name-Last: Rotschedl Author-Email: jiri.rotschedl@vse.cz Author-Workplace-Name: Prague University of Economics and Business Author-Name: Helena Mitwallyova Author-Name-First: Helena Author-Name-Last: Mitwallyova Author-Email: helena.mitwallyova@vse.cz Author-Workplace-Name: Prague University of Economics and Business Title: Study of Intertemporal Discounting According to Age Groups Abstract: The paper focuses on the topic of intertemporal discounting of individuals according to age groups. Using the sample of examined individuals, it aims to verify the hypothesis that the patience of individuals decreases with their increasing age. The study included a total of 599 individuals with an average age of 38.3 years (min. 16 and max. 82 years) who answered classical questions focused on time discounting and impulsive behaviour. In total, four possible scenarios were analysed: a small reward (CZK 100) with a delay of 1 day, a small reward with a delay of 1 month, a large reward (CZK 100,000) with a delay of 1 day and a large reward with a delay of 1 month. The delayed reward was always increased by 10% (i.e., CZK 110 or CZK 110,000). The basic hypothesis was that with increasing age, the subjective discount rate increases i.e., patience decreases. The above-mentioned 4 scenarios were evaluated for the hypotheses, while only three of the four scenarios were confirmed for all hypotheses. The results in the examined individuals suggest that with increasing age, there is a decrease in patience and at the same time a decrease in impulsive behaviour. These findings may have an overlap in consumption or savings in relation to the aging population. Classification-JEL: D12, D91 Keywords: subjective discount rate, individual decision making, impulsive behaviors, age groups Journal: International Journal of Economic Sciences Pages: 127-140 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116988 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116988?download=8 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:127-140 Template-Type: ReDIF-Article 1.0 Author-Name: Dusan TRISKA Author-Name-First: Dusan Author-Name-Last: TRISKA Author-Email: dusan.triska@fsp.cz Author-Workplace-Name: University of Economics and Business in Prague Title: TOWARDS THE CONSTRIBUTION OF ECONOMICS TO THE DEVELOPMENT OF ITS SCIENTIFIC NEIGHBORS. The case of a legal scholarship* Abstract: In T?íska (2017) have been suggested ways how legal scholarship (LS) may contribute to the development of economics - economic theory (ET). The objective of the present article is to corroborate a reverse know how transfer, i.e. from ET to LS. Its method is thus primarily derived from how micro-economics approaches the institution of a homo economicus.The articles objective is to show under what conditions can this economic method be expanded and generalized so as to open ways for its application upon neighboring disciplines of societal studies. The outcome of this endeavor– for want of a better term - is presented under the label of a General Theory of Choice and Behavior (GTCB). Moreover, it is argued that – under the umbrella of GTCB – the disciplines can establish their genuine scientific underpinning and hence also absorb a formalized analytical tool-kit. For concreteness, this conclusion is illustrated for legal scholarship, namely its concept a contract to be strictly taken in the economics sense of a collective choice.On the highest level of generalization, the article should be understood as a response to the seminal Elinor Ostrom’s call for an agreement amongst societal scholars upon universally acceptable analytical building blocks. Classification-JEL: A11, A23, C70 Keywords: Science, choice, preferences, constraints, maximization, contract, collective choice Journal: International Journal of Economic Sciences Pages: 141-155 Volume: 10 Issue: 2 Year: 2021 Month: December File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116984 File-URL: https://eurrec.org/RePec/aop/jijoes/0060ES.rdf116984?download=9 Handle: RePEc:aop:jijoes:v:10:y:2021:i:2:p:141-155