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Abstract
The main goals of the article are to investigate the level of fiscal unsustainability in Poland and estimate the tax gap necessary to stabilize the size of the public debt and to follow a path to fiscal sustainability. It hypothesizes that by closing the tax gaps for value-added tax (VAT) and personal income tax (PIT), Poland can cover most of its current fiscal needs and stabilize the country’s fiscal situation. We estimated a modified version of the equation describing Ponzi games, calculated the primary gap indicator, and conducted cointegration tests for ex-post data on public expenditures and revenues to investigate the actual level of fiscal unsustainability. The research period covers yearly observations between 2003 and 2017. Empirical evidence confirmed our research hypothesis. We found out that closing the tax gap could change the situation dramatically. If the public authorities were able to collect the VAT and PIT that currently go uncollected, Poland could easily embark on the path towards fiscal sustainability.
Abstract
We investigate whether the European Union can be considered as a convergence machine after the 2008/2009 financial crisis. To do so, we econometrically test the relationship between the per capita GDP growth rate and macroeconomic variables in the period of 2004–2018, further subdivided into three periods: 2004–2008, 2009–2013 and 2014–2018. We hypothesize that the 2008/2009 financial crisis had a negative effect on the σ and β-convergence process. Our results support the convergence hypothesis, namely that the poor countries tend to grow faster than the rich countries. The convergence rates ranged between 1.71% and 4.51%. The negative effects of the crisis on convergence have been identified only for the absolute convergence. Our findings demonstrate that economic openness, inflation and government integrity have a positive impact on growth. The effects of unemployment have not been identified.
Abstract
The aim of the paper is to verify whether there has been a causal relationship between economic performance and the quality of political environment in the last 200 years. Mainly, the paper explores the bi-directorial causality for the period of 1821–2016. To attain the aim, the paper uses Granger causality test. The differences between the individual regions (Europe, Latin America and former British colonies) are taken into consideration. Economic performance is expressed as annual growth rate of GDP per capita (taken from Maddison Project Database); the quality of political environment is associated with the Electoral Democracy Index and the Liberal Democracy Index (from the V-Dem Project).
The paper offers three findings. Firstly, the results indicate that a statistically significant relationship between economic performance and political development was identified for the researched period. Secondly, bi-directorial causality was peculiar to the European countries, whereas the linkage was not identified within other regions. Thirdly, the results for the sub-periods confirm the previous conclusions with two additions. The quality of political environment and economic performance did not interact with each other in the period of 1821–1870 across all three regions, while in the period after World War II, bi-directorial causal relationship could also exist in the Latin American economies.
Abstract
The article analyzes the direction and scope of the responsiveness of real wages to the business cycle in Turkey using longitudinal data from 2005 to 2015. We found that wages in Turkey are procyclical; one percentage point increase in the unemployment rate induces a 0.6% decline in real wages. There is a variation in the patterns along the lines of wage distribution among the subgroups with relations to skills. Less-educated workers have acyclical wages. Compatible with this evidence, we found that the workers who earn around the minimum wage also have acyclical wages. High share of minimum wage earners suppresses wage cyclicality. Consistent with strict employment protection legislation and loose wage determination, wages of relatively high-income employees who mostly have formal work arrangements are procyclical.
Abstract
The self-fulfilling prophecy is a ubiquitous concept with a large amount of research to date, characterised by disciplinary diversity and thus a potential plurality in its narrative. A meta-narrative review was implemented to analyse the narratives of self-fulfilling prophecy in the different research areas. It identified 10 research areas, 22 themes and 7 subthemes where the phenomenon was adopted to describe and explain phenomena/events/outcomes. It revealed the self-fulfilling prophecy’s meta-narrative in the separate areas and in overall, compared to the original notion, and with regard to the critics. And it set up methodological and research area-related boundaries to implementation. Finally, the paper provided suggestions to future researches on internal validity and on the configuration of trending topics as the self-fulfilling prophecy.
Abstract
Sustainable practices aiming to reduce environmental impacts have become key guiding principles of events, but initiatives focusing on the economic impacts and on supporting the local economy and society are also gaining more emphasis in event planning and management. Music festivals attracting larger audiences are becoming especially aware of the importance of sustainability as well as of their role in the process of raising participants’ awareness of it. The paper aims to assess the initiatives of the Street Music Festival in Veszprém, Hungary, one of the flagship events of the city, from both the participants’ and the organisers’ perspective. For the investigation of participant attitudes, a questionnaire survey was conducted, while the organisers’ views on sustainability were sought through interviews. The findings show that although respondents rate the importance of sustainability as very high, their contribution to responsible consumption is far from what could be considered sustainable, therefore better communication of the initiatives or stricter rules need to be introduced. The interviewees revealed that organisers consider economic sustainability just as important as the environmental issues, and gave an insight into the rationale behind sustainability enhancing initiatives, some of which have a marketing function as well as protecting the environment.
Abstract
The phenomenon of weakness of will – not doing what we perceive as the best action – is not recognized by neoclassical economics due to the axiomatic assumptions of the revealed preference theory (RPT) that people do what is best for them. However, present bias shows that people have different preferences over time. As they cannot be compared by the utility measurements, economists need to normatively decide between selves (short- versus long-term preferences). A problem is that neoclassical economists perceive RPT as value-free and incorporate present bias within the economic framework. The axiomatic assumption that people do what is best for them leads to theoretical and practical dilemmas. This work examines weakness of will to resolve some shortcomings of RPT. The concept of intention is used to provide multiple self conception with the framework to decide between selves, which had not been done before. The paper concludes that individuals should not always follow their revealed preferences (desires) but the intentions (reason) because the latter indicates what people really want.
