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Abstract
This article focuses on mortgage interest deduction (MID) as an indirect tax support for acquiring one's housing. This form of support is the most widely used in the Czech Republic compared to other tax reliefs and causes the highest losses for the government budget. This paper provides quantitative evidence on how the MID was distributed among taxpayers in the Czech Republic in the period 2008–2019 in relation to taxable income and revenue losses for the government budget. Furthermore, it assesses the effectiveness of these tax measures in reducing socioeconomic inequalities among taxpayers. Research based on the application of the MID in tax returns has shown the effective distribution of the MID until 2017. Tax support for housing was used mainly by taxpayers with low taxable income, which is also the largest group. The essence of vertical equity has been fulfilled, which contributed to reducing the level of social inequality. This positive distributional effect has diminished over time. As of 2019, the highest share of public expenditure was redistributed to taxpayers with higher taxable income, indicating the existence of inequalities in the tax system. The different developments over time have shown that the use of the mortgage interest deduction cannot be assessed statically, as it evolves dynamically over time.
Abstract
The topic of the research is whether better human capital, as determined by secondary school learning outcomes measured by PISA scores, promotes economic growth. The literature often uses the PISA results as a proxy for growth, while its use and impact on growth are not empirically proven. These questions are analyzed through two hypotheses. The first hypothesis (H1) states that in a worldwide sample of countries, GDP per capita growth between 2006 and 2019 was positively impacted by rising PISA results. The second hypothesis (H2) states that between 2006 and 2019, the rise in PISA scores in East Asia had a stronger influence on economic growth than in the rest of the world. The study examines 59 nations that have administered two PISA tests during the period of 2006–2019. The findings imply that there is generally no causal connection between PISA results and growth and the PISA results play no additional role in the development of East Asian nations. The results can be explained in two ways. The first is that human capital includes more than just skills. The second is that the data only covers a short period of time, which may limit the analysis of long-term patterns.
Abstract
This study investigates the impact of review quality (a situational stimulus) on consumers' risk perception and purchase intention in cross-border e-commerce based on the Stimulus-Organism-Response (SOR) model. In doing so, quantitative research involving 400 Hungarian respondents was performed. The data were analysed using composite-based structural equation modelling (SEM). The study concludes that an experience created through highly qualified online reviews of previous consumers has a significant effect on mitigating consumers' risk perception while increasing their purchase intentions. The study also differentiates two aspects of risk, including perceived risk and affective risk, and reveals the two-fold mechanism of the decision-making journey. These results enrich the existing literature by supporting the use of the SOR model and introducing review quality as a situational stimulus to explain consumers' risk perception and purchase behaviours in cross-border e-commerce. Additionally, the study also provides valuable guidance in website design that can stimulate purchasing while lowering online perceived risk.
Abstract
This study aims to investigate the relationship between China's outward foreign direct investment (OFDI) in Central and Eastern European countries (CEECs) by assessing their impact on the economies of both the CEECs and China. By analyzing this connection, the paper seeks to gain insights into the economic dynamics and potential benefits derived from investment and trade activities between China and the countries in this region. The paper employs a regression model to examine the influence of foreign direct investment on trade with data from 2008 to 2022. The findings indicate that a one percentage point increase in China's OFDI corresponds to a 0.054 percent boost in bilateral trade between China and the 16 CEECs. In conclusion, the findings highlight a significant link between OFDI in CEECs and bilateral trade. OFDI opens up new trade opportunities and fosters economic growth in CEECs, thereby promoting the development of bilateral trade. Additionally, Chinese investment drives industrial upgrading and structural adjustments in CEECs, enhancing the competitiveness of bilateral trade.
Abstract
Subjective entrepreneurial success has emerged as an area of academic interest. However, no research study has yet been conducted on startup founders as a specific group of entrepreneurs. Although ‘success’ has been prominently covered in existing startup literature, studies predominantly focus on the possible reasons behind startup success, measuring it solely in economic terms. Drawing upon the qualitative analysis of 22 in-depth interviews with Hungarian startup founders, this paper aims to explore the complex structure of subjective startup success from the founder's perspective along with its gendered patterns. The five dimensions of subjective startup success emerging from the data are similar to those of subjective entrepreneurial success: firm performance, team, personal fulfilment, community impact and personal financial reward. Nevertheless, results reveal that there exists considerable difference between the substance of firm performance dimension in the subjective entrepreneurial success model and in our subjective startup success model. Further, it is found that the interplay among indicators of success could range from synergies to tensions. Finally, personal fulfilment is found to be the only dimension that reflects a marked gender difference in the sample.
Abstract
In this article we analyze the Hungarian shadow banking system. We point out that the Hungarian shadow banking system is not only much less developed than that of the EU's developed countries, but also structurally different. A further specific feature of the Hungarian financial system is what we call the secondary shadow banking system, through which foreign shadow banking funds do not finance the domestic banking system directly, but through foreign interbank funds and related cross currency basis swaps. The aim of our analysis is to explore the reasons for these specificities, to analyze the risks of the Hungarian shadow banking, and secondary shadow banking systems, and to show that the interconnectedness between banking and shadow banking may not only occur through direct exposure, but also indirectly through the presence of secondary shadow banking.
Abstract
In 1994, we examined the Fed's abandonment of monetary targets in favor of “omens of impending inflation” (Papadimitriou – Wray 1994). Here we are, three decades later, and the Fed is still fumbling around with unobservable indicators of inflation in its quest to target stable prices. In what follows, we examine the evolution of the Fed's thought and practice over the past three decades, a period in which the Fed has increasingly turned to unobservable indicators that are supposed to predict inflation and unobservable tools that are supposed to fight inflation. We will show that our criticisms have also been raised by the Fed's own members and research staff. Moreover, we suggest that the Fed has far less control over inflation than is presumed, and, at worst, might have the whole inflation-fighting strategy backwards. We conclude with an assessment of the latest round of rate hikes.
Abstract
Market rules, changes in regulations for users and producers, technological innovation and economic development are important factors shaping energy transitions. Therefore, explaining energy transitions requires a multidisciplinary insight to investigate these factors. The study of energy transitions faces an analytical and methodological challenge, particularly in communicating trends shaping the energy systems in developing economies. The existing literature is not consistent in identifying these disciplines nor proposing how they can be combined. In this sense, this paper proposes a new and simple methodological path to assess variables and theories. It conceptualizes energy transitions as a co-evolution of two types of systems: system innovation with its roots in evolutionary, institutional economics, science and technology studies (STS); and energy systems with its roots in neoclassical and evolutionary economics. From how to conduct a systematic literature review, to how best integrate theories and the analytical framework in which key questions can be answered, the paper elevates the role of political science, as policies play a prominent role in shaping energy transitions. This paper responds to those who have pointed out that the political economy of energy transitions is a vastly understudied area.
Abstract
In recent years, policymakers and academics have shown interest in understanding how universities could drive regional innovation. Universities are not solely focusing on research and education as their primary missions but are also asked to participate in the development of their regions. This has compelled universities to forge what is called a third mission, encompassing all social and economic activities of universities. Several attempts have been made to evaluate this concept, aiming to highlight the evolving role of universities and their relevance to policy and society. In this vein, this paper showcases existing attempts that aim to measure the impact of the third mission in European universities. This study consists of a systematic literature review studying journal articles published between 2001 and 2021. The purpose of this paper is to enumerate the existing measurements of the third mission and identify the different tensions related to it. This study shows that the literature encompasses three approaches for assessing the third mission. First, some studies incorporated the third mission into the overall evaluation of university performance. Second, other investigations aimed to capture this concept as a whole. Finally, several studies evaluated individual dimensions of the third mission independently.
