follows, we calibrate the model for Poland and numerically analyse optimal fiscal policy, as well as optimal private sector parameters. The calibration is based on macroeconomic data for Poland for the period of 2000–2016, published by the Eurostat, IMF
In this paper, I investigate the shareholder value creation potential of a particular combination of corporate risk and capital structure strategies for a non-financial company. I examine the size of shareholder added value when the company increases its financial leverage while keeping its credit rating constant by hedging its asset yield volatility. Ross (1996) shows that by reducing the asset yield volatility of the company, its debt capacity can permanently be increased, which can create 10–15% additional value for shareholders. With the help of my model, I develop an alternative approach to quantify this impact on shareholder value with better calibration characteristics. Uniquely in the technical financial literature, I derive the shareholder value creation potential from the mean-reversion parameters of the asset yield process. Also, I define the optimal structure of swap-basket needed for efficient hedging of industrial asset yield process, and analyse the sensitivity of shareholder added value to the term and transaction costs of applied swap contracts.
EU funds have been an important component of economic landscapes in the new member states (NMS) after their EU accession in 2004. A review of funds allocated to NMS under the 2007–2013 financial perspective shows a substantial growth in nominal terms. The increase relative to the GDP of the beneficiary countries is much more modest. This implies that the economic impact could be less spectacular than expected. From this viewpoint, it is crucial to ensure high absorption and efficient allocation of Structural Funds which are gaining importance in total transfers. Different frameworks established by NMS to manage EU funds show that there is no one-fits-all model. Experiences with absorption of Structural Funds in NMS have been mixed, with no conclusive evidence for superiority of any particular approach. NMS tend to streamline their initial frameworks to improve absorption, a reasonable approach to help utilise the increasing 2007–2013 allocations. At the end of the day, the goal of EU transfers is increasing growth potential. This dimension could be captured by economic models. While they are useful analytical tools, the results could differ a lot and should be taken with a grain of salt given the problems of model specification and calibration for NMS. Finally, the experience of old member states shows that high inflows of EU funds could not substitute, but only complement, good economic policies.
of this variable returns to its country-specific level before the flat tax reform. The calibration year for the dynamic scoring approach is 2017, which is also the last year of data used in the econometric estimations. The impact of the progressive