scholarly journals Financial integration in the European Union - the impact of the crisis on the bond market

Equilibrium ◽  
2017 ◽  
Vol 12 (2) ◽  
pp. 195 ◽  
Author(s):  
Darko B. Vukovic ◽  
Edin Hanic ◽  
Hasan Hanic
Keyword(s):  
Capital Market ◽  
Sovereign Debt ◽  
Financial Integration ◽  
Value Added ◽  
Bond Markets ◽  
The European Union ◽  
Medium Term ◽  
Standard Deviations ◽  
Degree Of Convergence ◽  
The Impact

Research background: In our paper we have analyzed the influence of the crisis on the financial integration in the European Monetary Union. We have analyzed EMU capital market to show the impact of the crisis, with the focus on the bonds market. The determinants of the research are yields and standard deviations on medium-term and long-term triple-A bond markets, as well as CDS medium-term premiums. Purpose of the article: The aim of this paper is to show the volatility of researched deter-minants in periods of crisis in EMU zones.Methods: As a model we used a modified theoretical CAL portfolio model. In the last fifteen years Europe has been faced with two major crises: the world economic crisis and sovereign debt crisis.Findings & Value added: We believe that the sovereign crisis hit EMU more, leaving the deeper implications on the financial integration. Our analysis has showed that the crisis had a major impact on the financial integration. Yields and standard deviations increased multiply in periods of crisis and left the impact of volatility on the capital market. However, the degree of convergence of euro area bond markets largely stabilized in last two years.

scholarly journals The specifics of applying value added tax for local authorities

2010 ◽  
Vol 58 (3) ◽  
pp. 67-78
Author(s):  
Miloš Grásgruber ◽  
Petra Mísařová
Keyword(s):  
Public Administration ◽  
Economic Activity ◽  
Value Added ◽  
The European Union ◽  
Value Added Tax ◽  
Local Authorities ◽  
Eu Member States ◽  
Common System ◽  
Council Directive ◽  
The Impact

If local authorities units carry out an economic activity, are considered to be taxable under Act No. 235/2004 Coll., On Value Added Tax as amended. Adjustment of VAT in all countries of the European Union is based on Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax as amended. The application of this directive is binding for all EU member states and national treatment of VAT may diverge from the Directive only in cases where the Directive permits. Decisions of the European Court of Justice are of considerable importance during the interpretation of the Czech VAT Act.For the municipalities and regions article defines the activities that are considered to be an economic activity and activities that are deemed to exercise of public administration and are not therefore subject to VAT. Further the paper defines the concept of turnover of local authorities. At paper there are evaluating the impact of the application of VAT on municipalities and regions in the provision of the individual fulfillment. Great attention must municipalities and region devote to the problem of correct application of claim to tax deduction if they carry out the exercise of public administration, taxable activities and fulfillments exempt from VAT.

Self-defeating austerity? Assessing the impact of a fiscal consolidation on unemployment

2017 ◽  
Vol 28 (1) ◽  
pp. 77-90 ◽  
Author(s):  
João Carlos Lopes ◽  
João Ferreira do Amaral
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
The European Union ◽  
Budget Balance ◽  
Fiscal Consolidation ◽  
The Great Recession ◽  
Huge Impact ◽  
Social Transfers ◽  
Balance Trade ◽  
The Impact

The great recession of 2008/2009 had a huge impact on unemployment and public finances in most advanced countries, and these impacts were magnified in the southern Euro area by the sovereign debt crisis of 2010/2011. The fiscal consolidation imposed by the European Union on highly indebted countries was based on the assumptions of so-called expansionary austerity. However, the reality so far provides proof to the contrary, and the results outlined in this article support the opposing view of a self-defeating austerity. Based on a model of the input–output relations of the productive system, an unemployment rate/budget balance trade-off equation is derived, as well as the impact of a strong fiscal consolidation based on social transfers and the notion of a neutral budget balance. An application to the Portuguese case confirms the huge costs of a strong fiscal consolidation, both in terms of unemployment and social policy regress. The conclusion is that too much consolidation in anyone year makes consolidation more difficult in the following year.

scholarly journals C EFFICIENCY RATIO AS A MEASURE OF VAT EFFICIENCY IN EU DEVELOPING COUNTRIES AND SERBIA

2021 ◽  
Vol 13 (26) ◽  
Author(s):  
Marina Đorđević ◽  
Jadranka Đurović-Todorović ◽  
Milica Ristić
Keyword(s):  
Developing Countries ◽  
Collection Efficiency ◽  
Value Added ◽  
Economic Transformation ◽  
The European Union ◽  
Efficiency Ratio ◽  
Negative Effects ◽  
Standard Rate ◽  
The Impact ◽  
Public Revenues

The policy led by a large number of developing countries, with the aim of increasing indirect taxes, has opened the issue of Value Added Tax (VAT) efficiency. Reforms of tax systems of developing countries generally involve an increase in standard rates in order to increase VAT, which is the main source of public revenues. In such a way, developing countries determine the VAT efficiency and the amount of revenue that could be collected by indirect taxation. The article sums up works of different scientists, dealing with the impact of determinants on VAT efficiency. The subject of this paper is an analysis of the factors that influence the C efficiency ratio. The main objective of the paper is to analize the impact of the change in the standard rate on the ratio. Theoretical analyses of standard rates and other factors that have reflections on the VAT collection efficiency explicitly prove that there are different ways to improve the efficiency of VAT collection, and exclude an increase in the standard rate. An increase in the standard rate provides a balance of negative effects, which can be blurred by recorded tax revenues. We focused on the countries of the European Union: Bulgaria, Czech Republic, Estonia, Greece, Croatia, Latvia, Hungary, Poland, Romania, Slovakia, Slovenia, Lithuania during the 2000-2016 period. These countries experienced significant changes in government during economic transformation, and where VAT is the main source of public revenues. The last section analize an increse in VAT rate and C efficiency ratio in Serbia and conteins conclusions. The paper indicates the imperfection of inadequately defined VAT rates on economic growth and development in analized countries. Based on analyses we can conclude that the increase in the standard rate have negative reflections on the VAT efficiency, and that it was one of the factors of the continuous decline in C-efficiency.

Municipal Bond Markets

2019 ◽  
Vol 11 (1) ◽  
pp. 65-84 ◽  
Author(s):  
Dario Cestau ◽  
Burton Hollifield ◽  
Dan Li ◽  
Norman Schürhoff
Keyword(s):  
Capital Market ◽  
Bond Market ◽  
Municipal Bonds ◽  
Bond Markets ◽  
Municipal Bond ◽  
Local Public Finance ◽  
Decentralized Markets ◽  
The Impact ◽  
Natural Laboratory ◽  
Financial Technology

The effective functioning of the municipal bond market is crucial for the provision of public services, as it is the largest capital market for state and municipal issuers. Prior research has documented tax, credit, liquidity, and segmentation effects in municipal bonds. Recent regulatory initiatives to improve transparency have made granular trade data available to researchers, rendering the municipal bond market a natural laboratory for the study of financial intermediation, asset pricing in decentralized markets, and local public finance. Trade-by-trade studies have found large trading costs, contemporaneous price dispersion, and other deviations from the law of one price. More research is required to understand optimal market design and the impact of post-crisis regulation, sustainability, and financial technology.

Law, Focal Points, and Fiscal Discipline in the United States and the European Union

2014 ◽  
Vol 108 (2) ◽  
pp. 355-370 ◽  
Author(s):  
R. DANIEL KELEMEN ◽  
TERENCE K. TEO
Keyword(s):  
Sovereign Debt ◽  
Formal Model ◽  
Focal Point ◽  
The United States ◽  
The European Union ◽  
Fiscal Discipline ◽  
Fiscal Compact ◽  
Balanced Budget ◽  
Using Data ◽  
The Impact

Many studies suggest that strict balanced budget rules can restrain sovereign debt and lower sovereign borrowing costs, even if those rules are never enforced in court. Why might public officials adhere to a rule that is practically never enforced in court? Existing literature points to a legal deterrence logic in which the threat of judicial enforcement deters sovereigns from violating the rules in the first place. By contrast, we argue that balanced budget rules work by coordinating decentralized punishment of sovereigns by bond markets, rather than by posing a credible threat of judicial enforcement. Therefore, the clarity of the focal point provided by the rule, rather than the strength of its judicial enforcement mechanisms, determines its effectiveness. We develop a formal model that captures the logic of our argument, and we assess this model using data on U.S. states. We then consider implications of our argument for the impact of the balanced budget rules recently imposed on eurozone states in the Fiscal Compact Treaty.

scholarly journals AN OVERVIEW OF FISCAL CONSOLIDATION PROCESS IN THE EUROPEAN UNION

2014 ◽  
Author(s):  
Iulia Andreea Bucur ◽  
Mircea Muntean
Keyword(s):  
Sovereign Debt ◽  
The European Union ◽  
Fiscal Consolidation ◽  
Consolidation Process ◽  
Fiscal Effort ◽  
Eu Countries ◽  
Eu Member States ◽  
The Impact ◽  
The Eu

This paper aims to explore, based on theoretical and empirical research in the field and on data available on Eurostat and European Commission, in the context of financial significant imbalances and thus of the financial stress in the EU countries and especially in the Euro area, the main developments in the fiscal consolidation process given the fiscal effort of each country towards fiscal union. Since the financial crisis started in 2008, many EU Member States demonstrates an obvious macroeconomic imbalance which requires increased responsibility regarding fiscal developments. The impact of the crisis and the causes of sovereign debt high levels trends varied between EU countries as well as the budget deficit levels. Thus, the main priority for EU members must be the continuation of differentiated fiscal consolidation, given the specificities of each economy, favoring growth. The medium-term fiscal policy needs to focus on consolidating public finances along with restoring long-term sustainability.

scholarly journals INTELECTUAL CAPITAL, MARKET CAP DAN PENGARUHNYA TERHADAP PERTUMBUHAN KEUANGAN PERUSAHAAN NON-KEUANGAN YANG TERDAFTAR DI BEI PERIODE 2016-2019

2019 ◽  
Vol 2 (2) ◽  
pp. 1-10
Author(s):  
Andini Nurwulandari
Keyword(s):  
Capital Market ◽  
Business Performance ◽  
Value Added ◽  
Sustainability Reporting ◽  
Study Data ◽  
Equity Returns ◽  
Earnings Per Share ◽  
Study Process ◽  
The Impact ◽  
Capital Value

Although measuring data assets involves assessing, development, tracking and managing a variety of intangible variables, they are progressively essential for business performance. The goal of the analysis is to examine the impact on financial output of intellectual capital and market cap. The writer utilizes research data from a total of 9 firms in the study data for 2016-2019 to be used by non-financial listed companies on the Indonesian stock market; the study process is the analysis of panel data. The findings from this study indicated that VACA, VAIC, Market Capital Value Added (MCVA) and Earnings per Share had a favorable and meaningful effect (ROE). Sustainability reporting, however, has little effect on equity returns (ROE).

scholarly journals Germany’s Digital Transformation in the Midst of the Coronavirus Crisis

2021 ◽  
Vol 21 (3) ◽  
pp. 84-93
Author(s):  
Vladislav Belov ◽  
Keyword(s):  
Artificial Intelligence ◽  
Higher Education ◽  
Public Administration ◽  
Digital Transformation ◽  
Political Transformation ◽  
The European Union ◽  
Medium Term ◽  
Digital Transition ◽  
The Impact ◽  
Education Business

The article analyzes the impact of the consequences of the COVID-19 pandemic on the digitalization of public administration, healthcare, secondary and higher education, as well as entrepreneurial models of digital behavior in Germany. The author continues the study of the consequences of the Coronavirus crisis, which began in spring 2020, for the digital economic and political transformation of the economic leader of the European Union. Among other things, it relies on the results of numerous surveys conducted in late 2020 – early 2021. Particular attention is paid to the analysis of trends in the transition of companies to teleworking, the organization of “home offices” for employees, the restructuring of the work of government, health care, middle and higher education, business. The author analyzes the problems in the implementation of artificial intelligence, as well as the strengths and weaknesses of the digital transition in a pandemic and evaluates its short and medium term prospects. This topic is of interest to Russia – it was one of the main topics at the SPIEF in June 2020.

scholarly journals Barriers to the development of SMEs in the Slovak Republic

2017 ◽  
Vol 8 (2) ◽  
pp. 255 ◽  
Author(s):  
Eva Ivanová
Keyword(s):  
New Technologies ◽  
Slovak Republic ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Business Environment ◽  
Bank Loans ◽  
The European Union ◽  
Chi Square ◽  
External Sources ◽  
The Impact

Research background: SMEs make up an important segment of the economic system, not only in the national economy, but also throughout the EU, and their importance continues to grow. SMEs in Slovakia, according to the latest data of the European Commission, represent 99.9 per cent of all enterprises, constitute 70.7 per cent of jobs, and 61.2 per cent of value added in the economy. However, they are often confronted with market imperfections. SMEs frequently have difficulties in obtaining capital or credit, particularly in the early start-up phase. Their restricted resources may also reduce access to new technologies or innovation. Authors often deal with the impact of SME financing on their development. Madrid-Guijarro et al. (2016), Lee et al. (2015) claim that SMEs have difficulty in funding innovation and the worsening in general credit conditions has been more pronounced for non-innovative firms.Purpose of the article: The main objective of the conducted research was to analyze the conditions for the development of small and medium enterprises (the SMEs sector) in Slovak Republic, whereas the specific objectives were: (1) to determine the terms for gaining external sources of financing for the development of SMEs, (2) to examine the resources for innovation development in the SMEs sector, (3) to find out if SMEs are considered to be a competitive advantage.Methods: The research was conducted in the Slovak Republic in 2016. Participants were 193 Slovak companies that were classified as SMEs by the size class of employment. The research tool used for the study was the own questionnaire consisting of 38 questions and the demographics. The structure of the questionnaire allowed the authors to identify the group of questions concerning the most important conditions for the development of the examined sector referring to the business environment. The results were processed by chi-square method.Findings & Value added: On the basis of the conducted research of the sector of SMEs , it can be concluded that a large group of companies have difficult access to external sources of financing and this refers both to the access to the European Union funds, grants, bank loans and other instruments of the financial market. However, it occurs that: (1) in Slovakia, the smaller the enterprise, i.e. the fewer employees it hires, the easier the access to external sources of financing, (1) innovative projects are realized from company profits or a loan, (1) problems in Slovakia in accessing external funds due to the complexity of the process of approval of applications and documents and strict criteria for the assessment of financial capacity.

Znaczenie korporacji międzynarodowych w eksporcie towarowym Polski na tle państw Europy Środkowej w latach 2004–2018

2019 ◽  
Vol 17 (1) ◽  
pp. 265-279
Author(s):  
Tomasz Białowąs
Keyword(s):  
Value Added ◽  
Intermediate Goods ◽  
Foreign Subsidiaries ◽  
The European Union ◽  
The Czech Republic ◽  
Trade Turnover ◽  
The Subject ◽  
Fragmentation Of Production ◽  
High Degree ◽  
The Impact

The subject of the article is the assessment of the impact of international corporations’ activities on the development of Polish commodity exports against the background of Central European countries in 2004–2018. The detailed analysis covers changes in the value, dynamics, product and geographical structure of exports, the importance of foreign subsidiaries of international corporations in creating export potential and the share of foreign value added in gross exports. The conducted analysis showed a high degree of dependence of Polish exports, as well as those of the Czech Republic, Hungary and Slovakia on the operations of foreign subsidiaries of international corporations. Their share in the total exports exceeded 50% during the analyzed period, and 85% in the exports of cars and trucks, pharmaceuticals, tobacco products, computers, electronic and optical devices. An important factor in the development of exports is the phenomenon of international fragmentation of production processes. It causes an increase in trade turnover in subassemblies and intermediate goods. We can estimate the scale of production fragmentation by measuring the share of foreign value added in gross exports. The highest share of foreign value added occurred in the exports of Hungary and Slovakia and exceeded 40%. In Poland, foreign value added accounted for around 27% of gross exports. In all analyzed countries, foreign value added came mainly from the European Union countries, especially from Germany. In recent years, the share of intermediate goods imported from China has also been growing.

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