Prague Economic Papers, 2025 (vol. 34), issue 2

Risk-Adjusted Performance of American and European Clean-Energy Portfolios

Dejan Živkov, Boris Kuzman, Katica Radosavljević

Prague Economic Papers 2025, 34(2):137-164 | DOI: 10.18267/j.pep.889  

This study constructs two eight-asset green-energy portfolios, featuring stocks from the U.S. and Europe, to assess which portfolio delivers superior risk-adjusted performance. The analysis utilizes advanced performance metrics, the Stutzer and Omega ratios, with the traditional Sharpe ratio serving as a benchmark. Portfolios are evaluated across both pre-crisis and crisis periods. The results reveal differences in the structures of the Sharpe and Stutzer portfolios, underscoring the Stutzer ratio's ability to improve portfolio performance. Additionally, the Omega portfolio enhances the analysis by allowing the selection of varying thresholds, offering...

Exchange Rate Pass-Through to CEE Inflation: SVAR Approach

František Táborský

Prague Economic Papers 2025, 34(2):165-186 | DOI: 10.18267/j.pep.888  

This paper examines exchange rate pass-through (ERPT) to prices in Central and Eastern European (CEE) countries, focusing on the Czech Republic, Poland, Hungary, and Romania. We employ a Structural Vector Autoregression (SVAR) model to analyse the transmission of exchange rate shocks to imported, producer, and consumer prices. Results indicate significant heterogeneity in ERPT across countries and price stages. While all countries exhibit higher pass-through for import prices, variations emerge in producer and consumer price responses. Monetary policy credibility and trade openness are found to influence ERPT dynamics. The findings highlight the importance...

Taxation of Still Wine in the Czech Republic

Marek Šmíd

Prague Economic Papers 2025, 34(2):187-213 | DOI: 10.18267/j.pep.892  

This paper deals with the taxation of still wine in the Czech Republic. The aim of the paper is to quantify the fiscal impact of the imposition of a non-zero excise duty rate on still wine on excise and value added tax revenue. The paper uses an analytical approach to assess the impacts using data collected on consumption, production and price of wine and elasticity of demand under several alternative tax rates. The results show that taxation of still wine has significant potential to increase tax revenues for public budgets. Tax revenues would increase by an amount between 4.7 and 5.3 billion CZK if the tax rates on still and sparkling wine were aligned....

The Effects of Export Diversification and Concentration on Carbon Emissions: Asymmetric Evidence for Türkiye

Burcu Berke, Gülsüm Akarsu, Dilek Temiz

Prague Economic Papers 2025, 34(2):214-249 | DOI: 10.18267/j.pep.891  

Numerous studies have explored the possible causes of global carbon emissions and climate change; however, the impact of export diversification and concentration on these emissions is a less examined topic in literature. This study investigates the effects of export diversification and concentration on carbon emissions in Türkiye from 1995 to 2018, utilizing the nonlinear ARDL method. The findings indicate that export diversification reduces carbon emissions after accounting for the effects of other control variables, such as renewable energy, levels of inequality, and government size. In this model, an increase in renewable energy, inequality, and...

Policy uncertainty, inflation, and income inequality nexus: Does financial development matter?

Margaret Rutendo Magwedere, Godfrey Marozva

Prague Economic Papers 2025, 34(2):250-277 | DOI: 10.18267/j.pep.890  

Reducing income inequality is one of the goals under the Sustainable Development Goals. This study examines the intricate relationship between financial development, policy uncertainty, inflation, and income inequality. Panel data for African countries covering the period 2000-2022 were used in the analysis. The study used the economic policy uncertainty (EPU) index to examine its effects on income distribution. Previous studies indicated the possibility of asymmetric effects of inflation and EPU on income inequality. Hence, a dynamic non-linear Panel ARDL was employed to examine the asymmetric nature of the relationship between these variables. The...