Prague Economic Papers, 2019 (vol. 28), issue 6
The Government Spending-Revenue Nexus in CEE Countries: Some Evidence for Asymmetric Effects
Mesut Karakas, Taner Turan
Prague Economic Papers 2019, 28(6):633-647 | DOI: 10.18267/j.pep.697 
This paper investigates the government spending-revenue nexus for Croatia, Czechia, Hungary, Poland, Romania and Slovenia by using quarterly data and a nonlinear autoregressive distributed lag (NARDL) approach to cointegration. Our empirical findings support the fiscal synchronization for Slovenia, spend-tax for Czechia, tax-spend for Croatia and Hungary, and institutional separation or fiscal neutrality for Romania and Poland in the long run. Moreover, we find an asymmetric effect for Croatia, Czechia, Hungary and Poland in the long run and for all the countries in the short run. Therefore, our results clearly highlight the importance of asymmetric...
Predictive Performance of Customer Lifetime Value Models in E-Commerce and the Use of Non-Financial Data
Pavel Jasek, Lenka Vrana, Lucie Sperkova, Zdenek Smutny, Marek Kobulsky
Prague Economic Papers 2019, 28(6):648-669 | DOI: 10.18267/j.pep.714
The article contributes to the knowledge of customer lifetime value (CLV) models, where extensive empirical analyses on large datasets from online stores are missing. Based on this knowledge, practitioners can decide about the deployment of a particular model in their business and academics can design or enhance CLV models. The article presents predictive performance of selected CLV models: the extended Pareto/NBD model, the Markov chain model, the vector autoregressive model and the status quo model. Six large datasets of medium and large‑sized online stores in the Czech Republic and Slovakia are used for a comparison of the predictive performance...
The Hold-up Problem and Banking Relationships: Evidence from the Polish SME Sector
Marcin Grzelak
Prague Economic Papers 2019, 28(6):670-687 | DOI: 10.18267/j.pep.727
This paper investigates how lender-borrower relationships affect credit cost for small and medium sized companies (SMEs). We use data within the period 2006–2015 for the Polish SME sector and deploy panel regression models to analyse how the number and length of banking relationships influence the financial costs of a random sample of Polish SMEs. We document that the price of capital decreases as relationships progress. Outcomes of the research are thus inconsistent with the “hold-up” hypothesis. Moreover, we find evidence that supports the view that multiple banking relationships generate more financial benefits for companies than...
Fiscal Stimulus on Bayesian DSGE Models
Kuo-Hsuan Chin
Prague Economic Papers 2019, 28(6):688-708 | DOI: 10.18267/j.pep.708
I take a Bayesian approach to estimate and forecast the effects of fiscal stimulus in various versions of the model by Smets and Wouters (2007) for the US economy. Specifically, I proxy various simpler DSGE sub-models by imposing a tight prior on a single parameter or a combination of tight priors on multiple parameters in the Smets-Wouters model. I find that the present-value government spending multipliers obtained are all in a reasonable range. Moreover, I forecast the effect of fiscal stimulus in a scenario similar to the 2008/2009 recession in the US, where the public expects a large and temporary increase in government spending to stimulate a...
A Factor-Augmented Vector Autoregressive Approach to Analyze the Transmission of Monetary Policy
Zulfiqar Ali Wagan, Zhang Chen, Hakimzadi Wagan
Prague Economic Papers 2019, 28(6):709-728 | DOI: 10.18267/j.pep.699
Using the factor-augmented vector autoregressive (FAVAR) model proposed by Bernanke et al. (2005), this study explores the effect of monetary policy on a wide range of macroeconomic and financial variables for the US, Canada and the UK. The study makes use of financial data from 1990 to 2016, comprising 55-70 variables of the three major nations to show (1) that factors come with additional informational capability, which summarizes the performance of key macroeconomic variables and (2) the manner in which these variables are affected by contractionary monetary policies. Our findings confirm that monetary policy tightening results in decrease...
Do SMEs Face a Higher Tax Burden? Evidence from Belgian Tax Return Data
Pieter Buyl, Annelies Roggeman
Prague Economic Papers 2019, 28(6):729-747 | DOI: 10.18267/j.pep.719
The public debate on taxation of domestic small and medium enterprises (SMEs) versus large and multinational enterprises (MNEs) is highly relevant nowadays. Using confidential tax return data instead of financial statement data, the results indicate that domestic SMEs face on average a 1.6 and 4.8 percentage-point higher effective tax burden compared to large domestic and large MNEs respectively. This suggests that tax incentives for SMEs are inadequate to compensate for the tax advantages of large and internationally operating companies. Furthermore, we show that the use of information built exclusively upon accounting data could bias the results.
Contribution of the Behavioural Economics to the Explanation of the Gender Wage Level Differences
Dagmar Brožová
Prague Economic Papers 2019, 28(6):748-758 | DOI: 10.18267/j.pep.722
There is still a significant gender wage gap on labour markets in the majority of developed countries. The different earnings are determined mainly by the different sectors, professions and positions that men and women choose. The behavioural approach to interpretation of the labour market agents' decisions can help to explain the choice of different working career paths. The approach focuses on subjective individual preferences and their intrinsic rewards and motivations that cannot be explained by objective rational rules. The paper confirms the different relation of men and women to risk and competition and different preferences to intrinsic and...