Prague Economic Papers, 2021 (vol. 30), issue 5
Fair Insurance Cover for Export Credit Under OECD Pricing Framework
Mikulá¹ Pýcha
Prague Economic Papers 2021, 30(5):509-528 | DOI: 10.18267/j.pep.779 
This article aims to analyse the issue of a lack of rules on the insurance cover of interest from an OECD perspective during the period 2010-2020. Export credit agencies (ECAs) support export and apply minimum premium rates (MPRs) to the principal amount only, while the insurance agreement covers also the interest amount. This area can be described as a grey zone, because ECAs can decide themselves what cover they provide for a limited price. This paper explains which parts of a lending rate should be covered under credit insurance and provides theoretical and empirical analysis of the maximum extent of interest cover. The extent of such cover is closely...
Synthetic Indicators of Quality of Subjective Life in the EU: Rural and Urban Areas
María-Carmen Sánchez-Sellero, Beatriz García-Carro, Pedro Sánchez-Sellero
Prague Economic Papers 2021, 30(5):529-551 | DOI: 10.18267/j.pep.783
The aim of this paper is to develop subjective synthetic indicators that quantify the quality of life in the different countries of the EU-28, with data from the 2016 European Quality of Life Survey (EQLS). We add other indicators to the general synthetic ones in order to quantify the different dimensions of quality life due to its multidimensional nature. The successive but unchained application of the principal component analysis and the Mazziota-Pareto analysis allows us to classify 5 dimensions of quality of life: subjective component of governance, public services, environment, general satisfaction with life, and socioeconomic...
Equity Release Contracts with Varying Payments
Agnieszka Marciniuk
Prague Economic Papers 2021, 30(5):552-574 | DOI: 10.18267/j.pep.784
Equity release contracts allow property owners to receive a financial benefit in exchange for surrendering their real estate to a company. The benefits depend on the life expectancy of owners, the real value of properties, and the rate of interest. These parameters are not the same throughout the years. The aim of the paper is to analyse varying payments of equity release contracts which have already been offered to customers for several years in Poland. A recalculation procedure year by year is proposed applying the actuarial and financial methods. This paper estimates the potential advantages of reverse annuity and reverse mortgage contracts in a...
Distribution of Expected Time of Old-Age Pension Receipt in Czechia
Tomá¹ Fiala, Jitka Langhamrová
Prague Economic Papers 2021, 30(5):575-595 | DOI: 10.18267/j.pep.785
This paper presents a calculation of the estimated value of the time of old age pension receipt for individual birth cohorts of Czech males and females born in the period 1900-2020. It is assumed that people start to receive the pension at the moment of reaching retirement age and receive it until death. Starting with the birth cohort of 1966, two variants of retirement age determination are assumed: (a) a fixed retirement age threshold equal to 65 years for both males and females; and (b) a flexible retirement age (equal for males and females) defined in such a way that the average time of pension receipt would be equal to one...
Foreign Banks in Central and Eastern Europe: The Good, the Bad and the Ugly
Mihai Niþoi, Dorina Clichici, Simona Moagãr-Poladian
Prague Economic Papers 2021, 30(5):596-612 | DOI: 10.18267/j.pep.782
Foreign banks have played a major role in Central and Eastern European economic landscape over the last decades. They have spurred banking intermediation and fuelled economic growth for years. However, the global financial crisis unveiled the other side of the coin. This article analyses foreign banks' lending behaviour in Central and Eastern Europe over the period from 2000 to 2016. It aims to investigate the nexus between bank loan growth, cross-border bank claims and the cycle period. Moreover, it captures the impact of the financial cycle on foreign banks' credit behaviour and highlights whether foreign bank ownership is influenced...
Economic Growth Effects of Public and Private Investment: Evidence from Dynamic Panel Estimation for Developed and Developing Countries
Taner Turan, Halit Yanikkaya, Hüseyin A. Özer
Prague Economic Papers 2021, 30(5):613-631 | DOI: 10.18267/j.pep.781
We examine the growth effects of public and private investment by using data for a large sample of countries. For the full sample, our dynamic panel estimations indicate that both public and private investment have strong positive effects on growth. Our estimations for income levels also show that the impacts of both public and private investment are positive and statistically significant for developing countries. Interestingly, public and private investment promote growth in developing countries with effective and ineffective governments. It seems that countries can significantly benefit from investment regardless of their institutional...