Prague Economic Papers, 2025 (vol. 34), issue 3
Original contributions, Original article, Research article
How do financial inclusion, deposit insurance, and bank concentration affect bank stability?
Xiangyuan Yu, Yiming Chang, Jiaqi Li
Prague Economic Papers 2025, 34(3):278-303 | DOI: 10.18267/j.pep.893 
This study investigates the nonlinear interplay between bank stability, financial inclusion, deposit insurance design, and banking concentration, utilizing unbalanced panel data from 122 countries between 2004 and 2021. By constructing novel indices-including a composite Moralhazard index to quantify deposit insurance-related risk incentives, a financial inclusion indicator, and a CONTAGION measure to capture the contagion effect of deposit insurance, we provide fresh empirical insights into the institutional synergies and trade-offs shaping banking system resilience. Our analysis reveals three key results: (1) Threshold effects exist...
Assessing the Early Warning Capabilities of GaR: A Probabilistic Approach to Recession Detection in CEE Economies
Gheorghe-Alexandru Tarta
Prague Economic Papers 2025, 34(3):304-346 | DOI: 10.18267/j.pep.897
This paper introduces a novel application of Growth-at-Risk (GaR) as an early warning system (EWS) for predicting recessions. By transforming GaR into a classification model, we assess its ability to signal economic downturns across 11 Central and Eastern European (CEE) economies from 2005 to 2024. We compare GaR’s performance with logistic regression across eight forecasting horizons. Our findings indicate that GaR slightly outperforms the logit model when financial conditions are used as the primary predictor. However, when additional factors such as agents’ expectations and financial flows are incorporated, the performance gap narrows....
Chasing Discounts, Facing Regret: How FoMO Shapes Consumers' Online Shopping Behavior?
Fatih Koç, Bekir Özkan, Merve Gaga, İbrahim Halil Efendioğlu, Tamer Baran
Prague Economic Papers 2025, 34(3):347-377 | DOI: 10.18267/j.pep.895
This study examines the impact of price consciousness and deal proneness on impulsive buying behavior and the Fear of Missing Out (FoMO) in the context of online clothing shopping, with a particular focus on post-purchase regret. Data were collected from 230 participants through an online survey and analyzed using structural equation modeling (SEM). The findings reveal that price consciousness has a negative impact on both FoMO and impulsive buying behavior, indicating that consumers with higher price sensitivity tend to make more deliberate purchasing decisions. On the other hand, deal proneness has a positive influence on FoMO, which in turn triggers...
Did it 'Really' Happen? Cost of Living Inequality in Argentina, 2004-2018
Gülşah Adam
Prague Economic Papers 2025, 34(3):378-407 | DOI: 10.18267/j.pep.894
Measures of inequality typically rely on price indices formulated for a representative consumer, falsely assuming an identical consumption basket across households within the country. However, consumption patterns differ across households; hence, the changes in price levels might have different impacts on households at different points in the income distribution. To challenge this prevailing assumption and gain a more accurate comprehension of income inequality in Argentina from 2004 to 2018, I constructed income level-specific cost of living indices using the Argentinian Household Expenditure Survey. The results demonstrated that from 2004 to 2012,...
Macro and Micro-Institutional determinants of VSMEs' Access to Bank Financing in Morocco: An Empirical Analysis of Monetary Policy, Prudential Risk, and Public Support (2014-2024)
Adil Boutfssi, Youssef Zizi
Prague Economic Papers 2025, 34(3):408-441 | DOI: 10.18267/j.pep.896
This article explores the determinants of bank credit granted to very small, small, and medium-sized enterprises (VSMEs) in Morocco over the period 2014-2024. The study focuses on the combined effects of monetary policy signals, prudential regulation, and government credit guarantees on this segment's access to finance. Using a quantitative approach, the analysis is based on a dataset of 799 lending decisions from two large commercial banks, combined with macroeconomic indicators. The econometric model uses linear regression to estimate the effects of the central bank's policy rate, bank lending rates, risk-weighted assets (RWA), government guarantee...