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This study examines the evolving role of Tether in cryptocurrency market volatility, particularly in the context of the Terra-LUNA collapse. Using a multivariate asymmetric BEKK-GARCH model, we analyze volatility transmission between Tether's trading volume and the return volatilities of Bitcoin and Ethereum. Unlike prior studies that rely on issuance based measures, we employ trading volume volatility as a proxy for real time stablecoin related liquidity dynamics. The results indicate that, in the pre-collapse period, Tether exhibited a stabilizing association with Bitcoin volatility, consistent with its role as a liquidity buffer. Following the Terra-LUNA collapse, this relationship weakens, while evidence of volatility interaction between Tether and Ethereum becomes more pronounced, although this interaction appears sensitive to the sample definition around the crash. Overall, the findings highlight the asset specific and time varying nature of stablecoin related volatility dynamics and underscore how major systemic events can reshape liquidity and volatility transmission within the cryptocurrency markets. The study provides useful insights for regulators and investors as crypto assets become more integrated into traditional financial systems.

VAT is one of the most important sources of the public revenues in the EU Member States; therefore, it is crucial to determine the factors of VAT collection. So far, only a few researchers analyzed the influence of individual economic sectors on the indicators of VAT collection, namely Compliance and Policy gaps. Therefore, the authors used the autoregressive distributed lag (ARDL) and Error Correction (EC) models to study the relationship between eleven economic sectors, the VAT Compliance Gap and the VAT Policy Gap, which were selected as the dependent variables. The research focused on twenty-five EU member states, and the examined time period was from 2005 to 2020. The results showed that the Compliance Gap is affected increasingly by the Construction and Arts sectors and decreasingly by the Agriculture and Manufacturing sectors. The Policy Gap was increasingly affected by the Real Estate, Public Administration, and Financial Services sectors. These findings established which economic sectors should receive 'special attention' from tax administrations in the EU countries to tackle tax evasion, and which are the most critical in making strategic decisions regarding tax legislation.

Although it is notoriously difficult to utilize financial ratios to forecast the crude oil market prices, our study challenges this perception and reveals that the second risk premium principal component analysis (RP-PCA) factor may contain statistically significant information for both in-sample and out-of-sample forecasts of future crude oil prices. Our evidence illustrates that the second RP-PCA factor substantially outperforms many other popular predictors (approximately 30 conventional predictors) in forecasting crude oil prices and generating adequate higher values of economic profits. We conduct a range of informative tests, including bootstrap simulation, success ratio tests, alternative out-of-sample evaluation periods, and structure break tests. Furthermore, we illustrate that the forecasting ability of the second RP-PCA factor may stem from its ability to forecast oil market sentiment. Our study presents a novel and indicatable financial instrument for policymakers to predict crude oil prices robustly. The theoretical motivation of this study links to Cochrane's (2005) framework for general candidate factors in asset pricing.

Analyzing 223 Czech squeeze-out valuation reports from 2005-2024, this study examines discount rate construction as a governance mechanism influencing minority compensation. We document the persistent dominance of the CAPM model, a shift toward domestic risk-free anchors, and evolving practices in WACC iteration and parameter transparency. Central to this study is the introduction of a novel 12-parameter 'Transparency Index' used to statistically test the verifiability of valuation reports over time, while also analyzing the applied company-independent equity market risk premium. Our findings reveal a statistically significant rise in report transparency, a curtailed use of excessive equity market risk premiums, and their improved consistency. These trends correlate with increased judicial scrutiny and legislative reforms in Czechia, suggesting that regulatory pressure has successfully disciplined valuation practices.

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 greater adaptability to align with diverse investor preferences. When comparing the U.S. and European portfolios, the U.S. portfolio consistently demonstrates better risk-adjusted performance. This advantage stems from factors such as favorable market dynamics, supportive government policies, greater access to capital, advanced technological innovation, and effective corporate strategies.

This paper investigates the nexus between medium- and high-technology exports and electricity consumption from 2016M1 to 2025M05 in Turkey. Nonlinear features in the data lead the use of a Smooth Transition Regression model that shows entrepreneurial expansion which intensifies electricity demand, while technology exports further increase electricity consumption in the nonlinear regime. Foreign direct investment is observed to reduce energy demand in the high entrepreneurship regime. Both Bootstrap Toda-Yamamoto and Fourier Cumulative Frequency causality tests indicate unidirectional causality from technology exports to electricity use. Moreover, Wavelet Transform Coherence analysis confirms time-varying and frequency-dependent properties based on strong medium-term interactions. Overall, findings imply that augmentation of high-technology share in export basket should consider the energy-intensity of the production.

In the last two decades, advances in globalization have evolved remarkably and countries have become more integrated with the entire world. The implications of this process have attracted interest of researchers and monetary policy authorities. This paper provides an assessment of the impact of globalization on macroeconomic dynamics at the level of four representative Central Eastern European countries (Czechia, Hungary, Poland and Romania) between 2003Q2 and 2022Q4. The method proposed in this study is a time-varying vector autoregressive model with stochastic volatility estimated using the Metropolis-Hastings algorithm through Bayesian inference. The results of the impulse response functions suggest a slight decrease in inflation and an increase in economic activity for some of the analysed countries, after a positive shock in the degree of trade openness, a proxy used for the advance in globalization.

This study estimates the impact of public debt on public investment in Central and Eastern European (CEE) economies. We implement Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model, which effectively handles cross-sectional dependence and slope heterogeneity, while dealing with short- and long-run coefficients simultaneously. The results indicate the existence of both short- and long-term crowding out effects of public debt on public investment in the CEE region. These findings have significant fiscal policy repercussions, particularly in context marked by constrained financial resources and substantial debt loads, as has been the case in a number of CEE economies.

In existing empirical literature, the effect of remittances has most often been examined in relation to economic growth, poverty reduction, and employment in recipient countries. Unlike previous empirical studies, this paper focuses its analysis on the impact of remittances on unemployment in selected Central, Eastern, and Southeastern European (CESEE) countries from 1998 to 2021, using the New economics of labor migration framework. These countries, which underwent deep economic and political transitions during the 1990s, faced significant challenges associated with high unemployment, particularly among the working-age population who lost their jobs, and among young people who struggled to integrate into the labor markets of these economies. As a result, they became major sources of migration flows toward the more developed and wealthier Western European countries, which in turn led to a substantial increase in the inflow of remittances to the CESEE region. This study highlights two effects of remittances: they can reduce unemployment by alleviating financial constraints and promoting job creation through human capital investments, but they may also create short-term labor market distortions by leading to decreased labor force participation, known as the "dependency effect". Using an Autoregressive Distributed Lag (ARDL) model, the analysis reveals a negative relationship between remittances and unemployment; that is, in the long run, an increase in remittances reduces the unemployment rate by facilitating job creation. Conversely, in the short term, remittances correlate with increased unemployment due to temporary declines in labor force participation. Hence, the novelty and importance of this paper lie in its aim to explore the nexus between remittances and unemployment, and to underscore the need for policies that optimize the benefits of remittances while mitigating their potential adverse effects. However, the study is limited by the unavailability of data for certain countries, potential endogeneity between remittances and unemployment, and the omission of some institutional or structural factors that future research could address.

The study examines the deferred tax in the valuation and acquisition of real estate companies, the behavior of the buyers and sellers in real estate transactions and the impact on the purchase price. We analyze the data from the Czech Republic commercial real estate market in the period of 2018-2019 where taxation provisions for Asset and Share Deal transactions induce a special type of a deferred tax - a latent capital gains tax (LCGT). Based on the data of 25 Share Deal real estate transactions we bring evidence that the LCGT was reflected in the purchase price by 0-50%, median value being 0%. We document that this market-imported percentage can be explained in two complementary ways. Firstly, using the capitalization approach, and secondly, using the behavioral approach by the bargaining power of the seller. Moreover, we show that the LCGT percentage reflected in the purchase price is dependent only on the discount rate and tax amortization period.

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 impulsive buying behavior and increases the likelihood of post-purchase regret. The study also demonstrates that FoMO plays a significant mediating role between deal proneness and impulsive buying, highlighting its impact on consumer behavior in online shopping environments. The findings provide theoretical, managerial, and practical insights for stakeholders.

The goal of this article is to measure the objective dimension of quality of life in municipalities with extended jurisdiction in the Czech Republic. Quality of life is measured by four composite indicators. Composite indicators were calculated using two methods based on several socio-economic factors. The methods for calculating composite indicators are the weighted sum approach and the benefit-of-the-doubt method, which is based on linear programming. In the weighted sum method, the target population groups were distinguished by determining different weights for individual socio-economic factors. The article also analyzes the effect of living on the Czech Republic state border on the quality of life, and individual neighboring countries are distinguished. Composite indicators are further analyzed by regression analysis with qualitative variables. The statistically significant results show that municipalities located near the border with Slovakia achieve average higher values of all four composite indicators than other municipalities. The results were further analyzed by spatial analysis. Positive spatial autocorrelation and so-called coldspots and hotspots were found. Hotspots were detected in municipalities with extended coverage bordering Slovakia, with some reaching inland. After including the spatial component in the regression model, the effect of the state border weakened. This is because individual cold spots and hotspots have a significant inland extension from the border.

The paper investigates the relationship of financial leverage and operating performance in a small open economy. A comprehensive sample consists of panel data from 1,821 Czech firms over the period 2006 to 2017. We find that leverage has a negative effect on the operating performance for the entire sample as well as for subsamples structured according to size or sector. We also find evidence that the relationship between leverage and performance in some sectors and segments is weakened during periods of economic downturn, as well as during the recent foreign exchange interventions of the Czech National Bank. Our study, focusing on the banking perspective, contributes to the debate about the impact of differences in leverage across sectors and segments on the capital allocation channels, managed in small open economies predominantly by banks.

An essential part of the EU's growth strategy is support to its own international competitiveness. The reason is that the domestic industry is losing its former positions and is being pushed out of both domestic and international markets. Developments on the international steel market over the last year confirm that the market is likely to see significant changes as a result of protective measures. Most of them will jeopardise the international competitiveness of the European steel industry with negative impacts on its overall economic growth. The aim of this paper is to analyse the influence of energy prices and, based on an international comparison of production conditions, identify the comparative advantages of the EU in this segment. For this purpose, use will be made of the RCA indicator and other research methods. The authors formulate some statements concerning the future development of this sector and the conditions which need to be satisfied to boost its competitiveness.

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. Moreover, several recommendations are formulated to remove the advantage of still wine over sparkling wine, while at the same time allowing support for small wine producers who would be more affected by taxation than large producers.

The balanced growth theory and the neoclassical growth model predict that certain macroeconomic variables such as output, consumption, and investment grow at a constant rate. Analytically, it indicates that the consumption-output ratio and the investment-output ratio (termed "great ratios") must be stationary. Moreover, consumption and investment must be cointegrated with output. This paper examines these implications with respect to developed (G7) and emerging (E7) countries using data for the period 1970-2019. The validity of the balanced growth hypothesis (BGH) is tested by using unit root tests (univariate analysis) and cointegration techniques (multivariate analysis) that permits endogenously determined structural breaks. The findings of our univariate analysis suggest limited evidence of the BGH in developed and developing countries. The multivariate analysis exhibits more supportive evidence of the BGH in five developed countries and limited evidence for two developing countries. The study also employs the Westerlund (2006) panel cointegration test with structural breaks to examine the validity of the BGH. Empirical findings validate the BGH for the G7 countries, while it is not validated for E7 countries. In sum, the study promulgates the use of structural breaks in a multivariate setup in testing the BGH to find robust evidence.

This paper contributes to the literature on fiscal decentralization by presenting a formal model of the interaction between the central and local governments (CG and LGs, respectively) where LGs may differ in their degree of political alignment with CG. The non-cooperative optimal behaviour of the agents reveals that optimal tax increases with the extent of fiscal decentralization (FD), political unison and spillovers across localities, while LGs' optimal tax collection effort is negatively associated with all of these parameters. The first novel finding of our study is that both welfare peaks and income distribution are more equitable at a lower level of FD in the case of spillovers than in the case of no spillovers, which supports the decentralization theorem. The second novel finding is that both the amount of redistributable income and central government utility increase with the degree of political unison.

Using a unique firm-level data for Polish Special Economic Zones (SEZ) to estimate a set of panel data models we find that both employment and investment growth in SEZ are driven mainly by labour market characteristics of zone-hosting regions, while other factors (including market access, zone business climate and firms' concentration) play a less important role. Firms choose their locations based on labour availability rather than on labour costs. Moreover, they pay particular attention to availability of low-skilled rather than high-skilled labour. As far as tax incentives are concerned, their predictability matters more for SEZ development than their generosity.

Motivated by the persistent rise in bilateral trade imbalance in Nigeria, this paper empirically examines whether Nigeria's four trading partners (China, India, the UK and the US) respond asymmetrically to changes in the oil price and exchange rate using a nonlinear autoregressive distributed lag model over the period from January 1999 to December 2019. Interestingly, we find that oil price increase and decrease influence Nigeria's trade balance with four trading partners asymmetrically. Further evidence indicates that oil price increases predominantly exert greater influence than decreases. Furthermore, Nigeria's trade balances with India and the UK in the long run and the US in the short run significantly respond asymmetrically to changes in exchange rate. In addition the result establishes significant evidence of the J-curve pattern in the response of Nigeria's trade balance with the UK to differences in exchange rate.

Fiscal policy is an effective instrument in helping governments in developed countries overcome a recession with a high unemployment rate or a hot economy with a high inflation rate to keep the economy on a stable path. Does governance contribute significantly to keeping this goal in these countries? The study looks for an answer by empirically investigating the role of governance in the output gap - fiscal policy relationship for a group of 27 developed countries between 2002 and 2019. It employs the difference GMM Arellano-Bond estimators and the PMG estimator for estimation and robustness check. The results provide some interesting findings. Firstly, both public spending and government revenue are counter-cyclical, confirming the counter-cyclical fiscal policy in developed countries. Secondly, governance hinders the counter-cyclical fiscal policy. The findings imply some crucial policies for governments in developed countries in running the fiscal policy.

Poverty reduction has long been one of the political priorities of the European Union and its member states. Despite the political declarations and measures applied, poverty is still a phenomenon that affects the everyday lives of about 70 million Europeans. Moreover, trends in poverty incidence show how poverty risks are sensitive to overall socio-economic development and how they are more actual for some vulnerable population groups. Following the popular concept of poverty feminization, the analysis presented in the paper aims to identify gender perspective relationship between the poverty incidence and characteristics describing the situation on the labour market or the levels of attained education in EU-27 countries. Attention is paid to poverty incidence among women and men of working age (population aged from 25 to 54 years) and differences are examined in the relationship to the position of both genders on the labour market. Presented findings, based mainly on the results obtained from the panel regression analysis performed for the period 2007-2020, suggest that policymakers should integrate a gender perspective into all policies focused on poverty reduction.

This analysis tries to address the problem of the insufficiency of premium rates used by export credit agencies. This paper aims to answer why and how states should run agencies that may create losses. We see that each supported exporter brings some other benefits to the public budget, and we try to propose how it could be measured. This paper therefore focuses on benefits and costs of the domestic economy. This analysis aims to develop a model that calculates the impacts of each supported export project. The results must be comparable between projects so that projects can be ranked and decisions made on which ones should receive support under current capacity restraints. The current state of knowledge has been analysed, and little attention has been paid to this microeconomic area of export support. The model structure also helps us understand why governments tend to maintain export credit agencies even though they may be temporarily loss-making.

Using developing countries in Europe for context, this study examines the complex relationship between financial crises and financial integration. We use panel data comprising 37 countries in Europe, including Iceland, Belarus, Ukraine, Turkey, and Russia from 2000-2019 and the general method of moments. Our findings show that there is a positive relationship between financial integration and development and economic growth. In addition, the results suggest that a higher degree of financial integration is not necessarily increasing financial fragility during a financial crisis. Therefore, the results show that it is a self-defeating policy for developing countries to apply a strategy of financial protectionism over a financial crisis.

Non-fungible tokens are transferable rights to digital assets such as artwork, videos, in-game items, collectibles or music. Non-fungible tokens relate only to a specific unique item and carry information about the owner. The non-fungible token market has received widespread attention and has grown enormously since the beginning of 2021. Despite significant growth in the market, there needs to be more surveys, especially in the context of the Czech Republic. This article, therefore, aims to evaluate the level of awareness of non-fungible tokens in the Czech Republic. The paper presents the basics of the non-fungible token market, its potential and uncertainty, and the interdisciplinary nature of non-fungible token research. First, the characteristics of non-fungible tokens are described based on a literature review. The methodological part outlines an empirical analysis based on a quantitative survey in which 103 respondents in the Czech Republic took part. Based on the research results, it was found out that in the Czech Republic, there is low level of awareness of non-fungible tokens and also low level of trust in digital assets in general. In conclusion, it is possible to say that this article provides an overall understanding of the phenomenon of non-fungible tokens in the Czech Republic.

This study evaluates the effects of opening new segments of mass rapid transit (MRT) lines on housing prices near the MRT stations in Tucheng District and Xinzhuang District, New Taipei City, Taiwan. The effect of proximity to each MRT station is estimated separately with difference-in-differences regressions integrated with spatial econometrics with heteroscedasticity-robust standard errors. The opening of the new segment of the Blue Line, also known as Bannan Line of the Taipei Metro, does not significantly influence housing prices within 600-metre road network distance of the MRT stations, compared to prices outside the distance range. In contrast, and also unlike the findings of prior studies, although the segment and the stations are underground structures, the opening of the new segment of the Orange Line, also known as the Zhonghe-Xinlu Line of the Taipei Metro, significantly decreases housing prices within 600-metre road network distance of the MRT stations, compared to prices outside the distance range, perhaps because the opening of the stations is delayed about one and a half years to be used as a temporary storage area for MRT trains. The findings have implications for homebuyers, investors, mortgage lending institutions and tax assessment authorities.

Uncertainty is one of the most important issues for economic actors. Uncertainty about tax, expenditure and debt policy has an impact on the economy. The central question in this study asks how fiscal policy uncertainty affects the Turkish economy. First, we quantify Turkey's fiscal policy uncertainty index based on volatility measurements between 1998Q1 and 2020Q4. This index represents major fiscal, economic and political incidents in Turkey. Next, we analyse the effects of fiscal policy uncertainty on the Turkish economy using a VAR model. Our study finds that fiscal policy uncertainty shocks have detrimental and long-lasting effects on the Turkish economy. The results indicated that a positive standard deviation shock in fiscal policy uncertainty decreases the confidence, output and consumption. The findings of this study reveal critical fiscal policy implications for decision-makers. These findings imply that reducing Turkey's fiscal policy uncertainty is a critical policy priority for the business cycle fluctuations.

Expanding imports and promoting balanced trade have been the direction China has been adhering to in recent years, and are also important measures for China to build an open domestic and international dual cycle development pattern. This paper incorporates the emissions of “three industrial wastes” into the production function, uses the Slack Based Measure model and the globally referenced Malmquist-Leuenberger index to measure the green total factor productivity of Chinese enterprises from 2002 to 2013 in order to measure enterprises’ green transformation development. Subsequently, it tests the green development effect of import trade from the perspective of import technology sophistication and import diversification. Afterwards, we discover that the improvement of import sophistication and import diversification can significantly promote enterprises’ green transformation, largely through spillover effects and intermediate import competition effects. Furthermore, the green development promotion effect of import trade is greatly heterogeneous. The research in this article provides beneficial insights for China’s economic opening-up and high-quality economic development.

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 of understanding ERPT for effective monetary policy in the region. Our results highlight the need for policymakers to consider the complex interplay between exchange rate fluctuations and domestic prices when formulating monetary policy strategies.

This paper theoretically and empirically investigates variations in the size of the non-profit sector among countries. Although the non-profit sector has experienced growth in relative socio-economic importance in recent decades, the available data on the size of the sector indicates substantial variations among countries. Existing literature provides several multi- and interdisciplinary theories, hypotheses and concepts that try to explain those differences, such as for instance the heterogeneity and failure theories, the resource dependence theory and interdependence theory. Empirical findings indicate that the selection of the measurement of sector size influences the ability to explain the differences in the size of the sector across countries. The results of a crosssection regression analysis indicate that almost three quarters of cross-national variation in the sector workforce could be explained, whereas pooled regression indicates that almost three fifths of variation in sector size, if workforce and expenditures are taken as dimensions of the sector, could be explained. Moreover, regression analysis tends to support the propositions of resource dependence and demand heterogeneity (government failure) theory, although there is also some ground for supporting the interdependence theory.

Africa is endowed with both natural resources and a young growing workforce. In light of this, it is obvious that regulations on labour markets will have significant impacts on economic growth, especially through effects on employment and productivity. This study provides information on labour market regulations (labour market flexibility) and their impacts on economic growth in Africa. In particular, this study examines the impact of labour market flexibility (regulations) on economic growth (real GDP per capita growth) relying on the Driscoll-Kraay fixed-effects estimator and the two-step system generalized method of moments (GMM) estimation techniques using data from 2000 to 2019 for 37 African countries. The results show a positive correlation, indicating that liberalizing rigid labour market regulations can lead to economic growth benefits. Specifically, it is observed that economic growth increases by approximately 0.16% resulting from a unit (one standard deviation) increase in labour market flexibility. The study also finds that economic growth (real GDP per capita growth) is high in countries that have flexible hour regulations, flexible mandatory costs of worker dismissal, and the absence of (or not strictly enforced) military conscription. These findings have important implications for African governments and policymakers as they may find it useful to liberalize the prevailing rigid labour market regulations to reap economic growth benefits.