Journal of Economics - Obsahy ročníkov

Financial decision-making is characterized by seeking the optimal solution, exploiting the available resources and utility maximizing under assumption of rational decision-making. Decision-making under uncertainty implicitly requires the acceptance of risk of states of the worlds and the acceptance of possible consequences of risk alternatives. On the contrary there are lot of empirical examples of managers’ propensity to the incorporation of irrelevant factors to the decision making process. Irrelevant factors are based on internal feeling of managers, elimination of regret with the aim to hide individual failure of managers and admitting mistakes of responsible managers. Conducted economic experiment focused on the escalation of commitment in losing projects. Keywords: escalation of commitment in losing projects, financial decision-making, investment project, cognitive dissonance, prospect theory, sunk costs JEL Classification: C91, D81, G31

This article is dealt about present financial crisis as a result o credit expansion. Debt problem was mask with financial instrument innovations, namely structured bonds in securing form. By the help of this Instruments were walked around state the regulatory body and postpone assignment of disequilibrium. Part of rating agency in this process is described. Special attention paid to impact of financial crisis on financial market, especially on insurance business. The article calls attention on asymmetry information problem and possible influence and adequacy of regulatory attitudes on return to equilibrium level particularly in EU. Keywords: financial crisis, financial instrument innovations, regulatory projects, rating agency, crisis impact to financial market, especially on insurance branch, possibility of state regulatory of insurance market JEL Classification: D74, D81, D82, G22

The paper deals with business services as a component of the economy and mar-ket. The scope of business services in theory and practice is defined and the changes occurring in the classification of economic activities are described. Reasons why business services have been gaining ground are explained, and their functions and tasks related in particular to the support of economic growth and competitiveness are clarified. Their position in the economy is analysed with special regard to EC countries and Slovakia's economy during the process of integration into the EC economic environment. External dimensions of business services in EU countries in terms of participation in the overall exports of services and active balance are specified in the paper. Key aspects of EC policies in the area of business services are identified. Keywords: business services, economic growth, competitiveness, production and employment, market, internationalisation, economic policy JEL Classification: E23, E24, F29, L19, L84, O25

The article deals with the analysis of the determination of the economy through the military expenditures and their place in economic model at the developing and the developed countries. It is curried out the evaluation of the analyses, which are dealing with the studies about the relationship between the military expenditures and economical growth. It is evaluating the relationship of the military expenditures and the alliance defence. Generally, it is proved neither unambiguously positive nor negative influence of the military expenditures on the economical growth. While “the effect of the externality” could be positive, “the effect of demand” (redirecting of resources) would be perhaps negative. The general effect of military expenditures seems to be in both directions marginal. It follows, that even though the military expenditures have dollar gap shortage impact on the contemporary economical growth, they doesn't need consider even harmful or too high. The military expenditures in consequence their function can operate like the long-term capital investments perforce, which are must for political stability of the state. Keywords: economic growth, military expenditures, alliance defence, positive and negative influence of military expenditures, military expenditures also long-term capital JEL Classification: D74, O11, O57, P44

In the paper we analyse the determinants of subjective wellbeing (SWB) of individuals using the World Values data set. We find wellbeing linked to relative income, marital status, employment status, gender, age and education and also to the amount of time the individual spends with the family, friends and in church. Political factors are also important including the level of satisfaction with the country, the perceived state of human rights and institutional trust. We analyse SWB separately for men and women, for the poor and rich and for poor and rich countries. We found substantial differences among individual categories. The factors which make men happy are not a mirror image of those, which do make women happy and happiness in rich countries is not a simple extrapolation of that in poor countries. Keywords: subjective wellbeing of an individual, determinants of subjective wellbeing, economic development, World Values data set JEL Classification: D69, O12

The theoretical and empirical aspects of the research into Slovakia’s illegal economy were based on secondary analysis and two pieces of representative research. The main outcomes of the research inform us that the problems within the current Slovak economic system occur as result of the processes of corrup-tion, and that the shadow economy is one of the main barriers to the socio-economic development of Slovakia. To solve these problems it is necessary to implement more effective economic legislation that includes social measures and ethical principles. Keywords: research of corruption and shadow economy, theoretical aspects illegal economy, institutions, economic legislation, ethical principles JEL Classification: D02, D03, D23