Journal of Economics - Obsahy ročníkov

In the paper we respond a question, if Slovak retail gasoline and diesel prices respond more quickly when crude oil price rises rather than when it decreases. A theoretical explanation of asymmetric retail gasoline and diesel price reactions is addressed by examining the theory of strategic interactions between firm and its consumers. By investigating the traditional approach based on error correction models and vector error correction models, we reject the asymmetric gasoline and diesel price reaction hypotheses in the Slovak market. Considering the theory of strategic interactions between a firm and its consumers, a firm is minimising its adjustment cost function in a linear exponential form. Solving the problem of firm, we derive an econometric specification of a gasoline and diesel price reaction function. Estimating the specification we do not reject asymmetric gasoline and diesel price reaction hypotheses in Slovak market. Keywords: asymmetric retail gasoline and diesel price reactions, error correction models, linex adjustment cost function; JEL Classification: C12, C26, Q41

The study aims to estimate shadow prices of environmental pollutants in wastewater which can under the assumption of optimal pollution levels be interpreted as environmental benefits gained from the treatment process. A directional output distance function model uses a sample of 57 medium-sized Slovak wastewater treatment plants to estimate the shadow prices for nitrogen, phosphorus, suspended solids and chemical oxygen demand. Total estimated value represents the costs avoided through undischarged pollution. Obtained shadow prices can be used in the future cost-benefits analyses of wastewater treatment investment projects. Keywords: distance function, economic valuation, environmental benefits, shadow prices, undesirable outputs, wastewater treatment; JEL Classification: Q51

VAT is one of the most important tax revenues of the European states, yet it suffers from excessive tax evasion. Carousel frauds that abuse the current VAT treatment of cross-border supplies of goods in the EU represent the most serious type of VAT evasion. Almost all EU Member States have implemented anti-fraud measures. This paper discusses the effectiveness of such measures as introduced in the Czech Republic. The analysis of quarterly time series of VAT revenues from 1999 to 2016 showed that from all the anti-fraud measures, tightening of the rules for unreliable payers introduced at the beginning of 2013 proves in our models to be the most robust. A significant, positive effect has also been identified for the adoption of the reverse charge mechanism on scrap and emission allowances, as well as for the implementation of the VAT control statement. On the other hand, our analysis did not confirm that the so-called protective orders do increase VAT revenues. The total annual increase in tax collected as a result of implementing the above-mentioned measures was according to the model around CZK 51 billion by the end of 2015. This is 14.5% of the total annual VAT revenues. Keywords: Carousel Fraud, Czech Republic, Tax Evasion, VAT; JEL Classification: H26

In this paper we present a method of calculating the value of synergy resulting from mergers between private companies as well as a model for the prediction of potential synergy values in contemplated mergers (M&A deals). We first examined the process of determining the value of a synergy. Since we analysed mergers involving private mechanical engineering companies, we used the dis-counted capital cash flow method for the determination of the synergy value. We divided the selected mergers according to the achieved synergy value into two groups, i.e. into successful mergers and failed mergers. We then analysed the two groups in order to identify financial ratios with statistically significant differences (deviations). We then used those ratios to establish a rule for the differentiation between mergers that would increase in business value, i.e. with positive synergy, and those whose value would decrease. A decision rule was developed using the classification and regression trees method. In the research sample, the developed model distinguished successful merger from failed ones with 92% accuracy. Keywords: mergers in mechanical engineering, operating synergies, capital cash flow, value of synergies, classification and regression trees; JEL Classification: G34, G32, L20

This paper empirically examines the short-term and long-term effects of changes in R&D intensity on particularly the rate of unemployment in addition to economic growth for a sample of five European countries. Utilizing annual data for the sample period of 1991 – 2017, two alternative methodologies, namely the ‘ARDL bounds testing’ and ‘PMG estimation’ are employed. The empirical results have shown that there exists a long-run relationship between R&D, unemployment rate, and economic growth in four of the five countries investigated. Furthermore, the results of panel data analysis have suggested that even though in the long-run a given increase in R&D is likely to lower the rate of unemployment (in the average country of the sample), in the short-run, it can have adverse effects on unemployment. The paper argues that these empirical results can be taken as an evidence for the idea that even though the dominant form of technological change is in the form of ‘new task creation’ instead of ‘automation’, in the short-run new technologies may lead to an increase in the rate of unemployment due to the possible mismatch between the skills required by the newly created tasks (jobs) and the skills of the existing pool of workers. Keywords: R&D; unemployment rate, economic growth, technological progress; JEL Classification: E24, J23, O00, O15, O38