Issue 4 - Volume 68/2020
Do German Industrial Confidence Shocks Matter for Central and Eastern Europe?
Page 321, Issue 4 - Volume 68/2020
This paper studies the transmission of German industrial confidence shocks to industrial confidence, industrial production, and price and interest rate level in nine Central and Eastern European (CEE) countries (Czech Republic, Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia). The main questions the paper aims to answer are: (i) Do shocks in German industrial confidence affect economies in CEE? (ii) Which CEE economies are more susceptible to these shocks? (iii) Separating different groups of industrial production goods (capital goods, intermediate goods, and durable consumption goods), which production group is more sensitive to the shocks? We apply impulse response and forecast error variance decomposition analysis and find a heterogeneous response across CEE. The results imply confidence transmission running from Germany to several CEE countries, most notably Slovenia, Slovakia, and the Czech Republic.
Keywords: confidence, transmission of shocks, industrial production, CEE;
JEL Classification: D84, E23, E32
The Link between Fiscal Decentralization and Ethnolinguistic Fragmentation of the Population in OECD Countries
Page 340, Issue 4 - Volume 68/2020
In this paper, authors propose a unique merged index of the ethnolinguistic fragmentation of the population to examine the relationship between fiscal decentralization and ethnolinguistic fragmentation. The initial hypothesis, based on the Decentralization Theorem, assumes a positive relationship. The basic dynamic panel data model covers a sample of 35 OECD countries in period 2000 – 2017, the reduced sample covers 26 OECD countries, excluding countries with the lowest income inequalities. Here the stronger effect of ethnolinguistic fragmentation on fiscal decentralization is expected. The research in-volves different types of fiscal decentralization (spending, revenue and tax decentralization). Estimation results are confronted with estimations employing alternative indices of ethnic and linguistic fragmentation, previously used in researches. Findings support the initial hypothesis in the case of the spending decentralization on both samples. The confrontation with indices of ethnic or linguistic fragmentation shows significant effect of ethnic fragmentation. In the case of the reduced sample, results do not support the expectation of stronger effect of ethnolinguistic fragmentation on fiscal decentralization.
Keywords: population diversity, ethnolinguistic fragmentation, decentralization theorem, fiscal decentralization, panel data;
JEL Classification: H73, H77
Novel Approach to Measuring Business Process Performance
Page 360, Issue 4 - Volume 68/2020
In the literature, as in practice, there are numerous models for measuring business performance but only a few of them are focused on the business processes, and have integrated process measures with strategic goals, in a way to enable companies to measure progress towards achieving business goals. This paper seeks to address these issues by proposing a new process performance measurement (PPM) model, named GPI model. Model was designed using evidence from the literature, it was tested through multiple case study research, and then it was modified and verified. The GPI model has the potential to become a useful tool for managers in several ways: firstly, the model can be used as a guidance for establishing PPM system that is aligned with strategic goals of company; secondly, the model can be used as it is, with a slight model customization; and thirdly, the universal list of Process performance indicators can be used as a source for best practice.
Keywords: performance measurement, performance indicators, process measurement;
JEL Classification: L21, L25
Regime Switching Modeling of Unemployment Rate in Eastern Europe
Page 380, Issue 4 - Volume 68/2020
This paper investigates the unemployment rate dynamics in Poland, Hungary, Slovakia, Latvia, Lithuania, Estonia, Bulgaria, Romania and Ukraine during 2000 – 2017. To analyze the dynamics of unemployment rate we constructed econometric regression models with nonlinearities that arose due to discrete changes in modes. We developed Markov switching model that allowed capturing the regularities by modeling the asymmetry in the unemployment rate during contractionary and expansionary states of the labor market. We evaluated two regimes of unemployment behavior that were associated with high and low unemployment levels and estimated the transition probabilities of regime change and average expected durations in each regime. The comparison of mean and volatility of different regimes and the one-step ahead predictions of the regime probabilities for different countries revealed the labor market specifics for each country and showed differences in the flexibility of their reactions to changing economic environment.
Keywords: labor market, unemployment, switching model, Markov chain, Eastern Europe;
JEL Classification: С24, E24
Comparison of Incidences of Serious Diseases within Regions in the Czech Republic
Page 409, Issue 4 - Volume 68/2020
The incidence of serious diseases in most European countries has a growing trend compared to mortality due to these illnesses. There are significant differences in the health status of the population not only between countries but also within them. The goal of the health policy of the European Union and its member states is not only to reduce the incidence of serious diseases but also mitigate regional inequalities of their incidence. The object of this article is to compare incidences of serious diseases within the regions in the Czech Republic by using hybrid approach which combine multidimensional scaling with linear ordering of the objects. Hybrid approach is suitable for visualization of objects and determination of distances from ideal object according to indicators used. The factors of regional inequalities in the incidence of serious diseases are identified and quantified based on the results of hybrid method.
Keywords: incidences, serious diseases, multidimensional scaling, linear ordering, hybrid approach, rank correlation, factor analysis;
JEL Classification: C38, C43, C63