Journal of Economics - Obsahy ročníkov

This study empirically examines the relationship between broad money (M3) and economic growth according to different level of inflation. The impact is examined on the sample of 17 countries via threshold model for panel data. To ensure the robustness of the results, we apply several alternatives, including single and double threshold model. We conclude that an increase in money supply can be beneficial from the point of view of economic growth only for countries susceptible to maintain their inflation within an optimum interval, which is quantified by our model at around 2% level of inflation in the long run. The model estimation further revealed that countries with inflation over 3.3% should avoid an increase in money supply as they risk negative effects on their output. Keywords: broad money, economic growth, inflation, threshold model; JEL Classification: C24, E32, F44, F45

Small and medium-sized enterprises (SMEs) are facing internal markets with higher taxation and transfer price compliance costs as well as cross-border loss compensation problems. With respect to the taxation (transfer pricing) compliance costs that are borne by SMEs, the possible solutions for decreasing those costs were suggested to be safe harbours and common (consolidated) corporate tax bases. This paper includes an evaluation of the suggested approaches and their impacts on the SMEs’ economic performance. In addition, this evaluation accounts for the selected economic variables that are classified by industry and firm size, assuming decreased compliance costs of taxation and the fulfilment of the long-term goals of the EU2020 agenda, such as smart and inclusive growth in the EU. Based on the results, it can be concluded that safe harbours and the CCCTB system are able to improve SMEs’ performance. The most important economic variables supporting the increase in business performance are current assets, value added, enterprise value and, finally, operating revenues. In researched countries, the highest impact on the business performance would result from the created added value. Keywords: SMEs, transfer pricing rule, safe harbour, CCCTB, Czech Republic, Slovak Republic, business performance; JEL Classification: F23, K33, G38

The paper deals with shifts in outdoor cultural consumption in Slovakia and explores the presence of the so called “Lipstick effect” related to the hedonic consumption in times of economic downturns. Based on the two-stage primary research we analyse the attendance at cultural events (visit to theatre, cinema, concert, opera, ballet, dance, exhibition, vernissage and others) during the pre-crisis and crisis period in view of contrasting perspectives. The results of our research suggest that the outdoor cultural consumption, however being a deferrable need, is not necessarily abandoned in times of economic downturns. On the contrary, it may be sustained or even enhanced during recessionary periods. Our research identified the predominance of psychological aspects over econo¬mic factors within arts participation with an increased role of emotional drivers during the recession. Although, the outdoor cultural consumption tends to be sustainable even in times of crisis, the consumption patterns are modified with regard to the intensity of participation and the spending on attended cultural events. Based on our findings we conclude that the outdoor cultural consumption in Slovakia had the Lipstick effect during the global economic crisis. Keywords: Global economic crisis, consumer behaviour, culture and the arts, outdoor cultural consumption, Lipstick effect, Slovakia; JEL Classification: D12, Z1

The key role of public sector investments in economic transformations makes the choice of social discount rate especially crucial for transition countries. The aim of this study is to estimate the social discount rates of six transition economies – Czech Republic, Estonia, Hungary, Latvia, Poland, Slovak Republic – by using two different approaches. We observe that the estimates produced by tax approach are concentrated in a band between 3.3% (Hungary) and 6.91% (Estonia). In comparison with tax approach estimations, the social discount rates obtained by food demand approach are lower for all selected countries: the lowest value is 1.94% (Czech Republic) and the highest is 3.5% (Latvia). Keywords: social discount rate, transition economies, project appraisal; JEL Classification: H40, H43

One of the ultimate goals of investing EU structural funds is to strengthen economic and social cohesion. Aiming to formulate and/or adjust funds allocation policy, it is crucial to find out whether previous investments had a positive return, i.e. the goal to diminish disparities has been achieved. This paper aims to supplement the empirical evidence of previous contributions in a few ways: (i) the analysis is based on NUTS 3 level data and different expenditure categories of various EU structural funds; (ii) the impact evaluation strategy relies on difference-in-differences estimator; and (iii) the effect is estimated on the dynamics of regional GDP disparities rather than on regional GDP growth. The research results revealed that all investments combined did not contribute to the reduction of regional disparities. The analysis of separate fund shows ambiguous results. The analysis of single expenditure category suggests that investment in productive environment and basic infrastructure had positive return and investing in human resources did not have significant effect. Keywords: European Regional Development Fund (ERDF), Cohesion Fund (CF), regional disparities, convergence, NUTS 3, difference-in-differences estimator; JEL Classification: O47, O52, R11, R12, R15, R58