Journal of Economics - Obsahy ročníkov

After the entry to the European monetary union new European Union member countries loose ability to perform sovereign monetary policy. It is usually mentioned that after the adoption the euro these countries will not be able to control the potential inflation pressures under the common monetary policy performed by the European central bank. Another key aspect of the euro adoption is the loss of the ability to manage the exchange rate that is considered to be a very useful absorber of the structural shocks that affect the national economy. At the same time the ability of the exchange rate to absorb or stimulate the potential effects of the exogenous structural shocks to the domestic output development could be different among the new European Union member countries. In the paper we analyze the impact of the main structural macroeconomic (nominal, demand and supply) shocks to the exchange rates (NEER, REER) and output (real GDP) development in the Visegrad countries in the period 1995 – 2007 using the structural vector autoregression (SVAR) model. Keywords: exchange rates, economic shocks, structural vector autoregression, variance decomposition, impulse-response function JEL Classification: C32, F31, F33

Although the economic activity in a mixed economy is undertaken by various kinds of organizations, only recently, researchers have been paying attention to the forces influencing the size, composition and financial structure of the private non-profit organizations. With this paper, we want to add new evidence on the way European countries deal with the provision of welfare services, mostly focusing on the role played by the private non-profit sector. We are really interested in the relationship existing between the non-profit and public providers of education, health and social services in Europe. We will perform several empirical tests in order to know whether among the European countries, the non-profit and public sectors are “partners” or “rivals” in the provision of welfare services, and, whether such a relationship holds for the whole 17 European sample countries. Keywords: public economics, non-profit sector, welfare services, regression analysis, European Union JEL Classification: H41, L31, I0, C31, N34

Exchange rates forecasting is an important financial problem that is receiving increasing attention especially because of its difficulty and practical applica-tions. This paper proposes utilisation of Machine Learning methods in the field of financial praxis. Two modelling approaches – enhanced Group Method of Data Handling (GMDH) and back propagation Neural network – were em-ployed for CZK/EUR exchange rate forecasting. Predictions were used for financial management decision simulation of a virtual company and the results indicate, that machine learning proved to be useful source of information in the area. This implies that the proposed modelling approaches can be used as a feasible solution for exchange rate forecasting in exchange rate management. Keywords: machine learning, neural networks, group method of data handling, exchange rate forecasting, exchange rate risk management, exchange rate derivatives JEL Classification F31, F37

The paper surveys and compares the main substitution production function types as one of the key components used by the estimations of potential output or output gap. Based on the theoretical classification of the production functions, Fuss-McFadden-Mundlak opinion and some empirical tests of the production functions in the Slovak Republic, EU countries and USA, the paper: (a) com-pares the possibility of using different substitution production functions by the potential output or output gap measurement/estimation, (b) evaluates the advantages and disadvantages of using three different basic production function mod-els/groups. In addition, the paper encourages enhancement of the empirical research of production function use with the variable characteristics. Keywords: production function, substitution, potential product, production gap JEL Classification: C13, C23, C51, D21, D24, E32, H37, E60

Fundamental questions of economics are: what should be produced, in what way and for whom. The same questions we can put in public economics. Due to differences in concepts of government we can find two different answers for the fundamental questions. The first, machiavellian, highlights private interest in governance. The second answer, by Paul A. Samuelson, accents economic necessity of some governmental services. Keywords: government policy, private interest, public and private goods JEL Classification: B11, H11, H40

The article briefly characterizes psychological impact of money existence in mentally regulated behavior. The paper indicates explicit opinions on the effect of money on personality, especially on their moral characteristics. Within frequent social macro-changes of Slovak citizens, certainty-uncertainty is characterized as a personality feature. We present a more detailed description of the trust-distrust phenomenon, its determinants and influences on behavior. We discuss experiences from international psychological research studies (mainly Austria). The explanation of euro currency perception (so called euro illusion, selective error) indicates consequences on consumer behavior. Finally we mention some Slovak peculiarities. Keywords: euro-conversion, certainty-uncertainty, trust-distrust, perception, euro illusion, personality JEL Classification: D12