Journal of Economics - Obsahy ročníkov

We investigate the fiscal multiplier in normal times and in the presence of a binding zero lower bound on interest rates with SVARs. We construct shocks to interest rates that compensate their reactions to fiscal expansion and hold them constant we apply the shocks to the United States, the Euro area and Slovakia. We find that for the former case, the multiplier decreases in the ZLB, but it increases sharply in the ZLB for the latter two cases. The sign of its change is determined by the coordination of fiscal and monetary policy i.e. whether the interest rates drop or rise in response to fiscal expansion. Keywords: monetary-fiscal interactions, fiscal multipliers, zero lower bound, VAR models, compensating shocks; JEL Classification: E62, E63, C32

This paper is focused on the impact arising from the conclusion of the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada on the Slovak economy, with an emphasis on the automotive industry, machinery industry and electronics industry. Its aim is to estimate the direct as well as indirect effects generated by changes in international trade on Slovakia’s value added, exports and employment, using the multi-regional input-output model. Based on different variants of development, it is expected that the average impact of CETA on the Slovak economy, as a result of the removal of the tariff barriers, will amount to 0.013% GDP, while the impact on job creation was estimated at 0.012% of the total employment. Removing the tariff barriers should lead to an increase in exports to Canada on average by 8%, in the event of a strong reaction to a price drop even by 18%. Keywords: CETA, Slovakia, Canada, international trade; JEL Classification: C67, F14, F17

Climate change is a serious threat to sustainable development (SD). A Decomposition Analysis (DA) of the data on Greenhouse Gas (GHG) emissions in the European Union (EU) in 2008 – 2014 was carried out using the Log-Mean Divisia Index Method (LMDI). To detect the factors behind de/coupling of GHG emissions from Gross Value Added (GVA) in the EU-28, changes of GHG emissions were divided into three effects. The negative intensity effect showed the highest absolute magnitude in the overall period 2008 – 2014 and the two partial periods 2008 – 2011 and 2011 – 2014. The composition effect also helped reduce GHG emissions, but to a lesser extent. The scale effect boosted increases of GHG emissions except for two years, 2009 and 2012, which was related to the effects of the economic crisis. Transportation and storage along with the Agriculture, forestry and fishing activities should be addressed more significantly in relation to GHG emissions. Keywords: Climate Change, Decomposition Analysis (DA), European Union (EU), Greenhouse Gas (GHG) Emissions, Gross Value Added (GVA), Kyoto Protocol, Log-Mean Divisia Index Method (LMDI), Sustainable Development (SD); JEL Classification: Q51, Q54, Q56, F64

The aim of the paper is to investigate the link between trust in national political institutions and macroeconomic performance in the long run in Eastern EU countries. The objective is to answer the question whether the liberalization process and the subsequent exposure to globalized markets realized macroeconomic outcomes that are still cause of concern for these young democracies. The empirical technique is the panel dynamic ordinary least square (PDOLS) estimator, through which the effect of inflation inequality and debt on citizens’ trust in national governments and national parliaments is evaluated in term of long-run dynamics. Results show a negative impact of the indicators considered and highlight the role of macro-variables in the institutional consolidation process even in presence of path dependence dynamics of trust. Keywords: political institutions, trust, macroeconomic indicators, Eastern countries; JEL Classification: E02, C23, O52

The paper examines the problem of capital to labor ratio lag in the Slovak economy. It proves that the undercapitalization has significantly eased since the year 2004 in Slovakia. The undercapitalization, which was perceived as a barrier to a higher performance of former transition economies was mainly present in the sectors, which have already been traditionally represented in the former socialist economies. It was not such a problem for sectors which newly formed only in the post-socialist period. Although the Slovak economy lagged in the capital intensity behind the most advanced economies, the position of the Slovak Republic was relatively favorable in the group of Central and Eastern Europe. However, in the process of undercapitalization overcome, the Slovak Republic did not experience similar structure of fixed capital formation as it is in the most advanced economies. The dynamics of machinery and equipment accumulation was particularly high along with the insignificant accumulation of intellectual assets. Keywords: capital to labor ratio, gross fixed capital formation, fixed assets; JEL Classification: E22, E24, O34