Ekonomický časopis - Obsahy ročníkov

Unsuitable insurance advice can turn protection into a costly mismatch, but the determinants of high-quality recommendations remain insufficiently un-derstood. This paper uses survey data from 4,827 insurance intermediaries across 13 European countries to investigate the factors associated with insurance advice quality. Using a vignette-based design, we analyse advice quality in standardised client scenarios based on the accuracy of the initial product recommendation and the alignment of product rankings with a normative benchmark. Our findings suggest that professional training in-creases the quality of advice in simple insurance advisory scenarios, but not in complex scenarios. The use of digital tools is associated with higher-quality advice mainly when combined with higher levels of education, indicating that digitalisation may complement, rather than substitute for professional expertise. Furthermore, self-confidence and signalling, do not necessarily associate with higher advice quality, particularly in more demanding advisory scenarios. Overall, the results show that the determinants of insurance advice quality are context-dependent and vary with the complexity of the advisory task.

By examining the portfolios of renowned Superinvestors with different investment strategies, BRK-B of Warren Buffett and ARKK of Cathie Wood, we aimed to design hypothetical resilient portfolios that protect against the damaging effects of recessions. The presented analysis indicates that ARKK significantly outperformed BRK-B during the stability period. However, in the face of the Covid-19 pandemic-induced recession, BRK-B displayed a higher degree of resilience and stability compared to ARKK. All three of our hypothetical portfolios delivered positive returns during both periods of stability and recession. Importantly, our Tangency Portfolio demonstrated the strongest performance of all the investigated portfolios during the recession. Moreover, our Tangency Portfolio showed relatively high performance along with high stability. It is concluded that an investment approach based solely on diversification, can achieve superior returns, and even surpass the broader stock market with an acceptable level of risk.

As vast majority of countries use standard and reduced value-added tax (VAT) rates, a taxpayer may be motivated to misuse the reduced rate – to calculate it when standard rate should be applied. Therefore, the main objective of the paper is to examine the extent to which VAT is evaded in this way and to study the most important determinants of it. The field research on bakeries in the emerging economy of Serbia showed that nearly a quarter of them misuse reduced VAT rate. Logistic regression showed that baker-ies registered in VAT system for a shorter time and those located in smaller municipalities are more probable to misuse the reduced VAT rate. I argue that national tax authorities should not only have a role in punishing tax-payers, but also to educate them. They should also reconsider the scope of general and reduced VAT rates, reconsider punishing system and develop an electronic register of VAT regulation to make it easier accessible.

The Russo-Ukrainian War caused energy prices to soar, without decreasing European reliance on liquid natural gas from Russia. Furthermore, the higher energy prices compared to the prewar period compelled richer countries to increase energy subsidies without EU permission. This, in turn, could lead to divergence in inflation, economic performance, and government bond yields within the EMU. IMF warned that the stability of EMU was under threat, which implies the monetary union would be exposed to the same dangers as before the onset of the sovereign bond crisis in 2010 – 2015. This study analyzes whether the EMU is facing such dangers, utilizing the sigma convergence approach proposed by Phillip and Sul (2007) and panel estimation. This method provides more precise indications of economic symmetry than traditional unit root tests, allowing for clearer policy implications. Empirical analysis suggests that, so far, the EMU has not faced the danger of divergence. However, unilateral energy subsidies without coordination could be a key determinant affecting government bond yield spreads.