Valuing Mortgage Insurance Contracts in Emerging Market Economies

We develop a new option-based method for the valuation of mortgage insurance contracts in closed form in an economy where agents are risk neutral. While the proposed valuation method is general and can be used in any market, it may be particularly useful in emerging market economies where other existing methods may be either inappropriate or are too difficult to implement because of the lack of relevant data. As an application, we price a typical Serbian government-backed mortgage insurance contract.     

Technological literacy for students aged 6–18: a new method for holistic measuring of knowledge,capabilities, critical thinking and decision-making

Technological literacy is identified as a vital achievement of technology- and engineering-intensive education. It guides the design of technology and technical components of educational systems and defines competitive employment in technological society. Existing methods for measuring technological literacy are incomplete or complicated, unreliable, unstable and imprecise, time-consuming, and require large expenditures on resources. This paper presents a new method for valid and reliable measuring of technological literacy. The method encompasses three main components—knowledge, capabilities, and critical thinking and decision-making. It is centred on the standards for technological literacy issued by the International Technology and Engineering Educators Association. It has three key features. (1) A construct-measure-result front-ended approach, where a construct consists of an object, attribute, and entity; which causes reduction of measure-induced distortion and error. (2) A broad test range definition that provides stable and accurate measuring of technological literacy for 6–18-year-old students. (3) A genuine design approach including a multiple choice test item form determination consisting of content, criterion and construct validity, item discrimination, difficulty index, and an intraclass correlation measure for time stability and scooping its heterogeneous nature. Only the method is described herein and its pilot test results are presented. It is moderately reliable over time (intraclass correlation coefficient = 0.68, p < 0.05), has high criterion-related validity (r _xy  < 0.4) and construct validity (h ² > 0.7). High content validity evidence was ensured through a two-stage validation method, while test item discrimination coefficient values are acceptable (r _pbis  > 0.1). The method is time-efficient (measuring lasts 45 min), valid, stable, and enables holistic investigation of large sample sizes.     

Export-led growth: the case of the Slovenian and Estonian economies

The export-led growth hypothesis is investigated in the case of the two small, open and export-oriented Slovenian and Estonian economies. The Johansen cointegration test and Granger causality test were applied to investigate the relationship between the time series variables for export, import and gross domestic product (GDP). The results reveal evidence to support the export-led growth hypothesis in both economies. The Granger causality relationship is found between export growth and economic (GDP) growth for both countries. Slovenia and Estonia can enhance economic growth by providing a better enabling environment for exporters and by market expansion.     

Profit-shifting from Czech multinational companies to European tax havens

Although tax havens have been affecting other countries for decades, only in recent years have the associated challenges been subject to intensive scrutiny in both research and policy areas. We contribute to the growing evidence of corporate tax base erosion and profit-shifting by testing multinational companies’ ownership links to individual tax havens rather than to groups of them, as is the case with most previous research. Our company-level analysis suggests that profit shifts through debt financing from the Czech Republic to Luxembourg, Switzerland and, to a lesser extent, the Netherlands. We have ascertained that tax havens are not limited to tiny islands and may actually be found among European countries. We also provide rough estimates of the impact of this profit-shifting on tax revenues as well as a policy recommendation.     

The poor outside the lamplight: on the prevalence of poverty among population groups not included in household surveys

Poverty rate calculations are often based on household surveys that exclude some of the groups most vulnerable to poverty such as the homeless. This paper documents the nature of the excluded groups and the quantitative importance of their omission for the Czech Republic. Our study combines European Union Statistics on Income and Living Conditions data for 2011 with information from the 2011 Population Census. Our preferred estimate indicates an increase in the poverty rate by almost one percentage point. The paper contributes to accurately identifying the most vulnerable members of the society, which is essential for setting effective social policies.