The impact of prudential toolkits on loan growth in Central and Eastern European banking systems

This paper examines the effects of prudential policy on loan growth in 11 Central and Eastern European banking systems, spanning the period from 2000 to 2015. Based on the measures taken by the authorities of our sample countries, we build several prudential indices. Additionally, we control for the effects of several country-specific factors and bank-specific characteristics. Finally, we test the homogeneity of these effects, accounting for cycle, ownership, and bank effects. Generally, the empirical findings reveal a negative correlation between prudential toolkits and credit growth, with a conspicuous impact for tools targeting lending activity. We see that the effects of a change in the lending framework on loan growth are heterogeneous when we account for crisis and cycle patterns. Furthermore, the interaction between ownership and crisis reveals that, in normal times, foreign banks recorded higher loan growth compared to domestic banks. The opposite is true in turbulent times. The analysis of interactions between credit-based measures and bank-specific variables show that the effects of prudential actions depend on the bank size and leverage.     

The Decarbonisation Challenge of Southeast Europe: A Case Study of Romania

Intereconomics - Not only is Romania facing some crucial energy system problems, but the proposed solutions have often been improvised and incoherent. This also raises doubts about the...     

Industrial marketing in Romania

This article by Dr. Lilian Cre?u facilitates an understanding of industrial marketing procedures in Romania. In the author's country industrial marketing has been, until recently, the least developed branch of marketing activity. However, as the Romanian economy develops (with a predicted 48% of industrial production in 1975 consisting of new or modernized products), classical central planning may become insufficient for accurately predicting and meeting Romania's need for industrial goods. Some autonomous decisionmaking by economic subunits may become necessary. It is possible, therefore, that industrial marketing activity at the microeconomic level will increase. Lilian Cre?u attempts to demonstrate this last point by indicating the changes in the concept and modus operandi of management which are taking place under the impetus of economic expansion.     

Numerical solutions to an integro-differential parabolic problem arising in the pricing of financial options in a Levy market

We study the numerical solutions for an integro-differential parabolic problem modeling a process with jumps and stochastic volatility in financial mathematics. We present two general algorithms to calculate numerical solutions. The algorithms are implemented in PDE2D, a general-purpose, partial differential equation solver.     

The link between personality,aggressive driving,and risky driving outcomes – testing a theoretical model

This study tested a theoretical model of the relationship between the Big Five Personality Factors, aggressive driving and ‘risky driving outcomes’ (accidents, traffic tickets, and license suspension). It also tested the mediation effect of aggressive driving in the relationship between the five factor personality model and risky driving outcomes. Structural equation modeling was used to analyze the 293 participants’ responses. Bivariate correlations showed that aggressive driving was negatively related to emotional stability, agreeableness, and conscientiousness and positively related to risky driving outcomes. Agreeableness was negatively related to accidents, tickets, and license suspension. Conscientiousness was negatively related to tickets. The structural model was supported by data in which agreeableness predicted risky driving outcomes. Emotional stability, agreeableness, and conscientiousness predicted aggressive driving, which in turn predicted risky driving outcomes. Aggressive driving was shown to be a mediator in the relationship between agreeableness and risky driving outcomes.     

Informing tourism policy with statistical data: the case of the Icelandic Tourism Satellite Account†

The Tourism Satellite Account (TSA) is a popular internationally recognized method for measuring tourism's contribution to the economy. The credibility and visibility of tourism as a distinct economic activity are, therefore, based on TSA data which have the power to show its macroeconomic importance. According to the most recent World Tourism Organization study, 60 countries around the world implemented TSA in one way or another in 2010. However, in the same year, a research carried out by the Organization for Economic Co-Operation and Development revealed that the usage of TSA for tourism policies is rather limited due to specific issues, such as the lack of knowledge about TSA, inadequate international comparability, and timeliness. This paper illustrates several possibilities of using enhanced TSA estimates in the Icelandic context for informing tourism policies. Specific examples are presented of developing data on tourism-related investment (Tourism Gross Fixed Capital Formation) and governmental consumption for selected collective services related to tourism (Tourism Collective Consumption). These improve the usefulness of the TSA as a statistical instrument for sound tourism policies.     

The Power of Group Stigmatization: Wealthy Roma,Urban Space and Strategies of Defence in Post‐socialist Romania

Recent research on Roma stigmatization has tended to focus on the marginal socio‐economic and spatial position of Roma people within European societies, with poverty, persistent inequalities and substandard housing conditions (for example, ghettoization) highlighting their differential treatment. Central to such accounts are group images and stereotypes of Roma as ‘benefit scroungers’ and/or ‘beggars’ lacking notions of self‐restraint and social responsibility. This body of research is hugely important in terms of its contribution to an understanding of the complex dynamics of marginalization and stigmatization of poor Roma households. Yet not all Roma are characterized by poverty and economic hardship. This article explores the neglected experiences of wealthy Roma within urban spaces in Romania. It draws on empirical evidence from interviews with Roma families, leaders and local authorities. Our analysis exposes the way in which Roma are vehemently stigmatized regardless of their economic position or housing circumstances and highlights deep underlying sentiments towards them within Romanian society. We critique Wacquant's concept of territorial stigmatization by applying it to wealthy groups outwith typical areas of relegation (for example, Roma ghettos) within the specific urban context of post‐socialist Romania. While our analysis points to the internalization of stigma, we also identify distinct defensive strategies wealthy Roma employ to counter and avoid stigmatization. We suggest that a focus on the neglected spaces of wealthy Roma groups can facilitate a more comprehensive understanding of the distinct urban power relations that shape Roma stigmatization, reveal how this long‐term process has recently been accentuated within Europe alongside a more overt populist and anti‐Roma political agenda, and contribute to the development and refinement of Wacquant's thesis.     

New empirical evidence on CEE's stock markets integration

The main aim of the study was to explore the integration of CEE’s stock markets (Central, South-East and Baltic) with those of the developed ones (Germany, USA and the UK). Using daily data from 20 October 2000 up to 20 October 2016, the static analysis indicates a long-run cointegration relationship between CEE markets and all three counterparts considered. The dynamic analysis indicates several short-run episodes of cointegration, which are influenced by nondomestic factors. When comparing among the counterparts, one can highlight that the US stock market is less integrated with emerging markets, which could be considered for portfolio diversification. Furthermore, the contagion effect is not rejected, given that the dynamic pairwise correlations are likely to be affected by herding behaviour and significant break dates.