Current Issue : April-June Volume : 2023 Issue Number : 2 Articles : 5 Articles
Is it possible for the government’s public investment sector to have a venture capital subsidiary? This paper is meant to explore the feasibility of this policy idea. The intent of this research is to explore possible options to make it feasible for the government to have a venture capital subsidiary. This is a particularly potent policy for low GDP economies to stimulate their growth. This paper also explores the interconnectedness between financial policies dealing with governmental investments in startups and economic growth....
With United States president Joe Biden announcing plans to raise the federal minimum wage to $15 an hour, conversations surrounding minimum wage laws have resurfaced yet again as businesses and policymakers look to get ahead of its effects on the economy. This paper will analyze the economic and social impacts of the US federal minimum wage by drawing on economic models and empirical data from sources such as the Congressional Budget Office and Bureau of Labor Statistics. Various studies have shown that raising the minimum wage would result in large-scale unemployment effects, severely hurting the economy in the midst of the COVID-19 recession. Firstly, minimum wage policies fail to combat poverty and instead induce cost-push inflation, reducing real wages. Secondly, many contract and self-employed workers are not covered by minimum wage regulations at all. Thirdly, by directing those at the lowest end of the wage spectrum into the ranks of the unemployed, minimum wage laws have an unfairly disproportionate effect on the impoverished, thereby exacerbating income inequality. Finally, from a social perspective, minimum wage policies violate workers’ freedom of contract by interfering with their employment seeking process, and the existence of minimum wages can weaken workers’ negotiation power in wage bargaining. This weakness is especially evident when considering that there are many other alternatives in safeguarding workers’ rights such as workplace safety laws and trade unions. In light of these negative impacts, this essay warns policymakers to not be too optimistic towards the minimum wage and encourages governments to seek other alternatives to protect workers’ rights and secure higher wages. By analyzing the potential drawbacks of the minimum wage, this paper addresses a gap in the existing literature, which mainly focuses on the benefits of the policy. Therefore, not only will this paper contribute to existing work in the field of labor economics, it also provides a more holistic, well-rounded perspective of the federal minimum wage....
Building on previous research contributions on the macroeconomic determinants of NPLs, this paper aims at assessing the cumulative impact of the two recent crises which, although based on different fundamentals, both resulted in a turbulent macroeconomic environment: first, the global financial crisis originating from the US financial system in 2007 (which soon became an economic crisis culminating in a debt crisis for some countries) and then the most recent outbreak of the COVID-19 pandemic—a health crisis, albeit with very significant economic repercussions (some of which are not yet apparent, while the impact of others cannot yet be fully extrapolated). In this research endeavor we use an extended set of OECD countries for a time span of 16 years including the most recent data available (2020). Apart from evaluating the explanatory power of new variables and variables only recently introduced (and used so far only to a limited extent, such as housing prices), this model provides useful insights also on the possible directions of economic policy interventions to alleviate the impact of the most recent crisis, which is still unfolding. Using our preferred specification, we then proceed to study the case of Greece, which was the country probably hardest hit by the financial crisis, with NPLs approaching 50% of total loans. While still recovering from the previous crisis, Greece has to deal with the repercussions of the pandemic; as a result, interesting conclusions can be drawn from this specific case study....
The purpose of this study is to systematize the differentiated values created within the framework of various sharing economy business models. The information base of this study was open access scientific publications indexed in the world databases Scopus and Web of Science Core Collection for the period from 2015 to 2022, as well as data from the official websites of companies. The research algorithm consisted of the following stages: analysis of the components of sharing economy development models, discussion of the table of components of sharing economy models, identification of values created by different models, formation of the value creation cycle in sharing economy models, explanation of the differentiation of the created values. The research method was the allocation of separate blocks of activity within the framework of the Osterwalder-Pigneur business model. Based on the Osterwalder- Pigneur business model, the main components of the activities of various areas of the sharing economy are identified: key partners, key resources, key actions and value propositions. To understand the differentiation of value creation in various areas of the sharing economy, an institutional model of the value creation cycle has been developed within the framework of the sharing economy model. It is shown that the difference between key partners and key resources are the determinative moments in the differentiation of created values. The differentiation of created values for suppliers and consumers within the framework of various models of the sharing economy is systematized. Thus, for service and product providers, the variability of created values is quite large and includes, besides additional income, also the availability of a free schedule, payment guarantee, content display and logistics expansion. The conclusion is made about the high competitiveness of sharing economy business models in comparison with the traditional market economy. The scientific novelty of the result obtained lies in the systematiza-tion of the spectrum of values created by various business models of the sharing economy, which significantly expands the traditional modeling of entrepreneurial activity....
Considering that developed countries face a planned and developed macroeconomic economy where almost nothing is missing, as if all countries in the world had this possibility of macroeconomic development, but there are countries that still face an economy that requires a more detailed macroeconomic restructuring and development, where in these states people are faced with high unemployment, with a fiscal and monetary policy in development, where the state is forced to take on debt, whether internal or external, where the latter is more favored. The purpose of this paper is to show through this analysis the effect that public debt has on private consumption with special emphasis on countries in transition, where the factors that will affect private consumption will be explained, the types of debt that the state takes into account. The countries of the region will be analyzed in more detail, which countries face this problem the most. Also, our country Kosovo will be analyzed in detail, what relationship exists between public debt and private consumption. The realization of this research will be done with the STATA statistical software, as dependent variable is Private Consumption, while as independent variables are: Government Debt, Gross Fixed Capital Formation, Foreign Direct Investments, Consumer Price Inflation, Export of Goods and Services and GDP Growth. This paper is a compilation of information from multiple sources in order to provide a description of the reality that countries in transition face when taking on debt....
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