Using static and dynamic panel estimates in a sample including all 28 European Union countries during the last decade, this paper seeks to improve upon the existing literature with empirical evidence on the important role that well-functioning EU banking institutions can play in promoting...

We apply recent money illusion tests on data on individual life satisfaction from the Eurobarometer for the period 1980–2003. The null hypothesis of no money illusion cannot be rejected. Different nominal rigidities across European countries and EMU countries, specifically, cannot be explained...

We present a formal model of electoral competition where parties' platforms are endogenously chosen and depend on the degree of the electoral rule disproportionality. We first show that proportional electoral systems generate centrifugal forces that increase candidate differentiation. This in...

The goal of this contribution is to evaluate the relevance of the institutional factors and the influence of the single variables on the corruption. The key task is to find not only suitable indicator of the amount of corruption but also suitable approximants of institutional characteristics,...

The success of small and medium enterprises (SMEs) is crucial for the development of the Czech economy. Czech SMEs contribute to innovation and economic growth; they provide employment opportunities and stimulate economic growth. The aim of this research is to determine the key elements of...

The Kuznets hypothesis of inverted U-curve dependence of the income inequality on the absolute value of the average income is still an unresolved issue despite the growing number of theoretical and empirical research on this topic. This paper analyzes the historical data on the average income...

This study empirically attempts to unveil the contradictive findings regarding the relationship between fiscal imbalances and inflation in the context of the latest theoretical indications. The empirical analysis covers the period of 1970 to 2009 and applies dynamic panel techniques in a pool of...

Foreign direct investment has become an important factor of development of economies in the last decades. However, its economic nature as well as its relationship with corruption has not yet been clarified in economic literature. Following previous theoretical research, mainly Dunning’s...

Channels through which monetary policy affects aggregate demand can be divided into three groups: traditional interest rate channel, other asset price channels and credit channel composed of balance sheet channel (named also broad credit channel), only recently separated bank capital channel and...

The purpose of this paper is to investigate the determinants of labour market dynamics in EU-27 in the recent period and to assess their impact on the process of economic development. The degree of originality is given by our choice to focus on the comparative analysis of two periods of time:...