November 2012

The Efficiency Analysis of Non-life Insurance Companies Active in Turkey
Semra Turkan
Esra Polat
Suleyman Gunay

Abstract: This paper evaluates the technical efficiencies of non-life insurance companies, which are active in Turkey in 2007, using Data Envelopment Analysis (DEA). DEA, which is a nonparametric method, facilitates to examine different input-output components. DEA is a management evaluation tool that assists in identifying the most efficient and inefficient decision making units (DMUs) in the best practice frontier. In this study, as inputs of 23 non-life insurance companies, the number of agents, the number of brokers, fixed assets, shareholders’ equity and as outputs the investment incomes, premiums received are used. Empirical results of BCC and CCR models, which are DEA models, show that the most efficient insurance company is RAY.

Key words: Banker-Charnes-Cooper(BCC), Charnes-Cooper-Rhodes(CCR), Data Envelopment Analysis (DEA), Efficiency, Insurance
JEL Classification: G22

 

A Study of the Relationship between Dividend Policies and Future Growth: Iranian Evidence
Mahdi Salehi
Farhad Heydari

Abstract: Decision making about payment of profit and its value are as important subjects in management field of company. Because, in this process, quantity of money must be paid to investors and quantity of money must be collected for future investment must be determined. Financial support from internal sources counts as a lack of cash not distribution of profits to continue company activities. The plan of share holders for providing portion of life expenditure may be changed by financial support. According to the main purpose of investors for investing in company share (share of company) is increase wealth and payment of share profi t is as an important factor to reach this purpose. General Manager of the company should pay more attention to payment policies. The results showed that there is no meaningful relationship between payment policies of share profit and improvement of future profit.

Key words: Profit, policy of profit division, cash profit, share profit, dual profit of share (cash and share)
JEL Classification: G5



Economic Growth and Income Inequality: Empirical Evidence from North African Countries
Zouheir Abida
Imen Mohamed Sghaier

Abstract: This paper examines the empirical relationship between economic growth and income inequality for 4 countries of North Africa (Tunisia, Algeria, Morocco and Egypt) over the period 1970-2007. The results of this paper indicate that the long-run growth elasticity of income inequality is negative and significant implying that keeping other factors constant; more income inequality reduces economic growth. Moreover, this paper finds evidence that more physical and human capital investment and higher openness to trade have statistically significant impact on enhancing economic growth and reducing poverty.

Key words: Economic Growth, Income Inequality, Panel cointegration
JEL Classification: O4, I3, O15

 

Fiscal Policy in Crisis: Rethinking Austerity
Dubravko Radošević

Abstract: Many macroeconomists and politicans claim that fiscal austerity – getting the budget deficit down immediately – would be good for employment and growth. We think that fiscal stimulus is expansionary, and fiscal contraction is contractionary. There is a large and growing body of literature that shows that fiscal expansion can help economy to grow and reduce unemployment in near term; that certain types of fiscal stimulus are very effective and that fiscal contractions tend to lower output and employment in the short run. Fiscal austerity may be desirable for the long-term solvency and health of the economy. But it lowers growth and raises unemployment in the near term. A policy mix between new monetary strategy (nominal GDP targeting) and fiscal stimulus would be especially effective.

Key words: austerity, stimulus, NGDP targeting, fiscal multiplier, full employment
JEL Classification: B22, E62, H6, P43



Researcher’s Internal Factors – Are They Really Important in the Patenting Process? The Case of Slovenia
Mitja Ruzzier
Tine Nagy

Abstract: This study analyzes patenting motivators and demotivators of Slovenian researchers engaged in scientific research throughout the entire research process with a special focus on internal factors using the qualitative research approach. Based on 39 in depth interviews it was found that the research process and subsequent patenting activities are influenced by different researchers’ internal factors, identif ed as motivating or demotivating. They can
be further classified into homogenous groups in each phase of the patenting process, with differentinfl uence on the patenting process. A conceptual model for further analyses of the researcher’s patenting process has been proposed.

Key words: patenting, patenting process & productivity, researcher’s motivation, R&D
JEL Classification: O34



Strategic Importance of ‘Brand’ in Tourism and Hotel Industry
Kate Glavor
Niko Koncul

Abstract: This paper deals with brand, mark or a stamp on a product or a service as a process of registration of the identity. Brand on a product or service in a form of a symbol carries a signal to its consumer that it is genuine and authentic and it meets the quality standard set by its producer
or supplier. In the modern day society brand has become a strategically significant instrument of marketing policy of the suppliers on one hand and a driving force of demand on the part of consumers on the other. It has become an indispensable tool of marketing strategy.

Key words: brand, services, marketing strategy
JEL Classification: M3



Econometric Models or Smoothing Exponential Techniques to Predict Macroeconomic Indicators in Romania
Mihaela Bratu

Abstract: Inflation rate, unemployment rate and interest rate are some of the most important indicators used at macroeconomic level. These variables present an important interest for the central banks that establish the monetary policy (infl ation target), but also for the government interested in public policies. Macroeconometric modeling offers the advantage of using more models to describe the evolution of a single variable and also the advantage of predicting it. But it is important to choose the forecast with the higher degree of accuracy. Calculating some indicators of accuracy we may know the best forecast that will be used to establish the macroeconomic policies. For the interest rate and unemployment rate in Romania VAR(2) models generated more accurate forecasts than ARMA models or models with lags. For the infl ation rate the model with lag, which is consistent with Granger causality, determined the most accurate forecasts. The predictions based on all these models are better than those got using smoothing exponential techniques.

Key words: forecasts, accuracy, econometric models, smoothing exponential techniques
JEL Classification: E21, E27,C51, C53