[Springer Proceedings in Business and Economics] Advances in Cross-Section Data Methods in Applied Economic Research (2019 International Conference on Applied Economics (ICOAE 2019)) ||

This proceedings volume presents new methods and applications in applied economics with special interest in advanced cross-section data estimation methodology. Featuring select contributions from the 2019 International Conference on Applied Economics (ICOAE 2019) held in Milan, Italy, this book explores areas such as applied macroeconomics, applied microeconomics, applied financial economics, applied international economics, applied agricultural economics, applied marketing and applied managerial economics. International Conference on Applied Economics (ICOAE) is an annual conference that started in 2008 designed to bring together economists from different fields of applied economic research in order to share methods and ideas. Applied economics is a rapidly growing field of economics that combines economic theory with econometrics to analyze economic problems of the real world usually with economic policy interest. In addition, there is growing interest in the field of applied economics for cross-section data estimation methods, tests and techniques. This volume makes a contribution in the field of applied economic research in this area by presenting the most current research. Featuring country specific studies, this book is of interest to academics, students, researchers, practitioners, and policy makers in applied economics, econometrics and economic policy Organization Program Chairs Program Committee Preface Contents 1 Impact of the Corporate Governance on the Financial Performance of Insurance Companies in the Slovak and Czech Republics 1.1 Introduction 1.2 Comparison of Indicators of Insurance Market Development in Slovak and Czech Republic 1.3 Literature Review 1.4 Methodology 1.5 Empirical Results and Discussion 1.5.1 Independent Samples Test 1.5.2 Correlation Analysis 1.5.3 Regression Analysis 1.6 Conclusion References 2 Volatility of Education Aid and Female Education 2.1 Introduction 2.2 Background and Graphical Analysis 2.3 Information on Data and Empirical Specification 2.4 Regression Results 2.5 Conclusion Data Appendix—Variable Definitions and Sources References 3 Quality Perceptions of Feta Cheese 3.1 Introduction 3.2 Feta Cheese 3.3 Literature Review 3.4 Methodology 3.5 Results and Discussion 3.5.1 Sample Profile 3.5.2 Feta Cheese Quality Perception 3.5.3 Factor Analysis 3.5.4 Hypotheses Testing 3.6 Conclusions—Limitations and Recommendations References 4 Risk-Neutral Densities and Their Application in the Piterbarg Framework 4.1 Introduction 4.2 Interpolation/Extrapolation Schemes 4.2.1 Dumas Quadratic Function 4.2.2 Gatheral SVI Parameterisation 4.2.3 Interpolating Time to Maturity 4.3 Risk-Neutral Densities 4.4 Numerical Results 4.4.1 Data 4.4.2 Constructing the Implied Volatility Surface 4.4.3 Constructing the Call Price Surface 4.4.4 Constructing the Risk-Neutral Density Surface 4.5 Conclusion References 5 Expected Shortfall Modelling of the CARBS Indices 5.1 Introduction 5.2 Literature Review 5.3 Methodology 5.3.1 Expected Shortfall 5.4 Error Distribution Assumptions 5.4.1 Expected Shortfall Performance Measure 5.5 Empirical Results 5.5.1 Symmetric Error Distributions 5.5.2 Skewed Error Distributions 5.6 Conclusion References 6 Social Benefits Versus Monetary and Multidimensional Poverty in Poland: Imputed Income Exercise 6.1 Introduction 6.2 The Data 6.3 Monetary and Multidimensinal Poverty Indicators 6.4 Some General Statistics 6.5 Income Imputation: Normalization and Orthonormal Basis 6.6 Prediction of the Income Distribution: Used Algorithm 6.7 Impact of The Social Transfers on Poverty 6.8 Testing the Behavioural Impact of the Benefits 6.9 Concluding Remarks References 7 R&D Cooperation Facilitates Cartel Formation 7.1 Introduction 7.2 Stackelberg Competition 7.3 Full Cartelization of Industry 7.4 Incentives for Cartelization 7.5 Conclusions References 8 Greek Households After the 10-Year-Crisis: An Exploratory Research 8.1 Crisis, Households and Everyday Life 8.2 Empirical Research 8.2.1 Research Methodology 8.2.2 Research Results 8.2.3 Correlation Between Factors 8.3 Summary—Conclusions References 9 Easy or Tough Coopetition? Perspective of Coopetitive Real Options Games 9.1 Introduction 9.2 Firms’ Decisions and Payments 9.3 Analysis of Coopetitive Real Options Games 9.4 Easy or Tough Coopetition. Ranges of Investment Project Values 9.4.1 Partial Coopetition: Market Enlarging, no Costs Sharing 9.4.2 Partial Coopetition: Costs Sharing, no Market Enlarging 9.4.3 Full Coopetition: Market Enlarging, Costs Sharing 9.5 Benefits of Coopetition 9.6 Conclusions and Final Remarks References 10 Corporate Governance and the Impact of Transferring the Owners’ Registered Office to Tax Havens on the Future Financial Position of Slovak Companies 10.1 Introduction 10.2 Theoretical Background 10.3 Methodology and Data 10.4 Results and Discussion 10.4.1 Bankruptcy Prediction Indicators Analysis (Altman Z-Score and Index IN05) 10.5 Discussion 10.6 Conclusion References 11 Temporary Incapacity for Work in the Context of Legislative Changes in Sickness Insurance in the Czech Republic 11.1 Introduction 11.2 Sickness Insurance in the Czech Republic 11.2.1 Balance of Sickness Insurance 11.2.2 Legislative Regulation 11.2.3 Sickness Benefits 11.3 Temporary Incapacity for Work in the Czech Republic 11.3.1 Methodology 11.3.2 Results and Discussion 11.4 Conclusion References 12 Analysis of Website Performance Dependence on Global Brand Value 12.1 Introduction 12.2 Literature Review 12.3 Methodology 12.4 Results 12.4.1 Monthly Visits Dependence on Global Brand Value 12.4.2 Average Visit Duration Dependence on Global Brand Value 12.4.3 Pages Per Visit Dependence on Global Brand Value 12.4.4 Page Views Dependence on Global Brand Value 12.5 Conclusions References 13 Impact of R&D Cartelization with Endogenous Product Differentiation 13.1 Introduction 13.2 The Model of Duopoly 13.2.1 Optimal Production Level 13.2.2 Optimal R&D Investment Level 13.2.3 Optimal Level of Product Differentiation 13.2.4 Numerical Results 13.3 Market Cartelization 13.3.1 Cooperation in the R&D Investment 13.3.2 Full Cartel 13.4 Conclusion References 14 Online Popularity of Luxury Brands and Its Impact on the Brand Value 14.1 Introduction 14.2 Literature Review 14.3 Methods 14.4 Results 14.5 Conclusion References 15 Denaro ... vil Denaro! When Sparafucile Would Not Gain, Whoever the Dead! 15.1 The Artist-Endowed Foundation: When Money is Not Guilty 15.2 The Economics of Art Education in North America. The Economics of Artists... When Alive and When Dead 15.3 Performances of the Multitasking Philanthropy of American Artist Foundations 15.4 Conclusion References 16 Impact of Tax Simplification on Tax Efficiency 16.1 Introduction 16.2 Literature Review 16.3 Information on Data and Measures of Tax Effort, Tax Complexity, and Tax Corruption 16.4 Regression Results 16.5 Conclusion Appendix References 17 Public Investment and Monetary Poverty in the Department of Puno 17.1 Introduction 17.2 Literature Review 17.3 Theoretical Foundations of the Relationship Between Public Investment and Poverty 17.3.1 Monetary Poverty 17.3.2 Relationship Between Public Investment and Poverty 17.4 Method and Data 17.5 Results and Discussion 17.5.1 Dynamic Evolution of Public Investment in the Department of Puno 17.5.2 Effects of Public Investment on Poverty 17.5.3 Discussion of Results 17.6 Conclusions References 18 Does Reforming the Benchmark Policy Rate Really Work? The Analysis of Monetary Policy Transmission in Indonesia 18.1 Introduction 18.2 Literature Review 18.3 Methodology 18.4 Result and Analysis 18.4.1 Descriptive Analysis 18.4.2 Policy Interest Pass-Through Towards Lending Rate 18.4.3 Robustness Test 18.4.4 Discussion 18.5 Conclusion Appendix 1: Summary of Unit Root Analysis Appendix 2: Summary of Lag Measurement in the Model Appendix 3: Granger Cause Analysis Appendix 4: VAR Residual Serial Correlation LM Test References 19 Quo Vadis Brand Management? Specifics in Brand Value Sources Across Markets 19.1 Introduction 19.2 Methods and Data 19.3 Results and Discussion 19.4 Conclusion References 20 Are We Spending Our Scarce R&D Resources Adequately? Analyzing the Efficiency of EU’s Regional Innovation Systems 20.1 Introduction 20.2 Measuring Efficiency: The Basic Concepts 20.3 Dataset and Methodology 20.3.1 Variables and Dataset 20.3.2 Synthesizing the Elements of the Regional Innovation Systems in the European Union: Factor Analysis 20.3.3 Data Envelopment Analysis 20.4 Results 20.4.1 The Main Results in Terms of Efficiency Scores 20.4.2 Changes Are the Efficiency Score Over Time; Convergence and Divergence 20.4.3 Scale Versus Technical Inefficiencies 20.5 Conclusions References 21 Volatility Modelling and Trading Volume of the CARS Equity Indices 21.1 Introduction 21.2 Literature Review 21.3 Methodology 21.3.1 Data Specification 21.3.2 Volatility Modelling 21.4 Empirical Results 21.4.1 Preliminary Data Analysis 21.4.2 Volatility Modelling 21.4.3 GARCH Parameters 21.4.4 Forecasting Performance 21.5 Conclusion References 22 Relationship Between Competitive Strategies of Small and Medium-Sized Polish International New Ventures and Their Market Performance: Cluster Analysis Approach 22.1 Introduction 22.2 Research Method 22.3 Research Hypotheses 22.4 Interpretation of the Results 22.5 Conclusions and Recommendations References 23 Exploring Consumers’ Orientation Toward Fast Food Consumption in Greece 23.1 Introduction 23.2 The Fast Food Industry in Greece 23.3 Literature Review 23.4 Methodology of the Study 23.5 Results 23.5.1 Sample Profile 23.5.2 Fast Food Consumption 23.5.3 Factor Analysis 23.5.4 Segmentation Analysis 23.6 Discussion–Conclusions References 24 Prediction Ability of Selected Bankruptcy Models in the Period of Structural Changes 24.1 Introduction 24.2 Literature Review 24.3 Data and Methodology 24.4 Results and Discussion 24.5 Conclusion References 25 The Stability of Money Demand in the Long Run: An Empirical Study from Italy 25.1 Introduction 25.2 Money Demand in Italy in a Historical Perspective 25.3 Literature Review 25.3.1 Empirical Studies in Italy 25.4 The Economic Theory 25.5 Methodology 25.5.1 Unit Root Tests 25.5.2 ARDL Model Specification 25.5.3 Stability and Diagnostic Test 25.6 Empirical Results 25.6.1 Data 25.6.2 Unit Root Tests 25.6.3 Bounds Tests for Co-integration 25.6.4 Estimated Long-Run and Short-Run Coefficients Using the ARDL Approach 25.6.5 Stability Test 25.7 Conclusions and Policy Implications Appendix References 26 Can Time-Driven Activity-Based Costing Applied in Show Caves 26.1 Introduction 26.2 Literature Review 26.3 Theory Implication for ABC and TD-ABC 26.4 Research Method and Findings 26.5 Conclusion References 27 Managerial Decisions in Relation to the Management of Corporate Profitability Performance in the Manufacturing Industry in the Czech Republic 27.1 Introduction 27.2 Literature Review 27.3 Data and Methodology 27.4 Results and Discussion 27.5 Conclusion References 28 Corruption in the Greek Public Sector: An Empirical Research 28.1 Introduction 28.2 Forms and Causes of Corruption 28.3 Consequences of the Corruption Phenomenon 28.4 Corruption in Greece 28.5 Empirical Investigation 28.5.1 The Research Methodology 28.5.2 The Findings of the Survey 28.6 Summary—Conclusions References 29 Household Income as a Predictor of Body Mass Index Among Adults in Poland: A Multilevel Analysis 29.1 Introduction 29.2 Methods 29.2.1 Data Source 29.2.2 Outcome Variable 29.2.3 Individual-Level Variables 29.2.4 Household-Level Variables 29.2.5 Subregion-Level Variables 29.2.6 Statistical Analysis 29.3 Results 29.4 Discussion 29.5 Conclusion References 30 Inflation as Reflecting Macroeconomic Gaps: An Analysis for Emerging Economies 30.1 Introduction 30.2 Dataset and Methodological Strategy 30.3 Causality Findings and Some Correlation Measures 30.4 Concluding Remarks References 31 Digital Currencies: Its Features and Macroeconomic Implications 31.1 Introduction 31.2 Literature Review and Theoretical Framework 31.3 Methodology 31.4 Results and Recommendations References 32 Technology Progress, Trade Openness, and Income Inequality: A Cross-Country Empirical Study 32.1 Introduction 32.2 Literature Review 32.2.1 Openness to Trade 32.2.2 Technological Progress 32.2.3 Technology and Trade 32.3 Empirical Methodology 32.3.1 The Panel Threshold Regression Model 32.3.2 Data and Variables 32.4 Empirical Results 32.5 Conclusions References 33 Implementation of Local Volatility in Piterbarg's Framework 33.1 Introduction 33.2 Piterbarg Implied Volatility 33.3 Simple Interpolation of Implied Volatility 33.4 Piterbarg Local Volatility 33.5 Numerical Results 33.5.1 Data 33.5.2 Calculating Implied Volatility and Interpolation 33.5.3 Calculating Local Volatility 33.5.4 Pricing in Action 33.6 Conclusion References 34 Trends in the Italian Movie Sector: Evidence from Box Office Performances 34.1 Introduction 34.2 Where Is the Focus of the Box Office? 34.3 Domestic Box Office Versus Total Box Office: Which Relationship? 34.4 Looking for Italian Features 34.5 Conclusion References 35 Feedback of Macroeconomic Indicators to Shocks in Second-Tier Stock Market Development and Innovation Within Kaleckian Framework: Hong Kong Case Study 35.1 Introduction 35.2 Literature Review 35.3 Extended Kaleckian Macroeconomic Model 35.4 Data and Variables Characteristics 35.5 Preliminary Analysis 35.5.1 Stationarity 35.5.2 Lag Length Selection 35.5.3 Cointegration 35.5.4 Block Exogeneity Wald Test 35.6 VEC Residuals and Stability Condition 35.7 Structural VEC Identification and Estimation 35.8 Structural VEC Impulse Response Analysis 35.9 Conclusion References 36 Market Tightness on the CEE Emerging Stock Exchanges in the Context of the Non-trading Problem 36.1 Introduction 36.2 Market Tightness as One of Market Liquidity Dimensions 36.3 Data Description and Problems with Asset Illiquidity 36.4 Comparative Study of Daily Market Tightness on the CEE Stock Exchanges 36.5 Conclusion References 37 Impact of Corporate Governance on CSR in Slovak Insurance Companies 37.1 Introduction 37.2 Literature Review 37.2.1 Approaches to Basic Models of Corporate Governance and Management 37.2.2 Corporate Social Responsibility 37.2.3 Characteristics of Insurance Market in Slovakia 37.3 Methodology 37.3.1 Researched Variables 37.3.2 Regression Model Construction 37.4 Empirical Results and Discussion 37.4.1 Descriptive and Correlation Analysis 37.4.2 Regression Analysis 37.5 Conclusion References 38 Heston Nandi Option Pricing Model Applied to the CIVETS Indices 38.1 Introduction 38.2 Literature Review 38.3 Methodology 38.4 Empirical Results 38.4.1 Data Analysis 38.4.2 Heston Nandi GARCH Analysis 38.5 Conclusion References 39 The Impact of TV Advertising on Brand Credibility 39.1 Introduction 39.2 Myths About TV Advertising 39.3 TV Advertising and Effectiveness Measures 39.3.1 Television Advertising Effectiveness 39.3.2 Trust and Impact of TV Advertising 39.4 Case Study of No Name Brand in Three Months References 40 Large Shareholders and Profitability of Telecommunication Firms in Eastern Europe and the Black Sea Region 40.1 Introduction 40.2 The Telecommunications Sector 40.3 Literature Review 40.4 Data and Methodology 40.5 Empirical Results 40.6 Conclusions References 41 Use of Differential Equations in Firms Behavior in an Oligopoly Market 41.1 Introduction 41.2 Linear Demand Function 41.3 Isoelastic Demand Function I 41.4 Isoelastic Demand Function II 41.5 Conclusions References 42 Competitiveness Index of EU Food and Beverage Manufacturing Industries 42.1 Introduction 42.2 Literature Review 42.2.1 Competitiveness’ Index Composition 42.3 Methodology-Competitive Index Measurement, Results, and Discussion 42.3.1 Data 42.3.2 Results 42.4 Conclusions References 43 Mathematical Modeling of the Brewery Sector in Greece with the Use of Differential Equations 43.1 Introduction—The Brewery Sector in Greece 43.2 Mathematical Modeling 43.3 Modeling the Brewery Sector 43.4 Conclusions References 44 New Approach to the Elaboration of Algerian Risks-Industrial Index (IR) 44.1 Introduction 44.2 A Review of the Literature on the RI Index and Its Applications 44.2.1 Evaluation of the Algerian Method for RI Calculation 44.3 A New Methodology for the Elaboration of the IR Index 44.3.1 Description of the Method 44.3.2 The Development Method 44.3.3 Application of the IR Index to a Portfolio of Contracts 44.4 Conclusion References 45 The Impact of Tourism Demand on Tax Revenues and Bank Loans in Turkey 45.1 Introduction 45.2 Literature 45.3 Data Set and Method 45.4 Findings 45.5 Conclusion References 46 VaR and ES Calculation with a Bayesian Dynamic tCopula-GARCH Model 46.1 Introduction 46.2 Value-at-Risk and Expected Shortfall 46.3 The Bayesian Model and Prediction 46.4 Empirical Study 46.5 Conclusions References 47 Competitive Differentiation in the Digital Environment and Social Networks 47.1 Introduction 47.2 Theoretical Framework of Competitive Differentiation 47.3 Value Chain as the Basis of Differentiation 47.4 Social Media and Social Networks 47.5 Comparison of Selected Social Networks Differentiation Based on Value Chain 47.6 Discussion and Conclusion References 48 The Effects of Crude Oil Price Volatility, Stock Price, Exchange Rate and Interest Rate on Malaysia’s Economic Growth 48.1 Introduction 48.2 Literature Review 48.2.1 Oil Price Volatility and Economic Growth 48.2.2 Stock Price and Economic Growth 48.2.3 Real Exchange Rate and Economic Growth 48.2.4 Real Interest Rate and Economic Growth 48.3 Materials and Methods 48.3.1 Model Specification 48.3.2 Testing Methodology 48.3.3 Data Sources 48.4 Results and Discussion 48.4.1 Descriptive Statistics 48.4.2 OLS Estimation of the Model 48.4.3 Unit Root Test 48.4.4 Autoregressive Distributed Lag (ARDL) Model 48.4.5 Bounds F-Testing 48.4.6 Johansen-Julius Co-integration Test 48.4.7 Granger Causality Test 48.5 Conclusion References Author Index