Zagreb International Review of Economics and Business
Volume IV, Number 1
ABSTRACTS
Reflections on Economic Paradigms and Controversies in Economics
John S L McCombie
Abstract: This paper examines the question why many disputes in economics never seemed to be completely resolved. The essay provides an introduction to, and reconsiders, Kuhn’s notion of the paradigm as it applies to economics and argues that, far from being passé, it provides useful insights into this question. It is shown that the problem of incommensurability and the existence of differing paradigmatic assumptions explain much of the reason for the persistence of different schools of thought. Lakatos’s Methodology of the Scientific Research Programme is briefly discussed and its limitations noted. Finally, if there are no objective cannons of theory choice, then the reason why some economic paradigms flourish and others wither depends largely upon how persuasive their adherents are in convincing other economists. Consequently, McCloskey’s emphasis on the use of rhetoric in economics is considered.
JEL Classification: B41
Key words: Economic Methodology, Paradigm, Rhetoric
Bond Markets and Macroeconomic Performance
Guglielmo Maria Caporale ; Geoffrey Williams
Abstract: This paper presents some empirical evidence on the relationship between the yield curve and macroeconomic variables in the G7. The econometric methodology followed takes into account stationarity, cointegration and exogeneity features of the data, which is typically not done in the existing literature, resulting in invalid statistical inference. The Phillips-Hansen fully modified estimator delivers well specified equations, which confirm the importance of fiscal and monetary developments in the determination of both long- and short-term interest rates. The results are consistent with an IS-LM/loanable funds framework, and have implications for the likelihood of alternative EMU scenarios under different policy assumptions.
JEL Classification: C32, E44, E62
Key words: Causality, Cointegration, Exogeneity, Phillips-Hansen Fully Modified Estimator, Yield Curve
A Question of Fit for EMU:Process and Policy in the Fiscal Domain
Brian Ardy
Abstract: This paper examines the nature and effectiveness of rule based legal requirements and more informal measures for government cooperation in economic policy measures to coordinate monetary and fiscal policy. The analysis considers the objectives of EU economic policy, the Stability and Growth Pact, other EU coordination processes, and the relationship between ECB credibility and fiscal policy. The conclusion is that although the problem of monetary and fiscal policy co-ordination remains unsolved by the SGP this has not so far represented a fundamental flaw in the design of EMU but the system has yet to be tested in more difficult recessionary circumstances.
JEL Classification: E42, F36
Key words: EMU, Monetary policy, Fiscal policy, Coordination
Small Firm Networking and Economies in Transition: An Overview of Theories, Issues and Policies
Vojmir Franicevic ; Will Bartlett
Abstract: The paper presents a literature review of small firms networks and the policies which have been designed to support and promote them. It provides an assessment of such networks as a form of inter-firm co-operation. It also develops a typology within which different approaches to network supporting policies can be assessed. Finally it discusses the applicability of such network supporting policies to the transition economies of Eastern Europe
JEL Classification: L1
Key words: Clusters, Networks, Rent-seeking, Small firms, Transition Economy
The Transition Process: It’s All About People, Isn’t it?
Marko Skreb
Abstract: Transition process is done for the people and by the people. They are the main objective (increasing their welfare), the main engine (through human and social capital) and the main constraint (rent-seeking behaviour and lack of political support). Policy makers have to ask themselves whether they have checked progress in transition against increasing welfare, nurtured human and social capital, and anticipated the obstacles to transition. Transition economies must realise that their success lies within them. Openness to the world is essential, but policy makers must look inside their own respective countries and find specific answers to problems for their better future.
JEL Classification: P200
Key words: Transition Process, Political Economy of Reform, Croatia
A Study of Strategic Information System Planning Practices in Croatia
Mario Spremic ; Ivan Strugar
Abstract: The strategic information system planning (SISP) becomes a part of company strategic business plans. This paper presents the results of a survey on the strategic IS planning practices of Croatian companies. In large Croatian companies information technology (IT) is still a tool for automation of present business processes. It is obvious that source of this problem comes from lack of knowledge and interest from top management structures of large corporations. Thus the significant efforts must be done on management side, especially in necessity to develop completely new hybrid manager profile.
JEL Classification: L86
Key words: Information technology (IT), strategic information system planning (SISP), Croatian company, hybrid manager |
