New approach of measurement methods and forms of tax policy effects in Romania

The complexity of decision making on taxes, determined by the evolution of economic variables, government objectives and the diversity of fiscal techniques used vary from country to country, therefore we can not define general concepts that are universally accepted or acceptable, regarding the effects generated by them. The effects of fiscal policy are varied, depending on their expression are microeconomic and macroeconomic effects, which are interrelated in the formation and modification of behavior of economic agents, both economically and socially, leading to psychological, economic, social, political, environmental and other effects, on different time horizons. Therefore, achieving a classification of the effects of tax policy is based almost impossible and difficult, requiring a large amount of knowledge, scientific insight and sound impressive volume of comments. The aim of this paper is to give a new classification criteria of the effects of taxation, following strictly the direction of evolution of variables, namely: economic effects, socio-economic effects and political effects.tax policy, measurement methods, tax incidence

Applying Basel II Requirements in Romania

The Basel II Agreement is a new stage in the development of prudential regulations. Compared to the initial agreement, Basel I, this one allows a more large and precise analysis of banking risks. The European approach of Basel II requirements aims to offer some common conditions for all the credit institutions. Secondly, in order to achieve the objectives of Basel II, an active implication of the supervisory authorities is needed, as well as a tighter cooperation between them in order to increase the financial integration at the European Union level. In what concerns Romania, that has recently joined the European Union, the implementation of Basel II requirements imply a new series of challenges both for credit institutions and for the Central Bank. These challenges, for the commercial banks, reside in adjusting the risk management techniques and the informational system, training the staff, obtaining the databases, etc. and for the Central Bank in both adapting the surveillance process and elaborating new regulations. This paper tries to analyze the main implications of implementing these requirements, both for the Romanian commercial banks and for the National Bank.banking, prudential regulations, supervision, capital requirements

The recent sovereign debt crisis in the Euro zone: A matter of fundamentals?

The idea that the Euro zone sovereign debt crisis was caused by structural weaknesses degenerating into fundamental macroeconomic imbalances in the peripheral countries prevails among international institutions such as the IMF, the ECB, and the European Commission. On the contrary, some economists believe that this crisis is the consequence of major deficiencies in the architecture of economic policy making in the Euro zone that did not allow a proper response to a global systemic crisis of the financial markets that started in the United States. The objective of this paper is to provide a better understanding of the public debt dynamics in the EU, differentiating the case of Euro zone peripheral countries. We used quarterly data from 2000 to 2011 to estimate a small-scale model that takes into account the interactions between key variables. Our results do not support entirely the official view. We conclude that the cause of the adverse debt dynamics unravelling after 2007 was a sharp GDP contraction, coupled with a substantial increase in the interest cost of debt finance due to higher self-fulfilling solvency risks perceived by creditors, interacting with a higher sensitiveness of Euro zone peripheral countries to fundamentals

Romanian Public Debt in Interwar Period and Between 1948-1989

In analyzing the public debt problem, there is an analytic presentation and also a historic presentation. The present project is a combination between the two modalities, emphasizing the institutional side, where the historic presentation is made by underlining the changing moments in history. The unitary characteristic of the public debt should be taken into account; also, there is the option between analyzing the public debt in the larger sense and in the unitary sense. In the larger sense, the public debt includes also the indebt of the country’s financial institutions and the local authorities. We will analyze, out of the larger public debt problematic, the ones regarding the loans contracted and managed by the Ministry of Finance, which are considered to be part of the public debt. For understanding the legislative environment of constituting and managing Romania’s public debt, some notes are necessary to be made. First, even the expression of legislative environment has to be understood starting from the premises that for the entire analyzed period, Romania had democratic institutions, which acted and manifested according to the modern world’s accepted rules. A problem involved by the analysis of the content regards the up to date theme, a discussion about the public debt in Romania. Initially we started from the idea that the thematic is up to date through the clarifications that can be brought by our own past experience to serve the present. There are also other arguments: we noticed the necessity of accuracy, the terminology precision, there being lots of gaps in understanding the public debt mechanism. The minimum explanation of public debt domain is necessary, being known that the terminology used has changed its meanings in time, and this era’s approach of the terminology gives us the opportunity to understand the public debt phenomenon in that period of time. Present governing works would be more efficient, more precise and more accurate if past experience would be considered.

Corporate Decision-Making: The Increasing Importance of Supply Chain in Strategic Decision-Making

Emerging complex demands from internal and external company stakeholders have significantly altered the corporate strategic decision-making process. In our paper, we analyse the shift in strategic decision-making that stems from the ongoing and forecasted changes in the supply chain function. With a closed loop perspective on supply chain, including the functional areas of production, operations and customer service, we have included relevant studies to outline the most significant implications for decision-making. Starting from this comprehensive literature review, in our case study we create a framework to highlight the synergies and connections between supply chain functions and other corporate functions. The functions assessed are: human resources, accounting and finance, marketing and advertising, information technology, purchasing and legal. The resulting framework is a summarized depiction of the points of connection between these functions and supply chain. The value added of our paper consists of a forward-thinking approach to implications of supply chain developments and how they will further affect the relationship with other functions. The lack of empirical data to construct an empirical model for demonstrating what correlations are most significant represents the limitation to our research. Further research should outline clear metrics for assessing the relationship between functions and analyse their degree of correlation in order to have a demonstrated model for what impacts corporate strategic decision making

The effect of socioeconomic factors on crime rates in Romania: a macro-level analysis

The article outlines the need to identify appropriate explanations for various acts of deviant behaviour, mental illness and violent reactions in Romanian contemporary society which is facing a crisis of values and character. The objective of the article is to provide empirical evidence and raise awareness regarding the relationship between crime and socioeconomic factors in Romania over the period 1990–2014, based on statistics for testing co-integration theory and causal relationships. Specifically, the proposed analysis intends to capture the complexity of socioeconomic pressures on individuals and to clarify the ways in which the vitiation of modern society represents a manifestation of implemented economic mechanisms. By using data related to income, unemployment, inflation, inequality, development, education and population density as socioeconomic factors and also data on crime divided by region and type, the article supports the hypothesis of significant causality between socioeconomic factors and crime. Two directions can be considered for revealing the general result of the proposed analysis: one is that an increase in income inequality has a strong and robust effect regarding crime rates rising, and the second reveals that the place of residence is essential, the urban agglomeration being a generating factor for crime

Applying Basel II Requirements in Romania

The Basel II Agreement is a new stage in the development of prudential regulations. Compared to the initial agreement, Basel I, this one allows a more large and precise analysis of banking risks. The European approach of Basel II requirements aims to offer some common conditions for all the credit institutions. Secondly, in order to achieve the objectives of Basel II, an active implication of the supervisory authorities is needed, as well as a tighter cooperation between them in order to increase the financial integration at the European Union level. In what concerns Romania, that has recently joined the European Union, the implementation of Basel II requirements imply a new series of challenges both for credit institutions and for the Central Bank. These challenges, for the commercial banks, reside in adjusting the risk management techniques and the informational system, training the staff, obtaining the databases, etc. and for the Central Bank in both adapting the surveillance process and elaborating new regulations. This paper tries to analyze the main implications of implementing these requirements, both for the Romanian commercial banks and for the National Bank

Applying Basel II Requirements in Romania

The Basel II Agreement is a new stage in the development of prudential regulations. Compared to the initial agreement, Basel I, this one allows a more large and precise analysis of banking risks. The European approach of Basel II requirements aims to offer some common conditions for all the credit institutions. Secondly, in order to achieve the objectives of Basel II, an active implication of the supervisory authorities is needed, as well as a tighter cooperation between them in order to increase the financial integration at the European Union level. In what concerns Romania, that has recently joined the European Union, the implementation of Basel II requirements imply a new series of challenges both for credit institutions and for the Central Bank. These challenges, for the commercial banks, reside in adjusting the risk management techniques and the informational system, training the staff, obtaining the databases, etc. and for the Central Bank in both adapting the surveillance process and elaborating new regulations. This paper tries to analyze the main implications of implementing these requirements, both for the Romanian commercial banks and for the National Bank