Analyzing Fiscal Policy and Growth with a Calibrated Macro Model

CEE countries experience a catching up period in economic growth while preparing for accession to the European Union. In several countries we experience an expenditure boom arising either from exuberant expectations of consumers towards EU or EM or a fiscal deficit usually underpinned by an argument that a reallocation of total consumption at the expense of the future is a result of intertemporal optimization. The paper analyses whether this argument is justifiable. The key factors that influence the intertemporal trade-off are country risk and externalities from foreign direct investments. High indebtedness increases macroeconomic risk and discourages investments. If investment externalities exist the investment gap may cause high output loss. With careful calibration of the parameters determining the risk premium and the external effects of FDI the model predicts a 20% annual return of fiscal austerity at the macro level. This number is too high to be justifiable by any reasonable rate of time preference.Catching-up, Risk Premium, FDI, Consumption boom, Simulation.

Formal approach to modeling of modern Information Systems

Most recently, the concept of business documents has started to play double role. On one hand, a business document (word processing text or calculation sheet) can be used as specification tool, on the other hand the business document is an immanent constituent of business processes, thereby essential component of business Information Systems. The recent tendency is that the majority of documents and their contents within business Information Systems remain in semi-structured format and a lesser part of documents is transformed into schemas of structured databases. In order to keep the emerging situation in hand, we suggest the creation (1) a theoretical framework for modeling business Information Systems; (2) and a design method for practical application based on the theoretical model that provides the structuring principles. The modeling approach that focuses on documents and their interrelationships with business processes assists in perceiving the activities of modern Information Systems