Is there any correlation between the economic growth and budget expenditure allocated to education? Case study Romania

As it is shown in the specialty literature, there is a series of empirical studies which aim at capturing the effects of public expenditure on the economic growth. To the empirical level, one may notice a reverse correlation between the economic growth and public expenditure, which is clearly explained by the omission of the structure of public expenditure within the analysis of its effects. Considering these aspects, our paper tries to reveal the applicability of the explanatory variable as educational expenditure. Thus, the paper empirically examines the correlation between the budget expenditure allocated to education and the economic growth in Romania, using Matlab to test statistical correlations between the variables submitted to this study.economic growth, budget expenditure, education

Tax competition and brain drain in the European Union members

The paper deals with the brain drain phenomenon (rational minds migration), displayed inside the European Union, in close correlation with European tax competition. Speciality literature from the countries of the European Union deals with great responsibilty the migration process of the specialists, numerous studies being dedicated to this phenomenon. Through the present paper we aim to study this correlation and the evaluation of the implications for the member states of the European Union, by elaborating a model by means of which there are tested the correlations between different variables and the quantification of the taxation effects upon the brain drain phenomenon. The model is an adaptation of the so-called ”Model of the Brain Drain and human capital formation” elaborated by Mountford (1997) by which there are described the different researched variables: brain gain, brain drain, migration competition and tax competition. Obviously, the scenarios may be different from country to country depending on the different values of the two key factors taken into account: migration probability and considerable differences of technological capacity.tax competition, brain drain, migration competition, education

Banc assurance - banking and insurance complement. Romanian results on the international background

The entering of the banking institutions on the insurance market can be seen as an effort of modernizing the sector of financial services, for satisfying the diversifying needs of the consumers. Asserted as a new strategic orientation for financial institutions related to their customers, the concept of banc assurance differs considerable from one country to another, especially regarding the way in which the banks and the insurance companies use each other’s distribution channels.banc assurance; partnership; market’s overview; channels distribution

The efficiency of the green taxes as instruments for Environmental protection

This paper focused on the green taxes, great actuality issue in the contemporary world. As research method, the paper is based on economical theory of externalities, their presence making the company to take decisions with different social effects. Starting from social cost and private cost of human activity, it is a debate regarding the internalization of external costs by applying the corrective taxes. The purpose of this paper it is the establishing of an optimal tax level which has as effect the decreasing of the overall cost of a negative externality (for example, the pollution) through controlling the external effects. Deriving from the analysis it has been disclosed that ideally the environmental taxes should be introduced over externalities source, meaning that taxes should report directly over emissions or environment services.green taxes, pigouvian taxes, negative externalities, internalization of the polluting costs

A modern approach on modeling the cost behavior by ABC/ABM method

The article intend to prove that the traditional methods of cost calculation do not correspond anymore to the actual principles imposed by the global economical competition which is focused more likely on the structure expenses, the conception period, the information sources and the value. The ABC method, the most popularized of all administration methods, presents the advantage of identifying the places where is found the origin of the waste, which are the activities with a low added value, where are located the unused capacities and how the costs are constituted. Adapted to the requirements of the Romanian economy, the ABC method can be applied in two stages, which are presented in the paper. There were identified the activities, the processes and the products and inside them, we proceeded to the modeling of the cost behavior, modeling which includes the EAD and APD concepts. The peculiarity of the method applied in the Romanian enterprise is that through the processing information, there can be determined the production cost for every line production, every activity, every floor, on the time unit (minute or hour) and on the product, as it is mentioned. By studying the specialty literature, we noticed some opinions regarding the possibility of integrating the ABC method with EVA, an aspect which is not possible, for now, to be applied to the studied enterprise. EVA remains an indicator for presenting financial performances through a new perspective, being useful especially for firms that perceive the capital as a source of funds without any costs and where the financial results are measured just through some profit indicators. The conclusion is that the utility of the method in taking strategic decisions regarding the selling cost and the best fabrication quantities remains uncertain because there can not be attached the principles of determining the breakeven point or the marginal contribution as long as the method does not allow the grouping of fixed and variable expenses. The solution could consist on developing a mixed alternative method which takes into consideration the activities behavior through which could be identified the cost of some specific activities that can allow determining the profitability of each product.cost, value, activities, process, performance, Romanian enterprise

Empirical analysis of the correlation between fiscality rate-GDP-tax incomes. Romania's case

In the specialized literature it is reviewed the taxation from all points of view and the question raised by the last decade analysts is: what is the optimum level of taxation? The difficulty in answering to this question stands in the opposite interests : state wants a high level of taxation due to the increasing trend of public expenses while the tax payers wants a low level in order to benefit of greater financial funds. Starting from Laffer theory, the objective of this paper is the empirical analyze of the correlation between fiscality rate, GDP and the fiscal incomes in Romania, using Matlab program and SPSS software. The paper is structured in 3 parts: first part it is review the specialized literature, in the second part is described the research methodology while the third part compound results and discussions. The paper is finished by conclusions.empirical analysis, fiscality rate, GDP, tax incomes

Risk insolvability management through optimizing insurance portfolio - mathematical calculations

Taking into account the actual economic situation of the world with numerous financial crisis, the insurance companies should control their financial stability in order to avoid the insolvency or even bankruptcy state. Thus, the insurers should find the adequate methods of substantiating the premium installments, the adequate ways of attracting insurances in order to achieve the right structure of the portfolio and the desired level of financial stability within the company. The present paper proposes mathematical calculation, through which different solution may be given in order to optimize insurance portfolio, determining thus its adequate structure to a certain level of stability planned by the company. The result of elaborated studies and analysis represents an useful instrument for the insured persons, being able to choose the right type of insurance, resting on its comparisons, analysis and conclusions, and for the insurance companies, being meant to improve their subscription and investment activity, as well as the financial stability. The mathematical calculation shown within this paper may be applied in practice and improved.solvency, insurance portfolio, financial stability, mathematical calculation

Are able fiscal advantages to promote the interest for insurance? - The situation of Romania versus the international one

At present, the insurance business has become a major industry of national savings, the turnover within the insurance domain continues to increase and almost everything is taken into consideration through insurance terms. The share held by the insurance area within the gross domestic product of each country, continues to grow, it may reach 16% in certain countries, its level corresponding to the economic development of the country. In other countries, like Romania, there are a lot of unfavorable conditions for development of insurance market, reason for introduction the fiscal advantages for the different categories of insured persons. In this paper we show the tax treatment for the insured person from Romania, at the present moment, as well as the existing ones on the international level. The analysis of the fiscal facilities effects proposed for certain insurance categories shows the growth of interest for its from potential insured persons, as tax contributories.fiscal advantages, fiscal facilities, tax system of insurance

FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA

On international level, the economic and financial crisis has determined a diminution of the asset value of compulsory pension funds, reflecting a reallocation of funds towards alternative or low-risk investments. The present paper indicates how the net asset value of privately managed pension funds in Romania may be affected or not by certain influence factors in direct correlation with different asset allocation strategies of pension funds. In this way, on literature review there are many studies which have analyzed the fluctuation of pension funds assets and a better reallocation of their investment in order to improve their efficiency. The experience of the value fluctuation of privately administered pension fund net assets is highly important, firstly beacause of its effects on the increase and the decrease of invested values for the insured personsâ€(tm) accounts, under the circumstances of constantly maintaining their contributions and, implicitly, the results achieved through these investments. The research methodology consists in testing of five variables: currency exchange rate, credit interest rate, bank deposit interest rate, reference interest rate and value of the stock exchange market index (BET-C index), by means of the multiple linear regression method. The conclusion is that only two of these factors, namely, the currency exchange rate and the reference interest rate, influence net asset value of privately managed pension funds, the second pillar, one in direct and the other in indirect correlation. In order to neutralize the effects generated by the diminution of the net asset value of privately managed pension funds, considering a short time horizon, we shall elaborate a dynamic mix of their investments able to adapt to the fluctuations of the influence factors. Thus, new opportunities will be generated in order to achieve the efficiency of pension funds and to prevent the diminution of the value of insured individualsâ€(tm) contributions to these pension funds.privately managed pensions, net assets, investments, factors of influence, statistical correlations

The quantification of the performances of public institutions – basics concepts

The performance of the public sector affects us all. There are at least three reasons why we should be interested in how well it functions: it is big; its outputs are special; and it is getting bigger. With all these, in Romania, the performance within the public sector represents a concept not so analyzed and rarely applied in practice. There is not the same situation in countries with a high developed economy, which represent an interest for us, along with the European integration. Internationally, since the 1970s processes of modernization and reorganization of public institution have been initiated in diverse countries in the world. The society has demanded greater efficiency in rendering of services, a better application of public resources and also questioned the effective bureaucratic model. In this context, the model of managing government institutions gains force, consistence and become more credible. Flexibility, decentralization, creativity, autonomy of management, and a management contract used as quantification instrument are basic characteristics of the management reforms that focus on results. Results determination within the public sector and the implementation of a system meant to measure the financing and non-financing performances need an exact definition of the objectives and purposes of each organization and constituent institution.performance, public sector, indicators of performance, performance measurement