-
Wei Bin Zhang
GLOBAL SOCIAL STATUS, NATIONAL SPIRITS OF CAPITALISM, AND ECONOMIC DEVELOPMENT
Summary:
This paper constructs a global economic growth model with endogenous social status, endogenous preferences, and wealth accumulation. The economic system is based the Solow model, the Uzawa two-sector model, and the Oniki-Uzawa trade model. We base our approach to measuring social status on some ideas in the literature of economic growth with endogenous growth. The model is specially based on a model proposed by Zhang (2016). This study considers relative social status as a function of a country’s relative wealth per household with the global average per household wealth. It treats time distribution between leisure and work as endogenous variables. The world economy is composed of any number of national economies and each national economy consists of one capital goods sector and one consumer goods sector. National economies differ in social status, preferences, spirits of capitalism, and productivities. We build the model for -country world economy and express the dynamics with differential equations. We simulate the movement of a 3-country global economy and carried out comparative dynamic analysis with regard to some parameters
-
Velichko Adamov
IMPROVING THE CAPITAL STRUCTURE OF BANKS
Summary:
This study examines the possibilities for improving the capital structure of banks through analysis of various combinations of long-term debt and equity. The theoretical thesis that banks should maintain a positive capital structure has not been ignored for a single moment in the reflections below. Yet, applied techniques and methods indicate that contemporary banking is predominantly based on negative capital structure in which a single unit of equity attracts multiple units of loan capital until reaching maximum levels beyond which the regulatory proportions for funding of banking business are violated. Quite logically, attention is paid to banking risk with reference to banks performance and the efficiency of capital utilisation. In parallel, financial leverage is applied to maximize bank earnings. Through the DuPont model, the capital management of banks develops a systematic tool for measuring the efficiency of decisions related to the development of the financial leverage effect. Based on this a model for the optimization of commercial banks is designed to facilitate bank managers in making efficient financial decisions, which take into consideration market capitalization and the cost of long-term capital resources
-
Penka Shishmanova
The Factors of Economic Growth from a Classical Perspective
Summary:
The problems of economic growth have been increasingly taken into account over the last decades, which brings to the fore the issue of the factors that determine it. The dynamics of contemporary economic development requires detailed knowledge and thorough study of this complex set of elements. Over the years they have highly evolved and changed the concept of generating growth. The beginning, however, was set long ago in the past.
This study examines the factors of growth from the point of view of the classical economic theory. The analysis starts with the ideas of W. Petty and the determinants worked out by him – labour and land; it continues with Fr. Quesnay’s views on the power of nature and the crucial role of agriculture; it identifies the main causes of the wealth of nations according to A. Smith with an emphasis on labour productivity; it emphasizes the dynamic changes in the factors according to J. S. Mill; it justifies their triune structure according to J. B. Say and outlines some obstacles to growth according to T. Malthus.
-
Plamen Lyubomirov Dzhaparov
PRIVATE BANKING AND WEALTH MANAGEMENT BETWEEN OPPORTUNITIES AND THREATS
Summary:
Opportunities for banks in the sphere of private banking & wealth management have been continuously multiplying under the influence of the rapid accumulation and concentration of capital on a global scale and the predicted colossal transfer of wealth between generations. Yet, in order to consolidate their leading position in the industry in today’s complex, dynamic and turbulent environment, banks need to adopt totally different solutions and overcome a number of barriers.
Their response to the challenges posed by the ‘invasion’ of new players on the market and to the urgent need to change the profile of financial advisors is of paramount importance.
