List of issues

Contents of issue 2/2018

Grzegorz W. Kołodko, Marta Postuła - Determinants and Implications of Euro Enlargement: The Polish Question, abstract, article

Witold Małecki - New Political and Economic Circumstances Surrounding Polish Accession to the Eurozone, abstract, article

Andrzej T. Szablewski - Evolution of the Theory and Practice of Economic Regulation: The Next Stage, abstract, article

Janusz Jabłonowski - Implications of Transitory and Permanent Changes in Tax Rates for Poland, abstract, article

Elżbieta Duliniec - Decision-Making Mechanisms in Early Internationalising Firms, abstract, article

Łukasz Brzezicki, Piotr Pietrzak - Efficiency and Effectiveness of Doctoral Studies in Public Higher Education in Poland, abstract, article

Szczepan Figiel, Jacek Michalak, Anna Rutkowska - Efficiency of Province-Level Public Administration in Poland, abstract, article

Grzegorz W. Kołodko, Marta Postuła - Determinants and Implications of Euro Enlargement: The Polish Question

Aside from the United Kingdom, which is withdrawing from the European Union, only Denmark has the option of staying outside the single European currency area. All other member states which have not adopted the euro as their currency have the right and obligation to do so under the Treaty of Accession. The condition to join the eurozone is to meet all five nominal Maastricht convergence criteria and to ensure compliance of national law with acquis communautaire, or the EU legal order. What poses special difficulties to candidate countries is the fiscal criterion related to the maximum allowed budget deficit. If it is not met, the European Commission launches the Excessive Deficit Procedure, EDP. Currently, this procedure is in place for France, Spain and the United Kingdom. In 2015, the EDP for Poland was lifted, but there is no certainty it will not be imposed again at the end of the decade due to the risk of exceeding once more the financial sector deficit threshold, which stands at 3 percent of GDP. It is to be expected that in the 2020 s the European Monetary Union will be joined by all the countries that are still using their national currencies, including Denmark, and that the EU will be extended to include new member states, leading to a further enlargement of the euro area. Although the issue is not absolutely certain, it needs to be assumed that the euro will weather the present difficulties and come out stronger, though the economically unjustified euroscepticism of some countries, especially Poland, is not helping. In the article, the authors ask the question whether Poland should join the euro zone in the coming years-in a situation where the euro area is imperfect, while seeing the positive economic reasons for such a decision. A mixed method combining the results of qualitative and quantitative research is applied to empirically verify the research question.

Keywords: integration, euro convergence, Maastricht criteria, excessive deficit procedure, public debt
JEL classification codes: E44, E63, F02, F45, G01, G18, P34, P52
Article: PDF

Witold Małecki - New Political and Economic Circumstances Surrounding Polish Accession to the Eurozone

The objective of this article is to demonstrate how political and economic circumstances surrounding Poland’s prospective accession to the eurozone have changed over the last decade and what conclusions can be drawn from these changes. With this objective in mind, it is first important to understand how Poland’s geopolitical situation has changed unfavourably in recent years and what threats arise from this. Next, the evolution of economists’ views on the cost-benefit balance of eurozone accession and the purpose of adopting the euro are critically evaluated. Three conclusions have been formulated. First, in the new political situation, it should be in Poland’s vital national interest to ensure that the European Union is in the best possible condition and to establish a favourable position within the EU. It appears to be highly unlikely that this objective will be accomplished without Poland joining the eurozone. Second, contrary to a widespread view, eurozone accession does not necessarily entail a high risk of economic crisis or long-term stagnation. New studies demonstrate that the serious problems that some eurozone countries have experienced were, to a larger extent, a consequence of political mistakes made by these countries rather than institutional defects of the eurozone. Analysis of these mistakes and remedial action taken will make it possible to seriously limit the economic risk related to eurozone accession. Third, the issue discussed in this article is of fundamental significance to the future of Poland and it should be addressed by decision makers, even if Poland’s current authorities are highly sceptical of eurozone entry.

Keywords: European Union, eurozone, exchange rate policy, monetary policy
JEL classification codes: E52, E58, F36, F45
Article: PDF

Andrzej T. Szablewski - Evolution of the Theory and Practice of Economic Regulation: The Next Stage

This paper discusses the evolution of the theory and practice of economic regulation, in particular its latest stage. In the first part, the analysis concentrates on the theoretical aspect of the process. In this context, the paper points to the impact of asymmetry of information on a gradual shift of economic regulation from an approach in which regulation is viewed as a substitute of a competitive market to one that triggers market behaviours by involving companies and their customers in the regulatory process. In the second part, the author focuses on the implementation aspect, i.e. how the latter concept could be adapted to regulatory practice. Even though this concept has long been implemented in the United States as well as Canada through so-called negotiated settlements, such regulatory arrangements were until recently neglected in research reports, including those in America. The latest wave of interest in this form of regulation, particularly in the UK and Australia, is mainly due to its many advantages as demonstrated by the North American experience. The author explores the benefits of negotiated settlements against the background of doubts raised in an ongoing debate on whether such settlements are free from risks and whether they can be effectively applied elsewhere. While noting some encouraging early results in several regulated sectors in the UK, the author stresses two crucial conditions for the successful implementation of this approach: a careful design of the new regulatory arrangements and a pro-active role of the regulator. The paper’s final comments refer to the perspective of further evolution of economic regulation and the rationale for the adoption of negotiated mechanisms in regulating Poland’s district heating sector.

Keywords: asymmetry of information, rate-of-return regulation, incentive regulation, negotiated settlements
JEL classification codes: L51, L94, L95, Q48
Article: PDF

Janusz Jabłonowski - Implications of Transitory and Permanent Changes in Tax Rates for Poland

This article provides an analysis of the fiscal channel that assumes balancing between raised labour, capital and consumption tax rates and government consumption, calibrated for Polish data. The study is based on neoclassical, education-based semi-endogenous and exogenous growth models for a small closed economy, featuring a direct household utility from government consumption, extended to include monopolistic competition.
Two perspectives are considered: 1) the transitory effects of the government consumption impulse on private consumption and 2) permanent changes in tax rates towards the top of the Laffer curve. The results of the transitory impulse confirm the crowding-in of private consumption in a fully competitive economy, but not for monopolistic competition.
Permanent changes in tax rates, analysed from the perspective of the Laffer curves, show some room for higher tax revenues. Shifting the tax rates to the top of the Laffer curves improves tax revenues, but it significantly deteriorates key economic aggregates.

Keywords: Laffer curve, government spending, distortionary taxation, monopolistic competition, human capital, crowding in
JEL classification codes: E32, E62, H20, H21, H52, H60, J24
Article: PDF

Elżbieta Duliniec - Decision-Making Mechanisms in Early Internationalising Firms

One of the aims of this article is to present a theoretical review and characteristics of two decision-making mechanisms in companies: effectuation and causation. As these mechanisms have not yet had an in-depth presentation in Polish research reports, a comprehensive analysis of their various aspects can be found in this article, in particular with regard to the early internationalisation of firms. The article is based on the newest literature on the topic. Critical views on the concepts of effectuation and causation have been discussed as well. Another aim was more practical: to present the current state of research on effectuation and causation, qualitative and quantitative projects, along with examples of several research instruments. The method used in the article is a critical review of the international literature on the topic, including both theoretical and more practical studies. As a result, the Polish terminology in the area has been clearly defined and all the main elements of effectuation and causation logics have been identified. Moreover, relationships between the two mechanisms and early (as well as late) internationalisation of companies have been discussed. One of the results has been to suggest topics of possible further studies, especially with regard to Polish early internationalising firms. In conclusion, it has been confirmed that there is still broad potential for research on the theoretical aspects of the concepts and their role in the internationalisation of companies.

Keywords: effectuation, causation, decision-making mechanisms, internationalisation of firms, early internationalising firms, research on effectuation and causation
JEL classification codes: F23, D22
Article: PDF

Łukasz Brzezicki, Piotr Pietrzak - Efficiency and Effectiveness of Doctoral Studies in Public Higher Education in Poland

The article attempts to estimate the efficiency of doctoral studies in 58 public higher education institutions in Poland from 2010 to 2015. The authors employ a hybrid model combining radial and non-radial approaches as part of the non-parametric Data Envelopment Analysis (DEA) method. An assessment of both the direct and indirect effectiveness of doctoral studies has been made: from the beginning of studies to obtaining a doctoral degree, and from the start of studies to the launch of a doctoral programme respectively. In the case of both efficiency and effectiveness measurements, two empirical models with different research periods were used. In the first empirical model, the efficiency and effectiveness of studies were estimated at their nominal duration (four years), while in the second model the research period was extended by one year. Only four universities proved to be efficient in the first model and five in the second, while none turned out to be fully effective. Probably the higher level of efficiency is due to high competition between universities in the largest urban conurbations. On the other hand, the effectiveness of doctoral studies is to an extent correlated with the type of higher education institution (technical, pedagogical, etc.). Extending the research period by one year has a greater impact on the efficiency rather than effectiveness of doctoral studies.

Keywords: higher education, doctoral studies, efficiency, effectiveness, DEA
JEL classification codes: I21, I22, I23, C14
Article: PDF

Szczepan Figiel, Jacek Michalak, Anna Rutkowska - Efficiency of Province-Level Public Administration in Poland

This article focuses on the efficiency of public administration in Poland in the broad sense.
It presents the results of the authors’ own research into the efficiency of province-level Voivodship Offices in Poland from 2008 to 2012. The research made it possible to identify the degree of variation in the efficiency of functioning of these offices and to indicate the underlying causes of the differences. The efficiency of functioning of Voivodship Offices was measured based on a nonparametric approach with use of the Data Envelopment Analysis (DEA) method. It was found that the investigated offices differ considerably in terms of efficiency of functioning. Based on the identified differences in the efficiency levels, a ranking of the offices was also compiled. The results of the research indicate a clear occurrence of a scale effect in the functioning of Voivodship Offices. This, in practice, means that the number of people and businesses they serve is too small in relation to the resources and inputs used. In the course of the research, the unit costs of selected administrative services were evaluated as well as the relationship between the number of employees and the number of analysed services. Conclusions drawn from the research made it possible to formulate recommendations regarding necessary action to be taken in order to improve the efficiency of functioning of Poland’s Voivodship Offices.

Keywords: public administration, efficiency, DEA method
JEL classification codes: H70, H83
Article: PDF

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