Year 2016, Issue 1
Date published23.3.2016
Table of content
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TANYA GORCHEVA
Reforms to the Common Agricultural Policy and Benefits to BulgariaKeywords: common agricultural policy, agricultural sector, European integration, reforms in the CAP, impact of the CAPSummary: The paper deals with issues related to the evolution of the Common Agricultural Policy of the European Union (CAP) and the process of reforms the policy has been undergoing. It also provides a retrospective analysis in order to... The paper deals with issues related to the evolution of the Common Agricultural Policy of the European Union (CAP) and the process of reforms the policy has been undergoing. It also provides a retrospective analysis in order to outline both favourable and adverse aspects of the impact which CAP has had on the development of the agricultural sector in Europe in general and in Bulgaria in particular. It is thus possible to highlight the benefits which our country could gain from those reforms by taking into consideration changes in existing regulations and the implementation of related policy instruments. The paper also reviews what was achieved in our country in the 2007-2013 programme period in result of implementing the CAP. Finally, it outlines expectations related to Bulgarian agriculture for the next programme period in terms of the changes introduced into that policy by the European Commission. -
Stoyan Prodanov, TSETAN PAVLOV
Comparative Analysis of the Leading Consumption-Based Asset Pricing ModelsKeywords: consumption-based asset pricing models, recursive preferences, long-run risk, heterogeneous consumers, equity risk premiumSummary: The article analyzes in depth the consumption-based asset pricing models, and displays most perspective contemporary trends in the field. A conceptual framework of models has been originally presented linking macroeconomic and... The article analyzes in depth the consumption-based asset pricing models, and displays most perspective contemporary trends in the field. A conceptual framework of models has been originally presented linking macroeconomic and financial relationships, and mathematical basis of the classic CCAPM has been developed. The paper also brings out the leading approaches for modification of the basic model, overcoming some of its shortcomings, and analyzes the advantages, disadvantages and the ability of consumption-based modern models to recreate empirical correlations in profitability and the risk of financial assets. The leading conclusion of the article is that there is still no convincing rational consensus model to reproduce adequately the characteristics of financial markets. From an econometric perspective, the closest in this endeavour is the model of long-term risk of Bansal and Yaron (2004) and its modifications. -
NIKOLAY ANDREEV
An Integrated Approach in the Study of the Evolution of the Stabilisation Policy of the European UnionSummary: Studying the evolution of European Union's stabilisation policy is a difficult task that requires certain focusing. In a broad sense, stabilisation policy can be defined as a set of measures taken by the government and implemented... Studying the evolution of European Union's stabilisation policy is a difficult task that requires certain focusing. In a broad sense, stabilisation policy can be defined as a set of measures taken by the government and implemented by certain bodies and mechanisms to overcome problems of the economy or to restore its equilibrium. Of course, processes ongoing at global, regional, and national levels in the economic system should also be taken into account in determining the instruments of the stabilisation policy. For the European Union in particular, the stabilisation instruments in its development are expressed in changes both in the strategic and in the structural and the institutional aspects and the evolution of the stabilisation policy can be characterized as distinct periods of development. -
Kaloyan Petkov
Testing the Damodaran Approach to Estimate the Cost of Equity in Emerging MarketsSummary: The cost of equity is one of the key financial and economic indicators in corporate finance. The purpose of this paper is to test the well-known approach of Damodaran in global emerging markets. The main result of the study is that... The cost of equity is one of the key financial and economic indicators in corporate finance. The purpose of this paper is to test the well-known approach of Damodaran in global emerging markets. The main result of the study is that the Damodaran approach needs to be improved as it maintains constant deviation from the observed ex-post cost of equity. -
Nikola Iliev
Risk Attribution – a Model for Establishing the Impact of Global Risk FactorsSummary: The global recession that started in the twenty-first century forced investors to invent or re-discover a paradigm for risk treatment. The solution lies in the risk attribution of historical stock return of listed companies in... The global recession that started in the twenty-first century forced investors to invent or re-discover a paradigm for risk treatment. The solution lies in the risk attribution of historical stock return of listed companies in relation to global macroeconomic factors, its decomposition and research in terms of risk exposure and risk premia. The consistency of this approach enables investors to act as risk managers and macro analysts of equity markets and to predict potential sources of risk for companies, the stock exchange, the economy, and the globalizing world.