Economic Archive

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  Modeling the Sources of Value in Banks and Valuation Through the Discounted Cash Flow Method

  We propose an upgrade, adaptation and implementation of a factor model of historical financial analysis, forecasting and valuation of the banking institution through the method of discounted cash flows based on publicly accessible data, which can be applied in the practice. We research the adequacy and plausibility of the approach, its benefits ... We propose an upgrade, adaptation and implementation of a factor model of historical financial analysis, forecasting and valuation of the banking institution through the method of discounted cash flows based on publicly accessible data, which can be applied in the practice. We research the adequacy and plausibility of the approach, its benefits and drawbacks, as we test it on Unicredit Bulbank Ltd, and we apply a comparative valuation app-roach and accounting reference values of control of the obtained results. The research objective is to upgrade and calibrate the model by introducing rest-rictive conditions for forecasting in compliance with the existing regulatory framework and the observations of the practice. For this purpose, we have also introduced a feasible parametrization and we have brought forth relevant recommendations for forecasting the activity of banking financial institutions.

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  Does the Introduction of the Euro Lead to High Inflation? Myth or Fact?

  The replacement of the local currency with the Euro has led to a number of discussions, commentaries and arguments, most of which refer to issues related to an increase of the common levels of the prices of goods and services. The subject of the research comprises the countries which adopted the common European currency after the year 2007. Cyprus ... The replacement of the local currency with the Euro has led to a number of discussions, commentaries and arguments, most of which refer to issues related to an increase of the common levels of the prices of goods and services. The subject of the research comprises the countries which adopted the common European currency after the year 2007. Cyprus and Malta are not discussed due to pages limit. The purpose of the article is to discuss the facts related to the myths about high inflation after the adoption of the Euro and to ascertain whether this myth is significant or whether it can be refuted. In order to accomplish this, we must first study the experience of the newly joined Member States when the common currency was introduced; then we analyze the inflation rates and the changes in the years following their admission to the eurozone. The thesis that is to be proven or rejected is that the adoption of the Euro does not have significant impact on the prices of goods and services in the country that adopts the new currency, whereas if inflation processes are observed, their rates coincide with those of the preceding years.

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  Public Expenditure on Education in the EU Member States: a Cluster Analysis

  The aim of this article is to present the commitment of EU Member States to their education policies. The key points in the article are the importance of investing in human capital and the effectiveness of the state as such an "investor". Through clusterization of the available data, the author has grouped the EU countries according to their ... The aim of this article is to present the commitment of EU Member States to their education policies. The key points in the article are the importance of investing in human capital and the effectiveness of the state as such an "investor". Through clusterization of the available data, the author has grouped the EU countries according to their governments’ policy on financing education.