Articles

• Vasil Todorov — Economic Research Institute аt BAS

  Fundamentals of modern economy: Irving Fisher and intertemporal choice theory

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  This article summarizes the life and work of Irving Fisher – one of the most influential economists of the 20th century, famous in his lifetime for being a genius. Besides his groundbreaking contributions to economics, he is also a pathbreaker for topics related to mathematics, statistics, nutrition, health, political stability and peace. His contributions to economics, theoretical and applied, are still used in economics textbooks. This article provides a brief survey of Fisher’s work. It is closely related to the introduction of neoclassical theory in the US at the end of the 19th century. An overview of some of them and elaborate on his model of intertemporal choice are presented. This model is an important link between the general equilibrium theory, the theory of money, the theory of investment and the theory of consumption. The main reasons are being put forward for the Fisher’s work to sound contemporary in the new millennium.

• Kristiyan Hadzhiev — New Bulgarian University

  MANAGING VIRTUAL TEAMS – THEORY AND METHODOLOGY

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  This paper studies the types of management teams and identifies the essential characteristics of organizational models applied in management practice: work group – team – self-managed work team and virtual team. The focus is put on virtual teams. The key prerequisites, regularities and processes associated with the design and functioning of highly effective virtual teams are analyzed. The indicators of team effectiveness are specified and the factors influencing immediate results are analyzed. The multilateral relationships in the integrative models most cited in the last 20 years are explored not only at the input, but in the process of interaction, as well as the ways to achieve balance and good teamwork between team members. The aim is to find a common theoretical and methodological basis that brings together the fundamental models of virtual team effectiveness.

• Miroslav Nedelchev — Economic Research Institute аt BAS

  Diversity on banks’ boards

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  The paper examines the diversity on banks’ boards as an innovative tool to reduce the effects of the global crisis and a beginning of a long-term sustainable development worldwide. The expectations with regard to diversified boards are mainly associated with improving the quality of decisions, risk management methods and remuneration of executive directors. The EU recommendations for achieving of diversity on boards, incorporated in national policies and corporate practices, were analyzed for Bulgarian banks. The survey results show that there is diversity on banks’ boards by profession and nationality, while by gender the diversity is primarily due to the introduced regulations. The average values of the Bulgarian banks exceed those in the EU due to the specifics of our banking system. In parallel to the diversity of boards is raising the issue of economic and social effects of this diversification.

• Ralitsa Dimitrova — New Bulgarian University

  Assessment of recognition of the brand - approaches and challenges

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  In the past twenty years new generation of companies emerged, with value, generated out of their intangible assets. The brand is a strategic asset with a value highly correlated with the company value. Due to the optimization of the market portfolio and strategic positioning, pricing of mergers and acquisitions, as well as determining the percentage of royalty deductions for businesses the financial value of brands should be assessed. Although there is a variety of methodologies in this area, most of them are primarily qualitative and do not provide quantitative assessment. There is no consensus on the standard valuation practices. In this regard the key financial approaches to assessing the value of the brand are systematized and analyzed and the basic methods within the discussed approaches are classified. The advantages and disadvantages of each one are specified and the challenges to the assessment of this intangible asset are deducted.

• Karen S. Sargsyan — International Scientific and Educational Center of the National Academy of Sciences of Armenia

  THE MODERN CHALLENGES OF FISCAL AND MONETARY POLICY IN THE REPUBLIC OF ARMENIA

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  The article deals with the issues on fiscal and monetary policies and the economic situation in the Republic of Armenia during the crisis and post-crisis period. The analysis shows that although there have been some signs of economic growth in Armenian economy in 2010-2013, however, the main macroeconomic indicators did not return to pre-crisis level and failed to provide long-term sustainable economic growth in the country. It is argued in the article that expansionary fiscal and monetary measures should be taken for sustainable economic growth. The main target of the fiscal policy should be the reduction of the tax burden, while financing the real sector of the economy and supporting a sustainable growth of the economy should be the primary objective of the monetary policy.

• Vasil Stoyanov — Sofia University St. Kliment Ohridski

  Research methods in behavioral economics and neuroeconomics

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  The reasons leading to the emergence of behavioural economics as a distinct field of economics in the mid-twentieth century are briefly presented. The four main research methods used in behavioral economics are discussed in chronological and historical order: laboratory experiments involving alternative hypothetical choices; laboratory experiments involving real rewards for participants; field studies; and conducting experiments in real settings. We also review two other research methods that are used primarily in the field of neuroeconomics - functional magnetic resonance imaging and transcranial magnetic stimulation.

• Victor Yotsov — Economic Research Institute аt the Bulgarian Academy of Sciences

  Reflections regarding the new book by Joseph Stiglitz

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  The Bulgarian translation of Joseph Stiglitz's new book "The Euro - How a Common Currency Threatens Europe's Future" has recently been published. The author is a Nobel laureate, former chief economist of the World Bank and well known in Bulgaria as an economic advisor to President (2001-2011) Georgi Parvanov. This alone is enough to spark interest in his new research, but no doubt the startling title will make even non-specialists reach for the book. Whether this is a marketing strategy or an indisputably proven scientific truth is a question each reader will have to answer for themselves.