Theodore Pelagidis

The Saving-Investment Correlation in Greece, 1960-1997: Implications for Capital Mobility

In this note, the national saving–domestic investment correlation is examined in terms of an error correction model to gain some insight into the degree of capital mobility, using Greek data for the period 1960–1997. In particular, we employ cointegration analysis with an emphasis on the error correction process of the time series on annual data for Greece. Our work follows the study of Bajo-Rubio [Appl. Econ. Lett. 5 (1998) 769] that deals with the case of Spain. However, we use a longer time period, which enable us to examine with more preciseness the saving–investment relationship in Greece and its implications for capital mobility. The results show that Greek domestic investments and national savings during 1960–1997 are to a great extent cointegrated and that a significant long-run relationship exists.

Absurd Austerity Policies in Europe

Austerity policies again prevail in Europe as well as in the United States. These economists, based in England and continental Europe, focus on the poorly understood damage that the austerity mania will almost certainly do on their side of the Atlantic. Why is it happening? There is no rational answer.

The role of organizational culture in Greek businesses

Purpose – This paper seeks to contribute to an understanding of the organizational culture of the spin‐off knowledge‐based enterprises, which operate within the science and technology parks in Greece. In this context, a critical number of questionnaires have been distributed to the spin‐offs to examine whether firms born within the parks have developed a functional organizational culture, one that provides a solid foundation for organizational effectiveness and business excellence.Design/methodology/approach – The Organizational Culture Assessment Questionnaire (OCAQ) was developed by Sashkin to help people identify and understand the nature of the culture in their own organization, as a first step in identifying problems and defining the sort of culture they want (and the sort of culture that will help deal with organizational problems). The data for the present study were obtained by the OCAQ mailed to a sample of 33 spin‐off companies that operate within the aforementioned science and technological par...

Rent-Seeking and Ex Post Acceptance of Reforms in Higher Education

Abstract Resistance to reduced government intervention in the management of higher education institutions is commonly observed in Continental Europe. We offer a theoretical argument to describe how rent seeking through ex‐ante fierce resistance to reform in tertiary education is compatible with a widespread ex‐post adoption of reforms which liberate universities from suffocating state control.

Divergent Real Economies in Europe

In this paper, the well-known convergence programs, implemented by the EU member-states, are closely evaluated. Using descriptive statistical analysis and the changes in the real exchange rates as analytical cornerstone, the paper focuses on the economic performance of the member-states since the accord (Dec. 1991) and the ratification (Febr. 1992) of the Maastricht Treaty. Changes in the trade balance, industrial production, rates of unemployment, inflation and interest rates (short-term and long-term) are used as criteria of success both in real and nominal terms. The statistical outcomes are compared with the ones found in similar research done by R. Gordon. The paper ends with the evaluation of the results and the policy lessons which can be drawn by the different exchange rate policies followed by the member-states.

Vikings in Greece

A detailed analysis of the Greek political system, which follows in Chapter 3, shows how that system hands over unchecked and unsupervised mandates to the winners of elections in an environment of weak institutions and in the presence of strong and “wealthy” special interest groups. At the same time, the slow and malleable proceedings of the judiciary ensure that any unlawful actions usually are not persecuted efficiently. This completes the design of a system in which reform-minded politicians, who threaten the status quo, are easily removed from the political scene. Those politicians who cooperate with the interest groups are rewarded not only with long-lasting political careers, but also with immunity from prosecution against almost any unlawful acts they may engage in, even if such acts are unrelated to their office and if their immunity violated basic human rights, as demonstrated for example by Application 24895/07 filed with the European Court of Human Rights and the subsequent condemnation of the Greek government’s decision. The incentives formed by the details of the existing system also can explain other aspects of the Greek political system, including the undemocratic structure of the political parties and their tendency to accommodate and propagate the corrupt practices that are widespread throughout Greek society.

Structural and Institutional Divergence in the European Union

The success of the European Union is remarkable. But the current economic crisis is severely testing support. It is affecting member nations in different ways, and for some the crisis has been painful. Without individual control over their economic policies, some nations are getting frustrated. The author, an economist from one of the member nations, suggests far more flexible policy adjustments as an answer.

How to Complete a Union that Is Built to Last

This paper assesses the proposals in the 5 Presidents’ Report on the future of the EMU. The evolution of EU institutions during the crisis is assessed along with the proposals concerning in particular fiscal policy and economic policy decisions. A discrepancy in the concreteness of the mapping for the final move towards common decision taking is documented, with the path towards common decision taking in the dimension of fiscal policy being spelled out in more detail. An effort to eliminate this disparity with respect to economic policies is proposed, as is a deadlock breaking rule that will affect the formation of expectations and that is compatible with the evolution of the Community Method and the Principle of Subsidiarity.

Why Did Forceful Internal Devaluation Fail to Kick-Start Export-Led Growth in Greece?

The policies imposed on Greece by the troika of the European Commission, the International Monetary Fund, and the European Central Bank failed to recognize the low wage share of Greece and to address important existing and new problems. Forcing wages down to make the countrys exports competitive while failing to promote other necessary reforms, argue the authors, had little chance for success.

Efficiency in the tax-auditing administration in Greece

For the past few years, major breakthroughs have been achieved in the fight against tax evasion and tax fraud. SDOE has carried out audits on freelancers, companies and individuals, using data from the bank accounts of the audited persons or legal entities. The results of these audits are significant, both numerically and qualitatively. This paper analyses data and results from a field survey, measuring the contribution of human resources and their management towards the achievement of these results. The progress observed so far is also documented, and proposals to further improve the efficacy of tax audits are made along with a proposal to reform the tax system.