Challenges of Contemporary Economics


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Volume 13 (2019) Volume 12 (2018) Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 4 Issue 4 (2010)

The Critical Analysis of the Intervention Basis and Evolution in Agriculture original article

pp. 7-24 | First published in 20 December 2010 | DOI:

Włodzimierz Rembisz


The principles and evolution of intervention in agriculture are critically analyzed fromthe perspective of the economics and economic of agriculture theories. The allocation andreturns aspects of economics are used as references in the analysis. The assumptions andoutcomes of a triple factors production function, first aspect, are usually used asa justification for intervention support. That type of production function explains, as isbelieved, the lover possibilities of labor productivity growth in agriculture compared tonon- farm labor employment. That affects, as assumed, income disparities between farmand non-farm labor. The analysis also disputes the politically, institutionally andadministratively based justifications for the intervention. The evolution of interventionmeasures from price support towards direct payments and subsequently more market, aresubject of review as well.

Convergence and Distributions of Income in Large European Economies original article

pp. 25-39 | First published in 20 December 2010 | DOI:

Michał Kruszka, Marcin Puziak


The aim of this paper is an empirical analysis of the convergence process in the years1993–2008 and the impact of economic growth on income distribution in selected EuropeanUnion countries. Considering this fact one can state that research was conducted from theperspective of EU citizens. The crucial hypothesis of this paper is statement thatconvergence is differently perceived in terms of entire economies, and gives a differentpicture from the perspective of the single citizen of the selected country.The analysis was carried out in several stages. Initially, the authors referred to theclassical convergence hypotheses (unconditional β and σ convergence) within the EU-27,then the same assumptions were examined taking into account population – weightedindicators. However, the main aim of research undertaken in this study was to investigatethe individual within – country distribution of income for the initial and final period, whichallowed to answer the question whether faster growth of the ‘new EU’ was accompaniedby reduction of inequalities within analyzed economic systems.

Business Survey Data in Forecasting Macroeconomic Indicators with Combined Forecasts original article

pp. 41-58 | First published in 20 December 2010 | DOI:

Piotr Białowolski, Tomasz Kuszewski, Bartosz Witkowski


Current economic crisis shed dark light on the possibilities of creating a valuable andreliable short and medium term forecasts with the use of the most commonly appliedeconometric models in the structural or autoregressive form (SVAR, VAR), but also modelsof the general equilibrium (CGE, DSGE). The models failed to forecast especially at theverge of the crisis when the information on upcoming peak in the business cycle would beof the highest value.This situation was a stimulus to undertake research oriented at creating a family ofmodels that would react faster and with higher precision to dynamic changes in theeconomic environment. As a result it is expected that a family of models will be specified,identified and estimated. They should provide leading and more accurate information onbasic macroeconomic variables – GDP, unemployment and inflation. Each of thespecifications will be subject to two objectives: (1) the minimum ex-ante forecast error and(2) immediate and reliable accessibility of data.The database applied in the procedure will comprise of time series from the ResearchInstitute of Economic Development (RIED) on sentiment in manufacturing industry,households, trade and construction. The series on economic activity in Poland cover theperiod of 1995–2009.

Capital Flow in Contemporary Global Economy original article

pp. 59-73 | First published in 20 December 2010 | DOI:

Ewa Kopeć


The purpose of this publication is a capital flow analysis of six selected countries thatcause a growth of world-wide imbalance. The comparison of the balance of paymentsbetween 1999 and 2008 in the USA, Japan and the BRIC countries gives information aboutthe scale and the rate of the economic growth.The publication consists of four parts. Initially, the structure of the balance of paymentswas characterized, giving a general view on all economic transactions in each countryand the influence of the capital traffic on it. Subsequently, reasons and the scale of thegrowth of the world-wide imbalance were characterized. Finally, selected components ofthe balance of payments were discussed on the basis of data publicized by the InternationalMonetary Fund.

Polish Housing Policy in Com parison with the Housing Policy in the UE – Selected Issues original article

pp. 75-86 | First published in 20 December 2010 | DOI:

Anna Szelągowska


The purpose of this article is to present the main principles of Polish housing policyand to compare it with the housing policy in the European Union. Poland, as an UEmember, did not hammer out successful solutions which could facilitate the process ofbuilding new low-rental dwellings. The author’s aim is to find the answer to researchquestion: is it worth concentrating on fulfilling housing needs of low-income householdsin Poland and if yes, why? In order to do this the following hypothesis is put forward: onaccount of long-standing neglect connected with the Polish social housing finance thereis an urgent need of housing reform oriented to the low-income housing growth.

Evaluation of the Mortgage Market in Poland during the Crisis Period of 2008–2009 original article

pp. 87-105 | First published in 20 December 2010 | DOI:

Leszek Borowiec


The global financial crisis was a very big challenge especially for banking sector. Wecan say that the young Polish financial sector managed with satisfaction this challengewithout many problems which troubled banking environment elsewhere in Europe. Articlesays that in 2009, the real estate financing market has passed credibility test during theeconomic slowdown. Even though banks share credit fell to the level from 2006, in whole2009 consistently were increased sales housing loans banks. Introduced many restrictionson access to credit (increased profit margins, higher requirements for obtaining credits,additional security). Throughout 2009 banks gradually were rebuilding the level of lending,which resulted from well known government program „Family strike out on theirs own”which could have been found in banks offers.

The Application of DEA Method in Evaluating Credit Risk of Companies original article

pp. 107-114 | First published in 20 December 2010 | DOI:

Anna Feruś


The subject of the present article is a new procedure forecasting credit risk of companies in Polish economy environment. What favors the suggested approach is the fact that in Poland, unlike in western countries, DEA method has not yet been implemented in order to assess credit risk that companies face. The research described in the article has been conducted on the basis of comparison of suggested DEA method with currently used procedures, namely point method, discriminative analysis and linear regression. Considering the research, it can be concluded that DEA method facilitates forecasting financial problems, including bankruptcy of companies in Polish economic conditions, and its effectiveness is comparable or even greater than approaches implemented so far.  

Are Managed Futures Indices Telling Truth? Biases in CTA Databases and Proposals of Potential Enhancements original article

pp. 115-130 | First published in 20 December 2010 | DOI:

Adam Zaremba


Managed futures are an alternative asset class which has recently becameconsiderably popular among investment industry. However, due to its characteristics, accessto managed futures historical performance statistics is relatively confined. All availableinformation originates from commercial and academic databases, reporting to which isentirely voluntary. This situation results in series of biases which distort the managed futuresperformance in the eyes of investors.The paper consists of two parts. First, the author reviews and describes various biasesthat influence the reliability of the managed futures indices and databases. The secondsection encompasses author’s proposals of potential enhancements, which aim to reducethe impact of the biases in order to derive a benchmark that could better reflectcharacteristics of managed futures investment from the point of view of a potential investor.

Multicriteria Early Warning System of Enterprises against the Bankruptcy Risk original article

pp. 131-145 | First published in 20 December 2010 | DOI:

Tomasz Korol


This article is devoted to the issue of forecasting the bankruptcy risk of the enterprises.In the article author compares the effectiveness of multicriteria early warning system withthe traditional discriminant analysis model of forecasting the risks of bankruptcy ofcompanies. In the conducted research author has used data on 185 companies listed onthe Warsaw Stock Exchange Market. This population of firms was divided into learningand testing setdata. Each company has been analyzed using the absolute values of 14financial ratios and the dynamics of change of these ratios. Additionally, author has usedthe macroeconomic variables in developed multicriteria system.The author’s developed models are characterized by high efficiency. These studies arethe first attempt to use fuzzy logic to predict the bankruptcy of companies in Poland andone of the first in the world. Obtained results demonstrate the great potential of this method.  


The Capital Structure of the Companies Quoted on the Warsaw Stock Exchange original article

pp. 147-159 | First published in 20 December 2010 | DOI:

Paweł Wnuczak


This paper presents the results of the research on the influence of capital structure onfinancial results of the companies quoted on the Warsaw Stock Exchange. The researchshows a relation between a capital structure and a potential to increase firm value, returnon equity and return on sales. The results of the research indicate how the companies quotedon the Warsaw Stock Exchange finances its assets and how it influences its financialstanding.


The Concept and Characteristics of Stock Market Indicators PEG and PERG original article

pp. 161-174 | First published in 20 December 2010 | DOI:

Błażej Prusak


In this article there were presented relatively less known in Poland stock marketindicators – PEG and PERG. The Author performed a critical analysis of their structure,showing main advantages and limitations of such indicators. Moreover, on the basis of theliterature review the usefulness of PEG and PERG in shares’ selection process wasanalysed.


Relations between Balance Sheet Policy and Accounting Policy in the Context of Different Accounting Models original article

pp. 175-185 | First published in 20 December 2010 | DOI:

Rafał Grabowski


In Polish professional literature the terms balance sheet policy (in German:bilanzpolitik) and accounting policy are commonly used. The problem raised by the authoris defined by the fact that there exist at least a few perspectives of their meaning and theirrelations with each other. In some opinions balance sheet policy and accounting policyrepresent the same issues. In other opinions there appear differences between the two,however, there is no consensus as to the nature of the differences. The lack of clarity withregard to the explanation methods of balance sheet policy and accounting policy and theirrelations represents a research problem for theory and practice. The theory is required tocodify the academic debate and systematize the terminology while in practice it is themanagement board that holds responsibility for a financial statement which isdetermined by accounting policy adopted by the entity.In this working paper the author has tried to point out the substance of balance sheetpolicy and accounting policy as well as to provide explanation of existing differencesbetween them. Although the topic has already been discussed in professional literature,there have been no attempts to explain the substance of the two policies and their relationsby making reference to their origin, ie. accounting approaches from which they evolved.


Methods of Account Receivables Recover original article

pp. 187-202 | First published in 20 December 2010 | DOI:

Maria Sierpińska


The paper presents three types of account receivables recover: by court, conciliation,or by financial execution. All of these methods are shortly described and the costs of theirusing are analyzed. Of course, the mixed method was presented as well. In the articlepractice of execution firms’ activity in Poland is also shortly presented.


Selected Factors Affecting the Development of Auditing Services Market in Poland original article

pp. 203-212 | First published in 20 December 2010 | DOI:

Rafał Rydzak


This article presents three factors affecting the development of auditing services marketand its oligopoly.The binding provisions of law concerning discretionary powers of auditingcompanies’ proprietary rights, to some extent, petrify the current auditing market structure.By means of numerous capital access deterrents they make it impossible to compete withthe most influential entities on the market. Bearing in mind the vital influence of statutoryauditors on companies’ functioning, and allowing the companies access to capital, it isadvisable to abolish all binding restrictions and simultaneously strengthen the internalcontrol mechanisms facilitating high quality of financial review and statutory auditors’independence.The auditing services market is, most of all, subject to price competition. The bindingrequisition of statutory auditors’ (including auditing companies) salary disclosure intensifiesmutual chain of audit pricing dependence and restricts competition.Properly utilized rotation principle, by strengthening the competence, mightpositively influence functioning of the auditing services market. It increases an opportunityof collaborating with new entities, while enforcing constant improvement of qualificationsrequired to perform financial reviews. Hence its wider use should be postulated.


Internal Audit as a Tool for Combating Economic Fraud. Case Study of the Misappropriation Process of Company’s Assets original article

pp. 213-230 | First published in 20 December 2010 | DOI:

Michał Falkowski


The paper deals with the problem of economic fraud and the role of Internal Audit asa tool for preventing it. As the economic downturn intensifies, the possibility of disputesand other difficulties arises more frequently. More often employees and contracting parties try to shift their own losses on to other economic entities. When internal rules are brokenor either are not established, organizations are exposed to risks and problems that theyare often not used to dealing with.As the analyzed case study showed threats of an economic fraud can come also frominside the company. Embezzlement concerning expense reimbursement is one of the most“popular” ways to steal money from inside the company. To prevent such situations fromhappening Internal Audit Unit has to perform assurance and consulting actions to deterthis particular and any other type of fraud.When the actual fraud occurs an important element, is the properly divide roles betweenan internal auditor and the forensic specialist who is adequately prepared to lead theinvestigation, find evidence, and bring fraudsters to justice.


Barriers of the Human Capital Shaping original article

pp. 231-247 | First published in 20 December 2010 | DOI:

Joanna Krochmal, Marcin W. Staniewski


Nowadays, in the age of the economy focused on knowledge and science, the processof formation and development of the employees is considered as a very importantinvestment, inspiration and a tool to efficiency creating, success and first of all, the strategicpotential of the company.Indeed, it is people who are the key and the path to success and on them, the strength,the power and the success of any business should be built. The aim of this elaboration isto highlight and emphasize the importance of investment in human capital and showfluctuations, as one of the barriers that can disrupt this development, what in general alsomay be caused by lack of adequate systems of employees’ motivation.


The Category Management Process and Responding to Customer Needs original article

pp. 249-256 | First published in 20 December 2010 | DOI:

Agnieszka Biernat-Jarka, Katarzyna Świerczyńska


This article presents the process of managing the product category of fast-moving(FMCG) in the example of tobacco products. Assumptions discussed the process developedby two companies working together. The presented results show that the process of categorymanagement is an extremely important activity in achieving the company sales and responsefor consumer needs. As a result of the implementation of category management processof tobacco products has been increasing the number of customers visiting outlets, increasingthe number of marketed products, and ultimately increase the company’s profit.  


Prospects for the Use of Mobile Marketing Tools original article

pp. 257-266 | First published in 20 December 2010 | DOI:

Robert Stalmach


Mobile marketing has some undeniable advantages over other communicationchannels, such as interactivity, location based services and impulsiveness (spontaneity).However, a cell phone and other mobile devices are treated by users as personal devicesin relation to which they are reluctant to see the interference from outside. The challengefor the industry is therefore a good understanding of the restrictions associated with thisform of communication. Factors specific to m-marketing include profile of the recipient,the context and motivations of the user “in motion”.


Methodologies of Project Management original article

pp. 267-280 | First published in 20 December 2010 | DOI:

Wojciech Macek


This paper presents comparison of three most popular project management standards belonging to a wider group of models (for example, PMBOK, Prince 2, CMMI, ISO 10006, BS 6079, IPMA Competence Baseline, European Commission Project Cycle Management Guidelines). The author discusses methods of project management according to PMBoK, Prince 2 and ISO 10006, some chosen criteria and fields of knowledge, such as general regulations of standards, project range management, resources management, and processes connected with risk, systems of project quality management.  


Teaching Process Effectiveness Model and Its Application at the University original article

pp. 281-291 | First published in 20 December 2010 | DOI:

Radosław Ryńca, Dorota Kuchta


The article is taking the issues associated with the measurement of the teaching processeffectiveness at the university. At the work authors modified model of the teachingeffectiveness process presented by T. Chien in 2007. The article is also presented exampleof using the modified model.