A13 - Relation of Economics to Social ValuesReturn

The aim of this study is to verify the validity of Barro-Ricardo equivalence in Czech conditions with the help of experimental methods. Ricardian equivalence, in which case consumers postpone consumption under lower taxation, is a basic assumption of many studies dealing with intertemporal decision making and has important implications for government tax policy. Using nonparametric methods and panel data regression, we find that Ricardian equivalence does not hold in general. Our results suggest that taxation has a significant impact on consumption decisions. Over the life cycle, a tax cut increases consumption on average by 28.7% of the tax credit. Conversely, a tax increase causes a 27.8% increase in consumption on average. Using individual consumption time series, we find that approximately 70% of the tested individuals behave contrary to Ricardian equivalence. Our results show that a change in tax levels affects consumption in subsequent periods.

The aim of the paper is twofold: to point out important milestones in the development of the relationship between ethics and economics, and to present some examples of approaches aiming at re-integrating disciplines often perceived as antagonistic. There is, however, a wide variety of concepts and views trying to bring both disciplines closer, and the paper gives the reader a taste of different points of view, especially those less known and not mirrored in the Czech economic literature. The author is of the view that these concepts could inspire reflections on and efforts to tackle economic and societal problems that are becoming increasingly complex and interdisciplinary. Despite many calls to develop holistic approaches to knowledge acquisition and dealing with complexity in the contemporary world, we are witnessing continuous specialization of individual scientific disciplines, including the detachment of economics and ethics.

Quo Vadis, Nobel Prize in Economic Sciences? The so-called Nobel Prize in Economics is not one of the original Nobel Prizes according to the testament of A. B. Nobel. Although it has been the target of various critics since its inception in 1969, it has become the most prestigious economic award. The paper summarizes more than 50 years of the history of this award, including the focus of the laureates, and asks - sometimes provocative - questions about the perspectives of economic science in the 21^st century.

The issue of minimum wage is highly topical in the context of the so-called minimum wage controversy, which contradicts the attitude of the neoclassical school. The aim of this paper is to analyse the effect of minimum wage increase together with effects of changes in other exogenous variables such as GDP growth rate, inflation rate, unemployment compensation and other social benefits on the real unemployment rate in the Czech Republic in 2006-2018. Linear regression models are tested using the Cochrane-Orcutt method. The effect of minimum wage increase on the rate of unemployment proved to be insignificant in the period 2006-2018. A negative effect of GDP growth rate was confirmed in 2006-2018, while unemployment benefits seemed to have a positive effect on the unemployment rate. The results show a negative effect of increasing minimum wage on the unemployment rate of women in 2011-2018, in line with the neoclassical theory. The conclusions of this paper have significant economic implications for minimum wage policy.

Altruism and the ethical relationship to other people affect behaviour of subjects in economic environment. Economy tries to capture this behaviour, there are various models, but it hasn't been successful in fi nding one model describing various types and cases of altruistic behaviour. Business ethics faces a similar problem as it lacks a defi nition of what exactly ethical behaviour means. This paper claims impossibility of fi nding a unanimous defi nition belongs to ethics and is its characteristic feature. In the area of economic behaviour that is not a problem, but a chance for innovative behaviour.

The author raises doubts about a sense of "catching up" and an idolatry of HDP's growth. His argumentation is based on the longitudinal international research of the link "economics-happiness" at the frontier between economics and psychology. The rationality of economic science "more is better" is bounded by environmental and relational externalities: it is just what a "theory of happiness" argues against a "joyless economy". The family-household is an old istitution esp. loosing in a competition with the market economy. The article stresses a role of "relational goods" explaining why more is sometimes less. The loss of happiness in market democracies (R.Lane) is the reason for a crisis of economic paradigm; it has a chance to be healed by a switch from the principle of imperial equivalence to a reciprocity (economy of communion). Implications for economic policies based on a "science of happiness" reverse the link "economics-happiness" making from HDP growth a by-product of our effort for happiness.

This is the reaction on the article of Václav Klusoň "Come-Backs of Dr. Bernard Mandeville: Virtuous Knaves in Economic Transformation". I put in contrast economic thinking of B. Mandeville and A. Smith and argue that both Smith's social and moral philosophy and his economic thought is more relevant for our present time. Smith's system of natural liberty - free trade and free enterprise - brings the invisible hand of the markets to work and transform self-interests of individuals into social benefits. I doubt that knaves were becoming virtuous in the process of transformation and privatization. Rather it is the other way around: virtuous men are becoming knaves in our present social, political and economic system of excessive taxation and regulations. The state is so much involved in bureaucratic, regulative and redistributive activities that it fails to function as the guardian of law and order.

The author undertakes in his essay a risky experiment as he tries to look at the present-time-economic-transformations in the view of the great thinker of 18th century, Dr. Bernard Mandeville, who famed by his Fable of the Bees, or Private Vices and Public Benefits. The philosophy of Mandeville, as is well known, influenced besides others, F. A. Hayek and J. M. Keynes, the former by ascribing Mandeville the primacy of the idea of spontaneity in evolution and the latter by assesing luxury in promoting the spending. In the course of economic reforms the truthfullnes of the so-called Mandevill paradox has been widely afirmed; knaves were becoming virtuous and property conferred respect and authority upon the "nouveau riche".