Politická ekonomie, 2025 (vol. 73), issue 3

Energy Security Risk Across the European Union: Converging or Diverging?

Caner Demir, Raif Cergibozan

Politická ekonomie 2025, 73(3):418-446 | DOI: 10.18267/j.polek.1454  

In this paper, we present the results of a study examining whether the European Union, where countries act in common on many issues such as monetary policy, abolition of borders and mobilization of labour and capital, also constitutes a union in terms of energy security. From this point of view, whether the energy security risk in the European Union has converged or not is tested by using various analysis methods covering the period 1980-2018 for 17 EU countries. The findings of the study not only reveal whether individual countries converge to the group average but also show whether the group as a whole forms a convergent outlook. The linear unit...

A Policy Dilemma in the Context of Turkey's Sectoral Export Competitiveness: The Role of Exchange Rates and Labour Costs

Mücahid Samet Yilmaz, Mustafa Acar

Politická ekonomie 2025, 73(3):447-470 | DOI: 10.18267/j.polek.1459  

Production in Turkey has a high dependence on imported inputs. Therefore, the policy aiming at increasing exports through the depreciated national currency leads to different results depending on the degree of dependence on imported inputs. In this context, this study econometrically analyses increases in exports of manufacturing and service industries which have different levels of imported input dependence. The analysis findings indicate that national currency depreciation leads to competitive effects in the manufacturing industry, but not in the service sector. The effect of labour costs, on the other hand, is much lower in the manufacturing industry...

Re-examining the Tax-spending Hypothesis in G7 Countries: Evidence from Time and Frequency Domain Causality Approaches

Burcu Balsever Erim, Hasim Akca

Politická ekonomie 2025, 73(3):471-499 | DOI: 10.18267/j.polek.1455  

In the literature, it is still thought that to combat budget deficits, the state struggles to adjust the relationship between government revenues and spending. Accordingly, the causality relationship between government revenues and spending is generally explained through four main hypotheses: tax-spending, spending-tax, fiscal synchronization and institutional separation hypotheses. In addition to the doubt that the first and the only step in the fight against the budget deficit is government revenues and government expenditures, there are various uncertainties in the studies on this subject in the literature. There is no consensus on the subject due...

Nonlinearity in the Debt-Growth Nexus in the EU: Evidence from Dynamic Panel Threshold Regression

Vladimir Mihajlović

Politická ekonomie 2025, 73(3):500-527 | DOI: 10.18267/j.polek.1456  

This study investigates the impact of public debt on economic growth in a panel of 27 EU economies over the period 2000-2022. As the preliminary analysis suggests a nonlinear relationship between these variables, the debt threshold analysis based on the dynamic panel threshold regression is employed. The results for the whole panel indicate that public debt supports growth below a threshold of 68.7%, but it has a detrimental impact on growth if it is above the threshold. The validity of the findings is confirmed by including the effects of crises, which also indicates that economic growth in countries with debt below the threshold was more resilient...

Testing Real Interest Rate Parity for EU5 Countries: 200 Years of Data, Non-normality, Non-linearity and Breaks

Veli Yilanci, Onder Ozgur

Politická ekonomie 2025, 73(3):528-565 | DOI: 10.18267/j.polek.1448  

Purpose: This paper aims to examine the real interest rate parity (RIP) theory for EU5 countries (France, Germany, Italy, Spain and the UK) versus the USA. Design/methodology/approach: Utilizing RALS-FADF and RALS-FKSS unit root tests, this study addresses non-normality, non-linearity and structural breaks in real interest rate differentials. Findings: The results confirm the RIP theory, indicating mean reversion of real interest rate differentials and highlighting impact of financial integration on monetary policy independence and arbitrage opportunities. The study notes that central banks' ability to influence domestic economies through...

A Comprehensive, Modern and Well-Done Monograph on Macroeconomic Analysis

Martin Mandel, Vladimír Tomšík

Politická ekonomie 2025, 73(3):580-583 | DOI: 10.18267/j.polek.1500  

Nobel Prize in Economics for 2024

Pavel Sirůček, Zuzana Džbánková

Politická ekonomie 2025, 73(3):566-579 | DOI: 10.18267/j.polek.1487