Issue 7, 2010

Pursuant to the reproduction theory and the set theory the concept was elaborated, that throughout the historical evolution of mankind five basic forms of society (called by the author - forms of the sustaining sphere) have emerged consecutively: consumptionarity, protoeconomy, economy, market economy and financial market economy. They are integrated in each other in such a way, that each subsequent historical form creates and complements a new phase of reproduction, including the previously emerged ones. Thus the historical evolution is projected in the logic of each current form of society. Consequently a new periodization of the material life in human evolution was proposed, set up of five stages: non-protoeconomic consumptionarity, non-economic protoeconomy, non-market economy, non-financial market economy and financial market economy. Protoeconomy and economy are not identical notions, as protoeconomy is a wider concept than economy, which is just a special case thereof.
JEL: A10

The article is attempting to analyze the development and the various manifestations of the financial and economic crisis in Bulgaria and on this ground some macroeconomic policies are being recommended. The liquidity crisis imposes significant restrictions and hampers economic growth. More and more expectations are being directed towards the BNB's potential to attenuate the liquidity crisis and to the government to increase the country's attractiveness as an investment destination.
JEL: O11; E52; E58; E65

This is a review of issues concerning the role and effectiveness of the EU Structural and Cohesion Funds in different countries before and after the EU enlargement since 2004. Based on Ireland's experience this analysis focuses on the impact of the cohesion policy on the small open economies under the conditions of economic crisis and the implementation of the Lisbon Strategy '2000. An integrated micro-macro approach is presented, attempting to elucidate the policy contradictions and the results from the applied programs at a highly aggregated level, making use of macroeconomic models (macro or top-down) and at a disaggregated level (micro or bottom-up). The thesis is defended, that the interaction of both approaches shall enable the impacts on the micro-level to be linked with the impacts on macro-level (GDP and employment).
JEL: F01; O12; P51

The EU enlargement and the new challenges related with the integration processes raise the necessity of EU regional policy reconsidering. The paper supports the understanding that accepting one or another theoretical formulation about the convergence processes feel deeply about the formation of the EU regional policy, respectively for its effectiveness. The relation between the economic development and the convergence within the EU were analysed in the light of the two main theoretical directions (the neoclassical one and the new economic theories). Their correspondence to the empirical results is critically evaluated. The positive and the negative consequences related with the development of the integration processes have been investigated. Finally some conclusions are drawn as regards the applicability of the convergence hypothesis and the formation of the EU regional policy
JEL: F15; R12; R58

The paper presents twelve fundamental advantages of the system-structural approach - as an alternative to the applied structure-indifferent approach (the latter is based on the inadequate premise "under equal other conditions") when working out development strategies. The suggested approach is brought to acting methodical instruments (algorithm) in the form of iterative procedure. It is applicable only for the open production systems with compensation retroactions. The multiplicative effects and the action of the automatic stabilizers are realized with maintaining the dynamically changing balancing between desired results and resources needed.

JEL: С82; О21

The paper consists of three parts. In the first part a monetary economy, based on credit money, is introduced. All financial instruments are considered as substitutes for money. In the second part the possibility of equilibrium convergence, under certain conditions, is studied. The conclusion is that that the equilibrium convergence requires monetary velocity acceleration. The velocity of money is introduced as complex variable derived as solution of a matrix equation and implying the existence of closed money circulation cycles. The third part is dedicated to interplay between the real and the financial sectors under the process of equilibrium convergence and economic stabilization. Keynesian, monetarist and real business cycle type of stabilization are studied. The conclusion about the possibility of destabilizing role of financial sector is drawn.
JEL: E19

The paper analyses the different contribution given by the main social groups - the business and the households - to the state budget revenue. It is shown that the prevailing part of the budget revenues are insured by the households. On the other hand, in the group of the business the non-financial sector insures the prevailing part of the state budget revenues compared to the financial one. As one of the main reasons for this structure are defined the existing institutions, i.e. the acting formal and informal rules in the economy and in the society as a whole.
JEL: D13; D33; H61

Human capital has been considered as a factor in the macroeconomic production function for the first time in the seminal work of Lucas (1988). Later on, it was also used as a regressor in the empirical analysis of Mankiw, Romer and Weil (1990). Over the past twenty years, economists have explored the relationship between economic growth and human capital in numerous theoretical and empirical studies. The current paper attempts to review and generalize the developments of the theoretical and empirical models during this period as well as to summarize main findings regarding the impact of human capital on economic growth.
JEL: E24, J24, N30, O11, O49

The results of an empiric analysis of consumers' behaviour regarding the demand of foods in Bulgaria are presented here. The principles of income distribution in home budgets in respect to food expenditures are established on the basis of a regression- and co-relation analysis. A tree of preferences is outlined which details consumers motivations and describes the cause and effect chain of demand.
JEL: D12; Q11