Issue 2, 2017

Аt the beginning of the XXI century in Bulgaria there has been a keen interest in the modern political economy: within the period 2001 – 2016 there were over a hundred publications from Bulgarian authors in this sphere; and over the last ten years three national scientific conferences were held (in 2007, 2013, 2016). However, both in the country and worldwide, the concepts on many issues, including “What is modern political economy?” differ, or are even diametrically opposed. Therefore the article addresses these differences, offers and applies an analytical tool, which allows for a better order without controversy in the identification of modern political economy with implied preference for development of the classical line therein.
JEL: A10; B50; B59; P16

This paper studies the types of management teams and identifies the essential characteristics of organizational models applied in management practice: work group – team – self-managed work team and virtual team. The focus is put on virtual teams. The key prerequisites, regularities and processes associated with the design and functioning of highly effective virtual teams are analyzed. The indicators of team effectiveness are specified and the factors influencing immediate results are analyzed. The multilateral relationships in the integrative models most cited in the last 20 years are explored not only at the input, but in the process of interaction, as well as the ways to achieve balance and good teamwork between team members. The aim is to find a common theoretical and methodological basis that brings together the fundamental models of virtual team effectiveness.
JEL: D03; D74; C81

The paper examines the diversity on banks’ boards as an innovative tool to reduce the effects of the global crisis and a beginning of a long-term sustainable development worldwide. The expectations with regard to diversified boards are mainly associated with improving the quality of decisions, risk management methods and remuneration of executive directors. The EU recommendations for achieving of diversity on boards, incorporated in national policies and corporate practices, were analyzed for Bulgarian banks. The survey results show that there is diversity on banks’ boards by profession and nationality, while by gender the diversity is primarily due to the introduced regulations. The average values of the Bulgarian banks exceed those in the EU due to the specifics of our banking system. In parallel to the diversity of boards is raising the issue of economic and social effects of this diversification.
JEL: G21; G34

In the past twenty years new generation of companies emerged, with value, generated out of their intangible assets. The brand is a strategic asset with a value highly correlated with the company value. Due to the optimization of the market portfolio and strategic positioning, pricing of mergers and acquisitions, as well as determining the percentage of royalty deductions for businesses the financial value of brands should be assessed. Although there is a variety of methodologies in this area, most of them are primarily qualitative and do not provide quantitative assessment. There is no consensus on the standard valuation practices. In this regard the key financial approaches to assessing the value of the brand are systematized and analyzed and the basic methods within the discussed approaches are classified. The advantages and disadvantages of each one are specified and the challenges to the assessment of this intangible asset are deducted.
JEL: G12; G31

The article deals with the issues on fiscal and monetary policies and the economic situation in the Republic of Armenia during the crisis and post-crisis period. The analysis shows that although there have been some signs of economic growth in Armenian economy in 2010-2013, however, the main macroeconomic indicators did not return to pre-crisis level and failed to provide long-term sustainable economic growth in the country. It is argued in the article that expansionary fiscal and monetary measures should be taken for sustainable economic growth. The main target of the fiscal policy should be the reduction of the tax burden, while financing the real sector of the economy and supporting a sustainable growth of the economy should be the primary objective of the monetary policy.
JEL: O23; F41; F43

The purpose of this paper is to present the major research methods in the fields of behavioral economics and neuroeconomics. First, the paper starts with a short review on the causes for the emergence of behavioral economics as a separate field in economics in the mid of the twentieth century. Then, the paper makes a chronological review on the four major research methods that have been used in the behavioral economics since its beginning through nowadays. And finally, the paper makes a review on two more research methods that are used primarily in the field of neuroeconomics. The following research methods are examined in this paper: laboratory experiments with hypothetical choices, laboratory experiments with actual outcomes, field research, field experiments, functional magnetic resonance imaging (fMRI), and transcranial magnetic stimulation (TMS).
JEL: B4; D03; D87