Issue 5, 2003

The main thesis is that the model of the economic person contains the methodological codification of the modern science of economics. The model comprises as its constituent elements deductive assumptions on the target-oriented function of people who are faced with economic choices, on the limitations over those choices and the opportunities they have to optimize the latter. Each element is represented as a projection of the fundamental presumption of the rationality of economic subjects.
It is emphasized that, as far as methodology is concerned, the binding of the science of economics to its fundamental behaviorist model does not allow us to set precise boundaries as to its subject, however, it does identify the science very clearly through the specific approach it uses towards the phenomena under study. Methodological individualism is pointed out as the main feature of the economic approach. The manifestations of the former in the individual elements of the model of the economic person are discussed. The relative advantages of methodological individualism over holism through comparison of the models of the economic and sociological person are given.
Special treatment is given to methodological instrumentalism and the way the hypotheses forming the base behaviorist model are instrumental in the realization of the latter in economic analysis. With respect to the application of that principle, the interrelation between the model of the economic person and general economic development is pointed out.

This paper presents some of the findings of a recently conducted survey on the state and the future development prospects of labour markets in the municipalities of the towns of Vratsa and Montana. The possibilities and attitudes of employers in both municipalities with regard to creating and sustaining jobs, as well as their potential to provide professional training and retraining to the workforce they have recruited or are planning to recruit are analyzed and assessed.

Fiscal decentralization necessitates the finding of solutions to a number of issues such as what amount of expenditure-related responsibility should be devolved to local authorities, what degree of taxation autonomy should local self-government organs be provided with, what fiscal tools should be used in order to offset the difference between local revenue and expenditure, etc.
This paper shows that the various quantitative measurements used to establish the degree of decentralization (the share of local revenue/expenditure within the consolidated national revenue/expenditure statement or within GDP) are sometimes misleading with regard to the drawing of conclusions as to whether or not local authorities lack autonomy. It is emphasized that a proper indicator for assessing the financial aspects of decentralization is the degree of tax autonomy. The latter provides general information not only about the share and relative rank of local tax revenues in the total local income, but also about the power of local authorities to set tax rates and bases.
A comparative analysis is made of Bulgaria and the countries of Central and Eastern Europe, as well as some EU countries, based on several indicators of the degree of decentralization and tax autonomy. Some general trends are identified as well as the reasons why Bulgaria is lagging behind with respect to certain indicators.

The paper discusses the statistical data on natural and mechanical movement of Bulgarian population during the last few decades. It emphasizes a number of inconsistencies due to the inaccurate and incomplete registration of outbound migration. The approach of age group movement is used for analyzing the differences between projected population figures and the latest census data. Thus it is possible to establish the extent to which current statistical reports on population differ from the actual situation as well as the extent to which census data can contribute to establishing the amount of unregistered migration during the period in question. The conclusion offered is that it is necessary to completely reconsider the concept of statistical monitoring of outbound migration, as well as make an analysis of current population figures reporting methodology. Some recommendations in that respect are also given.

This paper is a study of the potential of Bulgarian small and middle-sized enterprises (SMEs) for growth and improving their competitive advantages on domestic and international markets. To this end an analysis of the main economic indicators as well as some hidden reserves for improving the latter are presented. The conditions and factors affecting the solutions to the above issues and some requirements to management are identified and assessed. The reasons for SMEs having fallen behind are given as well as some recommendations and guidelines to solve that problem.