Panitza Library is delighted to announce new publications by Prof. Tamara Todorova:
Todorova, T., & Vasilev, A. (2022). A new institutional approach to the study of the soviet-type economy. Eastern Journal of European Studies, 13(1), 290-308. doi:10.47743/ejes-2022-0114
The paper analyses the transaction cost of economizing and the efficiency-enhancing effects of the Soviet-type economy. The last 30 years of transition have seen the failure of market reforms in many industries in what are traditionally non-market economies. The authors emphasize the role of centralism in coordinating economic activities, curbing opportunism, and facilitating information flow. In highly opportunistic societies where the transaction costs of market operation are significant, centralized systems are more efficient than decentralized, democratic systems based on free-market rules.
Todorova, T. (2022). Foreign trade and macroeconomic effects of exports. Theoretical and Practical Research in Economic Fields, 13(1), 31-43.
The author finds that the IS-LM model and the national income model reinforce each other in the context of exports and the export multiplier. Using simple differentiation techniques, we derive several relationships with respect to foreign trade. As predicted by Keynes, exports have a favorable effect on national income and the interest rate. Exports also increase the average price level and the exchange rate in the country. Through the mechanism of the export multiplier exports increase imports, savings, and consumption. A higher propensity to import reduces national income and fosters a negative trade balance. Similar is the effect of a higher exchange rate which discourages exports and encourages imports.