Author Archives | Ledjon.Shahini

The Impact of Informal Economy in the Pension System, Empirical Analysis. The Albanian Case

By using a simple model, it will be analyzed the impact that informality has in the amount of consumption of the workers during their life cycle. This paper deals with the interconnections of underreported earnings, savings and old-age pension. The workers sampled for this analysis have been divided into three groups:
1. Low income employees,
2. Higher income employees who declare all incomes,
3. Employees who underreport their incomes.
In this paper the analysis is based on two pension models: the model that calculates pension in conformity with the incomes and the basic model, whose objective is poverty reduction for the “third age”. The major result is as follows:
Given the fact that the basic pension system favors employees that underreport their incomes and the fact that the impact of informality is greater in the basic system than in the proportional pension system, the application of basic pension system in the Albanian might be problematic.

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Posted in Economics, Information Technology, Volume V, Issue no. 1Comments Off on The Impact of Informal Economy in the Pension System, Empirical Analysis. The Albanian Case

Financial Crisis Effect on Public Debt in Western Balkans Countries

The end of the first decade of the twenty-first century will be remembered by appearance of one of the greatest economic crisis. This time, it had a global character. The crisis has been appeared, almost unexpectedly, in the middle of 2007 in the US, but very soon it was transferred to other countries in the world as well. Very likely, it will last durably, with wide devastating consequences. The current economic crisis has made the existing unfavorable situation more complex and deepened the present imbalances and risks. The economic and financial crisis led to a strong increase in the public debt in the euro area countries, the United Kingdom, the United States and Japan. Moreover, without a change of policy, the public debt will continue to expand in most of developing countries such as Albania.
Public debt challenges are a major recurring concern across the globe. Today many countries face the prospect of high and unsustainable public debt levels amid a weak economic recovery caused by the global financial crisis that started in 2007. The impact of the crisis on public debt was immediate, severe and with potential long-lasting negative effects due to its housing roots and global reach. The basic aim of this article is to consider the effect of the current financial crisis on the movements and sustainability of the public debt in the period up to 2013.
The paper will try to analyze also the effects that public debt has on the economic growth through the examination of the main data used in this study. The results are consistent with the existing literature that has found a negative correlation between public debt and economic growth.

  Financial Crisis Effect on Public Debt in Western Balkans Countries (690.2 KiB, 2,827 hits)

Posted in Economics, Volume V, Issue no. 1Comments Off on Financial Crisis Effect on Public Debt in Western Balkans Countries