Boris Begovic | University of Belgrade (original) (raw)
Papers by Boris Begovic
RePEc: Research Papers in Economics, 1998
MPRA Paper, 1998
Serbian. U radu se na osnovu analize postojeceg antimonopolskog zakonodavstva u nasoj zemlji i uk... more Serbian. U radu se na osnovu analize postojeceg antimonopolskog zakonodavstva u nasoj zemlji i ukazivanja na njegovu neadekvatnost daju osnovne sugestije i smernice za izradu novog zakonodavstva, kao osnove za delotvornu politiku razvoja i zastite konkurencije. lstaknuti su osnovni problemi koje novo zakonodavstvo mora da obuhvati: stvaranje tržisne moci, odnosno monopola i drugih nesavrsenih tržisnih struktura, procenjivanje efekata horizontalnih i vertikalnih integracija na postojece rržisne strukture, formiranje adekvatnog antimonopolskog tela, s jasno definisanim nadležnostima i nacinom rada, kriterijumima i procedurama za odlucivanje, sa strogo utvrđenim sastavom tela i mandatom njegovih clanova, i uz striktno postovanje nacela javnosti njegovog rada. Naravno, pri tome je nužno izbeci mogucnost koju sadasnje zakonodavstvo daje, naime da clanovi antimonopolskog tela budu birani iz redova tzv. istaknutih privrednika, dakle iz redova onih koji treba da budu regulisani. Tek izgradnjom novog, delotvomog antimonopolskog zakonodavstva i obezbeđivanjem njegovog nepristrasnog i efikasnog sprovođenja bice pružena neophodna podrska drugim segmentima procesa tranzicije u nasoj privredi, a pre svega privatizatizaciji. English. The paper provides suggestions and guideline for the new competition policy legislation. The suggestions are based on the analysis of the current federal antitrust legislation and its shortcomings. The new legislation must tackle the following main issues: creation of market power (monopoly and other noncompetitive market structures, the effects of horizontal and vertical mergers to market structures, and establishment of appropriate antitrust institution (commission), with precisely defined authorities, responsibilities, decision-making criteria and procedures , election procedures and mandates of every member of the commission, and strictly enforced principle of the transparent operations of the commission. It is necessary to avoid the room for the provision of the actual antitrust legislation that "prominent businessmen" should be the commissionaires: hence to regulate themselves. The establishment of the new, effective antitrust legislation and its unbiased and efficient enforcement will provide solid base for the competition policy, which in tum will provide support to other segments of transition of Yug oslav economy , first of all to the priva1isation process.
Social Science Research Network, 1998
Contributions to economics, 2018
In the economic world, the basic interest of all business subjects, i.e. all people who enter int... more In the economic world, the basic interest of all business subjects, i.e. all people who enter into economic relationships, are identical-maximizing of personal welfare. So, selfish interest is the basic motive of people who enter into mutual economic relationships. The founder of contemporary economic science Adam Smith clearly presented this concept more then two centuries ago. The baker does not supply us with bread he makes because of his altruism, or for worry that we should not go hungry, but because of the profit he makes by selling bread. Each one of us is ready to invest something, or any resource one has (property, money, work time, work effort, etc.), only in the case when from that investment one receives greater value than the one that was invested. And each of us attempts to maximize the difference between the value of the investment and the yield from that investment. "No one can pay me as little as I can work" represents a specific, although socially destructive, form of such a maximization. In other words, people in all conditions behave economically rationally. A special form of such maximizing is rent seeking behavior. Rent represents the overall income that is larger than the opportunity costs linked to that income. Economists would say that rent is the yield that is above the opportunity costs of investment of a certain resource (Marxist oriented economists would call the rent, extra profit). Each one of us wants to capture or maximize rent. To do so, we are ready to invest our resources, so that we can influence those decisions that will make it possible to capture rent. Some forms of rent seeking behavior surely do not represent corruption. Although, there are certain cases of corruption that are present in situations where no rent exists, the most significant, most common and regarding their consequences most dangerous forms of corruption are linked to situations where rent is generated. Corruption then represents means for the generation or the capturing of rent. Let us consider the relationship of corruption and rent in one hypothetical example of state intervention. The state, regardless of motives, decided to limit the import of bananas to 100 t per year. Such limitation is carried by issuing import licenses, which can be received only by ten companies and each company for import of 10 t of bananas. Let us assume that all bananas are acquired at the same purchase price and that all companies are equally efficient, i.e. have identical costs of import per unit (transport costs, distribution costs, costs of capital, etc.). For simplicity's sake, let us assume that average costs equal marginal costs and that there are no real costs of corruption. If we assume that the function of the demand for bananas to equal: price (p) = 6500-30 quantity (q) and that average, or marginal costs are constant average costs = marginal costs = 2.000 DEM per ton, we can examine effects of such a state intervention on generating of rent and on originating corruption (Picture 1.1).
It is positive, though, that if the stated ratio is negative, corruption will not develop. 31 Cor... more It is positive, though, that if the stated ratio is negative, corruption will not develop. 31 Corruption in the Customs Administration-Main Causes and Mechanisms 10 A similar question asked in a survey on corruption in 2001 almost the same percentages of answers were received. Corruption in Serbia, CLDS, 2001
Contributions to Economics, 2018
distribution and reproduction in any medium or format, as long as you give appropriate credit to ... more distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made. The images or other third party material in this book are included in the book's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the book's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Anali Pravnog fakulteta u Beogradu
The aim of the article is to provide a general, broad picture of the economic effects of the COVI... more The aim of the article is to provide a general, broad picture of the economic effects of the COVID-19 pandemic, without going into the details. The impact of the pandemic on economic growth was sharp, with sudden and deep decline, followed by complete and swift recovery. Both the supply and the demand side contributed to this dynamic, based on the same factors (morbidity and mortality, behavioural adjustments of individuals, and government pandemic control measures), although with quite distinctive mechanisms of impact. It was the uncertainty of both the supply– and demand-side economic agents that was decisive for the sudden drop in the level of economic activity. Macroeconomic policies, both monetary (quantitative easing) and fiscal (budgetary deficits) proved timely and prevented a global depression. In the aftermath, the side effects of these policies are substantial inflation, increased basic interest rates to counter that inflation, increased sovereign debt, and its threatened...
Ha publicado numerosos artículos en publicaciones nacionales e internacionales, dos libros: Econo... more Ha publicado numerosos artículos en publicaciones nacionales e internacionales, dos libros: Economic Approach to Optimal City Size (1991) y Economic of Town Planning (1995) y ha contribuido en la edición de numerosos volúmenes incluyendo: Corruption in Serbia (2001) y Corruption in Judiciary (2004). El presente Documento forma parte de un programa de actividades entre el Centro para la Apertura y el Desarrollo de América Latina (CADAL) y el Center for Liberal-Democratic Studies (CLDS), que cuenta con el apoyo del Center for International Private Enterprise (CIPE). MISIÓN El Centro para la Apertura y el Desarrollo de América Latina (CADAL), con sede en Buenos Aires, Argentina, se constituyó como Fundación el 26 de febrero de 2003 con el objetivo de promover el fortalecimiento de la democracia, el estado de derecho y las libertades económicas en los países de la región. Para tal fin, CADAL realiza actividades de análisis, investigación y difusión a través de dos proyectos especiales y de la implementación de varios programas en cuatro áreas: Política Latinoamericana, Fortalecimiento Democrático, Economía y Estado de Derecho, y Desarrollo y Comunicación Institucional. ORÍGENES La interpretación de la crisis argentina del 2001/2002 y su impacto regional, las debilidades institucionales en varios países y, en general, el clima de opinión pública anti-mercado en Latinoamérica luego de las reformas económicas de las décadas de los 80 y 90, fueron algunos de los motivos que llevaron a la constitución del Centro para la Apertura y el Desarrollo de América Latina. También se tuvo en cuenta la inexistencia de una ONG pro democracia y mercado que trabaje combinando análisis, investigación y difusión sobre temas políticos y económicos con una visión regional.
Let us reiterate that in French there is still a difference between bénéfices industriels et comm... more Let us reiterate that in French there is still a difference between bénéfices industriels et commerciaux and bénéfices des professions non commerciales, predominantly motivated by reasons of tradition. Since tax treatment of both types of revenues are basically the same, it is reasonable to term them as "business revenues".
Competition Law (in Pandemic Times): Challenges and Reforms, 2021
The Federal Trade Commission of the United States (FTC) filed a Complaint against Facebook on 9th... more The Federal Trade Commission of the United States (FTC) filed a Complaint against Facebook on 9th December 2020, in the midst of the COVID-19 crisis. While facing one of the biggest social and economic crises in American history, FTC has enough time and resources to (re)investigate Facebook’s acquisitions of Instagram and WhatsApp. This paper analyses motives and rationale behind the FTC’s Complaint requesting Facebook’s break-up and what could be possible alternatives from a competition law perspective. All the findings suggest that the FTC’s Complaint is politically motivated, and the competition authorities should enable digital platforms to expand. However, the expansion should be controlled, to ensure that the benefits for consumers are not undermined by relatively slower (not diversified) technological development.
The paper identifies a widespread misapprehension concerning the purpose of the foreign currency ... more The paper identifies a widespread misapprehension concerning the purpose of the foreign currency clause and analyses the various possible reasons behind that misapprehension. The omnipresent dilemmas in domestic legal theory regarding the legal principle of monetary nominalism and valoristic doctrine are deliberated in the first part of the paper. The second part deals with the wider macroeconomic context in which the legislator enabled contractual arrangements containing foreign currency clauses, thus providing a comprehensive explanation as to the origins of factual errors, and thereby misinterpretation and misunderstanding of the law.
RePEc: Research Papers in Economics, 1998
MPRA Paper, 1998
Serbian. U radu se na osnovu analize postojeceg antimonopolskog zakonodavstva u nasoj zemlji i uk... more Serbian. U radu se na osnovu analize postojeceg antimonopolskog zakonodavstva u nasoj zemlji i ukazivanja na njegovu neadekvatnost daju osnovne sugestije i smernice za izradu novog zakonodavstva, kao osnove za delotvornu politiku razvoja i zastite konkurencije. lstaknuti su osnovni problemi koje novo zakonodavstvo mora da obuhvati: stvaranje tržisne moci, odnosno monopola i drugih nesavrsenih tržisnih struktura, procenjivanje efekata horizontalnih i vertikalnih integracija na postojece rržisne strukture, formiranje adekvatnog antimonopolskog tela, s jasno definisanim nadležnostima i nacinom rada, kriterijumima i procedurama za odlucivanje, sa strogo utvrđenim sastavom tela i mandatom njegovih clanova, i uz striktno postovanje nacela javnosti njegovog rada. Naravno, pri tome je nužno izbeci mogucnost koju sadasnje zakonodavstvo daje, naime da clanovi antimonopolskog tela budu birani iz redova tzv. istaknutih privrednika, dakle iz redova onih koji treba da budu regulisani. Tek izgradnjom novog, delotvomog antimonopolskog zakonodavstva i obezbeđivanjem njegovog nepristrasnog i efikasnog sprovođenja bice pružena neophodna podrska drugim segmentima procesa tranzicije u nasoj privredi, a pre svega privatizatizaciji. English. The paper provides suggestions and guideline for the new competition policy legislation. The suggestions are based on the analysis of the current federal antitrust legislation and its shortcomings. The new legislation must tackle the following main issues: creation of market power (monopoly and other noncompetitive market structures, the effects of horizontal and vertical mergers to market structures, and establishment of appropriate antitrust institution (commission), with precisely defined authorities, responsibilities, decision-making criteria and procedures , election procedures and mandates of every member of the commission, and strictly enforced principle of the transparent operations of the commission. It is necessary to avoid the room for the provision of the actual antitrust legislation that "prominent businessmen" should be the commissionaires: hence to regulate themselves. The establishment of the new, effective antitrust legislation and its unbiased and efficient enforcement will provide solid base for the competition policy, which in tum will provide support to other segments of transition of Yug oslav economy , first of all to the priva1isation process.
Social Science Research Network, 1998
Contributions to economics, 2018
In the economic world, the basic interest of all business subjects, i.e. all people who enter int... more In the economic world, the basic interest of all business subjects, i.e. all people who enter into economic relationships, are identical-maximizing of personal welfare. So, selfish interest is the basic motive of people who enter into mutual economic relationships. The founder of contemporary economic science Adam Smith clearly presented this concept more then two centuries ago. The baker does not supply us with bread he makes because of his altruism, or for worry that we should not go hungry, but because of the profit he makes by selling bread. Each one of us is ready to invest something, or any resource one has (property, money, work time, work effort, etc.), only in the case when from that investment one receives greater value than the one that was invested. And each of us attempts to maximize the difference between the value of the investment and the yield from that investment. "No one can pay me as little as I can work" represents a specific, although socially destructive, form of such a maximization. In other words, people in all conditions behave economically rationally. A special form of such maximizing is rent seeking behavior. Rent represents the overall income that is larger than the opportunity costs linked to that income. Economists would say that rent is the yield that is above the opportunity costs of investment of a certain resource (Marxist oriented economists would call the rent, extra profit). Each one of us wants to capture or maximize rent. To do so, we are ready to invest our resources, so that we can influence those decisions that will make it possible to capture rent. Some forms of rent seeking behavior surely do not represent corruption. Although, there are certain cases of corruption that are present in situations where no rent exists, the most significant, most common and regarding their consequences most dangerous forms of corruption are linked to situations where rent is generated. Corruption then represents means for the generation or the capturing of rent. Let us consider the relationship of corruption and rent in one hypothetical example of state intervention. The state, regardless of motives, decided to limit the import of bananas to 100 t per year. Such limitation is carried by issuing import licenses, which can be received only by ten companies and each company for import of 10 t of bananas. Let us assume that all bananas are acquired at the same purchase price and that all companies are equally efficient, i.e. have identical costs of import per unit (transport costs, distribution costs, costs of capital, etc.). For simplicity's sake, let us assume that average costs equal marginal costs and that there are no real costs of corruption. If we assume that the function of the demand for bananas to equal: price (p) = 6500-30 quantity (q) and that average, or marginal costs are constant average costs = marginal costs = 2.000 DEM per ton, we can examine effects of such a state intervention on generating of rent and on originating corruption (Picture 1.1).
It is positive, though, that if the stated ratio is negative, corruption will not develop. 31 Cor... more It is positive, though, that if the stated ratio is negative, corruption will not develop. 31 Corruption in the Customs Administration-Main Causes and Mechanisms 10 A similar question asked in a survey on corruption in 2001 almost the same percentages of answers were received. Corruption in Serbia, CLDS, 2001
Contributions to Economics, 2018
distribution and reproduction in any medium or format, as long as you give appropriate credit to ... more distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made. The images or other third party material in this book are included in the book's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the book's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Anali Pravnog fakulteta u Beogradu
The aim of the article is to provide a general, broad picture of the economic effects of the COVI... more The aim of the article is to provide a general, broad picture of the economic effects of the COVID-19 pandemic, without going into the details. The impact of the pandemic on economic growth was sharp, with sudden and deep decline, followed by complete and swift recovery. Both the supply and the demand side contributed to this dynamic, based on the same factors (morbidity and mortality, behavioural adjustments of individuals, and government pandemic control measures), although with quite distinctive mechanisms of impact. It was the uncertainty of both the supply– and demand-side economic agents that was decisive for the sudden drop in the level of economic activity. Macroeconomic policies, both monetary (quantitative easing) and fiscal (budgetary deficits) proved timely and prevented a global depression. In the aftermath, the side effects of these policies are substantial inflation, increased basic interest rates to counter that inflation, increased sovereign debt, and its threatened...
Ha publicado numerosos artículos en publicaciones nacionales e internacionales, dos libros: Econo... more Ha publicado numerosos artículos en publicaciones nacionales e internacionales, dos libros: Economic Approach to Optimal City Size (1991) y Economic of Town Planning (1995) y ha contribuido en la edición de numerosos volúmenes incluyendo: Corruption in Serbia (2001) y Corruption in Judiciary (2004). El presente Documento forma parte de un programa de actividades entre el Centro para la Apertura y el Desarrollo de América Latina (CADAL) y el Center for Liberal-Democratic Studies (CLDS), que cuenta con el apoyo del Center for International Private Enterprise (CIPE). MISIÓN El Centro para la Apertura y el Desarrollo de América Latina (CADAL), con sede en Buenos Aires, Argentina, se constituyó como Fundación el 26 de febrero de 2003 con el objetivo de promover el fortalecimiento de la democracia, el estado de derecho y las libertades económicas en los países de la región. Para tal fin, CADAL realiza actividades de análisis, investigación y difusión a través de dos proyectos especiales y de la implementación de varios programas en cuatro áreas: Política Latinoamericana, Fortalecimiento Democrático, Economía y Estado de Derecho, y Desarrollo y Comunicación Institucional. ORÍGENES La interpretación de la crisis argentina del 2001/2002 y su impacto regional, las debilidades institucionales en varios países y, en general, el clima de opinión pública anti-mercado en Latinoamérica luego de las reformas económicas de las décadas de los 80 y 90, fueron algunos de los motivos que llevaron a la constitución del Centro para la Apertura y el Desarrollo de América Latina. También se tuvo en cuenta la inexistencia de una ONG pro democracia y mercado que trabaje combinando análisis, investigación y difusión sobre temas políticos y económicos con una visión regional.
Let us reiterate that in French there is still a difference between bénéfices industriels et comm... more Let us reiterate that in French there is still a difference between bénéfices industriels et commerciaux and bénéfices des professions non commerciales, predominantly motivated by reasons of tradition. Since tax treatment of both types of revenues are basically the same, it is reasonable to term them as "business revenues".
Competition Law (in Pandemic Times): Challenges and Reforms, 2021
The Federal Trade Commission of the United States (FTC) filed a Complaint against Facebook on 9th... more The Federal Trade Commission of the United States (FTC) filed a Complaint against Facebook on 9th December 2020, in the midst of the COVID-19 crisis. While facing one of the biggest social and economic crises in American history, FTC has enough time and resources to (re)investigate Facebook’s acquisitions of Instagram and WhatsApp. This paper analyses motives and rationale behind the FTC’s Complaint requesting Facebook’s break-up and what could be possible alternatives from a competition law perspective. All the findings suggest that the FTC’s Complaint is politically motivated, and the competition authorities should enable digital platforms to expand. However, the expansion should be controlled, to ensure that the benefits for consumers are not undermined by relatively slower (not diversified) technological development.
The paper identifies a widespread misapprehension concerning the purpose of the foreign currency ... more The paper identifies a widespread misapprehension concerning the purpose of the foreign currency clause and analyses the various possible reasons behind that misapprehension. The omnipresent dilemmas in domestic legal theory regarding the legal principle of monetary nominalism and valoristic doctrine are deliberated in the first part of the paper. The second part deals with the wider macroeconomic context in which the legislator enabled contractual arrangements containing foreign currency clauses, thus providing a comprehensive explanation as to the origins of factual errors, and thereby misinterpretation and misunderstanding of the law.
The paper summarizes and evaluates our current understanding of relations between democracy and e... more The paper summarizes and evaluates our current understanding of relations between democracy
and economic growth and analyzes the mechanisms of the causality from democracy to growth.
Specific features of democracy - civil liberties; elections; protection of minorities; peaceful
transition of power; and accountability of the government - have set the framework for explaining
the mechanism of influence. These mechanisms include: political stability and predictability;
distortion of economic institutions; public sector size; investments in human capital; rule of law;
economic inequalities and compulsory redistribution; and investments in physical capital.
Although some countervailing effects of democracy to growth have been identified in almost
every mechanism specified it is evident that on the margin democracy is more likely to be
beneficial to economic growth compared with autocracies. The strongest mechanism of positive
effect is rule of law. Reverse causality from growth to democracy was recorded with a policy
implication that fast-growing autocracies are not politically sustainable in the long run.
Democratization does not produce linear effects to economic growth. Nonetheless, the type of the
relation is still unclear. The paper ends with the conjecture that democracy is more important to
economic growth at higher levels of economic development.