Notitia - journal for sustainable development

7

Authors: Igor Živko; Mile Bošnjak

Debt-based financial instruments are specific due to the maturity component and conventional approaches in estimating their volatility may not be applicable. This paper focuses on modeling and forecasting price volatility of sovereign debt instruments while taking into account their maturity. In doing so we propose a simple and useful technique for obtaining the desired confidence of volatility estimates. The proposed approach provides price volatility estimates for debt instruments issued by Croatian government denominated in HRK and in EUR.

12

Authors: Mihovil Anđelinović; Petar Mišević; Ana Pavković

The paper analyzes determinants of demand for life insurance products in thirteen countries of the European Union. The expected demand determinants cover sixteen factors divided into macroeconomic, demographic, social and institutional variables. The main aim of the paper is to identify the variables that best explain variations in demand for life insurance and to draw a conclusion as to whether policy makers can contribute to the development of the life insurance market. For this purpose, an unbalanced panel model with a fixed effect for the period from 1995 to 2014 was estimated. The most important variables were macroeconomic ones, especially gross domestic product per capita. Insurance companies need to take into account demographic trends and existing economic situations in the respective economies when developing their products, and as analysis indicates, they have to make efforts in educating the population concerning the benefits of life insurance and the need for long-term savings.

13

Authors: Sanja Franc; Maja Kušćer

Free trade is an important factor in economic development and the creation of new jobs. Transatlantic relations and trade have a global impact, and their significance has increased after the establishment of the European Community. The EU and the United States have been undergone different development models and phases which have in turn determined the nature of their cooperation. The aim of this paper is to give an overview of key features of the new Transatlantic Trade and Investment Partnership and its potential impact on members, as well as on the third countries. The expected effects are not equal or evenly distributed and will depend upon the type of goods exchanged, regulation divergence and the overall scope of the agreement. The conclusion is that the elimination of tariff barriers will not have the same significant effects as elimination or reduction of non-tariff barriers on trade and investments.