05.12.2023.

Latvijas Banka's Competition of Student Scientific Research Papers

Illustrative photo student
To promote the research and analysis of Latvia's and euro area's macroeconomic issues by involving the most talented young economists in this work, Latvijas Banka has announced the annual Competition of Student Scientific Research Papers. 

Latvijas Banka organises the competition already for the 22nd time. Participation is open to citizens and non-citizens of Latvia, Lithuania and Estonia as well as foreigners who at the time of the competition are registered as students of higher education institutions accredited in the Baltic States, enrolled in Bachelor's or Master's degree programmes, as well as to the students of the Baltic States studying abroad. 

The competition papers shall be submitted to Latvijas Banka from 13 May to 31 May 2024. They will be evaluated by a committee of economists set up by Latvijas Banka. The award-winning papers will be published on Latvijas Banka's website www.macroeconomics.lv.

Winners will receive money awards:

  • 🥇EUR 1500 to the first-place winner;
  • 🥈EUR 1250 to the two second-place winners each;
  • 🥉EUR 1000 to the three third-place winners each.
    • Regulation for 2024 Competition of the Baltic States Student Scientific Research Papers Organised by Latvijas Banka

      1. Latvijas Banka announces 2024 Competition of the Baltic States Student Scientific Research Papers (hereinafter, the Competition) to promote research and analysis of macroeconomic issues and development of scientific thinking in students of higher education institutions.

      2. The Competition shall be open for participation to:
      2.1 persons who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;
      2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of other countries, and enrolled in Bachelor's or Master's degree programmes.

      3. Persons who are employees of the central banks of the Eurosystem or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds 1 (one) year shall not participate in the Competition. 

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a Bachelor's thesis. The Competition paper shall be produced on a computer in Latvian or English. If the process of producing the Competition paper has involved the use of artificial intelligence, the paper shall state what tasks it performed and how it was used.

      5.    The Competition paper shall discuss a subject which is currently relevant for the Baltic and euro area economies. 

      6. The Competition paper shall be submitted to Latvijas Banka from 13 May 2024 to 31 May 2024 via the website www.macroeconomics.lv. 

      7. The Competition paper shall be submitted together with the information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution and – for non-residents – date of birth) as well as a copy of a document supporting the author's eligibility in accordance with the requirements set out in Paragraph 2 herein. 

      8. The Competition papers received by Latvijas Banka after 31 May 2024 will not be considered.

      9. The submission of the Competition paper shall constitute a confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of third parties and agrees that, in case of an award, Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      10. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in the evaluation of a Competition paper if he or she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect the independence and objectivity in the evaluation of the Competition paper. 

      11. The Committee shall have the right to refuse to evaluate a Competition paper that does not address economic issues of the Baltic States and the euro area. 

      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 14 June 2024: 1 (one) first-place winner, 2 (two) second-place winners, 3 (three) third-place winners and 3 (three) motivational award winners.

      13. The winners of the Competition will be awarded one-time prizes in the following amounts (before taxes stipulated by the laws and regulations of the Republic of Latvia):
      13.1 EUR 1500 to the first-place winner;
      13.2 EUR 1250 to the two second-place winners each;
      13.3 EUR 1000 to the three third-place winners each;
      13.4 EUR 350 to the three motivational award winners each.

      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no prizes or to reduce their number.

      15. If the award-winning paper has two or more authors, the awarded prize shall be equally split among them.

      16. Authors of the submitted and adequately prepared Competition papers may be awarded one of Latvijas Banka's euro collector coins. The taxes stipulated by the laws and regulations of the Republic of Latvia associated with the awards shall be paid from the funds of Latvijas Banka.

      17. The results of the Competition, as well as the awarded Competition papers, shall be published by 28 June 2024 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv). The Competition papers winning no awards shall not be preserved after the Competition.

      18. The personal data of the submitted Competition papers' authors shall be processed for the purposes of the Competition. Personal data processing controller: Latvijas Banka, reg. No LV90000158236, K. Valdemāra iela 2A, Riga, LV-1050, e-mail: datuaizsardziba@bank.lv. For further information on the processing of personal data at Latvijas Banka.
       

    • Participation at 2024 Competition of the Baltic States Student Scientific Research Papers organised by Latvijas Banka is open for papers discussing, for example, the following themes concerning the Baltic or the euro area economies:


      1. assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      2. assessment of the natural rate of interest in the euro area and proposals for developing monetary policy; 
      3. interest rate transmission in various euro area countries; impact of the rise in interest rates on various economic sectors;
      4. role of unconventional monetary policy measures in the phase of monetary policy tightening; 
      5. assessment of the forward guidance effectiveness and its role in developing monetary policy;
      6. Eurosystem's monetary policy transmission to the Baltic States: the impact of interest rates on the economies of the Baltic States versus the impact of unconventional monetary policy measures;
      7. inflation determinants, the role of the demand and supply shocks;
      8. inflation differences across the Baltic States and euro area countries: the analysis of determinants and proposals for policy makers;
      8. Phillips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      9. developing models for gross domestic product and inflation forecasting in the Baltic States;
      10. impact of Russia's aggression and war in Ukraine on the economy of the Baltic States;
      11. fiscal policy in the European Union and proposals for improvement; 
      12. dynamics of public debt and its potential impact on economic growth;
      13. assessment of energy crisis support measures in the European countries;
      14. assessment of the macroeconomic and macrofinancial impact of the risks associated with climate change; 
      15. ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      16. impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      17. real convergence of the Baltic States with the euro area;
      18. total factor productivity drivers in the Baltic States;
      19. export competitiveness of the Baltic States;
      20. assessment of the effectiveness of the use of the European Union structural funds in the Baltic States;
      21. wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      23. assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      24. methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      25. causes for the weak lending and the related risks to Latvia's economy;
      26. financial stability risks in the Baltic States and instruments used to limit those risks;
      27. growth potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      28. significance of bank lending in today's economy; assessment of alternative sources of financing in the Baltic States;
      29. potential impact of central bank digital currencies on the future economy in Latvia and globally;
      30. factors determining the development of instant payments and its impact on household behaviour in Europe.
      31. Financial habits of Generation Z. Are young people in Latvia prepared to give up cash and what do they expect from payment services providers?
      32. the structure of the banking system in the Baltic States and its impact on the development of the payment services and the related services.
       

    • 🥇1st prize

      Lotte Vahelaan and Linda-Terese Makk (SSE Riga)

      Unleashing the Potential of Estonian Firms: An Empirical Analysis of the Impact of ERDF Grants

       

      The content of the paper:

      The authors explore the effect of obtaining grants from the European Regional Development Fund (ERDF) on the performance of Estonian firms over the period 2014–2020. The firm-level dataset is sourced from the Estonian E-Business Register and the State Shared Services Centre. Based on application of the propensity score matching and difference-in-differences estimation techniques, the authors demonstrate a significant positive effect on revenue, employment, and wages, but not on labour productivity. The authors emphasise that initially younger, and lower-income firms gain from the grant. The results generally indicate that obtaining an ERDF grant has an indispensable role in expanding the workforce and providing financial resources, especially for less-established firms.

      🥈2nd prize 

      Annemarija Apine (Bocconi University)

      Industry Flexibility and Gender Pay Gap: Empirical Evidence from Italy

       

      The content of the paper:

      The author investigates the hypothesis whether industry (in)flexibility has been a substantial factor in determining the gender pay gap in Italy where it was reported that in 2009 only 46% of Italian women of working age were active in the labour market and the percentage of women working a part-time job about 5 times exceeded that of men. The author combines income data sourced from the social security contributions (LoSaI) data set and the Italian Labour Force Survey. The author concludes that the major effect shaping the gender pay gap in Italian labour market can be attributed to be the convexity in the hours worked and income relationship in combination with the women's tendency to work shorter hours. Other industry flexibility characteristics, such as working Saturdays or the ability to work from home, do not seem to significantly impact the gender pay gap.

      Miķelis Jānis Benužs and Ahmad Jahid Sakhi (SSE Riga)

      Walking the Talk: Do Socially Responsible Funds Invest in Companies that Sanctioned Russia?

      The content of the paper:

      Using a novel dataset measuring how companies that operate in Russia reacted to the Russian invasion in Ukraine, the authors examine how actively managed funds altered their share ownership in such companies. The authors find that companies that opted to leave Russia primarily have been more financially stable and better performing. Looking at the companies that opted to stay, the authors show that high social responsibility funds reduced their ownership in such companies considerably more than low social responsibility funds. Yet it is shown that most of the institutional investor decisions were driven by past performance, rather than the decision to respond to the war. Therefore, the authors emphasize the importance of effectively communicating social responsibility actions to investors, given that the benefits of such actions may not be reflected in the financial data immediately.

      🥉3rd prize 

      Emīls Žubulis and Armands Strods (SSE Riga)

      In(efficiency) Lasting Over a Decade: A Case of the 2010 Micro Enterprise Tax Regime in Latvia

      The content of the paper:

      The authors examine how efficient Latvia's Reform of the 2010 micro enterprise tax regime has been, employing the Synthetic Control Method (SCM), i.e. constructing a "synthetic" Latvia and comparing the economic indicators between the real and the "synthetic" Latvia. The authors find that the micro enterprise tax regime had a positive impact on economic growth and new businesses creation in the early years after its implementation, but the positive effects have since decreased. The authors document that the impact on Latvia's public finances has been negative.

      Anna Scemeleva and Irina Nagornova (SSE Riga)

      The Effect of Inflation on Companies' Performance: Firm-Level Evidence from the CEE Region

      The content of the paper:

      The study by using the ORBID database examines the relationship between inflation and firms' financial performance indicators in the Central and Eastern Europe (CEE region) over the period from 2005 to 2021. 
      The authors consider different measures of firms' financial performance and study the effect of headline inflation on various indicators of firms' profitability and liquidity with further inflation decomposition into anticipated and unanticipated components, as well as demand-pull and cost-push inflation. They discover a positive, significant and robust effect of inflation on firms' profitability and liquidity. This effect tends to be larger for the predicted part of inflation but its magnitude is smaller for the unexpected inflation shock. The authors find that this effect mostly comes from demand-driven inflation, whereas cost-push inflation has a negative or insignificant impact on firms' profitability. 

      Leonards Norvelis and Ādams Taranda (SSE Riga)

      Factoring and SME Financing in Latvia: Firm-level Evidence on Profitability

      The content of the paper:

      This paper analyses the effect of factoring on profitability for Latvian small and medium-sized enterprises. Small businesses struggle with delayed receivables, bad debtors, and stricter bank lending, thus factoring may be a viable option where a firm sells its accounts receivables. The results show that factoring adoption is negatively linked with return on assets, but it rapidly expands the asset base to service higher volumes of sales. These findings point towards factoring being a growth product rather than a profitability one. The authors also performed a large-scale corporate survey which confirms the results, as factoring is expected to increase long-term profitability and build relationship with financial institutions to receive other types of credit.

      🪙Honourable mention 

      Guntars Ūpis (Erasmus University Rotterdam)

      Inflation and Saving: A Panel Data Analysis of the OECD Countries

      The content of the paper:

      This paper employs a dynamic fixed effect panel data model of 26 OECD countries from 1980 to 2021, focusing on private savings and inflation while controlling for frequently explored saving determinants such as income and income growth, demographics, the real interest rate, fiscal policy and external factors. Despite the results not indicating a meaningful impact of inflation on savings, considering potential time, country and functional form aspects might be important for further research. Nevertheless, this paper thoroughly examines various theoretical aspects of the relationship between inflation and savings, laying a solid foundation for discussing this topical issue.

    • Regulation for 2023 Competition of the Baltic States Student Scientific Research Papers Organised by Latvijas Banka

      1. Latvijas Banka announces a Competition of the Baltic States Student Scientific Research Papers for 2023 (hereinafter, the Competition) to promote research and analysis of the macroeconomic issues and development of scientific thinking in university students.

      2. The Competition shall be open for participation to:
      2.1 persons who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;
      2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of other countries, and enrolled in Bachelor's or Master's degree programmes.

      3. Persons who are employees of the central banks of the Eurosystem or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds 1 (one) year cannot participate in the Competition. 

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a Bachelor's thesis. The Competition paper shall be produced on a computer in Latvian or English.

      5. The Competition paper shall discuss a subject which is currently relevant for the Baltic and euro area economies. 

      6. The Competition paper shall be submitted to Latvijas Banka from 15 May 2023 to 29 May 2023 via the website www.macroeconomics.lv. 

      7. The Competition paper shall be submitted together with information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution and – for non-residents – date of birth) as well as a copy of the document supporting the author's eligibility in accordance with the requirements set out in Paragraph 2 herein. 

      8. The Competition papers received by Latvijas Banka after 29 May 2023 will not be considered.

      9. The submission of the Competition paper shall constitute a confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of any third parties and agrees that, in case of an award, Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      10. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in evaluation of a Competition paper if he/she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect an independent and objective evaluation of the Competition paper. 

      11. The Committee shall have the right to refuse to evaluate a Competition paper that does not address the economic issues of the Baltic States and the euro area. 

      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 12 June 2023: 1 (one) Excellence Award winner, 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners.

      13. The winners of the Competition will be awarded one-time prizes in the following amounts (before taxes stipulated by the laws and regulations of the Republic of Latvia):
      13.1 EUR 2000 to the Excellence Award winner;
      13.2 EUR 1500 to the first-place winner;
      13.3 EUR 1250 to the two second-place winners each;
      13.4 EUR 1000 to the three third-place winners each.

      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no prizes, reduce their number, or divide them and award consolation prizes.

      15. If the award-winning paper has two or more authors, the awarded prize shall be equally split among them.

      16. Authors of the submitted and adequately prepared Competition papers may be awarded one of Latvijas Banka's euro collector coins. The taxes stipulated by the laws and regulations of the Republic of Latvia associated with the awards shall be paid from the funds of Latvijas Banka.

      17. The results of the Competition, inter alia, the awarded Competition papers, shall be published by 30 June 2023 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv). The Competition papers winning no awards shall not be preserved after the Competition.

      18. The personal data of the submitted Competition papers' authors shall be processed for the purposes of the Competition. Personal data processing controller: Latvijas Banka, reg. No. LV90000158236, K. Valdemāra iela 2A, Riga, LV-1050, e-mail: datuaizsardziba@bank.lv. For further information on the processing of personal data at Latvijas Banka, see https://www.bank.lv/en/about-us/useful/processing-of-personal-data.
       

    • Participation at 2023 Competition of the Baltic States Student Scientific Research Papers organised by Latvijas Banka is open for papers discussing, for example, the following themes concerning the Baltic or the euro area economies:

       

      • assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      • assessment of the natural rate of interest in the euro area and proposals for developing monetary policy; 
      • interest rate transmission in various euro area countries; impact of the rise in interest rates on various economic sectors;
      • role of unconventional monetary policy measures in the phase of monetary policy tightening; 
      • assessment of the forward guidance effectiveness and its role in developing monetary policy;
      • Eurosystem's monetary policy transmission to the Baltic States: the impact of interest rates on the economies of the Baltic States versus the impact of unconventional monetary policy measures;
      • inflation determinants, the role of the demand and supply shocks;
      • inflation differences across the Baltic States and euro area countries: the analysis of determinants and proposals for policy makers;
      • Phillips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      • developing models for gross domestic product and inflation forecasting in the Baltic States;
      • impact of Russia's aggression and war in Ukraine on the economy of the Baltic States;
      • fiscal policy in the European Union and proposals for improvement; 
      • dynamics of public debt and its potential impact on economic growth;
      • assessment of energy crisis support measures in the European countries;
      • assessment of the macroeconomic and macrofinancial impact of the risks associated with climate change; 
      • ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      • impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      • real convergence of the Baltic States with the euro area;
      • total factor productivity drivers in the Baltic States;
      • export competitiveness of the Baltic States;
      • assessment of the effectiveness of the use of the European Union structural funds in the Baltic States;
      • wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      • assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      • methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      • causes for the weak lending and the related risks to Latvia's economy;
      • financial stability risks in the Baltic States and instruments used to limit those risks;
      • growth potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      • significance of bank lending in today's economy; assessment of alternative sources of financing in the Baltic States;
      • potential impact of central bank digital currencies on the future economy in Latvia and globally;
      • factors determining the development of instant payments and its impact on household behaviour in Europe.

    • Abstracts from Papers Submitted for the Competition of the Baltic States Student Scientific Research Papers for 2022 Organised by Latvijas Banka  

      The first prize 

      Evelīna Valtere, Diāna Zariņa (SSE Riga) Greenwashing: when Climate Talk Does not Meet the Climate Walk

      The content of the paper: The growing public concern over environmental sustainability obliges businesses to respond accordingly by signalling their commitment to the green economy issues. However, not all businesses engage in genuine efforts to combat climate change: some of them only imitate their serious intentions by engaging in something commonly referred to as greenwashing. This study investigates the question of whether investors can identify those firms and penalise them, where appropriate. The authors, using STOXX 600 Europe companies, find that the portfolios of greenwashing firms yield consistently lower abnormal returns than non-greenwashing companies. This suggests that investors have been able to distinguish between non- and greenwashers and reward the firms that honestly report their commitment to ecological thinking. 

      The second prize

      Ieva Vitaitytė (ISM University of Management and Economics) Financial Literacy Impact on Investment Decisions in Lithuania

      The content of the paper: The paper investigates how households’ financial literacy drives decisions to invest their savings and how it affects the choice of an investment instrument. The study employs data from the Survey of Households conducted by the Central Bank of Lithuania and carries out different assessments of both the financial literacy of households and its impact on the decision to invest. It is concluded that financial literacy plays an important role in deciding to invest in stocks. At the same time, it has been found that a significant proportion of Lithuanian households do not invest their savings and that financial literacy has no impact on investing in real estate assets in Lithuania.

      The second prize 

      Artis Veldre, Elvis Ancāns (SSE Riga) Family versus Non-Family Enterprises – Evidence from Latvia

      The content of the paper: This paper analyses family firms in Latvia and compares their performance to non-family firms. The authors mainly focus on large Latvian firms. The results show that family firms constitute more than 30% of all the firms, and they are associated with significantly higher performance than non-family firms. However, the hypothesis that the more family is involved in the management, the greater the profitability, was rejected. The authors also conducted interviews during a discussion about the impact of family-related events on business performance. In the authors' opinion, the main reason why family firms perform better than non-family firms is the differences in remuneration and incentives of the management.

      The third prize  

      Evita Prindule (Latvia University of Life Sciences and Technologies) Analysis of the Economic and Financial Performance of and an Assessment of the Risk Management Processes at Milk Processing Companies

      The content of the paper The paper focuses on an important part of Latvia's economy – the dairy sector. It analyses financial performance of companies in the dairy sector and assesses the risk management process. Conclusions are based on expert interviews and a consumer survey. The author pays close attention to institutional and legal aspects of the dairy sector and analyses its economic performance, later taking deeper insight into economic and financial performance indicators in two milk processing companies in Latvia. To enable the industry to develop, the author suggests favourable taxation mechanisms, regular financial analysis and emphasizes the need for development of e-commerce and new technological solutions.

      The third prize 

      Ēriks Kristsons, Toms Osis (SSE Riga) How Good are Multinational EU Companies at Escaping from Paying Taxes?

      The content of the paper:The authors examine the tendency of multinational companies to engage in profit shifting activities by reporting profits in low-tax countries. The topicality of the issue is underlined by the estimate that due to these processes Latvia loses around one fifth of corporate tax revenue.
      The paper focuses on multinational companies in the European Union during 2012–2020 by using the company level data from the Orbis database. The authors calculate a composite tax variable as a proxy for the incentive to shift profits and with regression capture semi-elasticity showing that 75% of companies engage in such practice and the larger the company, the more it shifts its profits. The authors conclude that companies are more likely to shift their profits in euro area countries, but that the overall scope of profit shifting has decreased over a longer time period.

      The third prize

      Darja Golosuja (University of Latvia) The Impact of Social Media Posts on Digital Asset Pricing: an Econometric Analysis 

      The content of the paper: The author assesses whether social media sentiment has a statistically significant effect on the value of digital assets. The author focuses on the analysis of non-fungible tokens which provide an opportunity to invest money in various digital assets – works of art, music, games, thus allowing for the creation of a simpler and more transparent patenting system. The author uses the VADER algorithm that distinguishes between abbreviations and slang, which are characteristic of the social media culture space. The paper concludes that sentiment helps to predict the end-of-day price of these digital assets for a short time period, but sentiment makes it impossible to predict major price changes.

      Honourable mention Ilona Chaiko, Catalina Popescu (SSE Riga) Monetary Policy in the EMU and Volatility Spillovers to the Four Non-EMU Countries

      The content of the paper: This paper investigates the effect of different ECB monetary policy instruments on macroeconomic indicators in four Central and Eastern European (CEE) countries (the Czech Republic, Hungary, Poland and Romania) such as GDP growth, exchange rates, interest rates, inflation, and equity prices. The study distinguishes between the four following monetary policy shocks: Forward Guidance, Quantitative Easing as well as Target and Timing shocks. The results suggest that the reaction of the macroeconomic variables in question varies depending on the policy shock both in terms of direction and magnitude as well as the timing of the response.

    • Participation at 2022 Competition of the Baltic States Student Scientific Research Papers organised by Latvijas Banka is open for papers discussing, for example, the following themes concerning the Baltic or the euro area economies:

      • assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      • assessment of the natural rate of interest in the euro area and proposals for defining monetary policy;
      • negative interest rates: their effectiveness from the monetary policy perspective;
      • side-effects of unconventional monetary policy measures;
      • assessment of the forward guidance effectiveness and its role in defining monetary policy;
      • Eurosystem's monetary policy transmission to the Baltic States; impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area;
      • causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      • Phillips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      • developing models for gross domestic product and inflation forecasting in the Baltic States;
      • long-term economic impact of the COVID-19 pandemic: potential structural changes;
      • fiscal policy in the European Union (including the government support measures to mitigate the impact of the COVID-19 pandemic) and proposals for improvement;
      • the dynamics of public debt and its potential impact on economic growth;
      • epidemiology versus economy: analysis of international experience in finding the optimum balance between the COVID-19 restrictions and economic growth;
      • assessment of the macroeconomic and macrofinancial impact of the risks associated with climate change;
      • ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      • impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      • real convergence of the Baltic States with the euro area;
      • total factor productivity drivers in the Baltic States;
      • export competitiveness of the Baltic States;
      • assessment of the European Union structural funds and direct investment effectiveness in the Baltic States;
      • wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      • labour migration, its driving factors and impact on the economy;
      • assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      • methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      • causes for the weak lending and the related risks to Latvia's economy;
      • financial stability risks in the Baltic States and the instruments used to limit those risks;
      • development potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      • significance of bank lending in today's economy. Assessment of alternative sources of financing in the Baltic States;
      • potential impact of central bank digital currencies on the future economy in Latvia and globally;
      • factors determining the development of instant payments and its impact on household behaviour in Europe.
    • Regulation for 2022 Competition of the Baltic States Student Scientific Research Papers Organised by Latvijas Banka

      1. Latvijas Banka announces a Competition of the Baltic States Student Scientific Research Papers for 2022 (hereinafter, the Competition) to promote research and analysis of the macroeconomic issues and development of scientific thinking in university students.

      2. The Competition shall be open for participation to:

      2.1 persons who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;

      2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of other countries, and enrolled in Bachelor's or Master's degree programmes.

      3. Persons who are employees of the central banks of the Eurosystem or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds 1 (one) year cannot participate in the Competition.

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a Bachelor's thesis. The Competition paper shall be produced on a computer in Latvian or English.

      5. The Competition paper shall discuss a subject which is currently relevant for the Baltic and euro area economies.

      6. The Competition paper shall be submitted to Latvijas Banka from 16 May 2022 to 30 May 2022 via the website www.macroeconomics.lv.

      7. The Competition paper shall be submitted together with information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution and – for non-residents – date of birth) as well as a copy of the document supporting the author's eligibility in accordance with the requirements set out in Paragraph 2 herein.

      8. The Competition papers received by Latvijas Banka after 30 May 2022 will not be considered.

      9. The submission of the Competition paper shall constitute a confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of any third parties and agrees that, in case of an award, Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      10. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in evaluation of a Competition paper if he/she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect an independent and objective evaluation of the Competition paper.

      11. The Committee shall have the right to refuse to evaluate a Competition paper that does not address the economic issues of the Baltic States and the euro area.

      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 15 June 2022: 1 (one) Excellence Award winner, 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners.

      13. The winners of the Competition will be awarded one-time prizes in the following amounts (before taxes stipulated by law of the Republic of Latvia):

      13.1 EUR 2000 to the Excellence Award winner;

      13.2 EUR 1500 to the first-place winner;

      13.3 EUR 1250 to the two second-place winners each;

      13.4 EUR 1000 to the three third-place winners each.

      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no prizes, reduce their number, or divide them and award consolation prizes.

      15. If the award-winning paper has two or more authors, the awarded prize shall be equally split among them.

      16. Authors of the submitted and adequately prepared Competition papers may be awarded one of Latvijas Banka's euro collector coins. The taxes stipulated in the Republic of Latvia legislation associated with the awards shall be paid from the funds of Latvijas Banka.

      17. The results of the Competition, inter alia, the awarded Competition papers, shall be published by 30 June 2022 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv). The Competition papers winning no awards shall not be preserved after the Competition.

      18. The personal data of the submitted Competition papers' authors shall be processed for the purposes of the Competition. Personal data processing controller: Latvijas Banka, reg. No. LV90000158236, K. Valdemāra iela 2A, Rīga, LV-1050, e-mail: datuaizsardziba@bank.lv. For further information on the processing of personal data at Latvijas Banka, see https://www.bank.lv/en/about-us/useful/processing-of-personal-data.

    • First prize

      Vadym Ilchuk (Rīgas Ekonomikas augstskola)

      Financing Constraints and Productivity Growth in Central and Eastern Europe: Firm-level Evidence

      Second prize

      Reinis Buneris (Lund University School of Economics and Management)

      Financial Determinants of Carbon dioxide emissions

      Second prize

      Ēriks Kasparenoks un Dana Supe (Rīgas Ekonomikas augstskola)

      A Subtle Invitation to Bargain: Online Vacancy Data-based Inquiry into the Wage Setting Policies of Latvian Employers

      Third prize

      Diāna Heislere un Lauris Zalva (Rīgas Ekonomikas augstskola)

      Mayor’s Gender and Resource Allocation: Evidence from Latvia

      Third prize

      Aleksejs Mališevs (Rīgas Tehniskā universitāte)

      Ko mums pasaka procentu likmes termiņstruktūras modeļi par nākotnes perspektīvām: dažādu Eiropas savienības valstu kontekstā (What do the Interest Rate Term Structure Models Tell Us about the Outlook: in the Context of Different European Union Countries)

      Third prize

      Kristijonas Kirlys (Vilnius University)

      Uncertainty in the Euro Area and its Macroeconomic Effects

    • Regulation for 2021 Competition of the Baltic States Student Scientific Research Papers Organised by Latvijas Banka

      1. Latvijas Banka announces a Competition of the Baltic States Student Scientific Research Papers for 2021 (hereinafter, the Competition) to promote research and analysis of the macroeconomic issues and development of scientific thinking in university students.
      2. The Competition shall be open for participation to:
        2.1 persons who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;
        2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of other countries, and enrolled in Bachelor's or Master's degree programmes.
      3. Persons who are employees of the central banks of the Eurosystem or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds 1 (one) year cannot participate in the Competition.
      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a Bachelor's thesis. The Competition paper shall be produced on a computer in Latvian or English.
      5. The Competition paper shall discuss a subject which is currently relevant for the Baltic and euro area economies.
      6. The Competition paper shall be submitted to Latvijas Banka from 17 May 2021 to 31 May 2021 via the website www.macroeconomics.lv.
      7. The Competition paper shall be submitted together with information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution and – for non-residents – date of birth) as well as a copy of the document supporting the author's eligibility in accordance with the requirements set out in Paragraph 2 herein.
      8. The Competition papers received by Latvijas Banka after 31 May 2021 will not be considered.
      9. The submission of the Competition paper shall constitute a confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of any third parties and agrees that, in case of an award, Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.
      10. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in evaluation of a Competition paper if he/she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect an independent and objective evaluation of the Competition paper.
      11. The Committee shall have the right to refuse to evaluate a Competition paper that does not address the economic issues of the Baltic States and the euro area.
      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 15 June 2021: 1 (one) Excellence Award winner, 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners.
      13. The winners of the Competition will be awarded one-time prizes in the following amounts (before taxes stipulated by law of the Republic of Latvia):
        13.1 EUR 2000 to the Excellence Award winner;
        13.2 EUR 1500 to the first-place winner;
        13.3 EUR 1250 to the two second-place winners each;
        13.4 EUR 1000 to the three third-place winners each.
      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no prizes or to reduce their number.
      15. If the award-winning paper has two or more authors, the awarded prize shall be equally split among them.
      16. Authors of the submitted and adequately prepared Competition papers may be awarded one of Latvijas Banka's euro collector coins. The taxes stipulated in the Republic of Latvia legislation associated with the awards shall be paid from the funds of Latvijas Banka.
      17. The results of the Competition, inter alia, the awarded Competition papers, shall be published by 30 June 2021 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv). The Competition papers winning no awards shall not be preserved after the Competition.
        18. The personal data of the submitted Competition papers' authors shall be processed for the purposes of the Competition. Personal data processing controller: Latvijas Banka, reg. No. LV90000158236, K. Valdemāra iela 2A, Rīga, LV-1050, e-mail: datuaizsardziba@bank.lv. For further information on the processing of personal data at Latvijas Banka, see https://www.bank.lv/en/about-us/useful/processing-of-personal-data
    • The following subjects are proposed for 2021 Competition of the Baltic States Student Scientific Research Papers organised by Latvijas Banka:

      1. assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      2. assessment of the natural rate of interest in the euro area and proposals for defining monetary policy;
      3. negative interest rates: their effectiveness from the monetary policy perspective;
      4. side-effects of unconventional monetary policy measures;
      5. assessment of the forward guidance effectiveness and its role in defining monetary policy;
      6. Eurosystem's monetary policy transmission to the Baltic States; impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area;
      7. causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      8. Philips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      9. developing models for gross domestic product and inflation forecasting in the Baltic States;
      10. long-term economic impact of the COVID-19 pandemic: potential structural changes;
      11. fiscal policy in the European Union (including the government support measures to mitigate the impact of the COVID-19 pandemic) and proposals for improvement;
      12. the dynamics of public debt and its potential impact on economic growth;
      13. epidemiology versus economy: analysis of international experience in finding the optimum balance between the COVID-19 restrictions and economic growth;
      14. assessment of the macroeconomic and macrofinancial impact of the risks associated with climate change;
      15. ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      16. impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      17. real convergence of the Baltic States with the euro area;
      18. total factor productivity drivers in the Baltic States;
      19. export competitiveness of the Baltic States;
      20. assessment of the European Union structural funds and direct investment effectiveness in the Baltic States;
      21. wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      22. labour migration, its driving factors and impact on the economy;
      23. assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      24. methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      25. causes for the weak lending and the related risks to Latvia's economy;
      26. the impact of low interest rates on the financial sectors of the Baltic States;
      27. development potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      28. significance of bank lending in today's economy. Assessment of alternative sources of financing in the Baltic States;
      29. potential impact of central bank digital currencies on the future economy in Latvia and globally;
      30. factors determining the development of instant payments and its impact on household behaviour in Europe.
    • First prize

      not awarded


      Second prize

      Sorina-Sofia Solonaru un Iuliana Tornea (Rīgas Ekonomikas augstskola)
      "You Get What You Pay For! Evidence on How Research Unbundling Under MiFID II Impacts the Quality of Stock Analyst Forecasts"

      Krišjānis Oskerko un Toms Henšelis (Rīgas Ekonomikas augstskola)
      "Returns to Skills in Latvia: What Can We Learn From Job Adverts?"
       

      Third prize

      Andrejs Migunovs un Romāns Vereteņņikovs (Rīgas Ekonomikas augstskola)
      "A View from Outer Space: Nighttime Light Intensity and Economic Activity in the Baltic municipalities"

      Dana Koniševska un Galina Pozdnyakova (Rīgas Ekonomikas augstskola)
      "Signal or Noise: the Effect of iShares Ownership on the Volatility of the Underlying Stocks During Market Turmoil"

       

      Consolation prize

      Daria Orz un Oļegs Skripņiks (Rīgas Ekonomikas augstskola)
      "Financial Support for Party Supporters? How Politics Influence the Amount of Government Transfers Received by Latvian Municipalities"

    • The following topics may be analysed in the Competition paper:

      • Assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      • Assessment of the natural rate of interest in the euro area and proposals for the implementation of monetary policy;
      • Negative interest rates: their efficiency from the monetary policy perspective;
      • Side-effects of unconventional monetary policy measures;
      • Assessment of the forward guidance effectiveness and its role in formulating and developing monetary policy;
      • Eurosystem's monetary policy transmission to the Baltic States; impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area;
      • Causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      • Philips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      • Developing models for gross domestic product and inflation forecasting in the Baltic States;
      • Pass-through of global prices (oil and food product prices) to consumer prices in the Baltic States;
      • Fiscal policy in the European Union (including its role in reducing economic cycle fluctuations) and proposals for improvement;
      • Impact of public debt on economic growth;
      • Output gap estimation in the Baltic States by different estimation methods and their application in the cyclical adjustment of the budget balance;
      • Impact of trade wars on the economy in Europe including Baltic States;
      • Ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      • Impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      • Real convergence of the Baltic States with the euro area;
      • Total factor productivity drivers in the Baltic States;
      • Competitiveness of exports of the Baltic States;
      • Assessment of the European Union structural funds and direct investment efficiency in the Baltic States;
      • Wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      • Labour migration, its driving factors and impact on the economy;
      • Assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      • Methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      • Causes for the weak lending and the related risks to Latvia's economy;
      • Impact of low interest rates on the financial sectors of the Baltic States;
      • Growth potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      • Significance of bank lending in today's economy. Assessment of alternative sources of financing in the Baltic States;
      • Assessment of the financial cycle in the Baltic States;
      • Factors determining the development of instant payments and its impact on household behaviour in Europe.

      Papers addressing other crucial topics on the economies of the Baltic States and the euro area in relation to monetary and fiscal policies may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases. 

      A special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper, which will integrate the scientific methods in the field of economics and history providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context. 

    • Regulation for the Competition of the Baltic States Student Scientific Research Papers for 2020 Organised by Latvijas Banka

      1. To promote the research and analysis of macroeconomic issues and to facilitate advancement of university student scientific thinking, Latvijas Banka announces a Competition of the Baltic States Student Scientific Research Papers for 2020 (hereinafter, the Competition).

      2. The following may participate in the Competition:
      2.1 persons who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;
      2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania and the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of other countries, and enrolled in Bachelor's or Master's degree programmes.

      3. Persons, who are employees of the central banks of the Eurosystem or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds 1 (one) year, cannot participate in the Competition. 

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a course paper. The Competition paper shall be produced on a computer in Latvian or English.

      5.    The following topics may be analysed in the Competition paper:
      5.1    assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      5.2     assessment of the natural rate of interest in the euro area and proposals for the implementation of monetary policy; 
      5.3    negative interest rates: their efficiency from the monetary policy perspective; 
      5.4    side-effects of unconventional monetary policy measures; 
      5.5    assessment of the forward guidance effectiveness and its role in formulating and developing monetary policy;
      5.6    Eurosystem's monetary policy transmission to the Baltic States; impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area;
      5.7    causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      5.8    Philips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      5.9    developing models for gross domestic product and inflation forecasting in the Baltic States;
      5.10    pass-through of global prices (oil and food product prices) to consumer prices in the Baltic States;
      5.11    fiscal policy in the European Union (including its role in reducing economic cycle fluctuations) and proposals for improvement; 
      5.12    impact of public debt on economic growth;
      5.13    output gap estimation in the Baltic States by different estimation methods and their application in the cyclical adjustment of the budget balance;
      5.14    impact of trade wars on the economy in Europe including Baltic States;
      5.15    ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      5.16    impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      5.17    real convergence of the Baltic States with the euro area;
      5.18    total factor productivity drivers in the Baltic States;
      5.19    competitiveness of exports of the Baltic States;
      5.20    assessment of the European Union structural funds and direct investment efficiency in the Baltic States;
      5.21    wage-productivity balance and the Balassa–Samuelson effect in the Baltic States;
      5.22    labour migration, its driving factors and impact on the economy;
      5.23    assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      5.24    methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      5.25    causes for the weak lending and the related risks to Latvia's economy;
      5.26    impact of low interest rates on the financial sectors of the Baltic States;
      5.27    growth potential of FinTech, InsurTech and other Tech and risks to the Baltic States' economies and financial stability;
      5.28    significance of bank lending in today's economy. Assessment of alternative sources of financing in the Baltic States;
      5.29    assessment of the financial cycle in the Baltic States;
      5.30    factors determining the development of instant payments and its impact on household behaviour in Europe.

      6. Papers addressing other crucial topics on the economies of the Baltic States and the euro area in relation to monetary and fiscal policies may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases. 

      7. A special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper, which will integrate the scientific methods in the field of economics and history providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context. 

      8. The Competition papers shall be submitted to Latvijas Banka from 18 May 2020 to 1 June 2020 in one of the following ways:
      8.1 as a paper-based document, signed by the author, and its digital copy, recorded on an electronic data carrier, in a sealed envelope addressed to the "Competition of Student Scientific Research Papers" in person at K. Valdemāra iela 2A, Riga (Noliktavas iela entrance) on business days from 8.30 a.m. to 17.30 p.m. (on Fridays from 8.30 a.m. to 16.15 p.m.) or by post to: K. Valdemāra iela 2A, Riga, LV-1050;
      8.2 in digital form, signed with a secure digital signature, by e-mail to: info@bank.lv.

      9. The envelope shall also contain information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution) as well as a copy of the document supporting the author's eligibility in accordance with the requirements set out in Paragraph 2 herein. 

      10. Irrespective of the way the Competition paper is submitted, it shall be received at Latvijas Banka by 1 June 2020 (inclusive). Papers received at Latvijas Banka after 1 June 2020, will not be considered.

      11. The submission of the paper shall constitute confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of third parties and agrees that in case of an award Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      12. Where it is established that the author has not signed the Competition paper in accordance with the requirements set out in Paragraph 8 herein, Latvijas Banka has the right to ask the author of the paper to fix this shortcoming.

      13. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in the evaluation of the Competition papers if he or she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect the independence and objectivity in the evaluation of the Competition paper. 

      14. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 17 June 2020: 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners as well as one winner of Juris Vīksniņš Award.

      15. The winners of the Competition will be awarded a one-time award in the following amounts (before taxes stipulated by law of the Republic of Latvia):
      15.1 EUR 2000 to the first-place winner;
      15.2 EUR 1250 to the two second-place winners each;
      15.3 EUR 700 to the three third-place winners each;
      15.4 EUR 1422.87 to the winner of Juris Vīksniņš Award.

      16. Based on the evaluation of the Competition papers, the Committee shall have the right to award no awards, to reduce their number or to divide them as well as award consolation prizes. 

      17. If the award-winning paper has two or more authors, the award shall be equally split among them.

      18. Authors of all submitted and adequately prepared Competition papers shall be awarded one of Latvijas Banka's euro collector coins. The taxes stipulated in the Republic of Latvia legislation associated with the awards shall be withheld from the funds of Latvijas Banka.

      19. The results of the Competition will be published by 30 June 2020 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv).

      20. The Competition papers winning no awards will be available for picking up at the Public Relations Division of the International Relations and Communication Department of Latvijas Banka (telephone: +371 67022782) within 1 (one) month after the results of the Competition have been made public. The unclaimed papers will not be preserved after the aforementioned date.

    • To promote the research and analysis of Latvia's and euro area's macroeconomic issues by involving the most talented young economists in this work, Latvijas Banka has announced the annual Competition of Student Scientific Research Papers.

      Latvijas Banka organises the competition already for the 18th time. Participation is open to citizens and non-citizens of Latvia, Lithuania and Estonia as well as foreigners who at the time of the competition are registered as students of higher education institutions accredited as such in the Baltic States, enrolled in Bachelor's or Master's degree programmes. 

      30 topics related to monetary policy, macroeconomic development and financial stability are proposed for the competition (for a full list, see below).  

      For the third consecutive year, a special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best competition paper where integrated scientific methods in the field of economics and history have been used providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context. Up to now, no papers qualifying for this particular award have been submitted for the competition; however, papers and researchers analysing and studying the history of economics are really necessary for both economic research and a public discussion on the developments of the global and Latvian economy. 

      The Competition papers shall be submitted to Latvijas Banka from 18 May to 1 June 2020. The competition papers will be evaluated by a committee of economists set up by Latvijas Banka. The papers winning awards will be published on the website www.macroeconomics.lv, and their authors will receive money awards, incl. EUR 2 000 to the first-prize winner and EUR 1 422.87 to the winner of Juris Vīksniņš Award. 

      14 papers were submitted for the Competition of Student Scientific Research papers organised in the previous academic year of 2018/2019. The authors of the papers were 20 students from four Latvia's higher education institutions. No first prize was awarded in the Competition. Two second prizes were awarded to the following students: Palina Tember and Elza Siliņa, the Stockholm School of Economics in Riga, for the scientific research paper "Measuring Fiscal Policy Stance in Real Time and Ex Post in the European Union Member States", investigating the dependence of fiscal policy changes on the business cycle.; and Onufrii Lonevskyi and Kristijonas Klimaitis, the Stockholm School of Economics in Riga, for their paper "The Twin Deficits Hypothesis in the Eastern European Group: an Empirical Investigation", examining whether there is a correlation between a government deficit and current account deficit in Eastern European countries.

    • First prize

      not awarded

      Second prize

      Palina Tember, Elza Siliņa (Stockholm School of Economics in Riga)

      "Measuring Fiscal Policy Stance in Real Time and Ex Post in the European Union Member States"

      Onufrii Lonevskyi, Kristijonas Klimaitis (Stockholm School of Economics in Riga)

      "The Twin Deficits Hypothesis in the Eastern European Group: an Empirical Investigation"

      Third prize

      Andriana Neamtu (Stockholm School of Economics in Riga)

      "The Efficiency of Public Healthcare Spending in Latvia"

      Simona Alksne, Reinis Frēlihs (Stockholm School of Economics in Riga)

      "Universal Basic Income: a step towards equality or government's insolvency? The case of Latvia"

      Dainis Bass, Kristofers Kurgēns (Stockholm School of Economics in Riga)

      "The Effect of Regional Typology and Contexts on Performance of EU-Supported Projects Implemented by Companies in Latvia"

      Consolation prize

      Toms Birzulis, Edgars Indriksons (Stockholm School of Economics in Riga)

      "Deceitful Spenders: Examining the Existence of Political Budget Cycles in Latvia"

    • The following topics may be analysed in the Competition paper:

      • assessment of the euro euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      • possibilities for monetary policy and coordination of economic policy in the low interest rate environment;
      • assessment of the natural rate of interest in the euro area and proposals for the implementation of monetary policy;
      • assessment of the forward guidance effectiveness and its role in formulating anddeveloping monetary policy;
      • monetary policy transmission of the Eurosystem in the Baltic States. Impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area.
      • impact and challenges of monetary policy normalisation;
      • causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      • Philips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      • developing models for gross domestic product and inflation forecasting in the Baltic States;
      • pass-through of global prices (oil and food product prices) to consumer prices in the Baltic States;
      • fiscal policy in the European Union: assessment of the rules and proposals for their improvement;
      • impact of public debt on economic growth;
      • output gap estimation in the Baltic States by different estimation methods and its application in the cyclical adjustment of the budget balance;
      • impact of trade wars on the economy in Europe and the Baltic States;
      • ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      • impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      • real convergence of the Baltic States with the euro area;
      • total factor productivity drivers in the Baltic States;
      • competitiveness of exports of the Baltic States;
      • assessment of the European Union structural funds and direct investment effeciencyin the Baltic States;
      • wage-productivity balance  and the Balassa–Samuelson effect in the Baltic States;
      • labour migration, its driving factors and impact on the economy;
      • assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      • methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      • significance of the credit institutions' financing in today's economy. Assessment of alternative sources of financing;
      • the financial sector in a low interest rate environment; the impact of the interest rate increase and monetary policy asynchronicities between the US and euro area on the financial sector;
      • assessment of the financial cycle in the Baltic States;
      • the non-bank financial sector development and its significance in the economy;
      • latest market risk assessment methods and their impact on the price setting mechanism of financial market instruments;
      • factors determining the development of instant payments and their impact on household behaviour in Europe.

      Papers addressing other crucial topics on the economy of the Baltic States and euro area in relation to monetary policy may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases. 

      A special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper, which will integrate the scientific methods in the field of economics and history providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context. 

    • Latvijas Banka announces an international Competition of Student Scientific Research Papers for 2019. Latvijas Banka organises the Competition already for the 17th time, and participation is open to students of Latvia, Estonia and Lithuania, enrolled in Bachelor's and Master's degree programmes.

      Purpose of the Competition
      To promote the research and analysis of macroeconomic issues in Latvia, the Baltic States and the euro area and to facilitate the advancement of the scientific thinking of students.

      Eligible topics
      30 topics on current economic and monetary policy issues are proposed for the Competition. Papers addressing these topics in the context of the Baltic States may also be submitted for the Competition.

      Special award named after Juris Vīksniņš
      For the second consecutive year, a special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper integrating the scientific methods in the field of economics and history.

      Awards
      The winners of the Competition will be awarded the following prizes (in EUR; before taxes):
      EUR 2 000 to the first-prize winner;
      EUR 1 250 to the second-prize winner;
      EUR 700 to the third-prize winner;
      EUR 1 422.87 to the winner of Juris Vīksniņš Award.

      Submission of Competition papers
      The Competition papers shall be submitted to Latvijas Banka from 17 May to 31 May 2019. 

      Regulation 
      Detailed requirements for the Competition papers, rules for participation and a full list of the proposed topics are available in the Regulation.

      Results 
      The Competition papers will be evaluated by a committee set up by Latvijas Banka. The papers winning awards will be published on the website www.macroeconomics.lv. The papers of the previous prize-winners are also available on the above website.

    • Regulation for the Competition of Student Scientific Research Papers for 2019 Organised by Latvijas Banka

      1. To promote the research and analysis of macroeconomic issues and to facilitate advancement of university student scientific thinking, Latvijas Banka announces a Competition of the Baltic States Student Scientific Research Papers for 2019 (hereinafter, the Competition).

      2. The following may participate in the Competition:
      2.1 persons who at the time of the Competition are registered as students of  higher education institutions, accredited as such according to the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia, and enrolled in Bachelor's or Master's degree programmes;
      2.2 citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions, accredited as such according to the laws and regulations of foreign countries, and enrolled in Bachelor's or Master's degree programmes.

      3. Persons, who are employees of the central banks of the Eurosystem 
      or former employees of the central banks of the Eurosystem and whose term of service with any of the central banks of the Eurosystem exceeds one year, cannot participate in the Competition. 

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level must meet at least the requirements of a course paper. The Competition paper shall be produced on a computer in Latvian or English.

      5. The following topics may be analysed in the Competition paper:
      5.1 assessment of the euro euro area sustainability and proposals for strengthening the Economic and Monetary Union;
      5.2 possibilities for monetary policy and coordination of economic policy in the low interest rate environment;
      5.3 assessment of the natural rate of interest in the euro area and proposals for the implementation of monetary policy;
      5.4 assessment of the forward guidance effectiveness and its role in formulating anddeveloping monetary policy;
      5.5 monetary policy transmission of the Eurosystem in the Baltic States. Impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area.
      5.6 impact and challenges of monetary policy normalisation;
      5.7 causes of the low inflation in the euro area in the post-crisis period: the role of the cyclical and structural factors;
      5.8 Philips curve relationship in Europe and the Baltic States: change over time and underlying factors;
      5.9 developing models for gross domestic product and inflation forecasting in the Baltic States;
      5.10 pass-through of global prices (oil and food product prices) to consumer prices in the Baltic States;
      5.11 fiscal policy in the European Union: assessment of the rules and proposals for their improvement;
      5.12 impact of public debt on economic growth;
      5.13 output gap estimation in the Baltic States by different estimation methods and its application in the cyclical adjustment of the budget balance;
      5.14 impact of trade wars on the economy in Europe and the Baltic States;
      5.15 ageing of population and its impact on the sustainability of the pension system in the Baltic States;
      5.16 impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;
      5.17 real convergence of the Baltic States with the euro area;
      5.18 total factor productivity drivers in the Baltic States;
      5.19 competitiveness of exports of the Baltic States;
      5.20 assessment of the European Union structural funds and direct investment effeciencyin the Baltic States;
      5.21 wage-productivity balance  and the Balassa–Samuelson effect in the Baltic States;
      5.22 labour migration, its driving factors and impact on the economy;
      5.23 assessment of the natural rate of unemployment in the Baltic States, the underlying factors and proposals for reducing structural unemployment;
      5.24 methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;
      5.25 significance of the credit institutions' financing in today's economy. Assessment of alternative sources of financing;
      5.26 the financial sector in a low interest rate environment; the impact of the interest rate increase and monetary policy asynchronicities between the US and euro area on the financial sector; 
      5.27 assessment of the financial cycle in the Baltic States;
      5.28 the non-bank financial sector development and its significance in the economy;
      5.29 latest market risk assessment methods and their impact on the price setting mechanism of financial market instruments;
      5.30 factors determining the development of instant payments and their impact on household behaviour in Europe.

      6. Papers addressing other crucial topics on the economy of the Baltic States and euro area in relation to monetary policy may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases. 

      7. A special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper, which will integrate the scientific methods in the field of economics and history providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context. 

      8. The Competition papers shall be submitted to Latvijas Banka, K. Valdemāra iela 2A (entrance from the Noliktavas street side), Riga, from 17 May to 31 May 2019. Papers submitted after 31 May 2019 will not be considered.

      9. The Competition papers shall be submitted either as paper-based documents, signed by the person, together with the Competition paper recorded on an electronic data carrier, or in a digital form, signed with a secure digital signature, by e-mailing it to info@bank.lv. Where the Competition paper is submitted as a paper-based document, it shall be submitted in a sealed envelope addressed to the "Competition of Student Scientific Research Papers". The envelope shall also contain information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution) as well as a copy of the document supporting the author's eligibility in accordance with Paragraph 2 herein. The submission of the paper shall constitute confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of third parties and agrees that in case of an award Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      10. The Competition papers and the accompanying documents referred to in Paragraph 9 herein may be submitted by post, addressing the envelope to the "Competition of Student Scientific Research Papers, Latvijas Banka, K. Valdemāra iela 2A, Riga, LV-1050", and sending it by registered post by 20 May 2019 (postal seal). Papers submitted after 20 May 2019 will not be considered.

      11. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter, the Committee). A member of the Committee shall not take part in the evaluation of the Competition papers if he or she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect the independence and objectivity in the evaluation of the Competition paper. 

      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 14 June 2019: 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners as well as one winner of Juris Vīksniņš Award.

      13. The winners will be awarded a one-time award in the following amounts (before taxes stipulated by law of the Republic of Latvia):
      13.1 EUR 2 000 to the first-place winner;
      13.2 EUR 1 250 to the two second-place winners each;
      13.3. EUR 700 to the three third-place winners each;
      13.4 EUR 1 422.87 to the winner of Juris Vīksniņš Award.

      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no awards, to reduce their number or to divide them as well as award consolation prizes. The taxes stipulated in the Republic of Latvia legislation associated with the awards shall be withheld from the funds of Latvijas Banka.

      15. If the award-winning paper has two or more authors, the award will be equally split among them.

      16. The results of the Competition will be published by 30 June 2019 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv).

      17. The Competition papers winning no awards will be available for picking up at the Public Relations Division of the International Relations and Communication Department of Latvijas Banka (telephone: +371 67022761) within 1 (one) month after the results of the Competition have been made public. The unclaimed papers will not be preserved after the aforementioned date.

    • Studentu konkursa apbalvošana 2019

    • First prize

      Filip Drazdou and Darya Labok (Stockholm School of Economics in Riga)

      "Raspberries vs Wheat: Economic Sophistication as a New Predictor of Income Volatility"

      Second prize

      Oskars Baltais and Rihards Braķis (Stockholm School of Economics in Riga)

      "The Effect of Personal Income Tax Progressivity on Output Volatility: the Role of Non-linearity"

      Third prize

      Anna Marija Radzeviča and Krista Bulderberga (Stockholm School of Economics)

      "The Role of Institutional Quality in Economic Growth: Implications for the Baltic  States"

      Aleksejs Srebnijs and Maksims Sičs (Stockholm School of Economics in Riga)

      "The Determinants of Economic Growth in the EU NUTS2 Regions"

      Rūdolfs Krēgers (University of Latvia)

      "Assessment of the Financial Cycle in Latvia"

    • To promote the research and analysis of Latvia's and euro area's macroeconomic issues by involving the most talented young economists in this work, Latvijas Banka announces the current Competition of Student Scientific Research Papers. More information>>

    • Latvijas Banka announces an international Competition of Student Scientific Research Papers for the year 2018. Latvijas Banka organises the Competition already for the 16th time. This year, participation is open to students of Latvia, Estonia and Lithuania, enrolled in Bachelor's and Master's degree programmes. 

      The purpose of the Competition

      To promote the research and analysis of macroeconomic issues in Latvia, the Baltic States and the euro area and to facilitate the advancement of the scientific thinking of students.

      Eligible topics

      25 topics on current economic and monetary policy issues are proposed for the Competition. Papers addressing these topics in the context of the Baltic States may also be submitted.

      Juris Vīksniņš Award

      The novelty of this year's Competition is the establishment of a special award named after the prominent Latvian economist Juris Vīksniņš. This year, the award will be presented for the best Competition paper which will integrate the scientific methods in the field of economics and history.

      Awards

      The winner of the Competition will receive the following awards (EUR; before taxes):
       EUR 2 000 to the first-prize winner;
       EUR 1 250 to the second-prize winner;
       EUR 700 to the third-prize winner;
       EUR 1 422.87 to the winner of Juris Vīksniņš Award.

      The submission of the Competition papers

      The Competition papers shall be submitted to Latvijas Banka from 18 May to 1 June 2018.

      Order

      Detailed requirements for the Competition papers, rules for participation and a full list of suggested topics are available in the Order.

      Results

      The Competition papers will be evaluated by a committee specifically set up by Governor of Latvijas Banka. The papers winning awards will be published on the website www.macroeconomics.lv where the papers of the previous prize-winners are also available.
       

    • Regulation for the Competition of Student Scientific Research Papers for 2018 Organised by Latvijas Banka

      1. To promote the research and analysis of macroeconomic issues in Latvia and the euro area and to facilitate the advancement of scientific thinking of the students of higher education institutions, Latvijas Banka announces a Competition of Student Scientific Research Papers for 2018 (hereinafter – the Competition).


      2. The following may participate in the Competition:

      2.1 Citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania and the Republic of Estonia as well as foreigners who at the time of the Competition are registered as students of higher education institutions accredited as such according to the procedure prescribed by the laws and regulations of the Republic of Latvia, the Republic of Lithuania or the Republic of Estonia and enrolled in Bachelor's and Master's degree programmes;

      2.2 Citizens and non-citizens of the Republic of Latvia, the Republic of Lithuania and the Republic of Estonia who at the time of the Competition are registered as students of higher education institutions accredited as such according to the procedure prescribed by the laws and regulations of foreign countries and enrolled in Bachelor's and Master's degree programmes.

       

      3. A person referred to in Paragraph 2 herein may not participate in the Competition if:

      3.1 he or she is an employee of a Eurosystem central bank or

      3.2 he or she is a former employee of a Eurosystem central bank and the length of his or her service in one of the Eurosystem central banks has exceeded 1 (one) year.

       

      4. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level shall meet at least the requirements of a course paper. The Competition paper shall be produced on a computer in Latvian or English.

       

      5. The following topics are proposed for the Competition paper:

      5.1 Assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union;

      5.2 Possibilities for monetary policy and coordination of economic policy in the low interest rate environment;

      5.3 Impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area;

      5.4 Monetary policy transmission of the Eurosystem in the Baltic States;

      5.5 Inflation expectations (factors affecting it) and their links with the real economy;

      5.6 Short-term forecasting of the Baltic States' GDP and inflation;

      5.7 Fiscal policy in the European Union or the Baltic States: assessment of the rules and proposals for their improvement;

      5.8 Levels of public debt and economic growth;

      5.9 Estimation and application of the Baltic States' actual and potential output gap in case of the cyclical adjustment of the budget balance;

      5.10 Ageing of population and its impact on the sustainability of the pension system in the Baltic States;

      5.11 Impact of the structural reforms on the economic growth potential in the Baltic States: quantitative assessment and recommendations to policy makers;

      5.12 Real convergence of the Baltic States with the euro area;

      5.13 Factors supporting total factor productivity in the Baltic States;

      5.14 Competitiveness of exports of the Baltic States;

      5.15 Assessment of the effectiveness of the use of the European Union structural funds and direct investment for the Baltic States;

      5.16 Labour migration, its driving factors and impact on the economy;

      5.17 Assessment of the natural rate of unemployment in the Baltic States;

      5.18 Methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States;

      5.19 Significance of the credit institutions' financing in today's economy;

      5.20 The financial sector in a low interest rate environment;

      5.21 Assessment of the financial cycle in the Baltic States;

      5.22 Development trends of the non-bank financial sector and their significance in the economy;

      5.23 Equilibrium price on the Baltic States' real estate market;

      5.24 Latest market risk assessment methods and their impact on the price setting mechanism of financial market instruments;

      5.25 Factors determining the development of real time customer payment systems and their impact on household behaviour in Europe.

       

      6. Papers addressing other crucial topics on the economy of the Baltic States and euro area in relation to monetary policy may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases.

       

      A special award named after the prominent Latvian economist Juris Vīksniņš will be awarded for the best Competition paper, which will integrate the scientific methods in the field of economics and history providing an innovative view on one of the stages of economic development in Latvia, the Baltic States or Europe, or an economic idea in a historical context.

       

      8. The Competition papers shall be submitted to Latvijas Banka, K. Valdemāra iela 2A (Noliktavas iela entrance), Riga, from 18 May to 1 June 2018. Papers submitted after 1 June 2018 will not be considered.

       

      9. The Competition papers shall be submitted in both paper and electronic form, recorded on an electronic medium. Papers shall be submitted in a sealed envelope addressed to the "Competition of Student Scientific Research Papers". The envelope shall also contain information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution) as well as a copy of the document supporting the author's eligibility in accordance with Paragraph 2 herein. The submission of the paper shall constitute confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of third parties and agrees that in case of an award Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

       

      10. The Competition papers and the accompanying documents referred to in Paragraph 9 herein may be submitted by post, addressing the envelope to the "Competition of Student Scientific Research Papers, Latvijas Banka, K. Valdemāra iela 2A, Riga, LV-1050", and sending it by registered post by 21 May 2018 (postal seal). Papers submitted after 21 May 2018 will not be considered.

       

      11. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter – the Committee). A member of the Committee shall not take part in the evaluation of the Competition papers if he or she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect the independence and objectivity in the evaluation of the Competition paper.

      12. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 15 June 2018: 1 (one) first-place winner, 2 (two) second-place winners and 3 (three) third-place winners as well as one winner of Juris Vīksniņš Award.

       

      13. The winners will be awarded a one-time award in the following amounts (before taxes stipulated by law of the Republic of Latvia):

      13.1 EUR 2 000 to the first-place winner;

      13.2 EUR 1 250 to the two second-place winners each;

      13.3 EUR 700 to the three third-place winners each;

      13.4 EUR 1 422.87 to the winner of Juris Vīksniņš Award.

       

      14. Based on the evaluation of the Competition papers, the Committee shall have the right to award no awards, to reduce their number or to divide them as well as award consolation prizes. The taxes stipulated in the Republic of Latvia legislation associated with the awards shall be withheld from the funds of Latvijas Banka.

       

      15. If the award-winning paper has two or more authors, the award shall be equally split among them.

       

      16. The results of the Competition will be published by 30 June 2018 on the websites of Latvijas Banka (www.bank.lv and www.makroekonomika.lv).

       

      17. The Competition papers winning no awards will be available for picking up at the Public Relations Division of the International Relations and Communication Department of Latvijas Banka (telephone: +371 67022761) within 1 (one) month after the results of the Competition have been made public. The unclaimed papers will not be preserved after the aforementioned date.

    • Juris Vīksniņš

      (1937–2012)

      Motto: "I uphold the free market principles as well as a responsible policy on monetary and budgetary issues."

      Juris Vīksniņš, one of the most distinguished modern Latvian economists, made a historically crucial contribution to strengthening the stability of the Latvian national currency, to building the economy aimed at well-being and long-term development and to creating a new generation of economists.

      Juris Vīksniņš was a professor emeritus of economics at Georgetown University, USA, and a lecturer of macroeconomics at the same university between 1964 and 2003. Georgetown, which was the world of the pedagogue and researcher Juris Vīksniņš for nearly 40 years, is a global university of science located in Washington, DC. It was among the first Catholic universities established in the USA, and its credo has remained unchanged, i.e. to enhance the building of a fairer world.

      Read more

    • Latvijas Banka announces a Competition of Student Scientific Research Papers for 2017

      Aim of the Competition: to promote the research and analysis of macroeconomic issues as well as to foster advancement of students' scientific thinking.

      The following may participate in the Competition: 1) citizens and residents of the Republic of Latvia as well as foreigners who at the time of the Competition are registered as students of higher education institutions accredited by the Republic of Latvia Ministry of Education and Science; 2) citizens and residents of the Republic of Latvia who at the time of the Competition are registered as students of higher education institutions accredited as such according to the laws and regulations of foreign countries.

      Topics: a wide range of macroeconomic topics in the context of Latvia, the Baltic States or the euro area, including the monetary policy options in a low interest rate environment, real convergence models, the impact of fiscal policy, public debt and structural reforms on economic growth, population ageing and migration, assessment of the effectiveness of the European Union structural funds and foreign direct investment, etc.

      Awards will be granted to six winners (EUR 2 000 to the first-place winner).

      The Competition papers should be submitted to Latvijas Banka between 15 May and 29 May 2017 in both paper and electronic form.

      The Regulation, including the requirements for the papers and a full list of topics, is available ir Regulations. 

      The results of the Competition will be published by 30 June 2017 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv).

      The participants will be invited to a discussion which will be broadcasted at www.macroeconomics.lv.

    • Regulation for the Competition of Student Scientific Research Papers for 2017 Organised by Latvijas Banka

      1. To promote the research and analysis of macroeconomic issues in Latvia and euro area and facilitate advancement of college student scientific thinking, Latvijas Banka announces a Competition of Student Research Papers for 2017 (hereinafter – the Competition).

      2. The following may participate in the Competition:

      2.1 Citizens and non-citizens of the Republic of Latvia as well as foreigners who at the time of the Competition are registered as students of institutions of higher education accredited by the Republic of Latvia Ministry of Education and Science enrolled in Bachelor's and Master's degree programmes;

      2.2 Citizens and non-citizens of the Republic of Latvia who at the time of the Competition are registered as students of institutions of higher education accredited as such according to the laws and regulations of foreign countries enrolled in Bachelor's and Master's degree programmes.

      3. Quantitative methods of analysis shall be used in the Competition paper, and its length and academic level shall meet at least the requirements of a course paper. The Competition paper shall be produced on a computer in Latvian or English.

      4. The following topics shall be proposed for the Competition paper:

      4.1 Assessment of the euro area sustainability and proposals for strengthening the Economic and Monetary Union.

      4.2 Possibilities for monetary policy and coordination of economic policy in the low interest rate environment.

      4.3 Impact of unconventional monetary policy measures on the economies of the Baltic States and/or the euro area.

      4.4 Monetary policy transmission of the Eurosystem in the Baltic States.

      4.5 Inflation expectations (factors affecting it) and their links with the real economy.

      4.6 Short-term forecasting of Latvia's GDP and inflation.

      4.7 Fiscal policy in the European Union and the Baltic States: assessment of the rules and proposals for improving them.

      4.8 Levels of public debt and economic growth.

      4.9 Estimation and application of Latvia's actual and potential output gap in case of the cyclical adjustment of the budget balance.

      4.10 Ageing of population and its impact on the sustainability of the pension system in Latvia.

      4.11 Impact of the structural reforms on the economic potential in the Baltic States: quantitative assessment and recommendations to policy makers.

      4.12 Real convergence of the Baltic States with the euro area.

      4.13 Factors supporting total factor productivity in the Baltic States.

      4.14 Competitiveness of Latvia's exports.

      4.15 Assessment of the effectiveness of the use of the European Union structural funds and direct investment for the Baltic States.

      4.16 Labour migration, its driving factors and impact on the economy.
      4.17 Assessment of the natural rate of unemployment in the Baltic States.

      4.18 Methods of estimating the grey economy, their advantages and disadvantages, estimation of the grey economy in the Baltic States.

      4.19 Significance of the credit institutions' financing in today's economy.

      4.20 The financial sector in a low interest rate environment.

      4.21 Assessment of Latvia's financial cycle.

      4.22 Development trends of the non-bank financial sector and its significance in the economy.

      4.23 Equilibrium price on Latvia's real estate market.

      4.24 Latest market risk assessment methods and its impact on the price setting mechanism of financial market instruments.

      4.25 Factors determining the development of real time customer payment systems and its impact on household behaviour in Europe.

      5. Papers addressing other crucial topics on Latvia's and euro area economy in relation to monetary policy may also be submitted for the Competition. Only one topic may be analysed in a Competition paper. Narrowing or broadening of the topic is allowed in duly justified cases.

      6. The Competition papers shall be submitted to Latvijas Banka, K. Valdemāra iela 2A (Noliktavas iela entrance), Riga, from 15 May to 29 May 2017. Papers submitted after 29 May 2017 will not be considered.

      7. The Competition papers shall be submitted in both paper and electronic form, recorded on an electronic medium. Papers shall be submitted in a sealed envelope addressed to the "Competition of Student Scientific Research Papers". The envelope shall also contain information about the author (name and surname, identity number, address, telephone number, e-mail address, educational institution) as well as a copy of the document supporting the author's eligibility in accordance with Paragraph 2 herein. The submission of the paper shall constitute confirmation that it is the work of the author and that the author assumes responsibility for observing the copyright of third parties and agrees that in case of an award Latvijas Banka may publish the paper at its own discretion and without any additional remuneration.

      8. The contestants referred to in Paragraph 2.2 herein may submit their Competition papers and the accompanying documents referred to in Paragraph 7 herein by post, addressing the envelope to the "Competition of Student Scientific Research Papers, Latvijas Banka, K. Valdemāra iela 2A, Riga, LV-1050", and sending it by registered post by 15 May 2017 (postal seal). Papers submitted after 15 May 2017 will not be considered.

      9. The Competition papers shall be evaluated by a committee set up by the Governor of Latvijas Banka (hereinafter – the Committee). A member of the Committee shall not take part in the evaluation of the Competition papers if he or she has a personal interest (the member of the Committee is the scientific supervisor/tutor of the Competition paper or the like) that could affect the independence and objectivity in the evaluation of the Competition paper.

      10. The Committee shall evaluate the Competition papers and determine the winners of the Competition by 12 June 2017: 1 (one) first place, 2 (two) second place, and 3 (three) third place winners.

      11. The winners will be awarded a one-time award in the following amounts (before taxes stipulated by law of the Republic of Latvia):

      11.1 EUR 2 000 to the first-place winner;

      11.2 EUR 1 250 to the two second-place winners each;

      11.3 EUR 700 to the three third-place winners each.

      12. Based on the evaluation of the Competition papers, the Committee shall have the right to award no awards, to reduce their number or to divide them as well as award consolation prizes. The taxes stipulated in the Republic of Latvia legislation associated with the awarding of the prizes shall be withheld from the funds of Latvijas Banka.

      13. If the award-winning paper has two or more authors, the award shall be equally split among them.

      14. The results of the Competition will be published by 30 June 2017 on the websites of Latvijas Banka (www.bank.lv and www.macroeconomics.lv).

      15. The Competition papers winning no awards will be available for picking up at the Public Relations Division of the International Relations and Communication Department of Latvijas Banka (telephone: +371 67022761) within 1 (one) month after the results of the Competition have been made public. The unclaimed papers will not be preserved after the aforementioned date.

    • On 16 June, the winners of the 14th annual competition of students' scientific research papers received their awards at Latvijas Banka.

      The first place was not awarded, but two works ranked second:  "[Are the] Baltic Tigers Facing the Middle-Income Trap?" ("Vai Baltijas tīģeriem draud vidējā ienākuma slazds?" authored by Ernests Bordāns and Madis Teinemaa) and "Variation of Monetary Policy Transmission over a Financial Cycle: Analysis of the EU Countries" ("Monetārās politikas transmisija atkarībā no finanšu cikla: ES valstu analīze" authored by Olena Kuzan and Anastasiya Kazhar). 

      In the paper "Baltic Tigers…", the so-called trap of middle income, i.e. the situation where a country, finding itself in the group of middle-income countries, loses competitiveness and cannot successfully compete with either low-income or high-income countries. The authors conclude that even though the Baltic countries have not yet been caught in the trap of middle income, structural reforms are necessary to avoid such a possibility in the future.

      In the paper "Variation of Monetary Policy Transmission…", the impact of the financial cycle on central banks' policies and monetary transmission is analysed. The authors reach the conclusion that during the periods of financial crisis, monetary transmission is improved and this effect is more pronounced in countries with a developed financial market.

      Third place was also shared by two papers: "Nowcasting the Baltic States' GDP Using Common Indicators: A Cross-Country Analysis" ("Baltijas valstu IKP īstermiņa prognozēšana, izmantojot kopējus indikatorus" authored by Arturs Pleišs and Tudor Poiana) and "Latvia: Catching-Up Towards the World Production Frontier, An Industry-Level Analysis" ("Latvijas tuvošanās pasaules ražošanas potenciālam: nozaru analīze" authored by Edgars Kokins and Valentīns Lavrinovičs).

      The results of the study " Nowcasting the Baltic States' GDP…" indicate that, in the case of Estonia, valuable information on GDP is included in the survey data on manufacturing output and business tendency; in the case of Latvia, in the stock market profitability indicators and, in the case of Lithuania, in the foreign trade data.

      The paper "Latvia: Catching-Up…" is a study of the determining factors of productivity growth by industry. The authors are of the opinion that reforms targeted at reducing corruption, improving the legal environment and education system, as well as developing the infrastructure can raise productivity in Latvia.

      Two papers merited achievement awards: "European Central Bank Monetary Policy and the Expectations of Inflation" ("Eiropas Centrālās Bankas monetārā politika un inflācijas gaidas" authored by Konstantīns Šeļegs and Ana-Maria Tecuci) and "Real Convergence in the European Union and the Baltic Countries" (authored by Jekaterīna Romaņuka). 

      The competitors were addressed by adviser to Latvijas Banka, economist Andris Strazds, who emphasized that this year the papers submitted were of high quality and mostly very practically minded. He also expressed appreciation of students' attempts to envision ways how the Baltic countries could develop in the future.

      Mr. Strazds voiced hope that some of these young people would become policy makers one day, helping to implement the necessary reforms, so that within the next generation Latvia could become a highly developed and prosperous country.  

      The winners were awarded money prizes as well as the collectors' coin, "Coin of the Seasons".

      During the event, a discussion of the prize-winning works and topical issues regarding the Latvian economy also took place.  

      In the school year 2015-2016, Latvijas Banka held the competition, in which both students of Latvian universities and Latvian students abroad are invited to participate, for the fourteenth time. The goal of the competition is to promote the identification and analysis of the macroeconomic problems in Latvia and the euro area, involving in the process the most promising young economists.

      This year, thirteen papers were submitted, which is more than a year ago, moreover, the quality of the papers keeps increasing with each subsequent year. The authors of the papers are twenty students (some papers have two authors) from three Latvian universities.  Among the topical issues addressed are the public debt and economic growth; real convergence and the middle-income trap; monetary policy transmission and inflation expectations; short-term projections on gross domestic product; efficiency of the educational system etc.

       


       

    • To promote the research and analysis of Latvia's macroeconomic issues by involving the most talented young economists, in academic year 2013/2014 Latvijas Banka organised already the 12-th competition of student scientific research papers.

      Interest about the competition was high this year – 24 papers were submitted (10 papers more than in the previous year). The authors of the papers are 31 students (some papers have two authors) from eight Latvia's higher educational establishments. The submitted papers tackle topical economic issues: migration, unemployment and sustainability of the pension system; economic growth and competitiveness of Latvian commodity exports; fiscal policy and real estate market; credit risks, the new regulatory requirements and the process of deleveraging in the credit institution sector, the impact of the development of major global economies on Latvia and the stability in the euro area etc.

      The first prize was awarded to Stefānija Kursiša and Olga Sadovici, students of the Stockholm School of Economics in Riga, for the paper "Evaluation of the Transmission of the Euro Area, Japan and US Monetary Shocks to the Baltic States". The paper evaluates the impact of the euro area, Japan and US monetary shocks on the macroeconomic indicators of the Baltic States (GDP, inflation and interest rates) based on econometric models in the analysis.

      Two second prizes were awarded to Marina Aleksejeva and Nikolajs Prihodko, students of the Stockholm School of Economics in Riga, for the paper "Is Basel III Socially Beneficial in the Baltic Context?" and Elza Kalniņa and Andrejs Semjonovs, students of the same business school, for the paper "The Assessment of Salary Flexibility in Latvia". The third prize went to Kristīne Priedīte and Līva Levane (Stockholm School of Economics in Riga) for the paper "Can We Rely on Confidence? The Case of Latvia".

      Two consolation prizes were also awarded to Anastasija Zolotare, student of the University of Latvia, for the paper "Competitive Analysis of Latvian Commodity Exports" and Viktorija Piļinko and Andrejs Romančenko, students of the Stockholm School of Economics in Riga, for the paper "A Macro-financial Model for Credit Risk Stress Testing: The Case of Latvia".

      The authors of the award-winning papers received money awards and Latvia's first euro collector coin Ainaži Nautical School.

      More photos on Latvjas Banka Flickr gallery

      The contestants were greeted by Ilmārs Rimšēvičs, the Governor of Latvijas Banka, who stressed that academic year 2013/2014 had been special for both higher educational establishments and the economy of Latvia, the Baltics, and the euro area. Higher educational establishments are still expecting that education reforms will take place, and this is obviously a precondition for subsequent scientific breakthroughs in Latvia in the near future, as academic Jānis Stradiņš once said.

      There were many significant events, in particular, the introduction of the euro, that influenced the economy over the last 12 months. "This changes the impact of our economic policy, the circumstances under which our economy operates, as well as the scope of our economic analysis," said I. Rimšēvičs. The introduction of the euro has been also reflected in several student papers; moreover, from a regional perspective of the Baltic States that will even play a more significant role in subsequent competitions as Lithuania has followed Estonia's and Latvia's lead to become the 19th euro area country next year.

      The award-winning papers and the latest economic developments were discussed during the award ceremony.

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