Abstract: This paper summarizes and compares approaches to
solving the knapsack problem and its known application in capital
budgeting. The first approach uses deterministic methods and can be
applied to small-size tasks with a single constraint. We can also
apply commercial software systems such as the GAMS modelling
system. However, because of NP-completeness of the problem, more
complex problem instances must be solved by means of heuristic
techniques to achieve an approximation of the exact solution in a
reasonable amount of time. We show the problem representation and
parameter settings for a genetic algorithm framework.
Abstract: The Czech Republic is a country whose economy has
undergone a transformation since 1989. Since joining the EU it has
been striving to reduce the differences in its economic standard and
the quality of its institutional environment in comparison with
developed countries. According to an assessment carried out by the
World Bank, the Czech Republic was long classed as a country
whose institutional development was seen as problematic. For many
years one of the things it was rated most poorly on was its bankruptcy
law. The new Insolvency Act, which is a modern law in terms of its
treatment of bankruptcy, was first adopted in the Czech Republic in
2006. This law, together with other regulatory measures, offers debtridden
Czech economic subjects legal instruments which are well
established and in common practice in developed market economies.
Since then, analyses performed by the World Bank and the London
EBRD have shown that there have been significant steps forward in
the quality of Czech bankruptcy law. The Czech Republic still lacks
an analytical apparatus which can offer a structured characterisation
of the general and specific conditions of Czech company and
household debt which is subject to current changes in the global
economy. This area has so far not been given the attention it
deserves. The lack of research is particularly clear as regards analysis
of household debt and householders- ability to settle their debts in a
reasonable manner using legal and other state means of regulation.
We assume that Czech households have recourse to a modern
insolvency law, yet the effective application of this law is hampered
by the inconsistencies in the formal and informal institutions
involved in resolving debt. This in turn is based on the assumption
that this lack of consistency is more marked in cases of personal
bankruptcy. Our aim is to identify the symptoms which indicate that
for some time the effective application of bankruptcy law in the
Czech Republic will be hindered by factors originating in
householders- relative inability to identify the risks of falling into
debt.
Abstract: In the past 20 years the economy of the Czech
Republic has experienced substantial changes. In the 1990s the
development was affected by the transformation which sought to
establish the right conditions for privatization and creation of
elementary market relations. In the last decade the characteristic
elements such as private ownership and corresponding institutional
framework have been strengthened. This development was marked by
the accession of the Czech Republic to the EU. The Czech Republic
is striving to reduce the difference between its level of economic
development and the quality of institutional framework in
comparison with other developed countries. The process of finding
the adequate solutions has been hampered by the negative impact of
the world financial crisis on the Czech Republic and the standard of
living of its inhabitants. This contribution seeks to address the
question of whether and to which extent the economic development
of the transitive Czech economy is affected by the change in
behaviour of households and their tendency to consumption, i.e. in
the sense of reduction or increase in demand for goods and services.
It aims to verify whether the increasing trend of household
indebtedness and decreasing trend of saving pose a significant risk in
the Czech Republic. At a general level the analysis aims to contribute
to finding an answer to the question of whether the debt increase of
Czech households is connected to the risk of "eating through" the
borrowed money and whether Czech households risk falling into a
debt trap. In addition to household indebtedness risks in the Czech
Republic the analysis will focus on identification of specifics of the
transformation phase of the Czech economy in comparison with the
EU countries, or selected OECD countries.