E21 - Macroeconomics: Consumption; Saving; WealthReturn

This paper estimates the presence of the Deaton paradox in Europe. Using panel data for 24 countries ranging from 2000 to 2021, we estimate the presence of excess smoothness of consumption. We use the generalised method of moments (GMM) estimator. We cluster our dataset, which lowers the data variability, and use both quarterly and monthly data to obtain robust estimates. We broaden our knowledge of the Deaton paradox in a new direction by using a combination of uncommon datasets, GMM and clustering. Our findings indicate that traditional economic theories about consumption may not be applicable. The evident excess smoothness in consumption patterns across Europe provides key insights into consumer behaviour, especially during periods of volatility and instability such as the present. Our research indirectly corroborates newer theories in behavioural economics regarding consumption and places them within a wider macroeconomic context. This has implications for both monetary and fiscal policy. 
Business and Corporate Implications for Central European audience: The provided insights into the excess smoothness of European consumption patterns are vital for business strategy, particularly in consumer-focused industries. Companies can use these findings to improve forecasting accuracy, optimize inventory and tailor marketing efforts. The relative stability of consumer behaviour, even in economic shifts, suggests opportunities for enhancing brand loyalty and customer retention. Additionally, these insights are crucial for informed investment decisions and pricing strategies in consumer-dependent sectors. Firms can also use this knowledge in policy advocacy, promoting economic decisions that reflect consumer spending trends. Aligning business strategies with these findings not only boosts operational efficiency but also contributes to their economic stability.

In the sharing economy, P2P platforms must identify the target audience for their marketing campaigns to spend their marketing budgets effectively. The challenge is to convince those who are afraid of sharing with strangers. We analyse participant behaviour by testing whether people's willingness to participate differs depending on whether they shared with known or unknown people. Our study focuses not only on sharing with strangers and exploring this phenomenon but also on sharing with people we know to verify that these people are generally willing to share idle assets. We define four groups of sharing economy participants depending on whether they know the counterparty: (1) active participants afraid of sharing with strangers, (2) active participants indifferent, (3) active participants preferring to share with strangers, and (4) inactive participants. Generation Z will most likely share their idle assets with strangers, while Generation Y does not mind who they share with. Generation X prefers to share with strangers but is also the most inactive. The demand side is more complicated: Generation Z does not care who they demand from, but other generations’ preferences depend on the asset type. Again, Generation X is the most inactive. We assume that a generational perspective is essential for P2P marketing mix settings. We summarise new findings from not only a theoretical but also a practical perspective.
Implications for Central European audience: We provide a new perspective on sharing idle assets in the context of sharing with strangers. We emphasize a generational perspective and use cluster analysis to define four groups of participants from the perspective of sharing with strangers. P2P platforms operating in the sharing economy can gain more insights into Czech customers' consumer behaviour depending on whether they know the counterparty. The results can also benefit managers in other Central European countries. The findings can also contribute to the theoretical knowledge of the sharing economy and its implications for reducing marketing costs.

The sharing economy is an interesting socio-economic system that has been studied by many researchers worldwide. It is an area that will affect the patterns of behaviour, processes and thinking experienced in various fields. The sharing economy is specific in that some people who have an asset they do not fully use may be willing to share it with consumers who do not have the asset but need it for a specific reason but are unable to or do not want to buy it. Platforms operating in the sharing economy need to know whom to target with their marketing strategy to spend marketing costs effectively. We used cluster analysis, a chi-square test, a Kruskal-Wallis test and descriptive analysis of data collected from 684 respondents across Generations X, Y and Z within the Czech Republic. We identified who constitutes the general supply of and demand for unused assets. While the willingness to supply prevails among Generation Y, the willingness to demand prevails among Generation Z. For Generation X, the willingness to supply and the willingness to demand are almost equal. Using cluster analysis, we defined three basic groups of participants in the sharing economy: double-sided active participants, one-sided active participants and inactive participants. We summarise new findings from not only a theoretical but also a practical perspective.
Implications for Central European audience: Platforms active in the sharing economy may better understand Czech customers regarding their supply of and demand for unused assets. The results could also be useful for managers in other countries of the Central European region. The findings may help enrich the theoretical knowledge of the sharing economy and its impact on marketing. Platforms can save money on marketing communications by focusing their marketing communications on a specific generation.

Consumption styles in most modern societies are characterised by internal diversity. This situation reflects the paradox of the postmodern world in which two different trends - consumerism and greening consumption, compete for the hearts, minds and portfolios of buyers. The popularity of one of the above trends depends on society’s standards and the level of awareness of its citizens. The article aims to present Slovak consumers’ behaviour in terms of sustainable consumption in the field of organic products.  Concerning the multifaceted nature of organic food consumption, empirical research has taken into account various aspects of the potential of individual respondents and the general characteristics of their households. The survey conducted from January to May 2019 involved 1,373 individuals who live in Slovakia. The respondents’ selection criteria did not consider whether or not they had food allergies or intolerances, whether they were vegetarian or vegan, or whether they liked most foods. The paper used the clustering of objects method, especially the Two-Step method. The research questionnaire concerns consumers who have a positive attitude about organic foods considering the importance of their health.
Implications for the Central European audience: The development of organic food markets is stimulated by accepting the Agenda 2030 for sustainable development. The purpose of this article is to propose elements of reflection for economic entities facing the challenges of sustainable consumption. The increased interest of Slovak consumers in organic food is linked with their interest in living a healthier life. The theoretical framework of the article focuses on the significance of consumer behaviour and the consumption of bioproducts. The practical support of consumption in-home organic food is one of the main tasks of the Programme for the Development of the Country until the year 2020 and the Action Plan of the Development of Agriculture for the years 2014–2020.

Confidence factors play an important role not only in the assessment of business cycles but also in the evaluation of national competitiveness (e.g. the Global Competitiveness report published by the World Economic Forum) due to both using soft data obtained from opinion surveys. The subjective nature of confidence leads to questions about the soundness of such findings. Since the answers from opinion surveys are subjective, the empirical relationship between sentiment indicators and economic variables is not unambiguously established. In these conditions, the results of business surveys and the findings published by competitiveness rankings should not be accepted unconditionally. This paper starts with the comparison of soft data (respondents' sentiment) assessing the quality of institutions among world regions in the Global Competitiveness Report 2017-18. The aim of this paper is to offer a more precise view of the development of economic sentiment in the EU countries, especially in Germany and the Visegrad group countries (the V4). As tools for this description, a business sentiment indicator (ESI) and confidence indicators were applied. For analysis of changes in business sentiment and respondents' confidence, a graphical examination of variables, correlation analysis, changes in standard deviation, changes in countries' ranking, and the comparison of average sentiment (confidence) in the pre-crisis and the post-crisis period were used. Our analysis indicates the equivalent of the so-called halo effect in the pre-crisis period for the V4 (the positive expectation connected with the EU accession) and the deterioration in sentiment and confidence indicators in the post-crisis period.