The study examines main determinants of financial distress of companies in Poland during the recent transformation period. Data compose a sample of 1995-97 annual financial statements of 200 unlisted companies in Poland. Degree of financial distress is expressed either by the binomial variable or by the trinomial ordered variable. The attempted models (binomial and trinomial logit) explain the distress variable for 1997 by the financial indicators evaluated on the basis of financial statements from previous years. The results are sensitive to the choice of explanatory variables in the models. The forecast accuracy of the estimated models lies in the range of 80-90 percent. In the second half of the 1990's, the financial condition of companies in Poland was determined by the degree of liquidity, profitability, and the financial leverage variables. (JEL C25, G33); Int'l Advances in Econ. Res., 10(4): pp. 249-256, Nov. 04. ^{©}All Rights Reserved

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Modern economic growth theory has emphasized on the human capital effects on economic growth. In this case, the externalities from a better education could enhance economic growth process and facilitate the progress in different regional areas. The main objective of this paper is to analyze the effects of human capital on economic growth process by taking into account the case of Spanish regions. The authors examine whether a better education process and social capital can improve the economic growth process in such area and if it can explain the differences in per capita GDP existing in those regions. The paper uses data from Spanish Statistical Institute and from different institutes of the European Union. (JEL O1); Int'l Advances in Econ. Res., 10(4): pp. 257-264, Nov. 04. ^{©}All Rights Reserved

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The phenomenon of globalization has an effect on all the fields of economic and financial activity. In this increasing competitive environment, the majority of the Spanish credit institutions have been integrated in a cooperative banking group: the Grupo Caja Rural. In other countries of long cooperative tradition, important credit institutions have responded to challenges presented by economy internationalization and the increasing competence in financial markets with the abandonment of mutuality and cooperative model. These changes have been justified by companies in order for their own survival and business growth necessities. In Spain, the reaction has been the opposite. In spite of that, some elements can make one think of a possible demutualization process in the Grupo, due to the trivialization of cooperative principles . (JEL G21, O52); Int'l Advances in Econ. Res., 10(4): pp. 265-272, Nov. 04. ^{©}All Rights Reserved

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The aim of this paper is to investigate risky-prices sensitivity to interest rate changes in the Spanish market and to see if sensitivity is lower than public debt. To contrast this hypothesis, this paper presents a model that analyzes the risky-prices sensitivity to interest rate changes through effective duration and convexity. The most relevant contribution of the paper is to obtain a better specification to the duration expression that contribute to the marginal increment of the coefficient of determination and the construction of a conditional volatility model that overcomes the linearity models of constant variance. (JEL E43, G19); Int'l Advances in Econ. Res., 10(4): pp. 273-277, Nov. 04. ^{©}All Rights Reserved

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This paper analyzes the growth dynamics in the developed world and its relationship to the financial structure. The new entrepreneurial economy of creativity and innovation is identified as the main growth area today. However, such an economy needs financial structure capable of coping with the higher risk inherent in the new economy. To provide such a financial structure, the financial markets must be broad, deep, and liquid. Today, only the U.S. financial markets are large enough to provide this financial structure. Hence, financial integration became the imperative for other countries---especially the European Union (EU) and Japan---in order to achieve the level of economic growth as that of the U.S. (JEL F02, F43); Int'l Advances in Econ. Res., 10(4): pp. 278-288, Nov. 04. ^{©}All Rights Reserved

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This study develops a three-country model of endogenous growth that captures the role of the interconnection of country-specific communications networks (i.e., virtual integration), which affects the productivity of R&D activity through an increase in stock of knowledge capital. The number of countries connected to internationally interconnected networks is found to determine the structure of dynamic comparative advantages. That is, countries with interconnected networks have a dynamic comparative advantage in differentiated products that require communication and activities. In the connected countries, researchers gain from efficient activity through the utilization of the greater stock of knowledge capital. (JEL D43, F12); Int'l Advances in Econ. Res., 10(4): pp. 289-296, Nov. 04. ^{©}All Rights Reserved

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This article focuses on the New Keynesian multiple-equations small-open-economy macroeconomic model to illustrate deeper relations among model parameters. These relations are more important than the basic values of the parameters because it shows how the system behaves when some changes in the economy occur. The first stage of the analysis introduces a theoretical model. The second stage of the analysis estimates the states and parameters of the model on the quarterly data of the Czech economy. The third stage of the analysis focuses on the transfer function of this model and makes a deeper behavior analysis. In the final stage, the article demonstrates the stability of the model, shown through the impulse functions of the model. This shows response of the macroeconomic model to unanticipated shocks. (JEL C13, C32, E12, E17); Int'l Advances in Econ. Res., 10(4): pp. 297-312, Nov. 04. ^{©}All Rights Reserved

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This paper evaluates guaranty funds and solvency regulations. One main question addressed is how solvency regulations will benefit consumers. Many previous studies have found that most forms of solvency regulations do not have significant deterrent effects on insolvency. Even when solvency regulations are effective, they might still adversely affect consumers. This could happen because increasing the probability of solvency usually requires raising premiums. Therefore, it is interesting to see how regulators should design insurance regulations that benefit consumers. Insolvency of insurance firms provides a unique environment under which one is able to analyze the effects of solvency regulations and guaranty funds on the quality of insurance products and on consumers. This paper shows that guaranty funds are always desirable, but solvency regulations are of certain value only when they have the effect of protecting guaranty funds and alleviating the disincentives which they create. (JEL G22); Int'l Advances in Econ. Res., 10(4): pp. 313-327, Nov. 04. ^{©}All Rights Reserved

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The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 greatly transformed the American banking system by allowing the widespread establishment of interstate bank branching networks. This paper examines possible effects on local banking market concentration that resulted from the provision in the Riegle-Neal Act that allowed states to opt-in to the establishment of de novo interstate branches. Regression analysis using data from more than seven hundred cities does not provide any evidence that allowing the establishment of de novo interstate branches caused increases in local banking market concentration. These results may help alleviate some concerns that passage of the Financial Services Regulatory Relief Act currently pending in Congress will result in lessened competition in local banking markets. (JEL G21); Int'l Advances in Econ. Res., 10(4): pp. 328-336, Nov. 04. ^{©}All Rights Reserved

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