Reform of the welfare sector is on agenda in Hungary, as it is in other post-socialist countries. Debate is taking place on the financing of the pension system, health care and higher education, on transformation of the social insurance system, and on the role of the welfare state.

Money has always been something of an embarrassment to economic theory. Everyone agrees that it is important; indeed, much of macroeconomic policy discussion makes no sense without reference to money. Yet, for the most part, theory fails to provide a good account for it. Indeed in the...

Using only information based on currently-observable market behavior, the paper shows how to make rigorous dynamic welfare comparisons among economies or economic situations having arbitrarily-different endowments and technologies,but sharing a common dynamic preference ordering. The correct...