It is a highly disputed question in the literature how state subsidy influences the behavior of the entrepreneurs and accordingly the growth prospects of the economy. Most authors agree that state intervention in financing deteriorates the incentives of the entrepreneur, but there is no...

It is a highly disputed question in the literature how state subsidy influences the behavior of the entrepreneurs and accordingly the growth prospects of the economy. Most authors agree that state intervention in financing deteriorates the incentives of the entrepreneur, but there is no...

In spite a vast amount of both theoretical and empirical work on foreign assistance and development, little is known about the incentive effects of aid. In fact, recent surveys of aid only briefly mention the possibility of moral hazard situations in the recipient-donor relation, but conclude...

The paper considers a model in which limited liability causes an asset substitution problem for banks. The problem can at times become so severe that the current regulatory framework – based on a combination of effectively full deposit insurance, minimum capital requirements and prudential...

Non-cognitive skills are important predictors of success on the labour market and in many areas of economic and social life. This paper explores the current literature on the economics of non-cognitive skill formation and the most important explanatory factors behind the recent boost of the...

Institutions of the liberal democracies of the developed Western world are increasingly insufficient to deal with the ever worsening of social problems associated with technological progress, the rapid economic transformation of the economy, the demographic issues and the acceleration of...

This study estimates the expected long-term budgetary benefits to investing into Roma education in Hungary. By budgetary benefits we mean the direct financial benefits to the national budget. The main idea is that investing extra public money into Roma education would pay off even in fiscal...