We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of...

Interpretations of David Ricardo's (and Adam Smith's) tax theory are presently dominated by an Anglo-Saxon perspective, though French physiocrats also played a role in its formation. Recent studies on economic thought often include a look at the historical precedents of a theory. This has given...

Interpretations of David Ricardo's (and Adam Smith's) tax theory are presently dominated by an Anglo-Saxon perspective, though French physiocrats also played a role in its formation. Recent studies on economic thought often include a look at the historical precedents of a theory. This has given...

In this paper we compare the classical general equilibrium framework of Smith and Marx with the neoclassical one of Arrow and Debreu, and find that these competing paradigms of equilibrium clash on a number of critical issues--efficiency, power, the role of markets, time, the nature of...

We start out from the hypothesis that limited government leads to low uncertainty and low transaction costs. If political institutions affect the degree of uncertainty and transaction costs, we formally show they should affect the steady state level of income per capita. The impact 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...

The paper looks at school segregation in Hungary by ethnicity (Roma versus non-Roma) and social disadvantage. We use comprehensive data from the National Assessment of Basic Competences from 2006. School segregation is measured at various levesl: by micro-regions, within towns and cities, and...

The paper looks at secondary school attendance and grade retention after 8th grade in Hungary. It makes use of panel data of the Hungarian Life Course Survey from 2006 through 2009. Three and a half years after finishing 8th grade, ninety per cent of the children are in school, three quarters on...

This study quantifies the achievement gap between Roma and non-Roma students in Hungary and assesses the potential causes of the gap. According to reading and mathematics test scores measured in eighth grade, the gap is substantial. Its magnitude is similar to the gap between African American...

The distribution of Roma and non-Roma students across schools has become considerably more unequal in Hungary since the 1980's. This paper analyzes the effect of school choice and local educational policies on that inequality, known as school segregation, in 100 Hungarian towns. We combine...