This paper evaluates policy alternatives to achieve permanent fiscal consolidation in Hungary, based on a general equilibrium calibration. The main finding is that the composition of the consolidation, as determined by the mix of revenue and expenditure measures, has important implications for...

We analyze the impact of tax morale on the optimal progressive labor income taxation. Only universal basic income is financed from a linear tax and the financing of public goods is neglected. Each individual supplies labor and (un)declares earning, depending on his labor disutility and tax...

We analyze the impact of (exogenous) tax morale on the optimal design of progressive income taxation. In our model, only universal basic income (transfer) is financed from a linear income tax and the financing of public goods is neglected. Each individual supplies labor and (un)declares earning,...

This paper reviews recent literature on the macroeconomic effects of environmental taxes. It attempts to delineate the conditions under which a cleaner environment is compatible with attaining macroeconomic objectives, such as more employment and economic growth. The analysis reveals that an...

It is still widely debated how non-cognitive skills can be affected by policy intervention. For example, universal music education programs are becoming increasingly popular among policy makers in Germany and other developed countries. These are intended to give children from poor families the...

The European debt crisis gave rise to policies of fiscal austerity designed to instill discipline and return economies to growth after a short-lived period of structural adjustment. Greece received several bailouts conditional on implementing severe spending cuts and structural reforms. These...

Ageing populations are a major consideration for socio-economic development in the early twenty first century. This demographic change is mainly seen as a threat rather than as an opportunity to improve the quality of human life, especially in Europe, where ageing has resulted in a reduction in...

With rising spending during the COVID-19 pandemic, the state has become involved in decision-making in areas where it has held back for years. In the case of housing the state's role has declined sharply since 1989, and the expectation that housing is the private responsibility of each...

Countries have adopted several measures to control the spread of Covid-19. However, substantial differences remain in terms of performance in controlling the virus, potentially due to heterogeneity in citizen engagement with government measures. Drawing on this observation, this paper seeks to...

Narratives impact people’s opinions on relevant policy issues, and their political context may influence these effects. Indeed, some specific contexts may be more easily swayed by certain stories that provide explanations for current social and economic phenomena. We explore this issue by...