This paper views the growth and convergence process of the four Visegrad economies - the Czech Republic, Hungary, Poland and Slovakia - through the lens of the open economy, stochastic neoclassical growth model. We use a unified framework to understand both the long-run convergence path and...

The paper interprets the growth and convergence experience of three Central-Eastern European economies (the Czech Republic, Hungary, and Poland) through the lens of the stochastic neoclassical growth model. It adapts the methodology of Business Cycle Accounting (Chari, Kehoe and McGrattan 2007)...

1. Introduction -- 2.Methodology and stylised facts -- 3. Labour input and labour income -- 4. Capital stock and capacity utilisation -- 5. Growth and development accounting -- 6. The neoclassical growth model -- 7. Markets and distortions -- 8. Growth and the financial environment -- 9. Credit...