The paper develops a simple theoretical framework in which the efficiency of industrial restructuring due to privatization process can be analysed. The dynamic model is based on the approach recently proposed by B. Gibson and A. Dutt (1993). This model is extended through inclusion the...

We model the introduction of hard budget constraints in a transition economy. The model, set in continuous time, is designed to address the interaction between the hardening of such constraints and the speed of restructuring in the industrial sector. We emphasize the impact policy changes will...

The paper investigates the role of social cohesion in economic development. We capture 'social cohesion' as society's willingness to accept lower wages to increase employment, and as its willingness to offer benefit payments to the unemployed. The lower the minimum wage rate and the higher the...

Since the beginning of the transition from real socialism to capitalism the Hungarian innovation system has been going through a number of changes. The turbulences the industrial research and development (R&D) system has been facing have been even heftier than the changes the rest of the...