In this paper we describe a theoretical model of optimal investment of various types of financially constrained firms. We show that the resulting relationship between internal funds and investment is non-monotonic. In particular, the magnitude of the cash flow sensitivity of the investment is...

The paper investigates how tax rates, corruption and institutional aspects of the labour market influence the size of the segments of the labour market such as unemployment, employment, self-employment and activity in the hidden economy. The novelty of our approach is the theoretical...

Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's...

Temporary migration is of growing significance in Europe. Upon migration to a country with higher technological development that typically coincides with positive wage differentials, temporary migrants may upgrade their skills by learning on the job and subsequently import the newly acquired...

The paper explains the observed asymmetric inflation response to value-added tax (VAT) changes in Hungary by calibrating a standard sectoral menu cost model on a new micro-level CPI data set. The model is able to reproduce important moments of the data, and finds that the asymmetry can be...

The structure of trade expansion in Hungary and Poland over the period 1990-1998 and its implications for labour-market adjustment is examined. An econometric analysis of trade and employment data suggests that changes in domestic consumption and productivity have significant influence on...

The article analyses the duration of exports of individual products of former communist countries to the enlarged European Union (EU25) employing survival analysis. The results show that the duration of trade differs across EU10 and EU15 markets, for the majority of countries the length of trade...

The complementarities of trade advantage and trade competitiveness measures for Hungarian agro-food trade with the European Union are analyzed. The stability and duration of the trade measures over time is investigated by the survival analysis using the nonparametric Kaplan-Meier product limit...

Az új EU tagállamok gazdasági folyamatainak szembeötlõ jellegzetessége az egy fõre jutó GDP-ben mutatkozó felzárkózásuk, illetve az ezzel kapcsolatos árszínvonalbeli konvergencia. Amennyiben ez a jövõben is folytatódni fog, akkor az inflációra és árfolyamra vonatkozó...