The aim of this paper is to explore the link between credit and output in the context of a developed transition economy. Salient credit market features of these economies are (i) credit market imperfections leading to constraints on growth and (ii) the rapidly growing importance during...

Throughout history, agriculture-led development strategies with state support programs have been essential to achieving rapid economy-wide growth, poverty reduction and structural transformation at early stages of development. Yet over the last three decades, the domestic and international...

Recent studies suggest that democracy and globalization lead to ethnic hatred and violence in countries with a rich ethnic minority. We examine the thesis by Chua (2003) that democratization and globalization lead to ethnic violence in the presence of a market-dominant minority. We use different...

This paper examines the partnership in development policies between the World Bank/IMF and the United Nations. Poverty Reduction Strategy Papers (PRSPs) are instruments used by the Washington institutions to achieve the Millenium Development Goals (MDG) initiated by the UN. We review and...

The 1997 collapse of the Albanian economy caused by the collapse of economy-wide Ponzi schemes contrasts sharply to its success status as a post-Socialist transition country in the years 1992-96. In this paper, an attempt is made to explain this "Albanian Paradox". The specific Albanian...

Given the economy's complex behavior and sudden transitions as evidenced in the 2007–2008 crisis, agent-based models are widely considered a promising alternative to current macroeconomic research dominated by DSGE models. Their failure is commonly interpreted as a failure to incorporate...