The paper shows how a dynamic neoclassical AS-AD can be derived and used to describe business cycles and growth trends to undergraduates. Derived within the Ramsey-Cass-Koopmans (RCK) model, the AS-AD is the stationary equilibrium of the deterministic dynamic general equilibrium framework....

The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft...

The paper presents a human-capital-based endogenous growth, cash- in-advance economy with endogenous velocity where exchange credit is produced in a decentralized banking sector, and money is supplied stochastically by the central bank. From this it derives an exact functional form for a general...

This paper assesses the importance for structural transformation of three features of sectoral technology: labor-augmenting technological progress, capital intensity, and substitutability between capital and labor. We estimate CES production functions for agriculture, manufacturing, and services...

We study coalitional games where the coalitional payoffs depend on the entire coalition structure. We introduce a noncooperative, sequential coalition formation model and show that the set of equilibrium outcomes coincides with the recursive core, a generalisation of the core to such games. In...

Pension systems fight myopia and reduce old-age poverty. Our simple model introduces heterogeneous wages, flexible labor supply, progressive personal income tax and pension credit. The socially optimal transfer system is close to the means-tested one proposed by Feldstein (1987).

We study a family of models of tax evasion, where a flat-rate tax finances only the provision of public goods, neglecting audits and wage differences. We focus on the comparison of two modeling approaches. The first is based on optimizing agents, who are endowed with social preferences, their...

Rapid and thorough changes have recently taken place in dairy supply chain in the whole Central and Eastern Europe. Growing concerns have been expressed that these changes may negatively affect farmers' relative position towards downstream industry, due to market power exercised by the latter....

Using all of the available data on the ethnic composition of Hungarian primary schools, this paper documents the degree of between-school segregation of Roma versus non-Roma students between 1980 and 2011. We calculate the measures of segregation within school catchment areas as well as within...

The paper explores the effect of economic transition on public-private sector pay differential across the pay distribution in Hungary from 1992 until 2003. Over the time period covered by the analysis the public sector had witnessed large-scale privatisations and restructuring through a number...