Liquid money controlled by a trustworthy central bank can serve as an insurance against external surprises such as stock market crashes, bank fails and other setbacks that endanger the yield of illiquid savings. In turbulent times, the insurance property of money is particularly accentuated. The...

A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be...

A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be...

The market mechanism of spatial resource allocation is examined in a system of cities, where social welfare depends on city size. The competitive dynamics of the system is a product of the interplay between people's individual exit-type choices (migration) and their collective voice-type choices...

Club theoretical analysis of migration between asymmetrical cities shows that centralised policy intervention is necessary to ensure the efficient allocation of people between cities. Administrative and economic measures are compared as policy instruments of central government. These instruments...