This paper investigates the weekly stock market data of the Hungarian stock index BUX, the Czech stock index PX and the Polish stock index WIG20 spanning from January 7, 2001 to April 18, 2021. The period of more than 20 years enabled to analyse the behaviour of returns and their volatility...

The aim of this study is to estimate the credibility of monetary policy in four accession countries (the Czech Republic, Hungary, Poland, and the Slovak Republic), based on the Markov regime-switching (MRS) framework. We utilize the theoretical proposition that in the conduct of monetary policy,...

In the presence of differing abilities to evade taxes, markets select producers for their evasive skills and their abilities to keep costs of production low. Inefficient firms crowd out efficient firms. If the least efficient firms are the best tax evaders, adverse selection is severe and output...

A series of experiments in Albania and the Netherlands give us the opportunity to compare behavioral patterns related to tax evasion. Subjects have to decide between a random 'registered' income, the realization of which will be known to the experimenter for sure, and a random 'unregistered'...

In this paper, I investigate to what extent the cross-country variation in nominal interest rates can be explained as being due to governments' optimal response to economic conditions such as tax collection costs, tax evasion and government consumption needs. In particular, I study the effects...

Die WES-Sonderfragen für das vierte Quartal 2019 befassen sich mit dem Ausmaß und den Wirkungen der Schattenwirtschaft. Die Teilnehmer wurden gebeten, Fragen zum Ausmaß der Schattenwirtschaft in den einzelnen Ländern, zu den Gründen für Schattenwirtschaft und zu den Sektoren, die...

We show how experience and dynamic learning processes reduce the obstacles to optimization imposed by information frictions when individuals newly enter the formal sector economy. Most importantly, we provide causal evidence on the exact mechanisms through which individuals learn about the...