If the central banks of transition countries followed the certain monetary policy rules prior to the current world economic crisis, do they continue to keep them when situation changed? The generalized method of moments and Johansen test. In this article it is investigated the influence of the...

Money illusion is "frequently invoked and frequently resisted" by economists. Resisted as it contradicts the maximizing paradigm of microeconomic theory and invoked since a tendency to think in nominal rather than real terms becomes evident in the behavior of agents. This paper rationalizes...

The objective of this paper is twofold. The first focus is on a productivity analysis, including an assessment of the impact on productivity of investments in capital, labour and other inputs (energy, material). To this end a growth accounting system is developed, although this is more than an...

To evaluate protectionism, we propose a comparative advantages model based on monopolistic competition with an endogenous markup, which enables the identification of three policy effects: international competition, productive and allocative efficiency, besides a non-cost competition term....

It is evidences that the actual global crisis affected the convergence process in EU. Generally, just new adhered countries were more affected by the actual crisis. Today all forecasts are suffering by uncertainty. There are different opinions regarding how deep and how long the convergence...

How to control climate change and to spur clean energy are among the most important challenges facing the world today. So far, a large strand of literature on climate change states that we need two economic policy instruments to correct for the two types of market failures: an environmental tax...

Privatization and deregulation in the electricity sector led to competitive markets (pools and power exchanges) for wholesale trading and retail markets. Deregulation was aimed at improving efficiency and reliability, as well as achieving higher quality and overall lower costs. South America has...

Bank runs and banking crises have become global phenomena occurring repeatedly in both developed and developing countries during the last few decades. Bank runs and banking crises have increased since financial liberalization in the 1980?s and 1990?s (Davis and Karim, 2007). In Indonesia, bank...

The distribution of persons in each economy on their income is similar to the Maxwell-Boltzmann equilibrium distribution encountered in various physical systems. The transactions the persons are making to buy things that make them survive (in all sort of ways) are making them ‘poorer’...

The role of research and development (R&D) as an engine for technological progress is well documented. For small and open economies spillover effects of foreign R&D appear to be the dominant source of productivity growth (Coe and Helpman; 1995 and Keller; 2004). There is, however, evidence that...