Regional unemployment and non-participation rates are higher, more disperse, and more stable in Europe than in the U.S. This paper helps understand what may cause this phenomenon. Specifically, it looks at the role of migration in regional differences. I analyze the adjustment mechanisms of...

Regional unemployment and non-participation rates are higher, more disperse, and more stable in Europe than in the U.S. This paper helps understand what may cause this phenomenon. Specifically, it looks at the role of migration in regional differences. I analyze the adjustment mechanisms of...

It is well known that if mild sector–specific externalities are considered, then the steady state of the standard two-sector real business cycle model can become locally indeterminate and endogenous business cycles can arise. We show that this result is not robust to the introduction of...

This paper explores the local stability properties of the steady state in the twosector neoclassical growth model with sector–specific externalities. We show analytically that capital adjustment costs of any size preclude local indeterminacy nearby the steady state for every empirically...

Intra-industry trade in agri-food products between Hungary and the EU is shown to be low and dominated by vertically rather than horizontally differentiated products, suggesting higher economic adjustment costs. Following recent empirical studies, we then test econometrically for the...

We develop a career concerns model in which agents differ in taste for income in addition to ability, and derive basic implications of this framework. We argue that the model captures important aspects of ambition. Since ambitious agents are expected to work harder - and therefore be paid more -...

The political and economic transition posed a complex, tremendous challenge in Hungary in the beginning of the 1990s. Not only macroeconomic stabilisation was required, but fundamental organisational and institutional changes were also needed to transform the country into a stable, middle-income...

The paper focuses on a segment of the hidden economy, i. e. on unofficial (unreported) economic activities of registered medium and large enterprises in Hungary. First we place the problem into a broader context, then we delimit those segments of unofficial economic activities our surveys are...

TEP, the Hungarian Technology Foresight Programme, was launched in 1997, as the first one in Central and Eastern Europe, to provide inputs to a national strategy by identifying socio-economic challenges and developing broad visions for the future. Specifically, it was aimed at analysing...

The agriculture is traditional risky business, but in transition countries agricultural producers should face some additional difficulties. The agri-food chains are still suffering from underdeveloped market institutions creating severe barriers for price discovery and high transaction costs to...