The rising role of intra- and intergenerational transfers (e.g. basic income, child benefit and public pensions) characterises modern economies, yet most models depicting these transfers are too sophisticated for a wider but mathematically trained audience. This book presents simple models to...

When individuals underreport their incomes, they take into account their private gains and moral losses, the latter depending on the acquaintances’ previous underreports. We prove that under quite natural assumptions the process globally converges to the symmetric steady state.

This paper deals with some properties of a decentralized adjustment process which were investigated originally by T. A. Marschak in [Marschak, J. 1968. Computation in organizations: Comparison of price mechanisms and other adjustment processes. Risk and Uncertainty Proceedings of an...

It is commonly known that, as of January 1, 1991, changes have taken place in the conditions for repaying housing loans issued at favorable rates of interest. The trade publications paid almost no attention to this topic, and the dailies and weeklies did not even explain such important...

We extend the benchmark model of Aghion and Blanchard [Aghion, P., Blanchard, O.J., 1994. On the speed of transition in Central Europe, NBER Macroecon. Ann. 9, 283-319] assuming that the private sector emerging during the post-communist transition consists of two segments employing high and...

The mandatory pension pillar is usually supplemented by a voluntary one. In our simple model, voluntary pensions partly replace mandatory ones without affecting the outcomes: the voluntary pensions are indifferent. This result may serve as benchmark.