We develop a general equilibrium model that jointly considers the influence of capital accumulation constraints and of labour market frictions on the process of transition. We endogenize the economic and budgetary costs of different government policies and show that, early in transition,...

type="main" xml:id="ecot12044-abs-0001" <title type="main">Abstract</title> <p>We perform event analysis on particular episodes of tension in the Korean peninsula between 2000 and 2008, and investigate the effect of the events on South Korean financial markets (stock markets, bond yield spreads and the exchange rate) given...</p>

After several years of transition experience the theory is very poorly developed except in regard to macroeconomtc stabilization. Another key dimension of transition is institutional change to provide the organizational infrastructure for a market economy. Such issues are analysed here through a...