When nominal wage rigidity is large, and banking sector oligopolistic, the benevolent government may prefer to regulate interest rates to boost labor demand. A government of a transition economy may postpone bank privatization to keep credit provision under control, as long as inefficiencies of...

In our analysis, we examine the convergence of all recent ten European Union (EU) members to EU standards. Novel features of the paper include more complete measures of convergence, in particular fiscal convergence; a broader examination of inflation convergence with respect to the Maastricht...

Recent work on the following three aspects of labor market transition in the Czech Republic is presented: (i) reallocating workers and jobs from post-communist firms to newly started enterprises, (ii) providing incentives for human capital investment decisions, and (iii) coming to terms with...

This book provides a detailed analysis of the transition experience of Czech workers and students. The first chapter starts with a cross-sectional comparative study of the transition from communist to market wage structures and returns to human capital. The second chapter provides insight into...

Mismeasurement of inflation is likely to be more severe in a transition economy than in a more stable environment. Reasonable estimates of the size of the inflationary bias in the Czech Republic suggest that conventionally reported declines in real output and living standards during the...

Income and consumption inequality increased in all transition economies, albeit to very different levels. Existing findings suggest that countries that were slow to undertake promarket reforms experienced the largest increase in inequality, with the notable exception of Belarus, one of the least...

We extend the scarce evidence on labor supply in post-transition countries by estimating the wage elasticity of labor force participation in the Czech Republic. Using the household income survey data of 2002, we find that a one-percent rise in the gross wage increases the probability of working...

The aim of this paper is to provide evidence about the existence or non-existence of structural breaks in exchange rates of European transition economies. We used the testing procedure of Vogelsang (1997) that allows for detecting a break at an unknown date in the trend function of a dynamic...

Corruption has a negative impact on society and economy. The transition process in Central and Eastern Europe (CEE) uncovered dormant possibilities for corruption and necessity for appropriate steps to be taken. We document the state of corruption in the Czech Republic and the measures...