This paper argues that there are conditions for successful euro area (EA) accession, apart from fiscal rectitude. One is an ex ante critical mass of real convergence which should enhance lasting nominal convergence. Another condition is an overhaul of EA mechanisms and policies that should make it a properly functioning monetary union, which implies an adequate mix between risk-reduction and risk-sharing. It is argued that risk-sharing cannot be secured by private sector arrangements only. Entering the ERM2 is deemed to be no less demanding than euro area accession per se, especially for countries that use fl exible exchange rate regimes. The paper examines also the infl uence of production (value) chains on the efficacy of autonomous monetary and exchange rate policies when it comes to controlling external imbalances; macro-prudential policies, too, are highlighted in this regard. Steady productivity gains are a must for surmounting the middle income trap and achieving sustainable real convergence.
Free movement of persons is one of the fundamental values and achievements of the European Union, however, intentions towards mobility vary across and within the member states. Economic literature has remarkable theories to explain migration flows and individual selection factors of potential migrants, but it ignores major achievements of other social sciences. This paper builds an economic framework to incorporate the Hirschmanian concept of loyalty into the microeconomic (human capital) model of international migration by using interdependent preferences. Hirschman assumes that even after exiting, loyal people care about their previous communities, thus it imposes a certain psychological ‘exit tax’ on them. Based on this concept, it is hypothesized that people with altruistic motives have weaker intentions to migrate, so the presence of loyalty towards others makes international migration less likely, conveying that loyalty towards local or national community may be responsible for moderate labor mobility among EU member states. Results show that attachment to one's country makes one's intention to move abroad in the near future less likely, while loyalty towards one's city has more moderate impact on their intentions.
In this paper, we pursue two related research questions. First, we enquire whether state owned enterprises (SOEs) perform better than privately owned firms in a large variety of emerging markets. To test this, we develop a unique dataset using firm-level data from the World Bank Enterprise Survey (WBES), resulting in a sample of over 50,000 firms from 57 understudied countries including emerging capitalist, former socialist and state capitalist ones. Our results suggest that SOEs do display productivity advantages over private firms in these understudied economies. Our second research question asks whether the performance of state owned firms in these understudied countries is context specific, namely whether performance depends on the institutional system into which a country is classified. We refer to these systems as configurations. In particular, we are interested in whether state owned firms perform better in “state capitalist” countries including China and Vietnam. We find empirical support for the argument that the “state-led” configuration provides better institutional support for the ownership advantages of SOEs than others.
The article reveals the logical and historical grounds of Grzegorz W. Kolodko’s approach to the interpretation of the phenomenon of China building socialism with Chinese characteristics and developing capitalist relations. Reality goes beyond the dilemma of “socialism or capitalism” and represents something third, having an independent meaning. It is shown that the starting point for the emergence of society and man is a jointly-divided labour whose two sides (jointness and separation) while historically evolving, are embodied on the side of separation in the market economy and capitalism, and on the side of jointness in the state and socialism. On this basis, there arises a confrontation between two opposing systems: capitalism and socialism. The subsequent historical progress turns capitalisation and socialisation into two complementary processes of the development of society, which are no longer adequate to describe in terms of the two systems. A certain third entity emerges. This proves that “Tertium Datur” by Grzegorz W. Kolodko has not only practical importance, but also deep logical and historical grounds.
Economics at its core is about human life in human economies. The difficulty is that economies have continued to evolve and economics has lagged behind. Modern life invaded societies in the 19th century: first in Britain and America, later in Germany and France. Increasing numbers were driven not just by a work ethic or a desire to accumulate: They were dreamers, tinkerers, and adventurers on a journey, exercising their imagination, creativity, and curiosity. This indigenous innovation, coming from the grassroots up, was the foundation of modern life which brought people satisfactions that went beyond material rewards. It is time economics has caught up to restore the dynamism and vitality necessary for people to enjoy not only a Good Life but also a Good Economy.
The paper provides a brief description of the Active Ageing Index (AAI). This indicator, introduced in 2012, aims to measure the potential of older people for active and healthy ageing. The indicator is constructed from European Union survey data, and these results are weighted with coefficients determined by experts. One of the variables from the surveys measures the proportion of older people using the internet at least once a week. We argue that such regular internet usage does not show too much variation in this era of the ubiquitous internet, so a more sophisticated definition of internet usage must be taken into consideration. Our discussion contains three different AAI variants: the original expert-based, the Djurovic et al. (2017) I-distance indicator, and our factor-based index.
Over the centuries, Buddhist monks applied economic models in the operations of their monasteries to make them sustainable while also observing Buddhist principles. The large variety of economic practices observed demonstrate the creativity of monastics in acquiring the resources to support their large monasteries in a way that was viewed as compatible with Buddhist ethics embodied in the Noble Eightfold Path. Researchers have analyzed the integration of faith-based and financially related monastic needs for different countries in different eras. The Buddhist economics approach as it has been developed in the last 40-50 years aims to create an alternative worldview that challenges the main underlying assumptions of Western economics. The mainstream Western economics model is originally based on the following assumptions: rational, selfish behavior; profit-maximization; competitive markets; and instrumental use of the environment. Buddhist economics is based on a different set of assumptions: dependent origination (“pratityasamutpada”), where people are interdependent with each other and with Earth; people are aware of enlightened self-interest based on interdependence and thus are altruistic; firms care about the well-being of workers, customers, shareholders, and community; and all activities include caring for the environment. With these assumptions, the Buddhist economic model has shared prosperity in a sustainable world with minimal suffering as its goal.
The prevailing view of capacity building is summed up in the adage: “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” In other words, simple compassion is counterproductive; utilitarian measures of effectiveness are the best standard for evaluating a social innovation. This paper will explore the alternative possibility that practicing simple compassion as the highest virtue, as did the Buddha, can be so productive that the aphorism should be: “Give a woman a fish, and she may help you build a fish farm.” This argument is illustrated by an exploratory case study of a Thai firm, Siam Hands. The company exemplifies a Buddhist economics approach to social innovation and capacity building, as opposed to mainstream Western utilitarianism.
According to Cas Mudde, we live in a “populist Zeitgeist”. The paper argues that not just the 21st, but also the 20th century is about populism. In the first section I elaborate the theoretical background of populism, which is claimed to be a never-ending phenomenon: here, various notions of populism are analysed; I investigate the relationship between democracy and populism; and I refer to the biopolitical framework of populism (called biopopulism) as well. This theoretical framework will be used to analyse Communist populism in Hungary. I elaborate the populism of the Horthyera (1920-1944) in the context of Communist populism. Then I analyse the case of Communist populism in Hungary (1948-1989) according to the following aspects: in the context of the working class and the bourgeois elite; the biopolitical character of the regime; goulash Communism as populist legitimacy; and the viewpoint of socialist patriotism. The main aspect of Communist populism is summarized at the end of the third section, and I briefly refer to the afterlife of Communist populism as a nostalgic phenomenon. The regimes analysed in this study aimed to govern the entire life of the citizens, which is why biopopulism is a useful analytical concept. The biopopulist framework shows that the investigation of the historical backgrounds of populism is necessary to understand contemporary populist tendencies.
The aim of this review paper is to illustrate the areas of interest and the thinking of Hungarian hospital managers by providing a summary of the relevant Hungarian health care controlling literature and to give an introduction of potential research directions. The paper summarizes the “public discourse” and thinking on controlling, and simultaneously highlights the priorities of health care as well. The main range of interest are the financing problems and their solutions, as well as other kind of uncertainty arising from the continuous changes in roles and measures. In the early ninties some health care institutions started to apply controlling systems as a result of the introduction of performance-based financing and often published articles about it up to 2004. In 2015, a project created to enhance the operational efficiency of the health care system restarted controlling thinking: unified management measures required for hospitals may induce the development of the controlling data service, more accurate reporting, management attention, and experience sharing.