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Attention in the world of information goods - an analysis of scarcity
1-20Views:289Attention as a form of service can also act as a source for the crearion of value. In its functional and market interconnections, attention is product of labour (product or service) and, as an exchangeable good, is naturally exchanged for money. The system of sxchange provides a significant amount of accurate information about the division of attention within society - the degree to which it reflects recognition by the individual and the community. The forum of exchange of attention can be viewed as the openness of society, while the internet is its international market place. However attention also played an important role in the 'old economy'; indeed in some cases attention was the central tool in its creation. Direct, personal services aimed at human beings (teaching, legal and health services) always demanded great attention. If nowadays a product itself is the main part of the service provided, attention becomes an important and decisive resource in the use of a product. The growing individualisation in the provision of goods and services, the increasingly direct interaction between people, and last, but not least, the transformation to a virtual level, necessarily increases the demand for attention in economic transactions- Unlike traditional goods, the outstanding feature of services, and more specifically intellectual goods, is the ability of consumers to devote sufficient time and attention to their use and to acquiring the necessary competence to use them. For the providers of these goods the ability to hold the attention of consumers/clients is often the crucial feature of competitive success. Praise, excellence and prestige are all manifestations of acquired attention. In this sense attention acts as a store of value, although it cannot be dircetly and easily compared with acquisition mechanism associated with money and other products. The economy of attention raises questions rather than offering defensible theses or clear statements. Even less does it allow us to claim that a theory could be crystallised in this field to explain how the expanding phenomenon of the non-material sector of the economy function in the economy as a whole. There is no doubt however that attention is a supremely important subject of research in the new economy.
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Economy of Austria
125-148Views:331In my article I examine a member state of the European Union, the open and federal Austria, which can be considered as an example of a corporate economy. During the reconstruction period following the Second World War the Austrian economy was characterized by a frantic economic expansion. After the oil crisis, an incomparably low inflation rate and low unemployment, and the more dynamic than average economic growth attracted attention to the country. Due to the intensified external economic interest, the Austrian model - namely the economic policy and establishment - was widely studied at this time. However, at the beginning of the 1980's some structural problems appearing in the economy contributed to slowdown in growth, until the political changes of the year 2000, which finally brought a new favourable turn in economic policy. I start with an examination of Austria's economic status after the Second World War, then the development, changes and role of the Austrian social partnership. I go on to analyze today's Austria from the point of view of the sustainable balanced budget, focusing on the financial circumstances of the state, such as the complex financial connections derived from federalism.
Journal of Economic Literature (JEL): H62, H63
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Political Economy of Fiscal Reform in Central and Eastern Europe
66-75Views:267The reform of public finances has been at the centre of the post-socialist transition of Central and Eastern Europe since the early 1990s. At various stages of the transition, the reform process encompassed the entire gamut of public finances: the national budget, sub-national finances, extrabudgetary operations, and state-owned financial and non-financial enterprises. For the most part, fiscal reform was a non-linear stop-and-go process – often characterised by backtracking as well – and was uneven across countries. Moreover, unlike most reform experience in the rest of the world, fiscal reform in this region took place against the backdrop of a radical break, as sovereign countries emerged from a colonial past following the collapse of the Soviet Union. An important milestone was reached in 2004–2007, when all ten countries covered in this article became members of the European Union. The purpose of this article is to discuss fiscal reform in Central and Eastern Europe from the perspective of political economy. Following an overview of basic reform trends, the article focuses on the principal drivers and impediments to reform in the region. To conclude, the ingredients of successful reform are examined. The article does not provide an exhaustive inventory of reform measures, nor does it offer a survey of broad political economy issues prior to or during the transition period. Country references are intended to serve as stylised illustrations of main points, rather than as a comprehensive documentation of reform episodes.
Journal of Economic Literature (JEL) classifications: H1, H3, P2, P52.
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Trust: a transaction cost influencing psychological mechanism
120-131Views:282Our world is more and more characterized by complexity and interdependency. In the developing New Economy it is expected that the role of information and knowledge transfer, along with the role of cooperation, are some of the most important issues. Some psychological mechanisms, such as trust, will be instrumental ingredients of the new economy. It is speculated that the functioning of such complexity-reduction and cooperation-aiding, such a psychological mechanism as trust becomes a focal point of interest. This paper aims to clarify the workings and influence of trust on economic transactions, prices, and cooperation.
Jorurnal of Economic Literature (JEL) code: D8, L14, P22
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Fossil energy and economic growth in coal-based economies: empirical modeling and sustainability challenges
126-145Views:155The study examines the relationship between fossil energy consumption and economic growth in carbon-based economies, with a particular focus on the role of energy intensity and energy efficiency. We aim to quantify the impact of fossil energy consumption on economic growth through model-based analysis and identify the development and sustainability challenges of energy-intensive economies. The study used a Random Forest model to analyze the relationship between fossil energy consumption and GDP growth. The data are from the World Bank’s World Development Indicators database for the period 2013–2023, considering the economic structure of different countries. Energy intensity showed a strong positive correlation with GDP growth in China, Russia and Mongolia, while in more developed economies such as Canada and the United States, a lower or negative relationship is observed. Fossil energy-intensive economies benefit in the short term, but diversification is needed in the long term for sustainability. Diversifying the economy and increasing energy efficiency are key to sustainable development. The results can help policymakers plan the energy transition, especially focusing on reducing fossil fuel dependence and integrating renewable energy sources for economic and environmental stability.
JEL codes: O13, Q43, Q56, C53, O44
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The importance of foreign direct investment in Hungarian economy on the Millenary
10-25Views:250In the last two decades foreign direct investments has increased tremendously all over the world. Therefore the study of their economic influences and consequences is in the centre of international and Hungarian research. The paper without aiming at completeness gives a short summary of their influences on the recipient country, which is followed by the analysis of the Hungarian statistical data. These investments are of primary importance in Hungary. They played an important role in putting the country on an export-governed growth path at a time when inner accumulation did not make this possible. Their import demand exceeding export can be considered as an infavourable influence, with which FDI contributed to foreign trade deficit to a great extent. The annual capital influx helos compensate for the deficit of the balance of payment, however a major part of this deficit results from the withdrawal of the earnings realised with the help of FDI, which has been at a growing rate since 1998. The figures of the Hungarian companies (between 1998 and 2001) show that the duality of the Hungarian economy is not spreading.
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Varieties of development paths in post communist countries with special regard to the transition in Hungary
5-25Views:448Transition in Central and Eastern Europe was carried out in various ways. However, the different countries’ current economic structure, institutions and main economic performance measures are rather similar. The question asked is whether these countries follow a specific kind of development model? What seems likely is that they differ substantially from CIS countries in many aspects. But they also seem to differ from existing models of capitalism more than they do from each-other. Based on this information, the varieties of capitalism literature assumes that such a model does indeed exist. However, no comprehensive positive description of the model has so far been provided. This paper tries to define the main elements of the CEE capitalist models. These are small open economies, with close integration into the world economy through foreign investments, a relatively limited and declining role of state redistribution, the problems of dual economic structure and insufficient job creation, a relatively large shadow economy and “business capture”-type cronyism. Further research is required to properly describe the elements and interactions among them.
Journal of Economic Literature (JEL) classifications: D72, E65, P31
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Some economic aspects of higher education quality
14-30Views:523Based on the world's most renowned university rankings, OECD annual reports and Eurostat data, this paper seeks to demonstrate that a competitive economy requires competitive (higher) education and that there is a significant correlation between the quality of higher education and economic development. Furthermore, in this process, the higher education quality assurance organization system has an outstanding task and responsibility through the formation of quality culture, guidelines, helpful research, summary of good practices and making constructive suggestions. Finally, it points out that close collaboration between universities and agencies with stakeholders is a priority area, which could contribute to a much more capability-based output system in the longer term. It also considers it desirable to make the relationship between universities and scientific research networks and research institutes closer and more vibrant (where it is not).
Journal of Economic Literature (JEL) codes: H52, I22, I23, I25, I26, O15
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The influence of intra-industry trade on adjustment costs and the synchronisation of boom cycles
61-82Views:268For researchers studying intra-industry trade and the methodology involved in measuring the phenomenon one of the most important driving forces was the assumption that the creation of economic integration would lead to lower adjustment costs than were characteristic of the traditional commercial model. Another result was that - according to empirical data - intra-industry trade would receive a strong incentive from liberalisation, and that the accompanying adjustment costs would be lower than in cases there there was specialisation bewteen branches. In so far as this is demonstrable, proponents of attempts to achieve general integration offered a convenient weapon to their opponenets, who consistently argued back that it was precisely the difficult application of this process and its drawn-out and 'painful' nature that caused high costs. The first part of the article is devoted to a discussion of this debate, while the second part focuses on the role intra-industry trade plays in harmonisation with business cycles. The article shows that an examination of the intensity and dynamism of intra-industry trade allows a much more sophisticated analysis of a country's position in the world economy than is usually possible.
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“Neutral” China - Examining China's role in international processes since the outbreak of the Russia-Ukraine conflict in 2022
Views:162The study is based on China's perspective on the Russia-Ukraine war and its statements, political actions and economic aspirations since the escalation. China has tried to keep a neutral attitude towards the conflict. However, the Chinese position is complex, as it is heavily influenced by political and economic interests, which is reflected in the prosperous trade results with Russia as well. These major power aspirations are reflected in the reduction of economic dependence on the West, in the growing technological competition and political rivalry, particularly with the United States. Although China is increasingly opening up to Asian markets, its exports are still highly dependent on the US and European markets. Nevertheless, current developments are pointing towards further increasing independence and political tensions, which predict a shift in the global imbalances of power.
JEL codes: F15, F51, F53, O11
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The Evolution of Welfare Systems: Social Democratic and Social Autocratic Paths
46-65Views:318Students of global and regional political economy have produced a vast literature on divergent paths of capitalist evolution. The evolution of welfare systems, in general, and their different paths, in particular, have also widely been analysed in economic and social studies. The author, joining the discussions from a world system perspective, makes an attempt at presenting a global and regional political economic comparison of the seemingly similar welfare systems that have evolved in Northern and in Eastern Europe. The apparent convergence of the Sovietic type to the Nordic social democratic pattern is scrutinised, distinguishing it from the latter by the “social autocratic” label.
Journal of Economic Literature (JEL) kód: I31, I38, P36, P38
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The growing state presence in the world economy: Sovereign Wealth Funds
149-166Views:354While sovereign wealth funds (SWFs) were formerly considered to be passive financial investors, today we can see their active presence in international capital markets. The aim of this study is to give an overall view of these funds, which are becoming increasingly important actors in the international monetary and financial system. This study presents the formation and purposes of sovereign wealth funds, as well as the main factors contributing to their growing presence. Moreover, this study provides an insight into the investment activities and practices of these funds.
JEL classification: E58, F21, F30, G15
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The political economy of passive resistance: Anthony de Jasay was born one hundred years ago
126-135Views:426This short essay is aimed at commemorating Antal Jászay, or Anthony de Jasay, who made his mark at the interface of political philosophy and public choice, and 2025 is the 100th anniversary of his birth. His relative obscurity is due both to his avoidance of the institutions of the academic world and to the ‘conservative anarchist’ conclusions of his philosophy. However, Jasay is a classic in public choice literature who should not be forgotten – which, of course, would require getting to know him first.
JEL codes: D70, B25
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The use of logical programming in decision-making systems
105-113Views:123The strong market in teh globalized economy makes fast, quality responses important. In the accelerated world time for reaction has been decreased, so to say there is less time for response, on the other handm the problems have become more complex and the information needed to make the decision has grown. In this environment computational-response programs have gained an important role. This article shows the opportunities of logical programming and its use and advantages in economic modelling and decision-making systems.
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Reflections on the Role of Institutions on the Chinese Road to a Market Economy
49-82Views:268At the onset of transformation there has been a close to consensus view that the market system has no alternative. While this insight has found its place in the current mainstream on development economics, the so-called Washington consensus or post-Washington consensus (Kolodko, 2000, pp.119-141 andpp. 348-356; and Williamson, J, 2000, Srinivasan, T.N.,2000), very few would venture to repeat in an academic writing the once famous dictum of Vaclav Klaus: the third road leads to the third world. Much of western Europe has remained within the framework of the welfare state, despite its obvious limitations. Also in
the transforming economies, the rollback of the state has proven to be much less than the tough normative language adopted by early reformers would have indicated. Actually, it is the structure rather than the size of public spending in these countries that may be a source of social and economic strains by providing less than optimal conditions for sustaining economic growth. -
Policy (Institutional) Diversity and Economic Development
5-31Views:300Diversity, or variety, is the essence of economic life in the sense of underlying choice; economic calculation gives numerical substance to how people make choices in their daily endeavours, either as consumers or entrepreneurs. How does variety/diversity takes shape in the realm of institutions and policy making? Is the range of choices open-ended? The last couple of decades has revealed an overwhelming offensive of the neo-liberal paradigm in
terms of defining “best practices”. Even language was shaped accordingly with market reforms being seen in a quasi-single theoretical and policy framework. Are we heading towards increasing uniformity with regard to institutional and policy set ups, worldwide? An affirmative answer would underline the successful market based transformation of a series of command economies. Some convergence between institutional patterns in the USA and the
EU economies might be alluded to in the same vein A supportive argument for this line of reasoning could be that what matters for individual achievement, in the end, are equal opportunities. But this argument can be turned around when debating the merits of various institutional set ups in terms of creating fair chances for people. A sceptical answer would highlight the mounting challenges which confront societies, whether rich and poor, and the international community in general –in spite of the high hopes of not long ago. The demise of the “New Economy”, the series of corporate scandals in wealthy economies and the subsequent recourse to new regulatory legislation, recurrent financial and currency crises throughout the world, and the controversies surrounding the activity of IFIs, should compel “ideologues”, of all sorts, to be more humble in their prescriptions. This essay argues that there is substantial scope for institutional and policy diversity to operate as a means to foster economic development; that there might be a paradigmatic cycle in the dynamic of economic policies.