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• Scarcity and Uncertainty Reduction by Institutions

  Laszlo Csorba

  Views:

  81

  Institutions are not equally able to reduce scarcity and uncertainty. If institutions were classified from this point of view we would acquire a new analyticaltool to examine institutions in the past the present or the future. Scarcity and uncertainty appear continuously and institutions can manage them only by a greater increase in individual responsibility. However, this also increases the danger of the disintegration of community. We can see this application in practice by surveying the Hungarian pension system over the past 100 years.

  Journal of Economic Literature (JEL) classification: A11, B52, G18, G23

• The option value of education

  131-148

  Judit T. Kiss

  Views:

  75

  Within the theoretical frameworks of standard human capital theory countless analyses have been carried out into investment decisions, in which the examination of the uncertainty of the costs and benefits of education were mostly disregarded and an assessment of the option opportunities was often omitted. In this essay we tried to review one of the extension opportunities of the theory of standard human capital and the option approach of human capital investment. We looked for an answer to the question of what kind of models have been developed for the interpretation of education as an option and for the determination of the option value of the investment. In the study we have highlighted the fact that a decrease in uncertainty in human capital investment is as good an incentive for investing in more education as the public subsidization of education.

  JEL classification: C6, D8, I2, J2

• The timing of the EMU accession

  45-62

  Laszlo Jankovics

  Views:

  217

  Following the Eu-accession the next major challenge is the preparation for and finally the introduction of the single currency for the Central Eastern European countries. In this paper, I analyze the legal, economic and political factors regarding the preparedness of the whole region, with special emphasis on Hungary. After taking the pros and cons of the official "as soon as possible" strategy into consideration, we can conclude that there is no convincing case for further postponing eurozone entry. Additionally, putting off the date indefinitely or ambiguously could result in growing economic uncertainty and dangerous financial instability. In the case of Hungary, it is very likely that the country would suffer serious loss of reputation and credibility were it to put off the target date a second time, i.e. beyond 2010. Lack of strong political commitment could unfortunately easily lead to a postponement of the adaption of the single currency. The potential implication might well be debated, but no doubt would be serious in terms of reputation and economic development.

  Journal of Economic Literature (JEL) classification: E42, E58, F33 

• A Journey Through the Theory of Economic Development

  Lavinia Sidonia Delcea

  Views:

  101

  The theory of development economics changed signifcantly from the first attempts of defining the concepts in the 50s until nowadays. The contributions to the development theory are at the same time closely related to the historical context of the underdeveloped and developing countries. This paper tries to facilitate the understanding of the way development economics evolved, by presenting the main contributions to the theory. The research methodology used in this study is analytical, based on the gatherinf of the information, its organisation in a logical way, the presentation and analysis of the most significant ones, and finally the drawing of relevant conclusions. The main findings of this paper are that after five decades of strong ideas and recipes of economic development we have reached a point of uncertainty regarding what is beneficial or harmful for the nations' economic development.

  Journal of Economic Literature (JEL) classification: O10.