Income dynamics and stability in the transition process: General reflections applied to the Czech Republic

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State Aid in the Enlarged European Union. An Overview

In the early phase of transition that started with the 1990s, Central and Eastern European Countries pursued economic restructuring of the enterprise sector that involved massive injections of state support. Also foreign investment from the West and facilitation of the development of a market economy involved massive injections of state support. With their accession to the European Union (EU), levels and forms of state aid came under critical review by the European Commission. This inquiry investigates whether the integration of the new member states operates on a level playing field with respect to state aid. Quantitative and qualitative analysis is relied upon to answer this key, as well as other, related questions. Findings suggest that in recent years a level playing field across the EU has indeed emerged. State aid in the new EU member countries is rather handled more strictly than laxer compared to the ‘old’ EU countries.competition policy, economic transition, EU enlargement, state aid

Fiscal Transparency and Policy Rules in Poland

This paper discusses the link between the deficit bias in public finance and institutional settings. The Polish experience is put in a wider context and provides an extensive discussion of possible institutional reforms that may be implemented to stabilise the path of fiscal policy and reduce the deficit bias. Although substantial improvements have been made in Poland with respect to fiscal transparency standards set by the IMF and EU there is still much scope for enhancement. The recommended change in fiscal policy would involve the implementation of medium-term budgetary framework that would ensure consistency between the budgetary process and medium-term fiscal goals. This should be accompanied by the introduction of binding constraints on fiscal policy. The expenditure rule could be reintroduced to strengthen fiscal discipline, as it could force policymakers to tighten fiscal policy. It seems to be indispensable to maintain fiscal rules at the local government level. The issue of still limited fiscal transparency and unsatisfactory performance of fiscal rules requires the undertaking of various appropriate measures to strengthen the policy framework in Poland. This can be done in our view by involving external institution entitled to examine fiscal transparency and the performance of fiscal rules in the budgetary process. We think that the institution that is fully capable to take the lead in this respect is the NIK, which was granted full independence in 1994 and has since proved to be successful in overseeing public finances. This should, however, be accompanied by simultaneous enhancement of the internal audit.Fiscal Transparency, Fiscal Rules, Fiscal Discipline, Institutions

Labour market inequalities and the role of institutions

A large body of studies has documented the changing wage structure and increasing inequalities that in the last decades have characterised many OECD countries. The importance of these topics has been addressed by the workshop on "Comparing Inequalities" organised by the Italian Association for Comparative Economic Studies (AISSEC), and held in Assisi in June 2010. One session of the workshop was devoted to "Labour Market Institutions and Wage Inequalities: a Comparative Perspective". This special issue, which includes a selection of papers that were originally presented at the workshop, offers contributions which can be helpful to obtain an enriched view of ongoing changes and a broader spectrum of plausible explanations. In this paper a short appraisal of the large economic literature on wage inequality and institutions is offered with the main aim to clarify how the papers collected in this symposium contribute to related literature and in which directions they moveWage differentials; Labour Institutions and Policies

Inequality, credit expansion and financial crises

In the three decades leading up to the financial crisis of 2008/09, income inequality rose across much of the developed world. This has led to a vigorous debate as to whether widening inequality was somehow to blame for the crisis. At the heart of this debate is the question of whether rising inequality leads to private sector credit booms, which are, in turn, widely accepted as a macroeconomic risk factor. Despite growing interest, empirical evidence on an inequality-fragility relationship is limited. That which does exist fails to tip the balance of evidence conclusively one way or the other. This research adds to this scarce body of evidence. Based on an econometric analysis of a panel of eighteen OECD countries covering the period 1970-2007, this study finds a statistically significant, positive relationship between income concentration and private sector indebtedness when controlling for conventional credit determinants. The implications of such a relationship are twofold. First, the view that the distribution of income is irrelevant to macroeconomic outcomes (implicit in mainstream economic thought) needs a second look. Second, if policy makers wish to make the financial system more robust, they should cast the net wider than regulatory and monetary policy reforms, and consider the effects of changes to the distribution income

Inequality, credit and financial crises

In the three decades leading up to the financial crisis of 2008/09, income inequality rose across much of the developed world. This has led to a vigorous debate as to whether widening inequality was somehow to blame for the crisis by driving private sector credit booms. However, despite growing interest, empirical evidence on an inequality-fragility relationship is limited. Based on a panel analysis of eighteen OECD countries for the years 1970-2007, this study finds a statistically significant, positive relationship between income concentration and private sector indebtedness, once other traditional drivers are controlled for. The implications are twofold: (i) the view that the distribution of income is irrelevant to macroeconomic stability, as implicit in mainstream approaches, needs a second look; (i) to make the financial system more robust, policy-makers should cast the net wider than regulatory and monetary policy reforms, and consider the effects of changes to the income distribution

Das institutionelle Design der EU nach der Finanzkrise (The institutional design of the EU after the financial crisis)

In the midst of the EU's current "polycrisis ", several serious dangers threaten the future of Europe's unity. The looming Brexit vote as well as the refugee crisis and – above all – the rise of nationalistic, right-wing extremist parties demonstrate the fragility of the EU. One of the EU's fundamental problems is its institutional design in general. In particular the role of the European Central Bank is not fit for the challenges of the time. Moreover, the EU is facing disintegrative pressures while simultaneously pursuing moves towards deepening the Union as a reaction to the multiple crises. Against this background, it is highly likely that differentiation within the EU will increase. Deeper cooperation among small groups of member states will likely increase efficiency but may also reduce transparency, accountability and cohesion within the EU. If handled well, differentiation may also open new pathways for cooperation with the EU's neighbours and accession countries. The foundation for a fresh start in Europe is the Franco-German relationship, as only these two Member States together can prevent Euroscepticism from spreading even further and the new radical right from taking control of Europe. JEL Classification: E61, F02, F45, H12

Positive tipping points in a rapidly warming world

Unidad de excelencia María de Maeztu MdM-2015-0552The challenge of meeting the UNFCCC CoP21 goal of keeping global warming 'well below 2 °C and to pursue efforts towards 1.5 °C' ('the 2-1.5 °C target') calls for research efforts to better understand the opportunities and constraints for fundamental transformations in global systems dynamics which currently drive the unsustainable and inequitable use of the Earth's resources. To this end, this research reviews and introduces the notion of positive tipping points as emergent properties of systems-including both human capacities and structural conditions - which would allow the fast deployment of evolutionary-like transformative solutions to successfully tackle the present socio-climate quandary. Our research provides a simple procedural synthesis to help identify and coordinate the required agents' capacities to implement transformative solutions aligned with such climate goal in different contexts. Our research shows how to identify the required capacities, conditions and potential policy interventions which could eventually lead to the emergence of positive tipping points in various social-ecological systems to address the 2-1.5 °C policy target. Our insights are based on the participatory downscaling of global Shared Socio-economic Pathways (SSPs) to Europe, the formulation of pathways of solutions within these scenarios and the results from an agent-based economic modelling

Leibhafte Kunst. Statuen und kulturelle Identität

Dreidimensionale lebensgroße Figuren gehören zu den wirkmächtigen und auffälligsten Artikulationsformen der griechischen und römischen Antike. Wegen ihrer Anschaulichkeit sowie wegen ihrer dauernden und körperhaften Präsenz sind sie besonders einflussreiche Konkretisierungen von religiösen Auffassungen, Machtverhältnissen und Wissensordnungen. Spätere Epochen der europäischen Kulturgeschichte haben sich in immer neuen Rückbezügen daran orientiert. Der vorliegende Band untersucht die Leistung der Statu­en als eine Konkretisierungsform von politischen, sozia­len und religiösen Vorstellungen. Den Ausgangspunkt bilden Phänomene der griechischen und römischen Antike, doch machen Beiträge aus der Kunstgeschichte, Ethnologie und Germanistik deutlich, dass das Thema weit über die Altertumswissenschaften hinaus interessant und wichtig ist. Gerade der Blick auf außereuropäische Ausdrucksformen macht deutlich, dass die Entwicklung der antiken Skulptur, die aus einer europäischen Per­spektive konsequent und selbstverständlich erscheint, nur eine unter vielen möglichen Optionen darstellte