The Role of General Government in Hungary

The objective of this study is to present the changes in the general government’s role in the distribution and generation of income and in the functions of the state. The period under study is 1991-1997, with an emphasis on the fiscal adjustment which occurred during the years 1995-1996. In relation to this, a separate chapter addresses international experiences in fiscal consolidation and its theoretical aspects. In the period under study, the general government had a certain stabilizing impact. Up to 1993, overspending by the government retarded economic decline and following the commencement of economic growth the adjustment program which became necessary owing to the unsustainability of the external and internal equilibrium put the brakes on growth in the short term. Based on international experience, the most important factor for success is to be sought in the structure of the adjustment. This study concentrates on the presentation of structural changes, and particularly the structure of primary expenditures and revenues, even though its point of departure was the changes in the level of total expenditures and revenues of the general government. Between 1990 and 1997, the volume of the primary levels declined by nearly one quarter and the rearrangements which were effected within this were even more significant. It can be established that the decline was most vigorous on the expenditures side, in the case of expenditures on wages and transfers (particularly with respect to households). According to international experience, the savings achieved precisely in this area can be a guarantee for the lasting success of fiscal adjustment. However, the fiscal retrenchment of 1995-1996 in Hungary does not present us with a clear picture. Personal income tax was increased, there were tax increases of a one-off nature and cuts in public investment, too. This kind of measures were identified as less successful ones by international studies. According to statistics using the prime cost approach, the role of the public sector in income generation declined, as wage costs declined. Were it possible to take quality criteria into account when specifying performance, the picture would be different. According to international experience, some public sectors do not contribute to income generation even at prime cost, and in these areas it is possible to reduce spending without suffering any deterioration in performance. A counterexample can be provided by the tax administration, where a very close correlation can be demonstrated between wages and efficiency. The impact of the Hungarian measures, particularly with respect to changes in the number of persons employed, cannot be evaluated negatively in this respect. In addition to an institutional approach to general government, it is also important to take functional aspects into account - that is to say, it is necessary to the fiscal transparency to demonstrate quasi-fiscal activities performed outside the general government. (This study does not undertake to do so.)

Theory of elementary excitations in unstable Bose-Einstein condensates

Like classical fluids, quantum gases may suffer from hydrodynamic instabilities. Our paper develops a quantum version of the classical stability analysis in fluids, the Bogoliubov theory of elementary excitations in unstable Bose-Einstein condensates. In unstable condensates the excitation modes have complex frequencies. We derive the normalization conditions for unstable modes such that they can serve in a mode decomposition of the noncondensed component. Furthermore, we develop approximative techniques to determine the spectrum and the mode functions. Finally, we apply our theory to sonic horizons - sonic black and white holes. For sonic white holes the spectrum of unstable modes turns out to be intrinsically discrete, whereas black holes may be stable

Quantum back-action of optical observations on Bose condensates

Impressive pictures of moving Bose-Einstein condensates have been taken using phase-contrast imaging M. R. Andrews et al., Science 273, 84 (1996). We calculate the quantum backaction of this measurement technique. We find that phase-contrast imaging is not a quantum nondemolition measurement of the atomic density. Instead, the condensate gets gradually depleted at a rate that is proportional to the light intensity and to the inverse cube of the optical wave length. The fewer atoms are condensed the higher is the required intensity to see a picture, and, consequently, the higher is the induced backaction. To describe the quantum physics of phase-contrast imaging we put forward a new approach to quantum-optical propagation. We develop an effective field theory of paraxial optics in a fully quantized atomic medium.Comment: 11 pages RevTex, 2 ps figures, revised. European Physical Journal D (in press

Beta-decay properties of neutron-rich Ca, Ti, and Cr isotopes

Beta-decay properties of neutron-rich Ca, Ti, and Cr isotopes are studied within a deformed proton-neutron quasiparticle random-phase approximation. The underlying mean field is described self-consistently from deformed Skyrme Hartree-Fock calculations with pairing correlations. Residual spin-isospin interactions in the particle-hole and particle-particle channels are also included in the formalism. The energy distributions of the Gamow-Teller strength, the beta-decay feedings, the beta-decay half-lives, and the beta-delayed neutron emission probabilities are discussed and compared with other theoretical results, as well as with the available experimental information. The evolution of these nuclear beta-decay properties is investigated in isotopic chains in a search for structural changes. A reliable estimate of the beta-decay properties in this mass region is a valuable information for evaluating decay rates in astrophysical scenarios.Comment: 11 pages, 12 figure

Reply to the ``Comment on `quantum backaction of optical observations on Bose-Einstein condensates' ''

In our paper we estimated the quantum backaction of dispersive imaging with off-resonant light on Bose-Einstein condensates. We have calculated the rates of the two processes involved, phase diffusion and depletion of the condensate. We compare here the depletion rate obtained within our model limitations to the Rayleigh scattering rate, both having the same physical origin: dispersive interaction of light with matter. We show that residual absorption sets indeed the limit of dispersive imaging.Comment: 1 page (Reply to comment

Selecting molecules in the vibrational and rotational ground state by deflection

A beam of diatomic molecules scattered off a standing wave laser mode splits according to the rovibrational quantum state of the molecules. Our numerical calculation shows that single state resolution can be achieved by properly tuned, monochromatic light. The proposed scheme allows for selecting non-vibrating and non-rotating molecules from a thermal beam, implementing a laser Maxwell's demon to prepare a rovibrationally cold molecular ensemble.Comment: 11 pages, LaTeX. To appear in the European Physical Journal

The exception proves the rule? Fiscal rules in the Visegrád countries

This article gives an overview of the national fiscal rules in force or recommended for introduction in the Visegrád countries. In the article, we review the various potential elements of the regulation framework, in particular the debt rule as a limit, the balance target, the expenditure rule as an instrument and the fiscal council as a supporting entity for the entire framework. We establish on the one hand that the more a rule covers the scope of fiscal policy, the more effective it becomes. On the other hand, it is highlighted that filtering out the effect of exogenous factors – such as the economic cycle – is also important in ensuring that the rules restrict fiscal policy in such a way as to simultaneously prevent procyclical measures. The difficulty resides in the fact that the effects of exogenous factors and fiscal policy are difficult to distinguish. Resolving this issue may be one of the tasks of the fiscal council.fiscal frameworks, fiscal rule, fiscal council.

Act one, act first – the law on fiscal responsibility

The Law on Fiscal Responsibility adopted late 2008 is a new element in Hungarian fiscal policy, although not without precedent. Under the law, the Parliament and the Government limit themselves to prevent high fiscal deficits and a further increase in public indebtedness, experienced in recent years. Budget planning turns into a three-year process, hardening over time. As a first step, the targeted primary (non-interest) budget balance is subject to the requirement that the stock of government debt cannot rise in real terms. However, ex post, the law allows for deviations in fiscal performance-including those reflecting the effect of so-called automatic stabilizers-attributable to factors beyond the control of the authorities. This means that the actual deficit is not necessarily equal to the deficit path consistent with the real debt limit, but it may fluctuate around this trend over the medium term. In addition, the law prescribes observance of the pay-go principle. Finally, it provides for the establishment of an independent Fiscal Council entrusted with monitoring compliance with the rules and with transparency standards. We evaluated the law according to the Kopits–Symansky criteria applied in the international literature. In most aspects, the law exhibits favourable properties, consistent with the criteria, although inevitably at the expense of simplicity. The assessment suggests that the law would benefit from extending coverage of the rules to local governments. Moreover, enforceability of the rules would be strengthened if the law were adopted by a qualified legislative majority.fiscal rules, budget planning, Fiscal Council.