Course date

30 June - 11 July, 1997
15 February, 1997
Course Director(s): 

John Earle

Central European University, Budapest, Hungary
Course Faculty: 

Masahiko Aoki

Stanford University, Economics, Stanford, CA, United States of America

Erik Berglof

Stockholm Institute of Transition Economics and East European Economies, Sweden

Michael Burda

School of Business and Economics, Department of Economics, Humboldt University Berlin, Berlin, Germany

Vladimir Busygin

Novosibirsk State University, Russian Federation

Alexander Dyck

Harvard University, Cambridge, USA

Saul Estrin

London Business School, University of London, UK

Janos Kollo

Institute of Economics, Hungarian Academy of Sciences, Budapest, Hungary

Gabor Korosi

Central European University, Budapest, Hungary

Phil Merrigan

University of Quebec, Canada

Ugo Pagano

University of Siena, Italy and CEU, Budapest, Hungary

Laszlo Urban

MHB, Budapest, Hungary

Eva Voszka

Financial Researching Ltd., Budapest, Hungary

The purpose of the course is to provide East European economists with further education in the microeconomic analysis of the restructuring process a transitional economies, with a special emphasis on labor market adjustment. Currently, there is great interest on the part of policymakers throughout the region and international organizations on the design of policies both to facilitate and to cushion the effects of restructuring, yet rather little research hag addressed the behavioral and social implications of alternative strategies. The course would provide a forum to share the methodologies and findings developed by the CEU Economics Department and Labor Project, which has become a center for research and data collection in this area, and to develop a wider network of faculty and scholars cooperating on the investigation of these topics. Curriculum While the bulk of the economic literature on transition is highly descriptive, a significant theoretical literature has also developed. The biggest gap, and the one which this course seeks to address, is bringing together well-defined theoretical propositions with econometric tools and appropriate microdata sets for testing them. Accordingly, the course will include classes in both theory and in econometrics, as well as seminars on the empirical implementation of theories on actual data sets. The theory classes will emphasize institutional economics and models of mobility and information. The econometrics classes will include limited dependent variable estimation, hazard functions, duration dependence, and other techniques appropriate for microdata, particularly involving qualitative variables. The seminars will include discussions of labor supply, earnings differentials, Labor market transitions, unemployment, multiple job holding and second economy activities, managerial behavior, and the social costs and political economy of transition.