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3 Kozgazdasagi Szemle (Economic Review)

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The symmetries of the Goodwin Model. Contradiction and reconciliation among economic paradigms

100%

Brody A. , Abel I.

Kozgazdasagi Szemle (Economic Review)

2008

tom 55

nr 4

333-343

Recognition of the duality and symmetries of economic motion offers researchers a new concept. As in the sciences of the last century, the debate between 'causes' and 'objectives' dies down. The basic question today is not seemingly contradictory paradigms or logical rivalry among schools, but correct and easily measurable description of the movement. In seeking a simpler and more comprehensible explanation, the authors examine the mathematical methods of creating theories and models. For this reason, they examine the cycle model of Goodwin, which is accepted by both schools. The causal or teleological explanation and the criteria of costs and of output are equally satisfactory, and a realistic description of economic cycles is arrived at by analysing the calculation practice of a model that satisfies and is based upon both.

The cause and effect of cycles

80%

Brody A.

Kozgazdasagi Szemle (Economic Review)

2007

tom 54

nr 10

903-914

A cycle can be described mathematically, which also allows its course to be predicted. Yet the damage caused by fluctuation is hard to quantify, except as lost utilization of potential production. The deeper cause of the phenomenon and its real consequences are revealed by economic historical argument and description. In Hungary in the last decade and a half, cycles have caused some severe losses.

The missing link? Experience-earnings profiles and earnings fluctuation

60%

Gabor-R. I.

Kozgazdasagi Szemle (Economic Review)

2008

tom 55

nr 12

1057-1074

Built upon data from 11 succeeding annual wage surveys carried out between 1992 and 2003 by the National Employment Service in Hungary, the paper uses elementary statistical tools to examine whether or not earnings fluctuations have differed in size among groups of employees with different degrees of schooling and experience, and if they have, whether the observed differentials may be related to differences in the respective experience-earnings profiles of the groups. Findings suggest that earnings fluctuations have differed in size across those groups, and that they appear to have done so in association with group-specific experience-earnings profiles. Assuming that differences in the observed magnitudes of earnings fluctuations are at least partly due to differences in the flexibility/rigidity of the attained market rates of earnings, and that flexibility/rigidity of those rates is a determinant of unemployment, it seems reasonable to suspect that long-discovered systemic differences in unemployment across groups with different degrees of schooling and experience (and, perhaps, across countries as well) may also be related in part to differences in the shapes of their experience-earnings profiles.