László Csaba

Networks communicating for each pairing of terminals

Let G be a multigraph of maximum degree Δ and with a set of t vertices of degree one, called terminals. We call G a (Δ, t)-network if for any pairing of its terminals there exist edge-disjoint paths in G between those pairs (t is even). The concept of (Δ, t)-networks is introduced to model the situation when switching processors having Δ ports are to be connected in such a way that simultaneous communication is possible for any pairing of the free ports. We establish some properties of (Δ, t)-networks. In particular, we investigate optimal (or near-optimal) networks and obtain lower and upper bounds on the function n(Δ, t), the minimum number of interior nodes a (Δ, t)-network can have.

From Sovietology to neo-institutionalism

This article attempts to wrap up the thorny road of studies and students of systemic change in Central and Eastern Europe. It analyses how a relatively backward part of the economics profession has been confronted with issues that count among perhaps the most complex, in terms of both understanding and applications, within and for the entire academic discipline. An attempt is made to integrate some broader methodological and narrower political economy insights in the approach of sustainable development and economic theory in general.

A Decade of Transformation in Hungarian Economic Policy: Dynamics, Constraints and Prospects

The customary ritual presents Hungary as a prime case for gradualist transformation strategy. In political science literature it has developed into a source of vivid controversy whether and to what extent gradualism has been a liability or an asset to the country. In reality, the concept of gradualist strategy (Condon & Dervis, 1993) is not only a myth but by and large the opposite to what has actually happened. Reality was shaped by three consecutive shock therapies, although nobody promulgated such stances.

Revisiting the Crisis of the EMU: Challenges and Options

As the global economy has faltered in recovering from the debt and financial crises, the institutional efficacy (and sometimes even the overall viability) of one of its strongest constituent parts, the Eurozone, has been questioned by academia, the media and the political class alike. Observing the cat-and-mouse game between the all-powerful and swiftly reacting global capital markets on the one hand and the slow, hesitant, and always half-hearted reactions by EU governments on the other, the voices of scepticism gained in momentum. This contribution seeks to identify the object of the current crisis and to explain its underlying causes. Furthermore, emerging policy solutions are assessed with special emphasis on the economic theory of European integration.

Financial institutions in transition: the long view

This article is an attempt to contribute to the broader debate on growth theory in academic economics on the basis of empirical experience of two decades in transition countries. It analyses whether financial sector reform is urgent and thus should be sequenced from the very outset of transition or, alternatively, is important rather than urgent. If the latter is the case – and in view of the technical sophistication of the task – it should be sequenced later but by no means dodged. The basic questions of the current analysis are that there seems to be a trade-off between the two, and whether or not underdeveloped financial markets are bound to have an unfavourable impact on long-term growth. We then analyse, one by one, the role of monetary and fiscal institutions, exchange rate and tax regimes, as well as capital markets and special SME agencies across the region. Finally we examine whether the model based on foreign strategic ownership of intermediation is dead after the 2007–09 financial meltdown.

Transition as Development

This article interprets Central and Eastern European transition through the lenses of the post-Washington consensus. It searches for what has proved to be original and theoretically novel in the region if measured against development theory. To what extent does the mainstream remain relevant as an analytical instrument of policy issues? Is it possible to establish a pure economics of transformation?

Orthodoxy, Renewal and Complexity in Contemporary Economics

The nature of mainstream orthodoxy in contemporary economics is proliferating social and academic disillusionment with what the profession managed to deliver in terms of “useful knowledge”, particularly in pre-empting and later managing the ongoing financial crisis. The neoclassical paradigm, however, is by now facing challenges both from the natural sciences and economic research projects influenced by those. At this point, there is room for paradigmatic as well as incremental changes in the discipline; the latter is already in the making.

Regulation and Public Sector Development: A Post-Transition Perspective

The article is devoted to the changing role of the major public policy function of regulation and the changing role of the public sector in various phases of systemic change in central and eastern Europe. It surveys the consequences of bloodletting for the civil service and state capactiy in a world increasingly dominated by delocalisation and dematerialisation. Meanwhile a large part of the economy is unlikely to be transformed into purely asset value maximising units, thus the importance of regulating the intermediate forms of activity between public and private firms is going to gain in importance. Limitations of the current EU model, based on traditions rather than attending tasks of the future are highlighted in both the administrative and the enonomic spheres.

Optimal Transition Trajectories

The nature of analytical social science is such that the search for the right measure is one of its core elements. For this reason the two decades of transition from communist to market order has been revolving around the big question of whether it could have been done better. Once we reject the wide-spread and self-condoning post hoc ergo propter hoc type of argumentation, the question if and to what degree, things could have been better done, if costs were excessive, or results less than justified, must figure eminently on the agenda. In the present chapter we try to address some of these normative issues. Both descriptive and interpretative evaluations of this historic process abound, and a ‘final word’ is as much unlikely to be spoken as over the French Revolution, for that matter.1

Poetry and reality about the future of the Union: reflections on the demensions and nature of the re-launch of the Lisbon strategy

Halfway through the Lisbon process, achievements have in many respects fallen distinctly behind the ambitious aims set by EU heads of state and government in March 2000. What has gone wrong? What changes are required to get the process back on track? Is a Lisbon strategy, even a reformed one, really needed?