Comparative financing analysis and political economy of noncommunicable diseases

The pandemic of chronic non-communicable diseases (NCDs) poses substantial challenges to the health financing sustainability in high-income and low/middle income countries (LMICs). The aim of this review is to identify the bottle neck inefficiencies in NCDs attributable spending and propose sustainable health financing solutions. The World Health Organization (WHO) introduced the “best buy” concept to scale up the core intervention package against NCDs targeted for LMICs. Population- and individual-based NCD best buy interventions are projected at US$170 billion over 2011–2025. Appropriately designed health financing arrangements can be powerful enablers to scale up the NCD best buys. Rapidly developing emerging nations dominate the landscape of LMICs. Their capability and willingness to invest resources for eradicating NCDs could strengthen WHO outreach efforts in Asia, Africa, and Latin America, much beyond current capacities. There has been a declining trend in international donor aid intended to cope with NCDs over the past decade. There is also a serious misalignment of these resources with the actual needs of recipient countries. Globally, the momentum towards the financing of intersectoral actions is growing, and this presents a cost-effective solution. A budget discrepancy of 10:1 in WHO and multilateral agencies remains in donor aid in favour of communicable diseases compared to NCDs. LMICs are likely to remain a bottleneck of NCDs imposed financing sustainability challenge in the long-run. Catastrophic household health expenditure from out of pocket spending on NCDs could plunge almost 150 million people into poverty worldwide. This epidemiological burden coupled with population ageing presents an exceptionally serious sustainability challenge, even among the richest countries which are members of the Organization for Economic Co-operation and Development (OECD). Strategic and political leadership of WHO and multilateral agencies would likely play essential roles in the struggle that has just begun.     

An Open Economy DSGE Model with Search-and-Matching Frictions: The Case of Hungary

This article builds and estimates a medium scale, small open economy DSGE model augmented with search-and-matching frictions in the labor market, and different wage setting behavior in new and existing jobs. The model is estimated using Hungarian data between 2001–2008. We find that: (i) the inclusion of matching frictions significantly improves the model’s empirical fit; (ii) the extent of new hires wage rigidity is quantitatively important for key macro variables; (iii) labor market shocks do not play an important role in inflation dynamics, but the structure of the labor market influences the monetary transmission mechanism.     

Exchange Rate Policy in Transition Economies: The Case of Hungary

We review the experience of Hungary with the preannounced crawling band exchange rate system during 1995–97. When selecting the exchange rate regime, several key characteristics of the transition process must be taken into account: reform-induced inflationary pressure, the necessity to restructure production and exports, and the need to establish credibility. We argue against a premature fixing of the exchange rate in transition economies and suggest that a crawling band can serve well the dual objectives of maintaining competitiveness and moderating inflation if it is supported by appropriate fiscal and structural policies. The exchange rate can be used more actively for disinflation if an acceptable wage policy can be negotiated, but this is difficult to achieve in the initial phase of the transition when the credibility of policy is weak.J. Comp. Econom.,December 1998, 26(4), pp. 691–717. National Bank of Hungary, Szabadság tér 8-9, H-1054 Budapest, Hungary.     

Conservation tillage vs. conventional tillage: long-term effects on yields in continental,sub-humid Central Europe,Hungary

The present study reports novel data concerning Conservation Tillage (CT) in the continental sub-humid climate zone in Central Europe (Hungary), an area which has been mostly neglected in the course of previous CT studies. The results of a 10-year (2003–2013) comparative study of mouldboard ploughing tillage (PT) and CT (no inversion, using a reduced number of tillage operations and leaving min. 30% crop residues on the soil surface) types are reported. Our extensive monitoring system has provided new and detailed information concerning technologies and yields both from the first, transitional period and, over the following years, of adapted technology. Our results suggest that tillage type was a more important factor in the question of yields than either the highly variable climate of the studied years, or the diverse slope conditions of the plots. During the first three years of technological changeover to CT (2003–2006), a decrease of 8.7% was measured, respective to PT. However, the next seven years (2007–2013) brought a 12.7% increase of CT yields. Our study revealed key factors in the initial reduction of crops during the technological change, and may accordingly serve as a guideline for the shortening or avoidance of decline in the transitional period.