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Transition Economies: How Appropriate is the Size and Scope of Government?

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Author Info

  • Sanjeev Gupta

    ()
    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Luc Leruth

    ()
    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Luiz de Mello

    ()
    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Shamit Chakravarti

    ()
    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

Abstract

This paper assesses changes in the size and scope of government in 24 transition economies. While these governments have reduced public expenditures in relation to GDP, and public employment as a share of population, some indicators suggest that the size remains high (eg, rising indebtedness, a heavy regulatory burden, arrears, and the prevalence of noncash transactions). At the same time, the scope of government activities – although evolving – has not necessarily become appropriate. This paper provides some recommendations for aligning the scope of government with the increasing market orientation of these economies. Comparative Economic Studies (2003) 45, 554–576. doi:10.1057/palgrave.ces.8100014

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 45 (2003)
Issue (Month): 4 (December)
Pages: 554-576

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Handle: RePEc:pal:compes:v:45:y:2003:i:4:p:554-576

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References

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  1. Persson, T. & Tabellini, G., 1998. "The Size and Scope of Government: Comparative Politics with Rational Politicians," Papers 658, Stockholm - International Economic Studies.
  2. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659 Elsevier.
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Cited by:
  1. De Witte, Kristof & Moesen, Wim, 2009. "Sizing the Government," MPRA Paper 14785, University Library of Munich, Germany.
  2. World Bank, 2003. "Serbia and Montenegro : Public Expenditure and Institutional Review, Volume 2. Serbia," World Bank Other Operational Studies 14823, The World Bank.
  3. Afonso, António & Nickel, Christiane & Rother, Philipp, 2005. "Fiscal consolidations in the Central and Eastern European countries," Working Paper Series 0473, European Central Bank.
  4. Carmignani, Fabrizio, 2008. "The impact of fiscal policy on private consumption and social outcomes in Europe and the CIS," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 575-598, March.
  5. Nikopour, Hesam & Shah Habibullah, Muzafar, 2010. "Shadow Economy and Poverty," MPRA Paper 23599, University Library of Munich, Germany.
  6. Henri Lorie, 2003. "Priorities for Further Fiscal Reforms in the Commonwealth of Independent States," IMF Working Papers 03/209, International Monetary Fund.
  7. Luigi, Bernardi & Mar, Chandler, 2004. "Main tax policy issues in the new members of Eu," MPRA Paper 18195, University Library of Munich, Germany.
  8. Catriona Purfield, 2003. "Fiscal Adjustment in Transition Countries: Evidence from the 1990s," IMF Working Papers 03/36, International Monetary Fund.
  9. World Bank, 2004. "Republic of Tunisia - Development Policy Review : Making Deeper Trade Integration Work for Growth and Jobs," World Bank Other Operational Studies 15693, The World Bank.
  10. Alex Segura-Ubiergo & Alejandro Simone & Sanjeev Gupta & Qiang Cui, 2010. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," Comparative Economic Studies, Palgrave Macmillan, vol. 52(1), pages 18-37, March.
  11. Alam, Asad & Sundberg, Mark, 2002. "A decade of fiscal transition," Policy Research Working Paper Series 2835, The World Bank.

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