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Evaluating Government Policy in Transition Countries

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  • Max Gillman

Abstract

The paper examines neoclassical measures to evaluate government policy in transition countries: 1) marginal factor prices and the return to capital, 2) growth rates and taxes, 3) inflation rates, and 4) debt/GDP ratios, related to international real business cycle and endogenous growth theory. It further postulates a way to consider the debt/equity position of the government, related to a risk-yield framework. This gives a potentially more useful indicator than the debt/GDP ratio alone. Empirically these measures are examined in an illustrative way for a set of Central European countries plus Germany and the US for comparison, for the period of 1990-1998, using an internally standardized data set from the on-line International Financial Statistics.

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  • Max Gillman, 1999. "Evaluating Government Policy in Transition Countries," CASE Network Studies and Analyses 0156, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0156
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    References listed on IDEAS

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    Keywords

    government policy; transition countries;

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