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

  • 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.)

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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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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  1. Torsten Persson & Guido Tabellini, . "Political Economics and Public Finance," Working Papers 149, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  2. Torsten Persson & Guido Tabellini, 1998. "The Size and Scope of Government: Comparative Politics with Rational Politicians," NBER Working Papers 6848, National Bureau of Economic Research, Inc.
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