Against this background, the book's focus shifts to three particular factors: the adjustment of employment and wages in state firms to the initial shock of reduced demand for their goods; the dynamics of restructuring and privatization; and the relationship between reallocation, restructuring, and traffic in the labor market. The final section summarizes the discussion, and in doing so builds a general equilibrium model as a preliminary to the analysis of three sets of issues: the role of unemployment benefits and privatization ules; the interaction between transition and fiscal policy; and the evolution of the support for reform. The model is then used to address the thorny issue of the ideal speed for economic reform.
The latest offering from a distinguished expert on the economics of transition, this is one of the first book-length analyses of the process of moving from a centrally-planned to a market economy.
eBook The Economics of Post-Communist Transition (Clarendon Lectures in Economics)