Evaluating Government Policy in Transition Countries

32 Pages Posted: 9 Aug 2009 Last revised: 9 Feb 2010

See all articles by Max Gillman

Max Gillman

Central European University (CEU) - Department of Economics

Date Written: 1999

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.

Keywords: government policy, transition countries

Suggested Citation

Gillman, Max, Evaluating Government Policy in Transition Countries (1999). CASE Network Studies and Analyses No.156, Available at SSRN: https://ssrn.com/abstract=1444764 or http://dx.doi.org/10.2139/ssrn.1444764

Max Gillman (Contact Author)

Central European University (CEU) - Department of Economics ( email )

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