IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v28y2000i1p37-47.html
   My bibliography  Save this article

The fiscal constraint to restructuring firms in transition economies

Author

Listed:
  • Philipp Schröder

Abstract

Restructuring transition enterprises has been slow. Many firms remain unprivatized and the new owners (of privatized firms) take inadequate measures. Various arguments often have been brought forth to explain this sluggish adjustment. This paper identifies a structural barrier at the governmental level: The government designs the privatization program which leads to restructuring. However, transition governments are in a fiscal squeeze because restructuring relocates costs from firms to the public budget. Nevertheless, the deficit should be kept within narrow limits. This problem is analyzed within a stylized dynamic model. This paper finds that the fiscal constraint can delay or halt privatization. Careful sequencing of policy and a low ratio of wage-to-profit taxes can remedy the problem. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • Philipp Schröder, 2000. "The fiscal constraint to restructuring firms in transition economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 28(1), pages 37-47, March.
    • Handle: RePEc:kap:atlecj:v:28:y:2000:i:1:p:37-47
    DOI: 10.1007/BF02300529
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02300529
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02300529?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sergei Aukutsionek, 1997. "Some characteristics of the transition economy," Post-Communist Economies, Taylor & Francis Journals, vol. 9(3), pages 289-336.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schroder, Philipp J. H., 2001. "On the speed and boundaries of structural adjustment when fiscal policy is tight," Economic Systems, Elsevier, vol. 25(4), pages 345-364, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mario Gara, 2001. "The Emergence of Non-monetary Means of Payment in the Russian Economy," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 5-39.
    2. Schroder, Philipp J. H., 2001. "On the speed and boundaries of structural adjustment when fiscal policy is tight," Economic Systems, Elsevier, vol. 25(4), pages 345-364, December.
    3. Julien Vercueil, 1998. "Qu'apporte la théorie évolutionniste à la compréhension de la transition en Russie ? Une application : temps incertitude et institutions," Working Papers halshs-01418945, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:28:y:2000:i:1:p:37-47. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.