IDEAS home Printed from https://ideas.repec.org/p/sec/cnstan/0068.html
   My bibliography  Save this paper

Public Finances and Economic Transition

Author

Listed:
  • Luca Barbone
  • Hana Polackova

Abstract

This paper analyzes developments in general government expenditures and revenues for 26 reforming ex-socialist economies (RESEs) over the period 1989-1994. The data indicate that, rather than uniformly converging to a “Western European” norm, RESEs have followed a variety of patterns, depending on how successful they have been in economic reform in general and in tackling the increase in the demand for social protection in particular. The paper conducts an empirical investigation of spending patterns and the sustainability of revenues required to maintain current government spending, and concludes that there are strong indications that the fiscal accounts will remain under pressure in a number of RESEs in the foreseeable future.

Suggested Citation

  • Luca Barbone & Hana Polackova, 1996. "Public Finances and Economic Transition," CASE Network Studies and Analyses 0068, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0068
    as

    Download full text from publisher

    File URL: https://case-research.eu/upload/publikacja_plik/3696829_068.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Raja J. Chelliah & Hessel J. Baas & Margaret R. Kelly, 1975. "Tax Ratios and Tax Effort in Developing Countries, 1969-71 (Pression fiscale et effort fiscal dans les pays en développement, 1969-71) (Coeficientes y esfuerzo tributarios en los países en desarroll," IMF Staff Papers, Palgrave Macmillan, vol. 22(1), pages 187-205, March.
    2. Ehdaie, Jaber, 1994. "Fiscal decentralization and the size of the government : an extension with evidence from cross-country data," Policy Research Working Paper Series 1387, The World Bank.
    3. Mr. Gérard Bélanger, 1994. "Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues," IMF Working Papers 1994/104, International Monetary Fund.
    4. Mr. Peter S. Heller & Mr. Alan A. Tait, 1982. "International Comparisons of Government Expenditure," IMF Occasional Papers 1982/001, International Monetary Fund.
    5. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, September.
    6. Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1.
    7. Krumm, Kathie & Milanovic, Branko & Walton, Michael, 1994. "Transfers and the transition from socialism : key tradeoffs," Policy Research Working Paper Series 1380, The World Bank.
    8. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    9. Mr. Vito Tanzi, 1988. "The Impact of Macroeconomic Policieson the Level of Taxation (andon the Fiscal Balance) in Developing Countries," IMF Working Papers 1988/095, International Monetary Fund.
    10. Luca Barbone & Domenico Marchetti, 1995. "Transition and the fiscal crisis in Central Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(1), pages 59-74, March.
    11. Roy W. Bahl, 1971. "A Regression Approach to Tax Effort and Tax Ratio Analysis (Analyse de l'effort et de la pression fiscale par la méthode de régression) (Un estudio del esfuerzo tributario y de la presión fiscal me," IMF Staff Papers, Palgrave Macmillan, vol. 18(3), pages 570-612, November.
    12. Peltzman, Sam, 1980. "The Growth of Government," Working Papers 1, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    13. Mr. Vito Tanzi, 1993. "Fiscal Policy and the Economic Restructuring of Economies in Transition," IMF Working Papers 1993/022, International Monetary Fund.
    14. Raja J. Chelliah, 1971. "Trends in Taxation in Developing Countries (Les tendances de la fiscalité dans les pays en voie de développement) (Tendencias tributarias en los países en desarrollo)," IMF Staff Papers, Palgrave Macmillan, vol. 18(2), pages 254-331, July.
    15. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
    16. Mr. George Kopits, 1991. "Fiscal Reform in European Economies in Transition," IMF Working Papers 1991/043, International Monetary Fund.
    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. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weisshaar, Natalia, 2010. "Poverty during transition: Household survey evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 123-145, June.
    2. World Bank, 2003. "Armenia : Public Expenditure Review," World Bank Publications - Reports 13926, The World Bank Group.
    3. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," Discussion Papers of DIW Berlin 748, DIW Berlin, German Institute for Economic Research.
    4. Jorge Martinez-Vazquez & Robert McNab, 2000. "Tax Reform in The Tax Reform Experiment in Transitional Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0001, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    5. Jorge Martinez-Vazquez & Robert McNab, 1997. "Tax Reform in Transition Economies: Experiences and Lessons," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9706, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Marek Dabrowski & Magdalena Tomczynska, 2001. "Tax Reforms in Transition Economies – a Mixed Record and Complex Future Agenda," CASE Network Studies and Analyses 0231, CASE-Center for Social and Economic Research.
    7. Barseghyan, Levon & Guerdjikova, Ani, 2011. "Institutions and growth in limited access societies," Journal of Economic Theory, Elsevier, vol. 146(2), pages 528-568, March.
    8. Joanna Siwinska-Gorzelak, 2000. "Currency Crises and Fiscal Imbalances. The Transition Countries Perspective," CASE Network Studies and Analyses 0219, CASE-Center for Social and Economic Research.
    9. World Bank, 2003. "Public Expenditure Review for Armenia," World Bank Publications - Books, The World Bank Group, number 15086.
    10. Fakin, Barbara & de Crombrugghe, Alain, 1997. "Field adjustments in transition economies : social transfers and the efficiency of public spending - a comparison with OECD countries," Policy Research Working Paper Series 1803, The World Bank.

    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. Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2016. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," Economica, London School of Economics and Political Science, vol. 83(330), pages 219-246, April.
    2. Marco Gallegati & Massimo Tamberi, 2022. "Long swings in the growth of government expenditure: an international historical perspective," Public Choice, Springer, vol. 192(3), pages 227-248, September.
    3. Randall Holcombe, 2005. "Government growth in the twenty-first century," Public Choice, Springer, vol. 124(1), pages 95-114, July.
    4. Rockoff, Hugh, 1999. "World War II and the growth of the U.S. federal government," Japan and the World Economy, Elsevier, vol. 11(2), pages 245-262, April.
    5. Thomas A. Garrett & Andrew F. Kozak & Russell M. Rhine, 2010. "Institutions and government growth: a comparison of the 1890s and the 1930s," Review, Federal Reserve Bank of St. Louis, vol. 92(Mar), pages 109-120.
    6. Michael Keen, 1997. "Peculiar institutions: A British perspective on tax policy in the United States," Fiscal Studies, Institute for Fiscal Studies, vol. 18(4), pages 371-400, November.
    7. Werner W. Pommerehne, 1983. "Steuerhinterziehung und Schwarzarbeit als Grenzen der Staatstätigkeit," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 119(III), pages 261-284, September.
    8. Besley, Timothy & Smart, Michael, 2007. "Fiscal restraints and voter welfare," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 755-773, April.
    9. Fix, Blair, 2016. "Energy and Institution Size," Working Papers on Capital as Power 2016/04, Capital As Power - Toward a New Cosmology of Capitalism.
    10. Giorgio Brosio & Carla Marchese, 1988. "The Growth of Government under Different Redistributive Rules: A Long Term Study of the Italian Case," Public Finance Review, , vol. 16(4), pages 439-463, October.
    11. Steven Pressman, 2004. "What is wrong with public choice," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 27(1), pages 3-18.
    12. Holcombe, Randall G., 1998. "Tax Policy From a Public Choice Perspective," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(2), pages 359-371, June.
    13. Thomas A. Garrett & Russell M. Rhine, 2006. "On the size and growth of government," Review, Federal Reserve Bank of St. Louis, vol. 88(Jan), pages 13-30.
    14. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Silva, 2020. "A theory of predatory welfare state and citizen welfare: the French case," Public Choice, Springer, vol. 182(3), pages 243-271, March.
    15. Philip J. Grossman, 1992. "Fiscal Decentralization and Public Sector Size in Australia," The Economic Record, The Economic Society of Australia, vol. 68(3), pages 240-246, September.
    16. Philippe Batifoulier & Nicolas da Silva & Mehrdad Vahabi, 2019. "A theory of predatory welfare state and citizen welfare: the French case," CEPN Working Papers hal-02073247, HAL.
    17. Deepak Lal, 1991. "Social Policy After Socialism," UCLA Economics Working Papers 641, UCLA Department of Economics.
    18. Jørgen Andersen, 2012. "Costs of taxation and the size of government," Public Choice, Springer, vol. 153(1), pages 83-115, October.
    19. Gerald Scully, 1989. "The size of the state, economic growth and the efficient utilization of national resources," Public Choice, Springer, vol. 63(2), pages 149-164, November.

    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:sec:cnstan:0068. 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: Anna Budzynska (email available below). General contact details of provider: https://edirc.repec.org/data/caseepl.html .

    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.