TRANSITION AND THE FISCAL CRISIS IN CENTRAL EUROPE - Center.pdfVIP

Center for Social Economic Research TRANSITION AND THE FISCAL CRISIS IN CENTRAL EUROPE Luca Barbone World Bank Domenico Junior Marchetti World Bank and Cornell University Warsaw, May 1995 Materials published in this series have a character of working papers which can be a subject of further publications in the future. The views and opinions expressed here reflect Authors point of view and not necessary those of CASE . Paper financed by the Ford Foundation (grant No: 930-1199)  CASE Research Foundation, Warsaw 1995 ISBN 83-86296-36-4 Editor: CASE - Center for Social Economic Research 00-585 Warszawa, Bagatela 14 tel/fax (48-2) 628 65 81; tel/fax (48-22) 29 43 83 Transition and the Fiscal Crisis... The views contained in this paper are the authors only and not those of the World Bank group. We thank for comments and suggestions received Alan Gelb, Stanis³aw Gomu³ka, Leszek Balcerowicz, two anonymous referees, and the participants in a seminar held at the World Bank. We also thank Gerardo Corrochano for help with the data. This paper is a substantially revised version of Barbone and Marchetti (1994). Contact Address: Luca Barbone World Bank Room H-11-123 Washington D.C. 20433 tel. (202) 473-2556 fax (202) 477-1692 - 3 - CASE Foundation L. Barbone D.J. Marchetti ABSTRACT This paper argues that traditional explanations