Fiscal constraints and the speed of transition.
A model of the process of reallocation of resources from a declining state sector to an expanding private sector is derived. It is demonstrated that the transition is costly in that it involves unemployment and a deterioration of the fiscal balance. In addition, an examination of the interaction o...
| Publicado en: | Journal of Development Economics Vol. 52; pp. 221 - 250 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Elsevier Science
February 1997
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | A model of the process of reallocation of resources from a declining state sector to an expanding private sector is derived. It is demonstrated that the transition is costly in that it involves unemployment and a deterioration of the fiscal balance. In addition, an examination of the interaction of fiscal restrictions with the transition process reveals that fiscal constraints might induce the government to maintain the state sector, thereby slowing the speed of transition, and could jeopardize the eventual outcome of the process of restructuring. |
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