This paper examines the effects of the collapse of the communist regimes of Eastern Europe on economic reform in developing countries within a framework earlier developed by Albert O. Hirschman (1964). It is shown that countries relying on help from Eastern Europe, socialist developing...

This paper empirically studies why price distortions are more prevalent in some countries than in others. The authors find no significant difference between democracies and dictatorships but frequent regime changes reduce distortions. Political systems (factional-subordinate) that encourage...