Most post-communist economies are characterized by an initial collapse inaggregate output. Blanchard and Kremer (1997) and Roland and Verdier (1997)have recently modelled supply-side distortions — disorganization in the links of production — that can lead to a short-term output contraction...

Efficiency wage theories have been put forward as attractive ways of explaining different aspects of the labour market. To find direct evidence of efficiency wage payments has proven to be quite difficult. We model various vertical spillovers from wage determination in an upstream labour market...

On aspect of transition economics is the fact that large scale inter and intra sector adjustments in employment will have to take place in the transition period to a market economy. The required decline of agriculture and manufacturing and the rise in services induce large inter-sectoral...

We undertake an analysis of the evolution of industrial output in Bulgaria, Hungary, Poland and Romania over the period 1989-1995. We theoretically and empirically model the growth dynamics of EU oriented output within sectors of industry, ex-post trade and market liberalization, as investment...