We explain economic growth by both politics, i.e. government activity including spending as well as regulation, and institutional quality and its interaction with politics. This extends previous work on institution building in transition by looking at its impact and, at the same time,...

Intro -- Contents -- Acronyms -- Tables -- Acknowledgments -- Introduction -- Part 1: An Institutional Approach to Eastern Europe's Transition -- 1. Party and State Institutions in Dual Transformations -- Part 2: Economic Reform in Communist Hungary, 1979−89 -- 2. Macroeconomic Stabilization...