haku: @author Roland, G. / yhteensä: 10
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| Tekijä: | Roland, G. Verdier, T. |
| Otsikko: | Law enforcement and transition |
| Lehti: | European Economic Review
2003 : AUG, VOL. 47:4, p. 669-685 |
| Asiasana: | Transition economies Law Models |
| Kieli: | eng |
| Tiivistelmä: | The paper presents a simple model to analyze law enforcement problems in transition economies. Law enforcement implies coordination problems and multiplicity of equilibria due to a law abidance and a fiscal externality. Two institutional mechanisms for solving the coordination problem are anlyzed. A first mechanism, called "dualism", follows the scenario of Chinese transition where the government keeps direct control over economic resources and where a liberalized non-state sector follows market rules. The second mechanism put forward is accession to the European Union. It is shows that accession to the European Union, even without external borrowing, provides a mechanism to eliminate the "bad" equilibrium, provided the "accessing" country is small enough relative to the European Union. Interestingly, it is shown that accession without conditionality is better than with conditionality because conditionality creates a coordination problem of its own that partly annihilates the positive effects of expected accession. |
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