I propose a political-economy model of optimal .scal unions where the threat of secession imposes a limit on .scal redistribution between regions. Fiscal transfers take place indirectly, through centralized .scal policy. I argue that the stability of .scal unions depends on the nature of...

This paper analyzes the inter-relations between economic and political processes during transition in 25 post-communist countries of Central and Eastern Europe and the former Soviet Union. The main findings are the following: First, economic liberalization generally has positive effect on growth...

I analyze the relationship between economics and politics across eight parliamentary elections in four transition countries, the Czech Republic, Hungary, Poland and Slovakia, using regional data (election results and socio-economic characteristics at county level). I argue that support for...

I analyze the relationship between economics and politics across eight parliamentary elections in four transition countries, the Czech Republic, Hungary, Poland and Slovakia, using regional data (election results and socio-economic characteristics at county level). I argue that support for...