Prepared for the Handbook Of New Institutional Economics. Focusing on firm behavior, the paper examines the collapse of socialist institutions, the building of capitalist institutions, changing firm boundaries, transactional governance, corporate governance, and use of the legal system. The contrast between law's use in transactions and its relative ineffectiveness in corporate governance sugge...

This paper offers the first comprehensive analysis of legal change in the protection of shareholder and creditor rights in transition economies and its impact on the propensity of firms to raise external finance. Following La Porta et al. (1998), the paper constructs an expanded set of legal indices to capture a range of potential conflicts between different stakeholders of the firm. It supplem...

Firms in post-transition economies are frequently considered less efficient than those more advanced market economies. By relying on the World Bank Enterprise Survey for year 2019, firm-level technical inefficiency is estimated by stochastic frontier analysis method a sample of European countries. To be precise, included Albania, Bosnia and Herzegovina, Croatia, Czechia, Estonia, North Macedoni...