The culmination of work begun in 1985 by the authors under the
joint sponsorship of the Ekonomski Institut Zagreb and Florida
State University, this book posits the most comprehensive and
relevant model yet developed to explain the workings of
Yugoslavia's economy. The authors have developed a model that is
both theoretically oriented and empirically relevant--ensuring its
appropriateness for recommending and evaluating alternative policy
remedies for the acute problems of inflation, unemployment, and
foreign trade now facing Yugoslavia, a country until recently noted
for its economic successes. Already chosen to represent Yugoslavia
in the ongoing international Project LINK, a global system for
tracking and forecasting the economic conditions of some eighty
countries and regions, the model is distinguished by its policy
emphasis and by its ability to capture the fundamental divisions of
the Yugoslav economy. Students and scholars of socialism, Marxism,
and comparative economics will find this a major contribution to
the literature of economic modeling.
The book begins by providing essential background information
about Yugoslavia including highlights of the country's economic
experience, special features of its economic structure, the
composition of its political system, the operation of its financial
system, and the behavior of firms. Part two includes four chapters
which examine the different components of the Yugoslav economy and
review the theoretical basis and empirical performance of the
equations which describe those components. A separate chapter
presents the complete model, called the EIZFSU Mark 1.0 in
recognition of its major sponsoring institutions. In the final
part, the model is used to study policies for improving the
performance of the economy and obstacles to their implementation.
An appendix describes and quantifies the variables used in the
model while a list of references provides additional information
for the researcher who wishes to pursue further study in this
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