February 28 -March I, 1994. I would like to thank the Earnart Foundation and the Lynde & Harry Bradley Foundation for support of my research on the e c o n o~c s of property rights in Eastern Europe. I also wish to thank an anonymous referee for excellent comments.1. Yugoslavia was the only exception.2. This paper defines capitalism as a system based on private ownership, contractual freedom, a government under law. and the behavioral principles of self-interest, self-responsibility and self-determination.
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