ABSTRACT
The analytical framework developed, which proposes different models of transition, makes it possible to understand the transition process from a new and more enlightened perspective. It provides a better understanding of the complexities involved in the transition process and the differing opinions between economists. Economists have provided arguments that the centrally administered economies of the Soviet Union and Eastern Europe, due to their highly bureaucratic structure, were inefficient and lacked creativity and, thus, inhibited progress. However, while there was widespread belief among economists that these economies were not viable, economists was not formalized by developing models that would facilitate the transition from a centrally administered to a market economy. Alternatively, economists provided a solution to the problem by sometimes explicitly, but mainly implicitly, assuming specific behavioral assumptions and/or economic relationships. Economic analysis involves the application of a social scientific method to the making, and consequences, of economic choices.
