Abstract

This paper reviews the price subsidy reforms in each of the Baltic States from 199 to 1992 and provides a comparison of the differing decisions and preliminary results. Although price levels and compensation mechanisms differ, the pattern in all three states is to let negotiations between producers and processors set producer prices and to limit the profit mark-up by processors, wholesalers, and retailers. For consumers, price increases were partially offset by direct income transfers. Although Estonia preceded the others by removing most price controls in July 1991, Lithuania and Latvia did the same in late 1991 and early 1992.