The state and the firm - the centralization and decentralization of economic institutions - an introduction, Bruno Dallago and Luigi Mittone. Part 1 Institutions and markets: Creative Destruction in economic and political institutions, Massmio Egidi decentralization as the ability to adapt, Jack Birner what type of capitalism is produced by privatization?, Hans-Jurgen Wagener the market for institutions versus the strong hand of the state - the case of Eastern Europe, Svetozar Pejovich. Part 2 Centralization and decentralization, paradigms and facts: a presentation of fiscal federalism, Giorgio Brosio fiscal federalism in Russia, Pekka Sutela privatization, decentralization, competition - some lessons from a concentration analysis of Hungarian industries, Zoltan Bara labour market and employment policy in Central and Eastern Europe in the context of systematic change, Jeno Koltay. Part 3 Creation and development of markets in Eastern Europe: behavioural constraints and the creation of markets in post-Socialist economies, Wim Swaan decentralization and centralization in the enterprise sphere of the Czech Republic, Jana Sereghyova the collapse of the Russian economy - an institutional explanation, Ruud Knaack the revival of redistribution in Hungary, Eva Voszka inter-enterprise arrears in economies in transition - analytical, empirical and policy issues, Fabrizio Coricelli. Part 4 The quasi-market formula: the privatization of welfare services and the role of non-profit organization, Carlo Borzaga quasi-markets and incomplete information - the case of medical services in the UK and Italy, Luigi Mittone privatization, non-profit trusts and contracts for healthcare services in the UK, Will Bartlett.