This Occasional Paper is part of a research project undertaken by the Institute of Public Finance and financed by the Ministry of Finance of the Republic of Croatia. The research project and the presented paper are published in Croatian in the Institute’s journal “Financijska praksa”, Volume 20, Number 2 (August 1996). Part I of the paper is written by Danijela Kuliš (Institute of Public Finance, Zagreb), and Part II is written by Žarko Miljenović (then, State Bureau for Macroeconomic Analyses and Forecasts, Zagreb; and now Zagrebačka banka, Zagreb). The project’s lead researcher was Dr. Katarina Ott (Institute of Public Finance, Zagreb)
