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The Classical Soviet-Type Economy: Nature of the System and Implications for Reform

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  • Richard E. Ericson
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    Abstract

    Below I will outline the traditional Soviet economic system, developing its logic of institutions and interactions, and pointing out their natural economic consequences. This will lead me to a list of defining characteristics of that system, characteristics that are mutually dependent and supporting and hence must be changed more or less simultaneously if effective reform is to take place. One implication is that step-by-step measures are likely to fail. Instead, complete replacement of the economic system, as apparently intended by many East European reformers, seems necessary for a market-based system to begin functioning. This will be a truly monumental task and nowhere more so than in the Soviet Union.

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.5.4.11
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    Bibliographic Info

    Article provided by American Economic Association in its journal Journal of Economic Perspectives.

    Volume (Year): 5 (1991)
    Issue (Month): 4 (Fall)
    Pages: 11-27

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    Handle: RePEc:aea:jecper:v:5:y:1991:i:4:p:11-27

    Note: DOI: 10.1257/jep.5.4.11
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    References

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    1. George Garvy, 1977. "Money, Financial Flows, and Credit in the Soviet Union," NBER Books, National Bureau of Economic Research, Inc, number garv77-1.
    2. Powell, Raymond P., 1977. "Plan execution and the workability of soviet planning," Journal of Comparative Economics, Elsevier, vol. 1(1), pages 51-76, March.
    3. Roland, Gerard, 1990. "Complexity, bounded rationality, and equilibrium: The soviet-type case," Journal of Comparative Economics, Elsevier, vol. 14(3), pages 401-424, September.
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    Cited by:
    1. Yingyi Qian & Gerard Roland & Chenggang Xu, 1999. "Coordinating Changes in M-form and U-form Organizations," William Davidson Institute Working Papers Series 284, William Davidson Institute at the University of Michigan.
    2. Yingyi Qian & Cheng-Gang Xu, 1993. "Why China's economic reforms differ: the m-form hierarchy and entry/expansion of the non-state sector," LSE Research Online Documents on Economics 3755, London School of Economics and Political Science, LSE Library.
    3. Johanson, Martin, 2008. "Institutions, exchange and trust: A study of the Russian transition to a market economy," Journal of International Management, Elsevier, vol. 14(1), pages 46-64, March.
    4. Philippe Dulbecco & Marie-Françoise Renard, 2003. "Permanency and Flexibility of Institutions: The Role of Decentralization in Chinese Economic Reforms," The Review of Austrian Economics, Springer, vol. 16(4), pages 327-346, December.
    5. Klara Sabirianova & Jan Svejnar & Katherine Terrell, 2005. "Foreign Investment, Corporate Ownership, and Development:Are Firms in Emerging Markets Catching Up to the World Standard?," William Davidson Institute Working Papers Series wp734, William Davidson Institute at the University of Michigan.
    6. Ericson, Richard E., 2000. "A posztszovjet gazdasági rendszer Oroszországban: ipari feudalizmus?
      [The post-Soviet economic system in Russia: industrial feudalism?]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 23-40.
    7. Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers 3246, C.E.P.R. Discussion Papers.
    8. John E. Anderson, 2005. "Fiscal Reform and its Firm-Level Effects in Eastern Europe and Central Asia," William Davidson Institute Working Papers Series wp800, William Davidson Institute at the University of Michigan.
    9. John Tomer, 2002. "Intangible Factors in the Eastern European Transition: A Socio-Economic Analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 14(4), pages 421-444.
    10. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - German National Library of Economics, number 37141.

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