Empirical tests of impacts of rationing: the case of Poland in transition
AbstractThis study tests the theory of rationing, examining changes in household consumption behavior during the transition to a market economy in Poland, 1987-92. Using pre-reform data from the Polish Household Budget Survey, Huffman and Johnson develop a model of consumption under rationing and derive virtual prices for food and housing. A pre-reform Almost Ideal Demand System (AIDS) model with rationing is then used to estimate plausible values for price and income elasticities. Comparing pre-reform and post-reform (without rationing) AIDS models shows that own-price elasticities for nonrational goods are larger after the reform, and there is increased complementarity and decreased substitutability for nonrationed goods. This comparison also shows a 75 percent decline in real household welfare over the transition to a market economy.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Systems.
Volume (Year): 28 (2004)
Issue (Month): 1 (March)
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Other versions of this item:
- Huffman, Sonya Kostova & Johnson, Stanley R., 2000. "Empirical Tests Of Impacts Of Rationing: The Case Of Poland In Transition," 2000 Annual meeting, July 30-August 2, Tampa, FL 21794, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Sonya Kostova Huffman & Stanley R. Johnson, 2000. "Empirical Tests of Impacts of Rationing: The Case of Poland in Transition," Center for Agricultural and Rural Development (CARD) Publications 00-wp237, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Huffman, Sonya K. & Johnson, Stanley R., 2004. "Empirical Tests of Impacts of Rationing: The Case of Poland in Transition," Staff General Research Papers 11162, Iowa State University, Department of Economics.
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