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Survey Article: Optimal Tautness and the Economics of Incentives in Bureaucracies

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  • Michael Keren

Abstract

This paper reviews the economic literature which deals with the tautness of plans and with its relevance to macroeconomic pressures in Soviet-type economies. It opens with a discussion of Kornai 's shortage economy, a systemic approach to pressure, which is an alternative to the plan-related tautness coined by Hunter, and deals tautness from the agency angle, both in a static framework and in a dynamic, ratchet-related, framework.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 35 (1993)
Issue (Month): 1 (April)
Pages: 85-117

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Handle: RePEc:pal:compes:v:35:y:1993:i:1:p:85-117

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Cited by:
  1. Brixiova, Zuzana & Bulir, Ales, 2003. "Output performance under central planning: a model of poor incentives," Economic Systems, Elsevier, vol. 27(1), pages 27-39, March.

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