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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.

Suggested Citation

  • Michael Keren, 1993. "Survey Article: Optimal Tautness and the Economics of Incentives in Bureaucracies," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 35(1), pages 85-117, April.
    • 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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