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Economy of Unnecessary Output (Institutional Characteristics of the Circuit of Losses)
[Экономика Ненужной Продукции]

Author

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  • Blokhin, Andrey (Блохин, Андрей)

    (Institute of Economic Forecasting, Russian Academy of Sciences)

Abstract

The paper deals with the mechanisms of transformation of stochastic economic losses into a stable pattern of “empty” or “bubble” prices not backed up with costly goods and services. The author explains how mistakes in economic activity and business objectives often accumulate and lead to system distortions of economic information, structural disparities, institutional traps and other negative effects. The author considers this combination of mechanisms as an “useless product economy”. Those occasional losses are present in any economy. However, a significant increase in such losses is dangerous and can lead to crises. The author considers the methods of description, prevention and elimination of unnecessary production.

Suggested Citation

  • Blokhin, Andrey (Блохин, Андрей), 2015. "Economy of Unnecessary Output (Institutional Characteristics of the Circuit of Losses) [Экономика Ненужной Продукции]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 7-40, February.
    • Handle: RePEc:rnp:ecopol:ep1515
    as

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    References listed on IDEAS

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    1. Breedon, Francis & Vitale, Paolo, 2010. "An empirical study of portfolio-balance and information effects of order flow on exchange rates," Journal of International Money and Finance, Elsevier, vol. 29(3), pages 504-524, April.
    2. Gerald S. Oettinger, 1999. "The Effects of Sex Education on Teen Sexual Activity and Teen Pregnancy," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 606-635, June.
    3. Chang, Li-Yen & Sun, Pei-Yu, 2012. "Stated-choice analysis of willingness to pay for low cost carrier services," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 15-17.
    4. Daniel Bulin, 2014. "EU Travel and Tourism Industry - A Cluster Analysis of Impact and Competitiveness," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 150-162, May.
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    Cited by:

    1. Komarov, Vladimir (Комаров, Владимир), 2015. "Economic Development Strategy: is it time to update the paradigm? [Стратегия Экономического Развития: Время Обновить Парадигму?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 24-39.

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