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Shortages and the Informal Economy in the Soviet Republics: 1965-1989

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  • Kim, Byung Yeon
  • Shida, Yoshisada

Abstract

We measure the informal economy and shortages of consumer goods in the Soviet republics from 1965 to 1989 to estimate the relationships of these two variables. We use fixed-effect model and instrument variable approach and find that the informal economy and shortages reinforce each other. Results indicate that the Soviet central planning system is difficult to sustain in the long run. A substantial heterogeneity across the Soviet republics exists not only in the extent of the informal economy and shortages, but also in the associations of the two variables.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26494/1/RRC_WP_No43.pdf
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Bibliographic Info

Paper provided by Russian Research Center, Institute of Economic Research, Hitotsubashi University in its series RRC Working Paper Series with number 43.

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Length: 28 p.
Date of creation: Mar 2014
Date of revision:
Handle: RePEc:hit:rrcwps:43

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Keywords: shortages; informal economy; Soviet republics;

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  1. Kim, Byung-Yeon, 1999. "The Income, Savings, and Monetary Overhang of Soviet Households," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 644-668, December.
  2. Ofer, Gur & Pickersgill, Joyce, 1980. "Soviet Household Saving: A Cross-Section Study of Soviet Emigrant Families," The Quarterly Journal of Economics, MIT Press, vol. 95(1), pages 121-44, August.
  3. Kim, Byung Yeon, 1997. " Soviet Household Saving Function," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 181-203.
  4. Harrison, Mark & Kim, Byung-Yeon, 2006. "Plans, Prices, and Corruption: The Soviet Firm Under Partial Centralization, 1930 to 1990," The Journal of Economic History, Cambridge University Press, vol. 66(01), pages 1-41, March.
  5. Barbara Anderson & Brian Silver, 1983. "Estimating russification of ethnic identity among non-Russians in the USSR," Demography, Springer, vol. 20(4), pages 461-489, November.
  6. Kim, Byung-Yeon, 2003. "Informal economy activities of Soviet households: size and dynamics," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 532-551, September.
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