Advanced Search
MyIDEAS: Login to save this paper or follow this series

Growth Slowdown in Bureaucratic Economic Systems

Contents:

Author Info

  • Ales Bulir
  • Zuzana Brixiova

Abstract

Bureaucratically organized systems tend to be less efficient than economies in which agents are free to choose their output targets, as well as the means to meet them. This paper presents a simple model of planner-manager interactions and shows how bureaucratic economies can end up in a low-effort, low-growth equilibrium even though they may have started in high-effort , high-growth equilibrium. The empirical evidence from eight Central and Eastern European countries during 1948-49 is consistent with our model results, namely, that the growth decline was systemic in nature. The results are applicable to countries in other regions with heavy bureaucratic involvement in the economy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=3961
Download Restriction: no

Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/6.

as in new window
Length: 36
Date of creation: 01 Jan 2001
Date of revision:
Handle: RePEc:imf:imfwpa:01/6

Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Email:
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC

Order Information:
Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sapir, Andre, 1980. "Economic Growth and Factor Substitution: What Happened to the Yugoslav Miracle?," Economic Journal, Royal Economic Society, vol. 90(358), pages 294-313, June.
  2. Leamer, Edward E. & Taylor, Mark P., 1999. "Estimating growth equations for previously centrally planned economies: Dealing with dubious data and disparate information," Journal of Macroeconomics, Elsevier, vol. 21(4), pages 639-671.
  3. Parsons, John E, 1986. " Credit Contracts in the G.D.R.: Decentralized Investment Decisions in a Planned Economy," Economic Change and Restructuring, Springer, vol. 20(1), pages 28-51.
  4. Easterly, William & Fischer, Stanley, 1995. "The Soviet Economic Decline," World Bank Economic Review, World Bank Group, vol. 9(3), pages 341-71, September.
  5. Murrell, Peter & Olson, Mancur, 1991. "The devolution of centrally planned economies," Journal of Comparative Economics, Elsevier, vol. 15(2), pages 239-265, June.
  6. Baron, David P. & Besanko, David, 1984. "Regulation and information in a continuing relationship," Information Economics and Policy, Elsevier, vol. 1(3), pages 267-302.
  7. Hurwicz, Leonid, 1973. "The Design of Mechanisms for Resource Allocation," American Economic Review, American Economic Association, vol. 63(2), pages 1-30, May.
  8. Easterly, William & Levine, Ross, 1998. "Troubles with the Neighbours: Africa's Problem, Africa's Opportunity," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(1), pages 120-42, March.
  9. Alexeev, Michael, 1991. "The 'storming' pattern of enterprise behavior in a centrally planned economy," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 173-185, March.
  10. Faith, Roger L & Short, Nancy C, 1995. " Bureaucratic Tenure and Economic Performance in Centrally Planned Economies," Public Choice, Springer, vol. 83(1-2), pages 139-57, April.
  11. Ickes, Barry W, 1990. "Do Socialist Countries Suffer a Common Business Cycle?," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 397-405, August.
  12. Milanovic, Branko & DEC, 1994. "Determinants of cross-country income inequality : an augmented Kuznets hypothesis," Policy Research Working Paper Series 1246, The World Bank.
  13. Banerjee, Abhijit V. & Spagat, Michael, 1992. "Shortages amid plenty under Soviet-type planning: A theory of unreliable supplies," Journal of Comparative Economics, Elsevier, vol. 16(2), pages 302-308, June.
  14. Freixas, Xavier & Guesnerie, Roger & Tirole, Jean, 1985. "Planning under Incomplete Information and the Ratchet Effect," Review of Economic Studies, Wiley Blackwell, vol. 52(2), pages 173-91, April.
  15. Brada, Josef C., 1978. "Plan execution and the workability of soviet planning," Journal of Comparative Economics, Elsevier, vol. 2(1), pages 65-69, March.
  16. Keren, Michael, 1982. "The ministry, plan changes, and the ratchet in planning," Journal of Comparative Economics, Elsevier, vol. 6(4), pages 327-342, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Dirk Bezemer & Uwe Dulleck & Paul Frijters, 2003. "Socialism, Capitalism, and Transition-Coordination of Economic Relations and Output Performance," Vienna Economics Papers 0305, University of Vienna, Department of Economics.
  2. Francisca Guedes de Oliveira, 2010. "Evidence on the relation between public capital and Government efficiency," Working Papers de Economia (Economics Working Papers) 01, Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto).
  3. Francisca Guedes de Oliveira, 2012. "Empirical Determinants of Government Efficiency: A study Based on Objective Indicators," Working Papers de Economia (Economics Working Papers) 03, Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto).
  4. Zuzana Brixiová & Aleš Bulír, 2002. "Growth Slowdown Under Central Planning: A Model of Poor Incentives," William Davidson Institute Working Papers Series 448, William Davidson Institute at the University of Michigan.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:01/6. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.