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Plans, Prices, and Corruption: The Soviet Firm Under Partial Centralization, 1930 to 1990

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  • HARRISON, MARK
  • KIM, BYUNG-YEON

Abstract

On the basis of new historical research on the Soviet command system we analyze the choices of a plan-setter and an effort-setter who interacted with each other and an external market to determine real output, hidden inflation, and the quality of corruption. We show that the performance of the Soviet economy was affected not only by the level of corruption but also by its quality, that is, how corrupt incomes were used. Our results explain rapid Soviet economic growth despite high corruption levels, and why slower economic growth in the 1970s was accompanied by increased privatization of rents.

Suggested Citation

  • 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(1), pages 1-41, March.
    • Handle: RePEc:cup:jechis:v:66:y:2006:i:01:p:1-41_00
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    Cited by:

    1. Byung‐Yeon Kim & Yoshisada Shida, 2017. "Shortages and the informal economy in the Soviet republics, 1965–89," Economic History Review, Economic History Society, vol. 70(4), pages 1346-1374, November.
    2. Shagaida, Natalia (Шагайда, Наталья), 2016. "Mechanisms of State Regulation of the Use of Agricultural Land for Construction Purposes: International and Russian Experience [Механизмы Государственного Регулирования Использования Сельскохозяйст," Working Papers 2864, Russian Presidential Academy of National Economy and Public Administration.
    3. Kim, Byung Yeon & Shida, Yoshisada, 2014. "Shortages and the Informal Economy in the Soviet Republics: 1965-1989," RRC Working Paper Series 43, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    4. Kim, Byung-Yeon & Kim, Suk Jin & Lee, Keun, 2007. "Assessing the economic performance of North Korea, 1954-1989: Estimates and growth accounting analysis," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 564-582, September.
    5. Christian Ochsner, 2023. "Hostility, Population Sorting, and Backwardness: Quasi-Experimental Evidence from the Red Army after WWII," CERGE-EI Working Papers wp768, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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