The transition from dual-track pricing to a market system: Winners and losers
We formulate a microeconomic model of the dual-track price system for households and use it to analyze ‘transitional policy’ reforms, i.e., a rise in the plan-track price and a reduction in the plan-track quantity. Each of these reforms has a negative effect on the market price, but a positive effect on the weighted average price (CPI). Under fairly mild assumptions, if households are heterogeneous and resale of goods can occur, transitional policy reform creates losers (state employees) as well as winners (non-state employees). Thus, although the transition from central planning to DTP potentially occurs with no losers, further reform is painful for some.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 37 (2013)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: Landshuter Str. 4, 93047 Regensburg|
Phone: +49-(0)941-943 54 10
Fax: +49-(0)941-943 54 27
Web page: http://www.elsevier.com/locate/inca/621171
More information through EDIRC
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.:
- Lawrence J. Lau & Yingyi Qian & Gerard Roland, .
"Pareto-Improving Economic Reforms through Dual-Track Liberalization,"
97007, Stanford University, Department of Economics.
- Lau, Lawrence J. & Qian, Yingyi & Roland, Gerard, 1997. "Pareto-improving economic reforms through dual-track liberalization," Economics Letters, Elsevier, vol. 55(2), pages 285-292, August.
- Lau, Lawrence J & Qian, Yingyi & Roland, Gérard, 1997. "Pareto-Improving Economic Reforms through Dual-Track Liberalization," CEPR Discussion Papers 1595, C.E.P.R. Discussion Papers.
- Basu, Kaushik & Emerson, Patrick M, 2000.
"The Economics of Tenancy Rent Control,"
Royal Economic Society, vol. 110(466), pages 939-62, October.
- Guy Shaojia Liu & Haiyan Song, 2003. "A Dual-Price Demand Theory for Economies under Transition," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(2), pages 185-203.
- Bennett, John & Dixon, Huw David, 1996.
"A Macrotheoretic Model of the Chinese Economy,"
Journal of Comparative Economics,
Elsevier, vol. 22(3), pages 277-294, June.
- Dixon, Huw, 1987. "The General Theory of Household and Market Contingent Demand," The Manchester School of Economic & Social Studies, University of Manchester, vol. 55(3), pages 287-304, September.
- Gao, X. M. & Wailes, Eric J. & Cramer, Gail L., 1996. "Partial Rationing and Chinese Urban Household Food Demand Analysis," Journal of Comparative Economics, Elsevier, vol. 22(1), pages 43-62, February.
- Michael W. Bell & Kalpana Kochhar & Hoe Ee Khor, 1993. "China at the Threshold of a Market Economy," IMF Occasional Papers 107, International Monetary Fund.
- Dixon, Huw David, 1993.
"Macroeconomic Equilibrium and Reform in a Transitional Economy,"
CEPR Discussion Papers
758, C.E.P.R. Discussion Papers.
- Bennett, John & Dixon, Huw David, 1995. "Macroeconomic equilibrium and reform in a transitional economy," European Economic Review, Elsevier, vol. 39(8), pages 1465-1485, October.
- Sah, Raaj Kumar & Srinivasan, T. N., 1988. "Distributional consequences of rural food levy and subsidized urban rations," European Economic Review, Elsevier, vol. 32(1), pages 141-159, January.
- Gautam Jaggi & Mary Rundle & Daniel H. Rosen & Yuichi Takahashi, 1996. "China's Economic Reforms: Chronology and Statistics," Working Paper Series WP96-5, Peterson Institute for International Economics.
- Byrd, William A., 1987. "The impact of the two-tier plan/market system in chinese industry," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 295-308, September.
- Liew, Leong H, 1993. "Rent-Seeking and the Two-Track Price System in China," Public Choice, Springer, vol. 77(2), pages 359-75, October.
- Sicular, Terry, 1988. "Plan and Market in China's Agricultural Commerce," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 283-307, April.
When requesting a correction, please mention this item's handle: RePEc:eee:ecosys:v:37:y:2013:i:1:p:30-44. 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: (Shamier, Wendy)
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.