Problems of Transition from a Planned to a Market Economy
The paper shows that a transition from a planned to a market economy implies an important change of the structure of production, i. e. a reallocation of resources which takes time and induces sufferings for some people. These sufferings may be reduced by subsidization of some sectors, with some negative effects on GDP and growth if subsidization exceeds a certain size. The time tillthe economy in transition reaches an ``old" market economy (asymptotically or totally) is estimated by different methods. Finally other problems, mostly non--economic ones, which are connected with the transition process are discussed.
|Date of creation:||Apr 2000|
|Date of revision:|
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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.:
- Andrei Shleifer, 1998.
"State Versus Private Ownership,"
Harvard Institute of Economic Research Working Papers
1841, Harvard - Institute of Economic Research.
- Michael D. Intriligator, 1964. "Regional Allocation of Investment: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 78(4), pages 659-662.
- Klaus M. Schmidt, 1995.
"Incomplete Contracts and Privatization,"
Discussion Paper Serie A
480, University of Bonn, Germany.
- De Fraja, Giovanni, 1993. "Productive efficiency in public and private firms," Journal of Public Economics, Elsevier, vol. 50(1), pages 15-30, January.
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