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Accounting for Secrets

Author

Listed:
  • Harrison, Mark

    (University of Warwick)

Abstract

The Soviet state counted people, resources – and secret papers. The need to account for secrets was a transaction cost of autocratic government. This paper finds archival evidence of significant costs, multiplied by secrecy’s recursive aspect: the system of accounting for secrets was also secret and so had to account for itself. The evidence suggests that most Soviet officials complied most of the time. Numerous instances also imply that careless handling could take root and spread locally until higher authorities intervened. The paper uses the case of a small regional bureaucracy, the Lithuania KGB, to estimate the aggregate costs of handling secret paperwork. Over the period from 1954 to 1982, accounting for secrets makes up around one third of this organization’s archived records. This figure is surprisingly large, and is the main new fact contributed by the paper. There is much time variation, some of it not easily explained.

Suggested Citation

  • Harrison, Mark, 2011. "Accounting for Secrets," CAGE Online Working Paper Series 59, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:59
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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/59.2011_harrison.pdf
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    References listed on IDEAS

    as
    1. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 507-548.
    2. Wintrobe,Ronald, 2000. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521794497.
    3. Mark Harrison, 2013. "Secrecy, Fear and Transaction Costs: The Business of Soviet Forced Labour in the Early Cold War," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(6), pages 1112-1135.
    4. Harrison, Mark, 2013. "Accounting for Secrets," The Journal of Economic History, Cambridge University Press, vol. 73(4), pages 1017-1049, December.
    5. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
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    Cited by:

    1. Mark Harrison & Inga Zaksauskienė, 2016. "Counter-intelligence in a command economy," Economic History Review, Economic History Society, vol. 69(1), pages 131-158, February.
    2. Lskavyan, Vahe, 2022. "Storming in agent recruitment: Evidence from declassified Soviet secret service files," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 973-990.
    3. Harrison, Mark, 2013. "Accounting for Secrets," The Journal of Economic History, Cambridge University Press, vol. 73(4), pages 1017-1049, December.
    4. Harrison, Mark, 2017. "Secrecy and State Capacity: A Look Behind the Iron Curtain," Economic Research Papers 269312, University of Warwick - Department of Economics.
    5. Mark Harrison, 2013. "Secrecy, Fear and Transaction Costs: The Business of Soviet Forced Labour in the Early Cold War," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(6), pages 1112-1135.

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    More about this item

    Keywords

    Accounting; Dictatorship; Norms; Secrecy; Soviet Union; Transaction Costs;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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