The Second Economy and the Destabilizing Effect of Its Growth on the State Economy in the Soviet Union, 1965-1989
The authors suggest that the rapid growth of the illegal underground economy in 1970s and 1980s has destabilized the Soviet state economy and weakened the mechanism of central planning. This hypothesis is advanced on the basis of the examination of striking decline in income (legal) elasticities of demand for a number of consumer goods purchased in state retail trade in Russia and Ukraine. The growth of income from illegal sources and purchases of consumer goods in black markets explains this phenomenon.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097|
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/
When requesting a correction, please mention this item's handle: RePEc:duk:dukeec:95-33. 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: (Department of Economics Webmaster)
If references are entirely missing, you can add them using this form.