IDEAS home Printed from https://ideas.repec.org/p/hit/rrcwps/43.html
   My bibliography  Save this paper

Shortages and the Informal Economy in the Soviet Republics: 1965-1989

Author

Listed:
  • Kim, Byung Yeon
  • Shida, Yoshisada

Abstract

We measure the informal economy and shortages of consumer goods in the Soviet republics from 1965 to 1989 to estimate the relationships of these two variables. We use fixed-effect model and instrument variable approach and find that the informal economy and shortages reinforce each other. Results indicate that the Soviet central planning system is difficult to sustain in the long run. A substantial heterogeneity across the Soviet republics exists not only in the extent of the informal economy and shortages, but also in the associations of the two variables.

Suggested Citation

  • 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.
  • Handle: RePEc:hit:rrcwps:43
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/26494/RRC_WP_No43.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kim, Byung-Yeon, 1999. "The Income, Savings, and Monetary Overhang of Soviet Households," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 644-668, December.
    2. Byung Yeon Kim, 1997. "Soviet Household Saving Function," Economic Change and Restructuring, Springer, vol. 30(2), pages 181-203, May.
    3. Byung-Yeon Kim, 2002. "Causes of repressed inflation in the Soviet consumer market, 1965–1989: retail price subsidies, the siphoning effect, and the budget deficit[I thank An]," Economic History Review, Economic History Society, vol. 55(1), pages 105-127, February.
    4. Howard, David H, 1976. "The Disequilibrium Model in a Controlled Economy: An Empirical Test of the Barro-Grossman Model," American Economic Review, American Economic Association, vol. 66(5), pages 871-879, December.
    5. L. F. G. De Cazaux, 1965. "On The Budget," Journal of Accounting Research, Wiley Blackwell, vol. 3(2), pages 264-265.
    6. Asgary, Nader & Gregory, Paul R & Mokhtari, Manouchehr, 1997. "Money Demand and Quantity Constraints: Evidence from the Soviet Interview Project," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 365-377, April.
    7. Wojciech Charemza & Richard E. Quandt, 1982. "Models and Estimation of Disequilibrium for Centrally Planned Economies," Review of Economic Studies, Oxford University Press, vol. 49(1), pages 109-116.
    8. Ivanov, Youri & Khomenko, Tatiana, 2009. "A Retrospective Analysis of the Economic Development of Countries of the Commonwealth of Independent States," RRC Working Paper Series 17, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    9. Gur Ofer & Joyce Pickersgill, 1980. "Soviet Household Saving: A Cross-Section Study of Soviet Emigrant Families," The Quarterly Journal of Economics, Oxford University Press, vol. 95(1), pages 121-144.
    10. 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.
    11. Barbara Anderson & Brian Silver, 1983. "Estimating russification of ethnic identity among non-Russians in the USSR," Demography, Springer;Population Association of America (PAA), vol. 20(4), pages 461-489, November.
    12. Kim, Byung-Yeon, 2003. "Informal economy activities of Soviet households: size and dynamics," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 532-551, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shida, Yoshisada, 2015. "Forced Savings in the Soviet Republics: Re-examination," RRC Working Paper Series 54, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Shida, Yoshisada, 2015. "Forced Savings in the Soviet Republics: Re-examination," RRC Working Paper Series 54, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    3. Kim, Byung-Yeon, 1999. "The Income, Savings, and Monetary Overhang of Soviet Households," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 644-668, December.
    4. Kenneth Smith, 2007. "Determinants of Soviet Household Income," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 3-24, June.
    5. Kenneth Smith, 2003. "Individual Welfare in the Soviet Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 64(1), pages 75-105, October.
    6. Thomas L Bradley & Paul B Eberle, 2023. "Purchasing Power Parity In Russia And The Transitioning Economy 1990-1995," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 31, pages 85-111, June.
    7. Kim, Byung-Yeon, 2000. "Causes of repressed inflation in the Soviet consumer market: Retail price subsidies, the sihponing effect and the budget deficit," BOFIT Discussion Papers 9/2000, Bank of Finland Institute for Emerging Economies (BOFIT).
    8. Kim, Byung Yeon, 1997. "Soviet Household Saving Function," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 181-203.
    9. Filippov, Mikhail G, 2002. "Russian Voting and the Initial Economic Shock of Hyperinflation," Public Choice, Springer, vol. 111(1-2), pages 73-104, March.
    10. Nenovsky, Nikolay, 2020. "The Theory of the Emission Economy Bolshevik roots of "Modern Monetary Theory"," MPRA Paper 113048, University Library of Munich, Germany.
    11. 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.
    12. Richard Portes, 1986. "The Theory and Measurement of Macroeconomic Disequilibrium in Centrally Planned Economies," NBER Working Papers 1875, National Bureau of Economic Research, Inc.
    13. Kim, Byung-Yeon, 2003. "Informal economy activities of Soviet households: size and dynamics," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 532-551, September.
    14. Alexander S. Sangare, 2005. "Efficience des marchés : un siècle après Bachelier," Revue d'Économie Financière, Programme National Persée, vol. 81(4), pages 107-132.
    15. Ekaterina Kalugina & Boris Najman, 2003. "Travail et pauvreté en Russie : évaluations objectives et perceptions subjectives," Économie et Statistique, Programme National Persée, vol. 367(1), pages 83-100.
    16. Aynur Pala, 2014. "The Effect of Valuation Ratios, Gold Price, and Petroleum Price on Equity Returns: A Comparison of Static Panel and Quantile Regressions," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 80-89, January.
    17. Stephanie Bell, 1999. "Functional Finance: What, Why, and How?," Economics Working Paper Archive wp_287, Levy Economics Institute.
    18. Bautista, María Angélica & González, Felipe & Martinez, Luis R. & Muñoz, Pablo & Prem, Mounu, 2020. "Does Higher Education Reduce Mortality? Evidence from a Natural Experiment in Chile," SocArXiv 5s2px, Center for Open Science.
    19. Denis Cogneau & Yannick Dupraz & Justine Knebelmann & Sandrine Mesplé-Somps, 2021. "Taxation in Africa from Colonial Times to Present Evidence from former French colonies 1900-2018," Working Papers halshs-03420664, HAL.
    20. Chen Pu & Hsiao Chihying, 2005. "the Transition Process in China: A theoretic and empirical Study," Development and Comp Systems 0507007, University Library of Munich, Germany.

    More about this item

    Keywords

    shortages; informal economy; Soviet republics;
    All these keywords.

    JEL classification:

    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:rrcwps:43. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/rrhitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.