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Empirical Tests of Impacts of Rationing: The Case of Poland in Transition

  • Huffman, Sonya K.
  • Johnson, Stanley R.

This study tests hypothesis derived from the theory of rationing using data for Polish households during the transition. The demand system consists of six commodity groups, and virtual prices are derived for the rationed goods. The empirical results are consistent with the theory: larger own-price elasticities for non-rationed goods after the reform, increased complementarity and decreased substitutability. The results also show that households did not suffer declines in welfare that were as large as officially reported.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11162.

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Date of creation: 01 Mar 2004
Date of revision:
Publication status: Published in Economic Systems, March 2004, vol. 28 no. 1, pp. 79-99
Handle: RePEc:isu:genres:11162
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. repec:cup:cbooks:9780521433297 is not listed on IDEAS
  2. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  3. Wang, Zhi & Chern, Wen S., 1992. "Effects of rationing on the consumption behavior of Chinese urban households during 1981-1987," Journal of Comparative Economics, Elsevier, vol. 16(1), pages 1-26, March.
  4. 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.
  5. repec:cup:cbooks:9780521438827 is not listed on IDEAS
  6. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
  7. Kalwij, A.S. & Alessie, R.J.M. & Fontein, P.F., 1998. "Household commodity demand and demographics in The Netherlands : A microeconometric analysis," Other publications TiSEM 414b2144-b49e-42f9-8081-e, Tilburg University, School of Economics and Management.
  8. Huffman, Sonya K. & Johnson, Stanley R., 2004. "Impacts of Economic Reform in Poland: Incidence and Welfare Changes Within a Consistent Framework," Staff General Research Papers 11158, Iowa State University, Department of Economics.
  9. Subramanian, S. & Deaton, A., 1994. "The Demand for Food and Calories," Papers 175, Princeton, Woodrow Wilson School - Development Studies.
  10. Mundlak, Yair & Larson, Donald F, 1992. "On the Transmission of World Agricultural Prices," World Bank Economic Review, World Bank Group, vol. 6(3), pages 399-422, September.
  11. Antoni Chawluk & Rod Cross, 1994. "The real balance effects of price liberalization in Poland 1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(4), pages 487-499, December.
  12. Podkaminer, Leon, 1988. "Disequilibrium in Poland's consumer markets: Further evidence on intermarket spillovers," Journal of Comparative Economics, Elsevier, vol. 12(1), pages 43-60, March.
  13. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
  14. Podkaminer, Leon, 1982. "Estimates of the Disequilibria in Poland's Consumer Markets, 1965-1978," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 423-31, August.
  15. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  16. repec:cup:cbooks:9780521296762 is not listed on IDEAS
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