Accounting for Secrets
The Soviet dictatorship used secrecy to shield its processes from external scrutiny. A system of accounting for classified documentation assured the protection of secrets. The associated procedures resemble a turnover tax applied to government transactions. There is evidence of both compliance and evasion. The burden of secrecy was multiplied because the system was also secret and so had to account for itself. Unique documentation of a small regional bureaucracy, the Lithuania KGB, is exploited to yield an estimate of the burden. Measured against available benchmarks, the burden looks surprisingly heavy. JEL classification: K42 ; L14 ; M48 ; N44 ;P26
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- Harrison, Mark, 2011. "Secrecy, Fear and Transaction Costs: The Business of Soviet Forced Labour in the Early Cold War," CAGE Online Working Paper Series 47, Competitive Advantage in the Global Economy (CAGE).
- Harrison, Mark, 2013.
"Accounting for Secrets,"
The Warwick Economics Research Paper Series (TWERPS)
1015, University of Warwick, Department of Economics.
- Wintrobe,Ronald, 2000. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521794497.
- Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 507-548.
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