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Accounting for Secrets

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  • Harrison, Mark

Abstract

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.

Suggested Citation

  • Harrison, Mark, 2013. "Accounting for Secrets," Economic Research Papers 270534, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:270534
    DOI: 10.22004/ag.econ.270534
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    References listed on IDEAS

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    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. 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.
    3. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    4. Wintrobe,Ronald, 2000. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521794497, September.
    5. Harrison, Mark, 2013. "Accounting for Secrets," The Journal of Economic History, Cambridge University Press, vol. 73(4), pages 1017-1049, 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. 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.
    5. Harrison, Mark, 2017. "Secrecy and State Capacity: A Look Behind the Iron Curtain," Economic Research Papers 269312, University of Warwick - Department of Economics.

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    More about this item

    Keywords

    Financial Economics; International Development;

    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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