Ebook: Models of Disequilibrium and Shortage in Centrally Planned Economies

The centrally planned economies (CPEs) of the Soviet Union and Eastern Europe have experienced severe imbalances in domestic and external markets over the past several decades. As a result, they have been chronically afflicted by problems such as excess demand, repressed inflation, deficits of commodities, queues, waiting lists, and forced savings. Economists have responded to these phenomena by developing appropriate theoretical and empirical models of CPEs. Of particular note have been the pioneering studies of Richard Portes on disequilibrium econometric models and Janos Kornai on the shortage economy. Each approach has attracted followers who have produced numerous, innovative macro- and microeconomic models of Poland, Czechoslovakia, the German Democratic Republic, Hungary, and the USSR. These models have proved to be of considerable value in the analysis of the causes, consequences and remedies of disequilibrium phenomena. Inevitably, the new research has also generated controversies both between and within the schools of shortage and disequilibrium modelling, concerning the fundamental nature of the socialist economy, theoretical concepts and definitions, the specification of models, estimation techniques, interpretation of empirical findings, and policy recommend­ ations. Furthermore, the research effort has been energetic but incomplete, so many gaps exist in the field.

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Content:
Front Matter....Pages i-xv
Front Matter....Pages 1-1
Introduction to models of disequilibrium and shortage in centrally planned economies....Pages 3-25
The theory and measurement of macroeconomic disequilibrium in centrally planned economies....Pages 27-47
The economics of shortage in the centrally planned economies....Pages 49-81
The chronic excess demand hypothesis....Pages 83-99
Hidden and repressed inflation in Soviet-type economies: definitions, measurements and stabilization....Pages 101-146
Disequilibrium econometrics for centrally planned economies....Pages 147-177
Front Matter....Pages 179-179
Disequilibrium models of the Czechoslovak economy....Pages 181-204
Macroeconomic disequilibrium models of Poland....Pages 205-246
Macroeconomic disequilibrium model of Hungary....Pages 247-260
Front Matter....Pages 261-261
Sectoral shortage models in Hungary....Pages 263-281
Disequilibrium modelling of consumption in the centrally planned economy....Pages 283-315
Savings and consumption in the centrally planned economy: a disequilibrium approach....Pages 317-332
A disequilibrium approach to modelling foreign trade in centrally planned economies....Pages 333-360
Disequilibrium models of investment....Pages 361-374
Reproduction of shortage in the Hungarian car market....Pages 375-404
Modelling parallel markets in centrally planned economies: the case of the automobile market in Poland....Pages 405-425
Priority and the shortage model: the medical system in the socialist economy....Pages 427-459
Conclusions and future prospects....Pages 461-472
Back Matter....Pages 473-501

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Content:
Front Matter....Pages i-xv
Front Matter....Pages 1-1
Introduction to models of disequilibrium and shortage in centrally planned economies....Pages 3-25
The theory and measurement of macroeconomic disequilibrium in centrally planned economies....Pages 27-47
The economics of shortage in the centrally planned economies....Pages 49-81
The chronic excess demand hypothesis....Pages 83-99
Hidden and repressed inflation in Soviet-type economies: definitions, measurements and stabilization....Pages 101-146
Disequilibrium econometrics for centrally planned economies....Pages 147-177
Front Matter....Pages 179-179
Disequilibrium models of the Czechoslovak economy....Pages 181-204
Macroeconomic disequilibrium models of Poland....Pages 205-246
Macroeconomic disequilibrium model of Hungary....Pages 247-260
Front Matter....Pages 261-261
Sectoral shortage models in Hungary....Pages 263-281
Disequilibrium modelling of consumption in the centrally planned economy....Pages 283-315
Savings and consumption in the centrally planned economy: a disequilibrium approach....Pages 317-332
A disequilibrium approach to modelling foreign trade in centrally planned economies....Pages 333-360
Disequilibrium models of investment....Pages 361-374
Reproduction of shortage in the Hungarian car market....Pages 375-404
Modelling parallel markets in centrally planned economies: the case of the automobile market in Poland....Pages 405-425
Priority and the shortage model: the medical system in the socialist economy....Pages 427-459
Conclusions and future prospects....Pages 461-472
Back Matter....Pages 473-501
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