TY - JOUR
T1 - Plan evasion and supply instability in a double-track system
AU - Tsang, Shu-Ki
AU - Cheng, Yuk Shing
N1 - Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 1997/1
Y1 - 1997/1
N2 - In the reforms of centrally planned economies (CPEs), variants of the double-track system as a transitional measure. While there have been some studies of the system from the demand side, little effort has been spent by economists to analyze its consequences from the supply side. This paper is an attempt to do so in a disequilibrium framework. We show that given a particular form of plan evasion, it is possible for the planned price to affect output, a result which contrasts with that of a general equilibrium model (Sicular, 1988). Moreover, quantum changes in supply could take place, generating instability in the system. The model is extended into a two-product case, where we illustrate that supply instability may still take place. Some alleviating factors that reduce fluctuations are then discussed.
AB - In the reforms of centrally planned economies (CPEs), variants of the double-track system as a transitional measure. While there have been some studies of the system from the demand side, little effort has been spent by economists to analyze its consequences from the supply side. This paper is an attempt to do so in a disequilibrium framework. We show that given a particular form of plan evasion, it is possible for the planned price to affect output, a result which contrasts with that of a general equilibrium model (Sicular, 1988). Moreover, quantum changes in supply could take place, generating instability in the system. The model is extended into a two-product case, where we illustrate that supply instability may still take place. Some alleviating factors that reduce fluctuations are then discussed.
KW - Economic Growth
KW - Economic System
KW - Supply Side
KW - Demand Side
KW - Transitional Measure
UR - http://www.scopus.com/inward/record.url?scp=2342504643&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/record.url?scp=53249111590&partnerID=8YFLogxK
U2 - 10.1023/A:1002921306229
DO - 10.1023/A:1002921306229
M3 - Journal article
AN - SCOPUS:2342504643
SN - 1573-9414
VL - 30
SP - 1
EP - 16
JO - Economic Change and Restructuring
JF - Economic Change and Restructuring
IS - 1
ER -