An application of Ramsey model in transition economy: a Russian case study

Babu Nahata (), Alexei Izyumov, Vladimir Busygin and Anna Mishura
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Alexei Izyumov: University of Louisville
Vladimir Busygin: Russian Academy of Sciences
Anna Mishura: Russian Academy of Sciences

General Economics and Teaching from EconWPA

Abstract: This case study uses the Ramsey model to analyze whether the current electricity prices charged by the natural monopoly Novosibirskenergo in a major industrial region of the Russian Federation are socially optimal. Our estimates of demand elasticities for two major groups of consumers, namely households and industrial users, show that prices are not socially optimal. A decrease in price for industrial users and an increase in price for households would bring the prices closer to socially optimal.

Keywords: Natural monopolies; Transition economy; Ramsey model. (search for similar items in EconPapers)
JEL-codes: D4 L9 P5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tra
Date: 2003-07-03
Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP/PostScript/; pages: 29
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpgt:0307003

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