The Transition from Central Planning to a Market Economy: A Computable General Equilibrium Model

J M Pogodzinski and Claudia Antes

Economic Change and Restructuring, 1992, vol. 25, issue 2, 139-64

Abstract: This paper develops a computable general equilibrium (CGE) model of the transition from a central planned economy to a market economy. The model is an extension of S. Wellisz and R. Findlay's (1986) model of the Soviet "second economy." By distinguishing alternative assumptions about the disposition of the government budget, two model variants--the "activist" and "non-activist"--are analyzed. Equilibria of these model variants are computed for various parameter specifications of the Kantorovich ray, which represents the stringency of central planners' direction of the economy. The paper shows that increasing efficiency of the private sector, while it reduces the size of government subsidies to the state sector, does not necessarily increase the net government budget. Copyright 1992 by Kluwer Academic Publishers

Date: 1992
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:25:y:1992:i:2:p:139-64

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().