 Price Distortion in the Transition Process: A CGE Analysis of China's CaseDianqing Xu Economic Change and Restructuring, 1993, vol. 26, issue 2, 82 pages Abstract: The correct evaluation of price distortion is a prerequisite for designing the correct price reform policy which is of tremendous importance in the transitions process from a centrally planned economy to a market economy. The purpose of this paper is to investigate the advantages and shortcomings of various criteria for evaluating price distortion. Based on the characteristics of a two-tiered planned-market system in Chinese economic reform, a computable general equilibrium (CGE) model had been built to evaluate quantitatively the degree of price distortion in the prevailing price system and the effects of price adjustments in order to propose a reasonable price reform policy. The difference between the planned price and the equilibrium price seems to be a better indicator for evaluating the degree of price distortion than others. Furthermore, this difference provides more accurate feedback for price reform policies in order to ensure a stable and controllable price reform process. Copyright 1993 by Kluwer Academic Publishers Date: 1993 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:26:y:1993:i:2:p:161-82 Ordering information: This journal article can be ordered from Access Statistics for this article Economic Change and Restructuring is currently edited by George Hondroyiannis More articles in Economic Change and Restructuring from Springer |
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