Market vs. Rationing: The Case of Soviet Housing

Michael Alexeev

The Review of Economics and Statistics, 1988, vol. 70, issue 3, 414-20

Abstract: Economists devote considerable effort to the analysis of various forms of nonprice rationing. These analyses generally disregard forces that act to foil rationing schemes. Even with a commodity that seems to be easy to control, however, in a system with extensive rationing experience, nonprice rationing schemes can be circumvented. This thesis is examined for the case of housing distribution in the U.S.S.R. utilizing the data from a survey of recent Soviet emigres. It is shown that administrative rationing of Soviet urban housing is partially replaced by market forces acting usually through the second economy. Copyright 1988 by MIT Press.

Date: 1988
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