The J-curve is a Gamma-curve: Initial welfare Consequences of Price Liberalization in Eastern Europe

Bryan Roberts

No wp-1993-114, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: A one-good, representative consumer model of the pre-reform consumer sector of transition economies is developed. An equation is derived that permits empirical estimation of the welfare effect of price liberalization. Empirical estimates are calculated for Poland and Russia. These estimates indicate that the positive benefits of eliminating the highly inefficient distribution system completely offset the negative consequences of the fall in real income suffered as a result of stabilization and reform.

Keywords: Deregulation; Economic policy; Prices; Welfare economics (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-1993-114

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