Cover: Priority, Duality, and Penetration in the Soviet Command Economy

Priority, Duality, and Penetration in the Soviet Command Economy

Published 1988

by Richard Eric Ericson

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 1.5 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 Format Price
Add to Cart Paperback46 pages $23.00

This Note analyzes characteristics of the Soviet economy that are underemphasized in existing macroeconomic models of the Soviet Union. The structure of the new models developed reflects, in simplified form, the planned dual nature of the Soviet economy in terms of priority and nonpriority sectors, allocational and technological rigidities, and the effect of priority in determining the response to shocks during plan implementation. Some empirically verifiable implications that do not emerge in standard macroeconomic models stem from this analysis: (1) the variance of output (plan fulfillment) is greater in nonpriority than in priority sectors; (2) there is more excess capacity in priority sectors; (3) priority factor/input use proportions are unrelated to economy-wide tradeoffs; (4) inputs into priority sectors are protected from fluctuations in economic activity; and (5) factor productivity is lower in priority sectors, perhaps because of flexibility considerations.

This report is part of the RAND note series. The note was a product of RAND from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.