The Blind Man's Subsidies: Output, Inflation and Unemployment in Transition Economies - A General Framework

Rühl, Christof and Vinogradov, Viatcheslav (June 1996) The Blind Man's Subsidies: Output, Inflation and Unemployment in Transition Economies - A General Framework. Reihe Osteuropa / East European Series 35

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Abstract or Table of Contents

Abstract: We model the introduction of hard budget constraints in a transition economy. The model, set in continuous time, is designed to address the interaction between the hardening of such constraints and the speed of restructuring in the industrial sector. We emphasize the impact policy changes will have on the old capital stock with respect to the rate of firm's bankruptcies on the one hand, and to increases in aggregate labor productivity on the other. We then extend the analysis to studythe speed with which 'de novo' investment will take place, under alternative government policies.;

Item Type: IHS Series
Keywords: 'Economic Dynamics' 'Growth Theory' 'Economic Development' 'Transition Economies'
Classification Codes (e.g. JEL): E61, P21, C62
Status: Published
Date Deposited: 26 Sep 2014 10:36
Last Modified: 01 Apr 2016 14:10
URI: http://irihs.ihs.ac.at/id/eprint/918

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