Models of Disequilibrium and Shortage in Centrally Planned Economies

1. Front Matter

   Pages i-xv

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2. The foundations of disequilibrium and shortage models of centrally planned economies

   1. Front Matter

      Pages 1-1

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   2. Introduction to models of disequilibrium and shortage in centrally planned economies

      • Christopher Davis, Wojciech Charemza

      Pages 3-25

   3. The theory and measurement of macroeconomic disequilibrium in centrally planned economies

      • Richard Portes

      Pages 27-47

   4. The economics of shortage in the centrally planned economies

      • Paul Hare

      Pages 49-81

   5. The chronic excess demand hypothesis

      • David M. Kemme

      Pages 83-99

   6. Hidden and repressed inflation in Soviet-type economies: definitions, measurements and stabilization

      • Domenico Mario Nuti

      Pages 101-146

   7. Disequilibrium econometrics for centrally planned economies

      • Richard E. Quandt

      Pages 147-177

3. Macroeconomic disequilibrium models of centrally planned economies

   1. Front Matter

      Pages 179-179

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   2. Disequilibrium models of the Czechoslovak economy

      • Vladimir Dlouhy

      Pages 181-204

   3. Macroeconomic disequilibrium models of Poland

      • Wladyslaw Welfe

      Pages 205-246

   4. Macroeconomic disequilibrium model of Hungary

      • Katalin Hulyak

      Pages 247-260

4. Sectoral shortage and disequilibrium models of centrally planned economies

   1. Front Matter

      Pages 261-261

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   2. Sectoral shortage models in Hungary

      • Mária Lackó

      Pages 263-281

   3. Disequilibrium modelling of consumption in the centrally planned economy

      • Wojciech Charemza

      Pages 283-315

   4. Savings and consumption in the centrally planned economy: a disequilibrium approach

      • Aleksander Welfe

      Pages 317-332

   5. A disequilibrium approach to modelling foreign trade in centrally planned economies

      • Josef C. Brada, Arthur E. King

      Pages 333-360

   6. Disequilibrium models of investment

      • Irena Grosfeld

      Pages 361-374

   7. Reproduction of shortage in the Hungarian car market

      • Zsuzsa Kapitány, János Kornai, Judit Szabó

      Pages 375-404

   8. Modelling parallel markets in centrally planned economies: the case of the automobile market in Poland

      • Wojciech Charemza, Miroslaw Gronicki, Richard E. Quandt

      Pages 405-425

The centrally planned economies (CPEs) of the Soviet Union and Eastern Europe have experienced severe imbalances in domestic and external markets over the past several decades. As a result, they have been chronically afflicted by problems such as excess demand, repressed inflation, deficits of commodities, queues, waiting lists, and forced savings. Economists have responded to these phenomena by developing appropriate theoretical and empirical models of CPEs. Of particular note have been the pioneering studies of Richard Portes on disequilibrium econometric models and Janos Kornai on the shortage economy. Each approach has attracted followers who have produced numerous, innovative macro- and microeconomic models of Poland, Czechoslovakia, the German Democratic Republic, Hungary, and the USSR. These models have proved to be of considerable value in the analysis of the causes, consequences and remedies of disequilibrium phenomena. Inevitably, the new research has also generated controversies both between and within the schools of shortage and disequilibrium modelling, concerning the fundamental nature of the socialist economy, theoretical concepts and definitions, the specification of models, estimation techniques, interpretation of empirical findings, and policy recommend­ ations. Furthermore, the research effort has been energetic but incomplete, so many gaps exist in the field.

• Inflation
• centrally planned economy
• econometrics
• economics
• equilibrium
• modeling
• production

• Centre for Russian and East European Studies, University of Birmingham, UK

  Christopher Davis

• Department of Economics, University of Leicester, UK

  Wojciech Charemza

• University of Gdansk, Poland

  Wojciech Charemza

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