Supply multipliers in a centrally planned economy with a private sector

    Research output: Contribution to journalArticle

    Abstract

    A simple model of a centrally planned economy is developed with a state sector and private sector, and with a supply constraint affecting state sector output. In such a model, a supply multiplier can be derived under the same conditions which would make an increase in state sector prices an effective means of reducing shortage. Moreover, a one-sector constrained equilibrium model of the state sector does not yield misleading results by ignoring the private sector; and the private sector price level is a reliable indicator of shortage in the economy. © 1987 The Centre for Russian and East European Studies.

    Original languageEnglish
    Pages (from-to)53-61
    Number of pages9
    JournalEconomics of Planning
    Volume21
    Issue number2-3
    DOIs
    Publication statusPublished - Jan 1987

    Fingerprint Dive into the research topics of 'Supply multipliers in a centrally planned economy with a private sector'. Together they form a unique fingerprint.

  • Cite this