Shortages and the Informal Economy in the Soviet Republics: 1965-1989

Byung-Yeon Kim and Yoshisada Shida

No 43, RRC Working Paper Series from Russian Research Center, Institute of Economic Research, Hitotsubashi University

Abstract: We measure the informal economy and shortages of consumer goods in the Soviet republics from 1965 to 1989 to estimate the relationships of these two variables. We use fixed-effect model and instrument variable approach and find that the informal economy and shortages reinforce each other. Results indicate that the Soviet central planning system is difficult to sustain in the long run. A substantial heterogeneity across the Soviet republics exists not only in the extent of the informal economy and shortages, but also in the associations of the two variables.

Keywords: shortages; informal economy; Soviet republics (search for similar items in EconPapers)
JEL-codes: P21 P27 P36 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2014-03
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-his, nep-iue and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:rrcwps:43

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