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A Tale of Two Reforms
Oleh:
Wei, Li
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Rand Journal of Economics vol. 30 no. 1 (1999)
,
page 120-136.
Topik:
REFORM
;
tale
;
two reforms
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
RR10.3
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
I identify the absence of well - functioning product markets in transition economies as a sufficient condition under which big bang reduces output initially, while a Chinese - style reform increases output. Big bang dismantles central planning or centralized organization of production, permitting monopolistic and vertically interdependent enterprises to pursue their own monopoly profits by restricting output and inter - firm trade to the detriment of the economy as a whole. The Chinese reform, by maintaining central planning but allowing enterprises to produce for the emerging product markets after they have fulfilled their output quotas under planning, gives enterprises incentives to expand output beyond planned targets.
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