Price Liberalization in a Reforming Socialist Economy: A Search Equilibrium Approach
30 Pages Posted: 15 Feb 2006
Date Written: May 1992
Abstract
A bilateral search model of the commodity market is formulated to study the effects of liberalizing prices in a reforming socialist economy. The main result is that if the competitive structure of the economy is not quickly modified to eliminate supply rents, price liberalization may be accompanied by substantial output losses. A role for tax policy in limiting output losses is identified.
JEL Classification: P22, D40, D83
Suggested Citation: Suggested Citation
Fanizza, Domenico, Price Liberalization in a Reforming Socialist Economy: A Search Equilibrium Approach (May 1992). IMF Working Paper No. 92/44, Available at SSRN: https://ssrn.com/abstract=884786
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.