| Author: | Noguera, J. Linz, S. J. |
| Title: | Barter, credit and welfare - A theoretical inquiry into the barter phenomenon in Russia |
| Journal: | Economics of transition
2006 : VOL. 14:4, p. 719-745 |
| Index terms: | bartering welfare russia credit markets |
| Language: | eng |
| Abstract: | This paper presents a model to investigate how barter affected welfare in Russia and other transition economies during the 1990s. The main conclusion is that barter is a welfare-improving activity. Barter activity is considered as a defense mechanism that firms use against monetary instability. The model explains the relationship between monetary factors and barter activity among Russian firms. It is found that firms switch to barter as a reaction to tighter credit markets. The study concludes that barter should be seen as an alternative technology that firms can use to hedge against increasing instability. |
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