search query: @journal_id 1275 / total: 203
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| Author: | Li, W. |
| Title: | A tale of two reforms |
| Journal: | RAND Journal of Economics
1999 : SPRING, VOL. 30:1, p. 120-136 |
| Index terms: | Economic theory Transition economies Output China Asia Russia |
| Freeterms: | Economic reform |
| Language: | eng |
| Abstract: | The absence of well-functioning product markets is identified in transition economies as 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. 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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