Shortage intensity, priority penetration, and resource allocation in socialist industry: a translog shadow cost model.
A study was conducted to examine the effects of priority and shortage intensity on resource allocations in socialist industry through a temporary equilibrium model of a shadow cost minimizing socialist industry. Data were drawn from the Hungarian mining and chemicals sectors for the period 1955-85....
| Publicado en: | Journal of Comparative Economics Vol. 19; pp. 237 - 260 |
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| Formato: | Artículo |
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Academic Press Inc.
October 1994
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | A study was conducted to examine the effects of priority and shortage intensity on resource allocations in socialist industry through a temporary equilibrium model of a shadow cost minimizing socialist industry. Data were drawn from the Hungarian mining and chemicals sectors for the period 1955-85. Findings indicate that increasing shortage intensity raises the relative shadow price of the scarce input. Increasing priority status tends to soften the terms on which material inputs are allocated to the two sectors, promoting overutilization relative to nominal cost minimization levels of 82.3 percent for the chemicals sector and 37.5 percent for the mining sector. |
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