✦ LIBER ✦
Why is there a tendency to excess demand in consumer goods markets in planned economies?
✍ Scribed by Michael Bleaney
- Publisher
- Springer US
- Year
- 1992
- Tongue
- English
- Weight
- 594 KB
- Volume
- 25
- Category
- Article
- ISSN
- 1573-9414
No coin nor oath required. For personal study only.
✦ Synopsis
In recent discussion of the transition from a planned to a market economy it has been suggested that the queuing costs associated with excess demand represent a deadweight welfare loss. A simple model of the planned economy is developed and used to explain why the planners might choose to permit some degree of excess demand in spite of this deadweight loss.