David Winter, Richard E. Quandt, Richard Portes, Stephen Yeo
This paper specifies and estimates a four-equation disequilibrium model of the consumption goods market in a centrally planned economy (CPE). The data are from Poland for the period 1955-1980, but the analysis is more general and will be applied to other CPEs as soon as the appropriate data sets are complete. This work is based on previous papers of Portes and Winter (P-W) and Charemza and Quandt (C-Q). P-W applied to each of four CPEs a discrete-switching disequilibrium model with a household demand equation for consumption goods, a planners' supply equation, and a "min" condition stating that the observed quantity transacted is the lesser of the quantities demanded and supplied. C-Q considered how an equation for the adjustment of planned quantities could be integrated into a CPE model with fixed prices and without the usual price adjustment equation. They made plan formation endogenous and permitted the resulting plan variables to enter the equations determining demand and supply. This paper implements the C-Q proposal in the P-W context. It uses a unique new data set of time series for plans for the major macroeconomics variables in Poland and other CPEs. The overall framework is applicable to any large organization which plans economic variables.
MLA
Winter, David, et al. “Macroeconomic Planning and Disequilibrium: Estimates for Poland, 1955-1980.” Econometrica, vol. 55, .no 1, Econometric Society, 1987, pp. 19-41, https://www.jstor.org/stable/1911155
Chicago
Winter, David, Richard E. Quandt, Richard Portes, and Stephen Yeo. “Macroeconomic Planning and Disequilibrium: Estimates for Poland, 1955-1980.” Econometrica, 55, .no 1, (Econometric Society: 1987), 19-41. https://www.jstor.org/stable/1911155
APA
Winter, D., Quandt, R. E., Portes, R., & Yeo, S. (1987). Macroeconomic Planning and Disequilibrium: Estimates for Poland, 1955-1980. Econometrica, 55(1), 19-41. https://www.jstor.org/stable/1911155
The Executive Committee of the Econometric Society has approved an increase in the submission fees for papers in Econometrica. Starting January 1, 2025, the fee for new submissions to Econometrica will be US$125 for regular members and US$50 for student members.
By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device. Cookies are used to optimize your experience and anonymously analyze website performance and traffic.