Change in Economic Mechanism: Model of Evolutionary Transition from Budgets Regulation to Competitive Market

Arkin VI & Slastnikov AD (1994). Change in Economic Mechanism: Model of Evolutionary Transition from Budgets Regulation to Competitive Market. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-94-111

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Abstract

In the framework of dynamic equilibrium theory we propose a model of evolutionary transition from Economy with centralized budgets regulation to Market Economy (with self-financing). It is assumed that information about possible change of economic mechanism affects essentially on behavior of agents. Duration of transition period is regarded as a random variable. We study conditions when such transition allows firms to adapt their plans to future market and guarantees an existence of equilibrium paths. It is also discussed the case of Shock (instantaneous transition) which may bring to bankruptcy, jump of prices and deficit.

Item Type: Monograph (IIASA Working Paper)
Research Programs: Technological and Economic Dynamics (TED)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:04
Last Modified: 22 Jul 2016 21:56
URI: http://pure.iiasa.ac.at/4101

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