The paper argues that a key legacy of the Soviet-type command economy is the highly inefficient, often value- destroying, structure of factor use and economic interaction. This structure was sustainable only by virtue of distorted prices and the force of command that maintained interactions...

One legacy of the Soviet-type economy is the highly inefficient, and sometimes value-destroying, structure of factor use and economic interaction [Hughes and Hare (1994)]. This structure was sustainable only by virtue of distorted prices, hiding true costs, and by the force of command that...