This paper presents an abstract, static model of a traditional Soviet-type economy, in which there are three kinds of agents (planners, firms, and consumers). A quantity-oriented incentive system for managers is described, as is a planners' allocation mechanism. There are technology-determined...

We construct a one period model of an economy based upon a Soviet-type system, and examine a modified notion of equilibrium in it. Producers are not profit maximizers, but have quantitity oriented incentive functions. Taxes are part of the planning process without which there would not be an...

A key task of government policy makers is to determine suitable targets for the macroeconomic variables under their control. In this paper we demonstrate how, in the case of China, the use of official price indices can, with standard estimation procedures, cause these targets to be seriously...