Impacts of Economic Reform in Poland: Incidence and Welfare Changes within a Consistent Framework
نویسندگان
چکیده
The costs of shortages and rationing are not captured by standard consumer price indices. Thus the change in real GDP per capita is an overestimate of welfare losses in transition economies. In this study virtual prices are used to calculate new cost-of-living indices (CLIs). The results for Poland show that from 1987 to 1992 the CLI ignoring the rationing effects is biased upward from 1.53 to 3.71 percentage points per year. Compared to the estimates of welfare loss that neglect the rationing effects during the prereform period, the estimated welfare losses that re ect the rationing are reduced by 50% using Hausman’s virtual prices and by 75% using external proxy virtual prices.
منابع مشابه
More Impacts of Economic Reform in Poland: Welfare Changes within a Consistent Framework
The costs of shortages and rationing are not captured by standard consumer price indices. In this study, virtual prices for the rationed goods are used to calculate a new cost-of-living index (CLI). The results for Poland show that from 1987 to 1992 the CLI that ignores the rationing effects is biased upward from 3.6 to 6.99 percentage points per year. Compared to the welfare loss calculated by...
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