Planning the Consumption Goods Market: Preliminary Disequilibrium Estimates for Poland, 1955-1980

34 Pages Posted: 25 Jun 2004

See all articles by Richard Portes

Richard Portes

London Business School - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Richard Quandt

Princeton University; Andrew W. Mellon Foundation

David Winter

Independent

Stephen Yeo

Centre for Economic Policy Research (CEPR)

Date Written: February 1983

Abstract

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.The work reported here is based on previous papers of Portes and Winter and Charernza and Quandt.Portes-Winter applied to eachof 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.Charemza-Quandt considered how an equation for the adjustment of planned quantitites 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 Charemza-Quandt proposal in the Portes-Winter context.It uses a unique new data set of time series for plans for the major macroeconomic variables in Poland and other CPEs.The overall framework is applicable to any large organisation which plans economic variables.

Suggested Citation

Portes, Richard and Quandt, Richard E. and Winter, David and Yeo, J. Stephen, Planning the Consumption Goods Market: Preliminary Disequilibrium Estimates for Poland, 1955-1980 (February 1983). NBER Working Paper No. w1076. Available at SSRN: https://ssrn.com/abstract=304805

Richard Portes (Contact Author)

London Business School - Department of Economics ( email )

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HOME PAGE: http://faculty.london.edu/rportes/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

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Richard E. Quandt

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

Andrew W. Mellon Foundation

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New York, NY 10021
United States

David Winter

Independent

No Address Available

J. Stephen Yeo

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom
44-171-878-2914 (Phone)

HOME PAGE: http://www.cepr.org

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