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Roland Gerard, Verdier Thierry
Transition and the Output Fall
The Economics of Transition, 1999, vol. 7, nr 1, s. 1-28
Polityka cenowa, Produkt krajowy brutto (PKB), Przekształcenia ustrojowo-systemowe, Modele makroekonomiczne
Pricing policy, Gross domestic product (GDP), Political and systemic transformations, Macroeconomic models
Europa Środkowo-Wschodnia
Central and Eastern Europe
Autorzy przedstawiają model wyjaśniający spadek PKB w krajach transformacji gospodarczej Europy Środkowej i Wschodniej liberalizacją cen, jaką te kraje wprowadziły w życie na samym początku swoich reform.

The authors present a model to explain why in the transition economies of Central and Eastern Europe an important output fall has been associated with price liberalization. Its key ingredients are search frictions and Williamsonian relation-specific investment, implying that new investments are made only after having found a new long-term partner. When all firms search for new partners, output may fall because of three effects: a) disruption of previous production links, b) a fall in investment, and c) capital depreciation due to the absence of replacement investment. It is shown, that forms of gradual liberalization like the Chinese "dual-track" price liberalization may avoid the transitory output fall.
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