A Model of Russia's "virtual Economy"
Author | : R. E. Ericson |
Publisher | : |
Total Pages | : 40 |
Release | : 2000 |
ISBN-10 | : 9516869270 |
ISBN-13 | : 9789516869271 |
Rating | : 4/5 (271 Downloads) |
Download or read book A Model of Russia's "virtual Economy" written by R. E. Ericson and published by . This book was released on 2000 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Russian Economy has evolved into a hybrid form, a partially monetized quasi-market system that has been called the virtual economy. In the virtual economy, barter and non-monetary transactions play a key role in transferring value from productive activities to the loss-making sectors of the economy. We show how this transfer takes place, and how it can be consistent with the incentives of economic agents. We analyze a simple partial-equilibrium model of the virtual economy, and show how it might prove an obstacle to industrial restructuring and hence marketizing transition. Published in: Review of Economic Design vol 6, issue 2 (2001) pp. 185-214, ISSN 1434-4742.