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The Dictator’s Dilemma: to Punish or to Assist? Plan Failures and Interventions under Stalin

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  • Andrei Markevich

    (Department of Economics, University of Warwick (Coventry, UK), New Economic School and CEFIR, Interdisciplinary Centre for Studies in History, Economy and Society (Moscow, Russia))

Abstract

A dictator issues an order, but the order is not carried out. The dictator does not know whether the order failed because the agent behaved opportunistically, or because his order contained some mistake. Imperfect information creates his dilemma: whether to punish the agent, or assist her or both. This paper models the dictator’s intervention when an order fails. The analysis links the dictator’s coercive policy with the softness of budget constraints. The model is verified against the history of Stalin’s dictatorship, using statistical evidence extracted from the formerly secret records of the Communist Party's "control commission".

Suggested Citation

  • Andrei Markevich, 2007. "The Dictator’s Dilemma: to Punish or to Assist? Plan Failures and Interventions under Stalin," Working Papers w0107, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0107
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    References listed on IDEAS

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    1. Gregory, Paul & Sonin, Konstantin & Schrôder, Philipp, 2006. "Dictators, Repression and the Median Citizen: An ?Eliminations Model? of Stalin?s Terror (Data from the NKVD Archives)," CEPR Discussion Papers 6014, C.E.P.R. Discussion Papers.
    2. J. Kornai & E. Maskin & G. Roland, 2004. "Understanding the Soft Budget Constraint," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
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    6. Andrei Markevich, 2011. "How Much Control is Enough? Monitoring and Enforcement under Stalin," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(8), pages 1449-1468.
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    Cited by:

    1. Andrei Markevich, 2011. "How Much Control is Enough? Monitoring and Enforcement under Stalin," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(8), pages 1449-1468.
    2. Harrison, Mark & Markevich, Andrei, 2007. "Quantity Versus Quality in the Soviet Market for Weapons," Economic Research Papers 269771, University of Warwick - Department of Economics.

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    More about this item

    Keywords

    dictatorship; principal-agent problem; soft budget constraints; USSR;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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