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Why Is There a Tendency to Excess Demand in Consumer Goods Markets in Planned Economies?

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  • Bleaney, Michael

Abstract

In recent discussion of the transition from a planned to a market economy it has been suggested that the queuing costs associated with excess demand represent a deadweight welfare loss. A simple model of the planned economy is developed and used to explain why the planners might choose to permit some degree of excess demand in spite of this deadweight loss. Copyright 1992 by Kluwer Academic Publishers

Suggested Citation

  • Bleaney, Michael, 1992. "Why Is There a Tendency to Excess Demand in Consumer Goods Markets in Planned Economies?," Economic Change and Restructuring, Springer, vol. 25(3), pages 237-246.
    • Handle: RePEc:kap:ecopln:v:25:y:1992:i:3:p:237-46
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