IDEAS home Printed from https://ideas.repec.org/p/ags/uersmp/333357.html
   My bibliography  Save this paper

An Elasticities Approach to Estimating Excess Demand in Price-Controlled Markets

Author

Listed:
  • Liefert, William M.

Abstract

This paper develops a method for estimating excess demand in markets where state-controlled prices are set below market-clearing levels. The estimation equations express excess demand as a function of price elasticities of supply and demand. Although the method is most appropriate for empirical work involving centrally planned economies, it is not specific to that system. The procedure is then used to calculate excess consumer demand for meat in the USSR during the 1980's. Our best defended results from sensitivity analysis suggest that in the late 80's close to one quarter of the total quantity demanded of meat at state prices was not satisfied by purchase.

Suggested Citation

  • Liefert, William M., 1991. "An Elasticities Approach to Estimating Excess Demand in Price-Controlled Markets," Miscellaneous Publications 333357, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersmp:333357
    DOI: 10.22004/ag.econ.333357
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/333357/files/ElasticitiesExcessDemandCPEs.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.333357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Portes, Richard, et al, 1987. "Macroeconomic Planning and Disequilibrium: Estimates for Poland, 1955-1980," Econometrica, Econometric Society, vol. 55(1), pages 19-41, January.
    2. Rich, Daniel P. & Wyzan, Michael L., 1988. "Microeconomic analysis of parallel markets," Journal of Comparative Economics, Elsevier, vol. 12(4), pages 604-609, December.
    3. Cook, Edward C. & Liefert, William M. & Koopman, Robert, 1991. "Government Intervention in Soviet Agriculture: Estimates of Consumer and Producer Subsidy Equivalents," Staff Reports 278588, United States Department of Agriculture, Economic Research Service.
    4. Alexeev, Michael, 1987. "Microeconomic modeling of parallel markets: The case of agricultural goods in the USSR," Journal of Comparative Economics, Elsevier, vol. 11(4), pages 543-557, December.
    5. Podkaminer, Leon, 1988. "Disequilibrium in Poland's consumer markets: Further evidence on intermarket spillovers," Journal of Comparative Economics, Elsevier, vol. 12(1), pages 43-60, March.
    6. Carson, Richard T. & Love, Alan, 1984. "The Soviet Grain Import Decision As a Short Term Control Problem," 1984 Annual Meeting, August 5-8, Ithaca, New York 279039, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Howard, David H, 1976. "The Disequilibrium Model in a Controlled Economy: An Empirical Test of the Barro-Grossman Model," American Economic Review, American Economic Association, vol. 66(5), pages 871-879, December.
    8. Charemza, Wojciech W., 1990. "Parallel markets, excess demand and virtual prices : An empirical approach," European Economic Review, Elsevier, vol. 34(2-3), pages 331-339, May.
    9. Philip C. Abbott, 1979. "Modeling International Grain Trade with Government Controlled Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 22-31.
    10. Richard Portes & David Winter, 1980. "Disequilibrium Estimates for Consumption Goods Markets in Centrally Planned Economies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 137-159.
    11. Charemza, Wojciech & Gronicki, Miroslaw & Quandt, Richard E., 1988. "Modelling parallel markets in centrally planned economies : The case of the automobile market in Poland," European Economic Review, Elsevier, vol. 32(4), pages 861-883, April.
    12. Robert J. Barro & Herschel I. Grossman, 1974. "Suppressed Inflation and the Supply Multiplier," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 87-104.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Byung-Yeon, 1999. "The Income, Savings, and Monetary Overhang of Soviet Households," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 644-668, December.
    2. Portes, Richard, 1986. "The Theory and Measurement of Macroeconomic Disequilibrium in Centrally Planned Economies," CEPR Discussion Papers 91, C.E.P.R. Discussion Papers.
    3. Erwin Nijsse & Elmer Sterken,, 1996. "Shortages, interest rates, and money demand in Poland, 1969-1995," Working Papers 25, Centre for Economic Research, University of Groningen and University of Twente.
    4. Lawrence R. Klein & Miroslaw Gronicki, 1990. "Conversion: The Trade-Off Between Military and Civilian Production in Warsaw Pact Countries," Conflict Management and Peace Science, Peace Science Society (International), vol. 11(1), pages 45-56, February.
    5. Plassard, Romain, 2022. "Diagnosing unemployment: the dual project of the ENSAE's band," MPRA Paper 113584, University Library of Munich, Germany.
    6. M.Ellman., 2010. "What Did The Study of The Soviet Economy Contribute to Mainstream Economics?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 3.
    7. Plassard, Romain & Renault, Matthieu, 2023. "General equilibrium models with rationing: The making of a ‘European specialty’," European Economic Review, Elsevier, vol. 159(C).
    8. Kornai, János, 2010. "Hiánygazdaság - többletgazdaság. Tanulmány a piac elméletéről - I. rész [Shortage economy surplus economy. A study on market theory I]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 925-957.
    9. Richard Portes, 1981. "Central Planning and Monetarism: Fellow Travelers?," NBER Working Papers 0782, National Bureau of Economic Research, Inc.
    10. Robert Mulligan & Erwin Nijsse, 2001. "Shortage and currency substitution in transition economies: Bulgaria, Hungary, Poland, and Romania," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(3), pages 275-295, August.
    11. János Kornai & Collegium Budapést, 1995. "Eliminating the shortage economy: a general analysis and examination of the dévelopments in Hungary: Part," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(2), pages 149-168, June.
    12. Daniel LINOTTE, 1993. "Changements Structurels Et Privatisation Dans Les Économies En Transition," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 64(3), pages 311-328, July.
    13. Shida, Yoshisada, 2015. "Forced Savings in the Soviet Republics: Re-examination," RRC Working Paper Series 54, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    14. François Gardes & Christophe Starzec, 2009. "Polish Households' Behavior in the Regular and Informal Economies," Revue économique, Presses de Sciences-Po, vol. 60(5), pages 1181-1210.
    15. Portes, Richard & Santorum, Anita, 1987. "Money and the consumption goods market in China," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 354-371, September.
    16. Ahmadi-Esfahani, Fredoun Z. & Anderson, Glenn Michael, 1999. "Trade Elasticities: The Significance of Trade Barriers, Multinationals and Market Structure," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 122328, Australian Agricultural and Resource Economics Society.
    17. Darby, Michael R, 1984. "The U.S. Productivity Slowdown: A Case of Statistical Myopia," American Economic Review, American Economic Association, vol. 74(3), pages 301-322, June.
    18. Portes, Richard, et al, 1987. "Macroeconomic Planning and Disequilibrium: Estimates for Poland, 1955-1980," Econometrica, Econometric Society, vol. 55(1), pages 19-41, January.
    19. Filippov, Mikhail G, 2002. "Russian Voting and the Initial Economic Shock of Hyperinflation," Public Choice, Springer, vol. 111(1-2), pages 73-104, March.
    20. Bussolo, Maurizio & Schotte, Simone & Matytsin, Mikhail, 2017. "Accounting for the bias against the life-cycle hypothesis in survey data: An example for Russia," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 185-207.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersmp:333357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.