Incentives and efficiency in the kosygin reforms |
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Authors: | Norman J Ireland Peter J Law |
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Affiliation: | Department of Economics, University of Warwick, Coventry, England |
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Abstract: | Some of the efficiency implications of an incentive scheme for enterprises under which bonuses depend on sales and the rate of profit (one of the major schemes introduced by the 1965 Kosygin industrial reforms in the USSR) are explored. Various efficiency problems are identified, and the use of the scheme to induce effort and raise productivity is analyzed. |
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