The influence of black markets on a queue-rationed centrally planned economy |
| |
Authors: | Dale O. Stahl Michael Alexeev |
| |
Affiliation: | Department of Economics, Duke University, Durham, North Carolina, USA;Department of Economics, George Mason University, Fairfax, Virginia, USA |
| |
Abstract: | In centrally planned economies in which prices are fixed, and the rationing mechanism is waiting line queues, we show that an equilibrium of waiting times exists. We then introduce a “black market” in which individuals can trade commodities that they have acquired through the official economy. An equilibrium of black market prices and waiting times is shown to exist; further, the economy with a black market is “queue-efficient.”. However, the introduction of black markets is not necessarily a Pareto improvement over an economy without black markets (even when we allow winners to compensate losers). |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|