Fiscal Policy During the Demise of Central Planning : The Transition to a Market Economy /

This paper constructs an intertemporal general equilibrium model designed to examine an economy in transition from central planning to being market oriented. A numerical algorithm is developed to obtain a solution for the model. Simulations using stylized country-specific data examine the effects of...

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Détails bibliographiques
Auteur principal: Feltenstein, Andrew
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 1990.
Collection:IMF Working Papers; Working Paper ; No. 1990/092
Accès en ligne:Full text available on IMF
Description
Résumé:This paper constructs an intertemporal general equilibrium model designed to examine an economy in transition from central planning to being market oriented. A numerical algorithm is developed to obtain a solution for the model. Simulations using stylized country-specific data examine the effects of price controls during the transition period, as well as of imposing taxes on returns to investment, and on interest earned on private savings. The paper concludes that, under certain circumstances, the taxation of investment as well as of private savings may have positive effects upon consumer welfare, if price distortions are sufficiently severe.
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Description matérielle:1 online resource (32 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accès:Electronic access restricted to authorized BRAC University faculty, staff and students