Output Collapse in Transitional Economies: A Possible Explanation Using a Two-sector Mesoeconomic Model
Zhao, Yimin
Ng, Yew-Kwang
10.4225/03/5937794ba55c4
https://bridges.monash.edu/articles/journal_contribution/Output_Collapse_in_Transitional_Economies_A_Possible_Explanation_Using_a_Two-sector_Mesoeconomic_Model/5084893
Using a two-sector mesoeconomic model, the paper examines the short-term effects of the demand shift between different sectors resulted from the economic liberalisation in a transitional economy, especially focussing on Russia. Findings are that, for a transitional economy without a well-functioning factor market, the demand shift may cause a short term economic slump. Moreover, the possibility of an economic slump is higher when there are unfavorable effects from changes in the price elasticity of demand.
2017-06-07 03:55:54
Economic slump
1997
Transitional economy
monash:7004
Demand shift
Representative firm
1959.1/36401
Economic restructure
Mesoeconomics