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Journal ArticleDOI

Efficiency Loss from Resource Misallocation in Soviet Industry

Padma Desai, +1 more
- 01 Aug 1983 - 
- Vol. 98, Iss: 3, pp 441-456
TLDR
The authors analyzes the problems that arise in estimating the efficiency loss from misallocation of resources in Soviet industry, as revealed by the inequality of marginal rates of substitution among factors in the eight branches of Soviet industry.
Abstract
The paper analyzes the problems that arise in estimating the efficiency loss from misallocation of resources in Soviet industry, as revealed by the inequality of marginal rates of substitution among factors in the eight branches of Soviet industry. Econometric estimates of production functions in these branches are utilized to reach estimates of the loss arising from interbranch misallocation of capital and labor deployed in Soviet industry. This loss appears to be nonnegligible, ranging from a low of about 3 to 4 percent to a high of 10 percent of efficient factor use, and to be rising over time. Thus, an added reason for the current deceleration in Soviet industrial (and overall) growth is suggested.

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Citations
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Development Strategy, Viability, and Economic Convergence*

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Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies

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Industrial economics of the transition: determinants of enterprise efficiency in czechoslovakia and hungary

TL;DR: In this article, the firm level data are employed to estimate frontier production functions for Czechoslovak industry in 1990 and for Hungarian industry in 1991, with the distribution of efficiency characterized by a small number of inefficient outliers.
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The impact of carbon emissions trading on energy efficiency: Evidence from quasi-experiment in China's carbon emissions trading pilot

TL;DR: Wang et al. as mentioned in this paper used a Difference-in-Differences Model to assess the impact of carbon emissions trading on energy efficiency, and they found that after overcoming endogenous issue and passing a series of robustness tests, the CO2 trading scheme can significantly improve the single-factor and total-factor energy efficiency of cities through green innovation and resource allocation channels.
References
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Journal ArticleDOI

Distortions in Factor Markets and the General Equilibrium Model of Production

TL;DR: In this article, the authors explore how distortions can affect the shape of the transformation schedule and the optimal strategy to be followed by a factor of production intent on maximizing its returns in a two-sector model.
Journal ArticleDOI

Thornton's Estimates of Efficiency Losses in Soviet Industry: Some Fixed-Point-Method Recalculations

TL;DR: In this paper, the first set of estimates of static efficiency losses arising from the pursuit of centrally-directed allocation procedures have been presented for Soviet industry by Thornton (1971) for market economies.