Microeconomic Issues in the Transition to a Market Economy

Abstract

The socialist system introduced microeconomic distortions that probably transcend those observed in the third world. The recent developments in Poland, Yugoslavia, and the Soviet Union also support the hypothesis that macro stabilization will be difficult to achieve in the transforming socialist economies in the absence of adequate micro adjustments. In this paper, I address what I consider to be the most important micro issues related to the transition from socialist to market economies. First I summarize the initial microeconomic conditions, covering labor, capital, and energy markets; the product markets, industrial organization, and trade; and the market for land and housing. Then, I describe the main changes that have taken place in the early stages of the transition. Finally, I discuss the micro policy agenda that needs to be addressed if the transition is to be successful

Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia

“…Market-based models are not fully appropriate, for micro-economic transitions do not take place instantaneously (Svejnar 1991). The legacy of Communist policies and institutions continues to influence wage structures, and returns to education and experience are not fully comparable to those of market economies.…”

The Brain Drain: A Survey of the Literature

“…Governments of countries of origin concerned with the continuing outflow of skilled workers and professionals should seek to Nigeria], Laitin D. (1994) 21 Regarding the ex URSS, we find the works of Mills (1986) [he studies the different international mobility for the scientists in the Gorbachev's Age. ], Hogan (1991), Svejnar (1991) [both refer to the economic Reforms in the Nations of the ex URSS], Coleman (1993) [about the different demographic characteristic of Eastern Europe, Western Europe and ex URSS] and Oberschall (1996) [he analyse the passage from Socialism to Markets for the China and Unger]. 22 There are the work of Ritterband (1969) [on Israel],the work of Suleiman (1973), which analises the changes on the society due to the BD of Arabs in Palestine and Israel, and the work of Palfreeman (1974) which remarks, in relations to the Australia, the differences between the white migrants and the non-white ones.…”

Institutionnalisme et évolutionnisme sont-ils complémentaires ? La transition comme mise à l’épreuve

“…L'hypothèse centrale du PST était que cet impact serait d'autant plus limité à long terme que les réformes initiales seraient profondes et irréversibles. Cette vision a été contestée par les approches évolutionnistes et institutionnalistes qui ont proposé des mesures séquentielles tenant compte notamment des phénomènes d'apprentissage et des rétroactions démocratiques sur le processus de réforme (Svejnar [1991], Alexashenko [1992], Murrel [1992], Boyer [1993], Hausner [1995], Schlack [1996], Dewatripont et Roland [1996]).…”