Arthur E. King

Is There a J-Curve for the Economic Transition from Socialism to Capitalism?

It is often assumed that the process of transition from socialism to capitalism involves a dislocation and disorganization of the economy in the early stages of the transition. Thus, it is argued, economic performance will at first worsen and then gradually improve as the new system takes hold. This paper argues that, based on evidence from Czechoslovakia, Hungary, and Poland, there is no evidence for such a J-curve phenomenon. Using a simple macroeconomic model, the authors show that, in these three reforming countries, the decline in production can be explained by exogenous shocks to the balance of trade, to investments and to autonomous consumption. This finding also suggests that macroeconomic policy in these countries may be too restrictive to permit a recovery of employment and production. Copyright 1992 by Kluwer Academic Publishers

Is Private Farming More Efficient than Socialized Agriculture

This paper examines the technical efficiency of state and private farms in Poland for the period 1960-74. The author s find that the average technical efficiency of the two types of farms does not differ, although the dispersion of efficiency levels is greater among state farms than among private ones. The authors do fi nd clear evidence of allocative inefficiency, with state farms oversupplied with fertilizer and machinery. Copyright 1993 by The London School of Economics and Political Science.

The wage structure and wage distribution in Poland, 1994‐2001

Analyzes the wage structure and wage distribution for male and female Polish workers during a more mature phase of a transition to a market economy, namely 1994‐2001. The results indicate an overall rise in earnings inequality for both genders during this period. Contrary to conventional expectations, changes in the composition of employment caused by a deep restructuring process did not have a significant impact on earnings inequality. Throughout this period, the changes in the wage structure and wage distribution were almost entirely due to the changes in returns to worker characteristics. However, does not observe the “explosion of differentials at all levels,” predicted by many leading models on transition. Wage structures for men and women evolved in different ways. This analysis suggests that the effect of changes in labor supply and institutional factors on the wage structure and wage distribution was relatively unimportant. Demand side factors seem to be far more important in explaining the dynamics of earnings inequality in Poland during 1994‐2001.

Performing arts as a club good: evidence from a nonprofit organization.

This paper combines perspectives on nonprofit organizations, clubs and club goods, demand for performing arts, and demand for charitable contributions to consider relationships between nonprofit organizations in the performing arts and their patrons. A broad view is taken of factors influencing demand for club goods, charitable donations, and for the live performing arts. These are integrated in a model of demand for the outputs and services of nonprofits in the performing arts. Data from a single institution is used to test hypotheses. Conclusions are drawn for organizational policy and economic theory.

The optimality of socialist development strategies an empirical inquiry

Abstract This paper examines the optimality with which Czechoslovak planners have allocated investment between 1954 and 1972. Applying optimal control techniques to an econometric model of the Czechoslovak economy we find that greater levels of industrial output and of aggregate welfare could have been obtained by devoting a greater proportion of investment to housing and urban services, thus facilitating rural-urban migration. The optimal pattern of investment is sensitive to the need to restrain domestic inflation and to the existence of potential difficulties in securing imports of raw materials from socialist countries. We conclude that, taking into account the need to restrict domestic inflation and the difficulty in obtaining greater supplies of raw materials from socialist countries, Czechoslovak planners have allocated investment in an effective manner.

A disequilibrium approach to modelling foreign trade in centrally planned economies

It is rare in any area of economics that the theoretical framework for the analysis of a major topic should spring in virtually complete form from the mind of one individual and that it should then remain almost unchanged for nearly three decades. Yet this is precisely the case in the analysis of the response of the centrally planned economy (CPE) to changes in foreign trade flows. The analytical framework developed by Franklyn D. Holzman in the 1950s has remained the dominant, if not the only, framework for the analysis of foreign trade adjustment mechanisms in CPEs.1

The benefits of long-term developmental planning: an estimate☆

Abstract This paper measures the gains in social welfare achieved by implementing a series of five-year plans within the framework of longer-term, 10- or 20-year, horizons. We employ an econometric model of Czechoslovakia and optimal control techniques to optimize plan fulfillment over various time horizons. We find that most of the gains from long-term planning can be obtained by using a 10-year horizon; that long-term planning is more useful in periods of rapid structural change; and that one of the main benefits of long-term plans is the avoidance of the cyclical behaviour engendered by five-year plans.

Are Transition Economy Labor Markets Less Efficient at Matching Workers to Appropriate Jobs

We examine the extent to which workers in transition and developed market economies are able to obtain wages that fully reflect their skills and labor force characteristics. We find that workers in two transition economies, the Czech Republic and Poland, are able to better attain the maximum wage available than are workers in a sample of developed market economies. This greater wage-setting efficiency in the transition economies appears to be more the result of social and demographic characteristics of the labor force than of the mechanisms for setting wages or of labor market policies.

Are transition economy workers underpaid

We examine the extent to which workers in transition and developed market economies are able to obtain wages that fully reflect their skills and labor force characteristics. We find that workers in two transition economies, the Czech Republic and Poland, are able to better attain the maximum wage available than are workers in a sample of developed market economies. This greater wage-setting efficiency in the transition economies appears to be more the result of social and demographic characteristics of the labor force than of the mechanisms for setting wages or of labor market policies.