Monthly Archives: August 2014

On the Necessary Conditions for Rational Bubbles

“Tirole  (1982) has shown that bubbles cannot exist in a model with a finite number of infinite-lived rational agents…. “Tirole (1985) has studied the possibility of bubbles within the Diamond (1965) overlapping generations model. In this model there is an infinite … Continue reading

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Economic Initiative and Bolshevism

“The basic problems of agriculture were not, of course, Khrushchev’s creation. He interfered, reorganized, and campaigned too much, but he had inherited a generation of neglect and impoverishment and a system in which change could come only by order from … Continue reading

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The 18-Hour Workday

“[U]nder Khrushchev campaigns to increase output (especially in the most unmechanized and labour-intensive livestock sector), and to expand procurements led to a big rise in labour inputs on the farms, so for many peasants the collective work became their primary … Continue reading

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Khrushchev’s Agricultural Mismanagement

“Price relativities established in 1958 were in total conflict with the [central economic] plan, especially to expand the output of livestock products. Meat and milk prices were far too low, and Soviet economists had no difficulty in demonstrating that these … Continue reading

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Economic Offenses Under Khrushchev

“It was fortunate that informal links of many kinds kept things more or less on an even keel most of the time. But some of these evidently worried the authorities, as they facilitated embezzlement, or just theft. The introduction on … Continue reading

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Central Planning in the USSR

“[S]ince the central plan was the basis of all activity, the absence of some item from the plan might have resulted in it not being provided…. If, say, frying pans or electric irons were not in the plan, then they … Continue reading

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