Citation

Discussion Paper Details

Please find the details for DP1035 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The Role of Government Aid to Firms during the Transition to a Market Economy: Russia 1992-94

Author(s): Jacques Melitz and Claire Waysand

Publication Date: September 1994

Keyword(s): Credit, Russia, Socialist Economies, Subsidies, Transition and Unemployment

Programme Area(s): International Macroeconomics

Abstract: The paper develops two economic grounds for gradualism in the context of the Russian move towards a market economy: one for the support of output through subsidies, another for similar support through credit. The first argument relates to the usual case for softening the blow to a sector hit by an adverse, permanent shock. The other argument depends on the absence of a well-functioning capital market. Having presented the two arguments, we discuss the extent to which they justify the course of Russian policy. Essentially we show that the arguments support much less gradualism than actually took place in Russia in 1992 and 1993.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1035

Bibliographic Reference

Melitz, J and Waysand, C. 1994. 'The Role of Government Aid to Firms during the Transition to a Market Economy: Russia 1992-94'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1035