DP1595 Pareto-Improving Economic Reforms through Dual-Track Liberalization

Author(s): Lawrence J Lau, Yingyi Qian, Gérard Roland
Publication Date: April 1997
Keyword(s): Dual-track price liberalization, General Equilibrium, Pareto-improving economic reforms
JEL(s): D50, D60, P21, P22, P41
Programme Areas: Transition Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1595

Pareto-improving economic reforms that also simultaneously achieve efficiency can be implemented through a strategy of ?dual-track? liberalization. Its success requires the feasibility of the original plan and its continued enforcement by the state. The Chinese experience demonstrates that such a strategy works.