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.