The unofficial economy in transition

Article Abstract:

A model was developed to evaluate the importance of the underground or unofficial economy in countries such as the former Soviet Union and Eastern Europe in the context of political corruption and regulation. Results reveal that transitional economies such as those in Eastern Europe, which have fair taxes, light regulation, high tax revenues, and adequate provision of public goods have a lower incidence of unofficial activity and better growth than economies such as those in the former Soviet Union, which have unfair taxes, burdensome regulations,low tax collection, and poor public goods.

Economics, Research and Development in the Social Sciences and Humanities, Eastern Europe, Political aspects, Underground economy, Former Soviet Union

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The invisible hand and the grabbing hand

Article Abstract:

A survey of retail managers in Russia and Poland provides insights into the different outcomes of the two countries' similar economic reforms in the 1990s. The major factor for Poland's rapid economic growth is the interaction between its bureaucrats and entrepreneurs, which falls under the invisible-hand model. In contrast, Russia is classified under the grabbing-hand model. Polish local governments are also more business-friendly according to regulatory and law enforcement data.

Economic policy, Poland, Russia, Commercial law, Trade policy, Commercial policy

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Pervasive shortages under socialism

Article Abstract:

The distinction between capitalism and socialism is that capitalism is characterized by an excess supply of goods while socialism implies excess demand. The theory formulated asserts that because the planners in the socialist structure cannot keep legitimate profits for themselves, they engineer product shortages to generate bribes from consumers. In capitalism, an excess supply is a result of capitalists' desire to generate more income.

Analysis, Socialism, Supply and demand

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