USSR

Question 1

Kornai quotes

Answer 1

“Any economy without private incentives requires repression from above”

“Lift the repressive machinery and sooner or later the system collapses”

Question 2

Cap acuumlation

Answer 2

Growth based on capital cummulation and structural shifts

Bring in ind rev stuff about how important ideas are. Also prop right etc

Lack of Schumpetrian grwoth, inniovation top heavy in defence and space, didn’t benefit from Romers increasing social returns

Draw diagram

Extensive not intensive growth

Question 3

Incentives`

Answer 3

Lack of motivation, only motivation to meet quoats, hierachical system where priority industries are leaked out and take resources away from progressively more important comsuemr goods. Soft budget constraint

Static inefiicency-Von Mises no index of scarcity

“without a price mechanism there is no economic valuation, socialsim the abolituion of the ratioanl society”

Question 4

Supressed infl/ hidden unem

Answer 4

“They pretend to pay us we pretend to work” Diagram p min

Question 5

Chronci shortages

Answer 5

incentives to falsify info, principle agent problem

Question 6

System…

Answer 6

To ridgid, domianted by powerful interest groups and ideologically obessed incompetent elites

Question 7

Capital stats

Answer 7

Possessed quantity not quality which is why Fischer predicted stagnation

from 1965 rate of return on capital fell 80% in 4 years

Question 8

Other stats

Answer 8

Massive structural shifts, 1917 >80% employed in agriculture by 1930 <60%

1950-1979 supposed 3.5 % growth 1975-1980 1.5% growth by 1980 barely 1%

1980-1990 oil prices fell 60% disaster