It can be proved theoretically that, because of the previously existing price and structural distortion, a welfare paradox is possible in the former command economies during the transition period. This paradox refers to a situation in which a welfare gain is accompanied by a fall in the reported...

China is currently undergoing an extensive economic reform. The reform has provided the economists with an excellent opportunity to compare and analyze the centrally planned economy and the market economy in regard to their merits and shortcomings. Most of the analytical tools in modern...

"This paper investigates the issue of monetary overhang in centrally planned economies (CPEs). The analysis compares the money stocks in CPEs with those in market economy counterparts. Contrary to conventional belief, the findings here suggest that the money stocks in traditional CPEs do not...

"The policy of subsidizing agriculture with profits made by township and village enterprises has played an important role in maintaining stability and accelerating balanced economic growth in the Chinese rural areas. It represents an interesting subject in the literature of development economics...

This paper examines the 1994 inflation in China, which occurred at a time when the government was vigorously conducting macroeconomic contraction. The event deserves more attention for both academic and policy research reasons. The paper shows that the inflation was led by food price increases,...