The paper develops and discusses a two-sector general equilibrium growth model of a "transit economy" which is subjected to an external price shock. The assumed behavioural charactertistic of such an economy is the presence of a distributional rigidity rather than the more commonly assumed...

This paper considers the impact on sectoral outputs and employments of rapid and large changes in relative prices, such as those which occurred in transition economies during the 1990s. A simple general equilibrium model is developed in which price changes are induced by a tax reform and...

The paper develops and discusses a two-sector general equilibrium growth model of a "transit economy" which is subjected to an external price shock. The assumed behavioural charactertistic of such an economy is the presence of a distributional rigidity rather than the more commonly assumed...