Article
Re-evaluation of Welfare Changes during the Transition in Poland
Post-Communist Economies
Document Type
Article
Disciplines
Publication Version
Submitted Manuscript
Publication Date
1-1-2002
DOI
10.1080/14631370120116680
Abstract
The costs of shortages/rationing are not captured by standard consumer price indices. Thus the change in real GDP per capita is an over-estimate of welfare losses in transition economies. In this study virtual prices are used to calculate new cost of living indices, making it possible to construct more accurate pre-reform and post-reform welfare comparisons. The results for Poland using virtual prices show 62-84% decline in welfare over the transition 1987-92. This welfare loss is approximately one-third of the value obtained using actual prices.
Citation Information
Sonya K. Huffman and Stanley R. Johnson. "Re-evaluation of Welfare Changes during the Transition in Poland" Post-Communist Economies Vol. 14 Iss. 1 (2002) p. 31 - 46 Available at: http://works.bepress.com/sonya-huffman/24/
This is a working paper of an article from Post-Communist Economies 14 (2002): 31, doi: 10.1080/14631370120116680.