Re-evaluation of Welfare Changes during the Transition in PolandPost-Communist Economies
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AbstractThe 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 InformationSonya 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/