NBER WORKING PAPER SERIES THE THEORY AND MEASUREMENT OF.pdf

NBER WORKING PAPER SERIES THE THEORY AND MEASUREMENT OF MACROECONOMIC DISEQUILIBRIUM IN CENTRALLY PLANNED ECONOMIES Richard Portes Working Paper No. 1875 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 March 1986 The author is Director of the Centre for Economic Policy Research, London; Professor of Economics, University of London; and Directeur dEtudes Associe. Ecole des Hautes Etudes en Sciences Sociales, Paris. My research on this topic has been supported by the Economic and Social Research Council, most recently under grant I have benefited greatly from collaborative work on the problems discussed here with Richard Quandt, David Winter, and Stephen Yeo, none of whom bears any responsibility for this paper. Nor do those who have commented on the paper, including Joe Brada, Wojtek Charemza, Paul Hare, Ed Hewett, Alec Nove, and Tom Wolf. The paper was written for a Festschrift in honor of Franklyn Holzman. The present version is a revision of Birkbeck Discussion Paper in Economics, No. 161, October 1984. The research reported here is part of the NBER?s research program in International Studies. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research. Working Paper #1875 March 1986 The Theory and Measurement of Macroeconomic Disequilibrium in Centrally Planned Economies ABSTRACT The paper considers issues in recent research on macroeconomic equilibrium j centrally planned economies. I defend the explicit aggregatjve,