Dual track reforms: With and without losers

• 成果类型: Article
• 署名作者: Che, Jiahua; Facchini, Giovanni
• 署名单位: University of Milan; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.03.007
• 发表日期: 2007
• 页码: 2291-2306
• 关键词: dual track liberalization; intertemporal arbitrage; Pareto improving reforms; CHINA

摘要

The dual track approach to market liberalization has been widely recognized as the key to the success of the Chinese economic reform. In this paper we study the effectiveness of this strategy in economic environments where the status quo government control is incomplete. We show that in a dynamic context contractual arbitrage will emerge, potentially resulting in efficiency losses and/or adverse distributional effects. By establishing a necessary and sufficient condition for the dual track approach to retain its appeal in a dynamic context, our analysis provides a clear guideline to the broader applicability of this reform mechanism. (C) 2007 Elsevier B.V. All rights reserved.