A model of Russia's "virtual economy"

Richard E. Ericson, Barry W. Ickes

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

The Russian Economy has evolved into a hybrid form, a partially monetized quasi-market system that has been called the virtual economy. In the virtual economy, barter and non-monetary transactions play a key role in transferring value from productive activities to the loss-making sectors of the economy. We show how this transfer takes place, and how it can be consistent with the incentives of economic agents. We analyze a simple partial-equilibrium model of the virtual economy, and show how it might prove an obstacle to industrial restructuring and hence marketizing transition.

Original languageEnglish (US)
Pages (from-to)185-214
Number of pages30
JournalReview of Economic Design
Volume6
Issue number2
DOIs
StatePublished - 2001

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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