Market vs. Rationing: The Case of Soviet Housing

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Abstract
Economists devote considerable effort to the analysis of various forms of non-price rationing. These analyses generally disregard forces which act to foil rationing schemes. Even with a commodity which seems to be easy to control, however, in a system with extensive rationing experience, non-price rationing schemes can be circumvented. This thesis is examined for the case of housing distribution in the USSR utilizing the data from a survey of recent Soviet emigres. It is shown that administrative rationing of Soviet urban housing is partially replaced by market forces acting usually through the second economy.

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