[lbo-talk] Transaction costs [was: Cuba's painful transition from sugar economy

Chris Doss lookoverhere1 at yahoo.com
Mon Aug 29 08:41:54 PDT 2005


--- Wojtek Sokolowski <sokol at jhu.edu> wrote: So to summarize, centrally planned economies were inefficient due to their structural features rather than transaction costs, and that inefficiency was particularly pronounced in the agricultural sector.

--

Yup. That's why half of the food consumed in the USSR in Brezhnev days was privately produced on small land plots. BTW, did Poland engage in a dacha program like the Soviet one? -- I mean where, in light of the agricultural problems, the government would give land to city-dwellers in the countryside if they promised to develop it? (The reason half the population of Moscow has a summer home today.)

Nu, zayats, pogodi!

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