Title

Re-evaluation of Welfare Changes during the Transition in Poland

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2002

Journal or Book Title

Post-Communist Economies

Volume

14

Issue

1

First Page or Article ID Number

31

Last Page

46

DOI

10.1080/14631370120116680

Abstract

The costs of shortages/rationing are not captured by standard consumer price indices. Thus the change in real GDP per capita is an over-estimate of welfare losses in transition economies. In this study virtual prices are used to calculate new cost of living indices, making it possible to construct more accurate pre-reform and post-reform welfare comparisons. The results for Poland using virtual prices show 62-84% decline in welfare over the transition 1987-92. This welfare loss is approximately one-third of the value obtained using actual prices.

Comments

This is a working paper of an article from Post-Communist Economies 14 (2002): 31, doi: 10.1080/14631370120116680.