Econometrica: Jan 1977, Volume 45, Issue 1

Non-Price Rationing of Intermediate Goods in Centrally Planned Economies: A Comment

https://doi.org/0012-9682(197701)45:1<175:NROIGI>2.0.CO;2-E
p. 175-181

Donald W. Green, Peter Murrell

This paper investigates an operational inconsistency between the constrained priority rationing scheme introduced by Manove in 1973 and the criterion used to determine an "optimal" priority matrix. A truncation of the optimality criterion is suggested in order to resolve this inconsistency and also reduce a potential source of bias against final demand.

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