A Political Economy Approach to the Neoclassical Model of Transition

Bibliographic Data

ID2803437
AuthorsJohn Marangos (0000-0002-2765-8342, Federation University, corresponding author)
Year2002
Volume61
Issue1
Pages259-276
Publication date2002-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Economics and Sociology (JOURNAL)
Journal identifiersISSN: 0002-9246 • E-ISSN: 1536-7150
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1536-7150.00159
OpenAlexW2076358784
LanguageEN
Citations received3
References cited7

The neoclassical model of transition from a centrally-administered socialist economic system to a market-based economic system was implemented in Russia and Eastern Europe. The neoclassical process took the form of either shock therapy or gradualism. However, each approach actually involved a combination of shock therapy and gradualist policies, making the distinction between the two approaches unfounded. In addition, both approaches suffered by the innate inadequacies of neoclassical economic analysis as being politically/institutionally naked. Both shock therapy supporters and gradualist neoclassical economists did not provide a specific process of institutional development, favouring a gradual market-driven institutional outcome. With regard to the political structure, democracy was inconsistent with shock therapy, while active state intervention during transition was inconsistent with the ultimate goal of the gradualist neoclassical economists of competitive capitalism

Capitalism · Democracy · Economic system · Economics · Gradualism · Keynesian economics · Market economy · Neoclassical economics · Political science · Politics · Shock (circulatory) · Shock therapy · Transition (genetics) · Economic Theory and Institutions · Medicine · Post-Communist Economic and Political Transition · Russia and Soviet political economy

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