Working Paper: CEPR ID: DP1595
Authors: Lawrence J. Lau; Yingyi Qian; Gerard Roland
Abstract: Pareto-improving economic reforms that also simultaneously achieve efficiency can be implemented through a strategy of ?dual-track? liberalization. Its success requires the feasibility of the original plan and its continued enforcement by the state. The Chinese experience demonstrates that such a strategy works.
Keywords: general equilibrium; dual-track; price liberalization; pareto-improving economic reforms
JEL Codes: O50; O60; P21; P22; P41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| dual-track strategy (L10) | economic efficiency (D61) |
| dual-track strategy (L10) | pareto-improving (D61) |
| original economic plan (E65) | dual-track strategy (L10) |
| state's capacity to enforce original plan (H11) | dual-track strategy (L10) |
| dual-track strategy (L10) | political feasibility (D72) |