International Advances in Economic Research

, Volume 5, Issue 1, pp 24–36 | Cite as

An open-economy transition model

  • Debra Moore Patterson
Articles
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Abstract

This paper presents an open-economy general equilibrium model illustrating an economy such as a small eastern European country prior to economic transition. The developed model illustrates some of the inefficiencies inherent in the pre-reform economies, including the price distortions that caused resource wasting queues, as well as government domination of the production process. The model specifically provides a dynamic, analytical framework for considering the impact of government policies in determining the size of the trade balance and pre- and post-reform domestic social welfare.

Keywords

Economic Growth European Country Production Process Social Welfare International Economic 
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Copyright information

© International Atlantic Economic Society 1999

Authors and Affiliations

  • Debra Moore Patterson
    • 1
  1. 1.Trinity UniversityUSA

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