01951cas a2200277 a 4500 AALejournalIMF009073 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451926606 1018-5941 BD-DhAAL BD-DhAAL Lane, Timothy. Shortages Under Free Prices : The Case of Ukraine in 1992 / Timothy Lane, Rolando Ossowski, Alexander Sundakov. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the coexistence of free prices and shortages for a range of consumer goods in Ukraine during 1992. Enterprises making consumer goods were substantially free to set market-clearing prices. Yet, Ukraine's official consumer market experienced continued shortages, while the same goods traded at higher prices in parallel markets. The paper advances a model of enterprise behavior in an environment of central allocation of inputs at preferential prices. We show that central allocation of key inputs according to perceived 'need' creates incentives for excess demand to be perpetuated despite formal price liberalization. The analysis brings forth the importance of abolishing allocation mechanisms for price liberalization to bring its full efficiency effects. Mode of access: Internet Ukraine imf Ossowski, Rolando. Sundakov, Alexander. IMF Working Papers; Working Paper ; No. 1994/010 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/010/001.1994.issue-010-en.xml IMF e-Library