How much control is enough? Monitoring and enforcement under Stalin
Markevich, Andreĭ, 1976- (2007) How much control is enough? Monitoring and enforcement under Stalin. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers.
WRAP_Markevich_twerp_829.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Given wide scope for asymmetric information in huge hierarchies agents have a large capacity for opportunistic behaviour. Hidden actions increase transactions costs and cause the demand for monitoring and enforcement. Once the latter are costly, this raises questions about their scope, logistics and type. Using historical records, this paper examines the Stalin’s answers to them. We find that Stalin maximised efficiency of the Soviet system of control but had to mitigate with the problems of the loyalty of inspectors themselves and the necessity to lessen the risk of a “chaos of orders” arising from parallel centres of power.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HC Economic History and Conditions
D History General and Old World > DK Russia. Soviet Union. Former Soviet Republics
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Stalin, Joseph, 1879-1953, Information asymmetry, Hierarchies -- Soviet Union, Transaction costs, Soviet Union -- Politics and government -- 1936-1953|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Date:||7 December 2007|
|Number of Pages:||38|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|Funder:||Fifth Framework Programme (European Commission) (FP5)|
|References:||Alchian, A. & Demsetz H. (1972). Production, Information Costs and Economic Organization. American Economic Review, 62, 777 – 95. Berliner, J. S. (1957). Factory and Manager in the USSR. (Cambridge, MA: Harvard University Press) Blume L. & Vogit S. (2007). Supreme Audit Institutions: Supremely Superfluous? A Cross Country Assessment. Mimeo Bolton, P. & Dewatripont M. (2005). Contract theory. (Cambridge MA:MIT Press) Coase R.H. (1937). The Nature of the Firm. Economica, 4(16), 386-405 Conslik, J. (1996). Why Bounded Rationality? Journal of Economics Literature, XXXIV, 669 – 700 Davies, R.W. (1996). The Industrialisation of Soviet Russia. Vol. 4. Crisis and progress in the Soviet Economy, 1931-1933. (Basingstoke and London: Macmillan Press) Eisenhardt, K. M. (1985) Control: Organizational and Economic Approaches. Management Science, 31(2), 134 – 49 Egorov G., Guriev S. & Sonin K. (2006). Media Freedom, Bureaucratic Incentives, and the Resource Curse. Mimeo Frey B. S. (1994). Supreme Auditing Institutions: A Politico-Economic Analysis. European Journal of Law and Economics, 1, 169 - 76 Due K. M. & Stapenhurst R. (1998). Pillars of Integrity: The Importance of Supreme Audit Institutions in Curbing Corruption. International Bank for Reconstruction and Development, Mimeo Getty, A. (1997). Pragmatists and Puritans: The Rise and Fall of the Party Control Commission. The Carl Beck Papers in Russian and East European Studies, 1208 Gregory, P. (2007). Terror by Quota: Planning State Security under Stalin (Evidence from the Soviet Archives). Manuscript Gorlizki Y. (2001). Theft Under Stalin: A Property Rights Analysis. Mimeo Grossman, S. J. & Hart O.D. (1986). The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration. Journal of Political Economy, 94, 691-719 Harris, J. (2003). Was Stalin a Weak Dictator? The Journal of Modern History, 75, 375 - 86 Harrison, M. (2006). The Rational-Choice Dictator – A Replay. Europe-Asia Studies,58(7), 1141 – 56 Harrison, M., & Simonov N. (2000). Voenpriemka: Prices, Costs, and Quality Assurance in Interwar Defence Industry. (In Barber J. & Harrison M. (Eds.), The Soviet Defence-Industry Complex From Stalin to Khrushchev (pp. 223-245). Basingstoke: Macmillan Press) Hart, O. & Moor J. (1990). Property Rights and the Nature of the Firm. Journal of Political Economy, 98, 119 - 58 Holmstrom, B. (1982). Moral Hazard in teams. The Bell Journal of Economics, 13(2), 324 - 40 Ikonnikov, S. N. (1971). Sozdanie i deiatel’nost’ ob’edinennykh organov TsKK - RKI v 1923-1934 gg. (Moskva: Nauka) Kokurin A.I. & Petrov N.V. (Eds) (2003). Lubianka Organy vchk-NKVD-NKGB-MGB-MVD-KGB, 1917-1991 Spravochnik Documentov. (Moscow: Fond Demokratiia) Kornai, J., Maskin E. & Roland G. (2003). Understanding the Soft Budget Constraint. Journal of Economic Literature, 41(4), 1095-136 Markevich, A. & Harrison M. (2006). Quality, Experience, and Monopoly: the Soviet Market for Weapons under Stalin, Economic History Review, LIX, 113 – 42 Markevich, A. (2007). The Dictator’s Dilemma: to Punish or to Assist? The Party Control Commission under Stalin. Mimeo Moe, T. M. (1984). The New Economics of Organisation. American Journal of Political Science, 28, 739 – 77 Mosokhin, O. (2004). VCHK-OGPU na zashchite ekonomicheskoi bezopasnosti gosudarstva I v bor,be s terrorizmom. (Moskva: Yauza-Eksmo) Mueller, D. C. (2003). Public Choice III. (Cambridge: Cambridge University Press) Nerard F. (2002). Signali v Nizhegorodskogom (Gorkovskom) krae (In Obshchestvo I vlast’. Rossiiskaya provintciya. Vol.1 1917 – seredina 1930-kh godov. Moskva, Nizhnii Nivgorod, Paris) Niskanen, W. (1971). Bureaucracy and representative government. (Chicago, Aldine, Atherton) Olson, M. (1965). The logic of Collective Action: Public Goods and the Theory of Groups. (Cambridge: Harvard University Press) Parkinson, C. N. (1957). Parkinson's Law: The Pursuit of Progress. (London: John Murray) Qian, Y. (1994). Incentives and Loss of Control in an Optimal Hierarchy. Review of Economic Studies, 61, 527 – 44. Rees, E. A. (1987). State control in Soviet Russia: the rise and fall of the Workers’ and Peasants’ Inspectorate, 1920-34. (Basingstoke: Macmillan Press) Solomon, P. (1996). Soviet Criminal Justice under Stalin. (Cambridge: Cambridge University Press) Stalin I.V. (1952). Polnoe sobranie sochinenij. Vol. 4. (Moscow: Politizdat) Streim, H. (1994). Agency Problems in the Legal Political Systems and Supreme Auditing Institutions. European Journal of Law and Economics, 1, 177 - 91 Williamson, O. E. (1967). Hierarchical Control and Optimal Firm Size. The Journal of Political Economy, 75, 123 – 38 Wheatcroft, S.G. (2004). From Team-Stalin to Degenerate Tyranny (In Rees, E.A. (Ed.) The Nature of Stalin’s Dictatorship: The Politburo, 1924 – 1953 (pp. 79-107). London: Palgrave) Remigton, T. (1982). Institution Building in Bolshevik Russia: The Case of State control. Slavic Review, 41, 91 – 103 Williamson, O. E. (1975). Markets and Hierarchies: Analyses and Antitrust Implications. (New York: Free Press) Wintrobe, R. (1998). The political economy of dictatorship. (Cambridge, New York: Cambridge University Press) Wintrobe, R. (2001). How to understand, and deal with dictatorship: an economic view. Economics of Governance, 2, 35-58. World Bank. (2001). Features and functions of supreme audit institutions, Prem Notes, 59. Archives Note: Russian archival documents are numbered according to a standard system: collection (fond), inventory (opis), file (delo), folio (list). Hoover/RGANI: “Archives of the Former Soviet State and Communist Party’ from the Russian State Archives of Recent History (Moscow) at the Hoover Institution of War, Revolution, and Peace (Stanford, CA). Hoover/RGASPI: “Archives of the Former Soviet State and Communist Party’ from the Russian State Archives of Social and Political History (Moscow) at the Hoover Institution of War, Revolution, and Peace (Stanford, CA). Hoover/ GARF: Archives of the Former Soviet State and Communist Party’ from the State archive of Russian Federation (Moscow) at the Hoover Institution of War, Revolution, and Peace (Stanford, CA). GARF – State archive of Russian Federation (Moscow). RGAE – Russian State archive of national economy (Moscow).|
Actions (login required)