Demand and shortage of durable consumer goods in socialist countries

This paper, under several assumptions, tries to illustrate how three variables (the distribution of family's average per capita income (DFAPCI), the output of durable consumer goods (DCG), and the importexport balance of DCG) affect the demand for DCG. A mathematical model of demand for DCG is set up. Applying the model and actual data of DFAPCIs of socialist and capitalist countries, the paper concludes that the shortage of DCG in socialist countries is mainly caused by their special DFAPCIs. © 1992, Taylor & Francis Group, LLC. All rights reserved.