Abstract
Stagnation and resistance to change are common themes in Western literature on the Soviet economy. While general conclusions of this type are reasonable enough, the specifics are subject to argument, especially if one focuses on the dynamics of transition rather than concentrating solely on the endpoints. Contrary to prevailing opinion, I argue that the 1965 reforms led to meaningful increases in managerial discretion over the wage fund, and I proceed to model this proposition rigorously and then test it against the data. I conclude the paper with a few brief observations that place the findings in historical perspective.
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