testing russia s virtual economy by vlad ivanenko william davidson working paper number 428 december 2001 1 abstract in the aftermath of sovereign default august 1998 hypothesis developed gaddy and ickes has gained popularity states that country not moved towards free market but a system implicit price subsidization similar to what had existed before non viable sectors state supported with subsidies survive over pricing their output customers pass bill back government reducing tax liabilities we test proposition distribution value added across is biased because distortions estimate at world prices results support claim russian structure different from level three out fifteen for which construct indices become destroying investigate reasons behind differentials find difference processing use barter explain large part it jel code p2 p3 p52 keywords effective
