In this paper, the Soviet household saving function is estimated using
reconstructed data from the unpublished archival material: the Soviet
family budget survey data. In addition, a shortage indicator is devel
oped to capture both household purchasing power in comparison with the
availability of consumer goods in the official market and the spillov
er of the household demand for consumer goods from the official retail
market to the secondary one. A long-run solution of the Soviet househ
old saving function, which includes a shortage indicator as one of the
independent variables, is estimated using these data. The reliability
of the long-run solution is confirmed by the shea-run dynamics of the
Soviet household saving function, which satisfy super-exogeneity, par
ameter constancy, and several diagnostic tests. The highly significant
coefficient of the shortage indicator suggests that Soviet household
saving behaviour was affected by shortages of consumer goods during 19
65-1989.