What Is the Difference Between Scarcity and Shortage?

Vertical shortage refers to an economic phenomenon in which the total planned amount of materials required by lower-level units exceeds the total amount of materials that can be allocated by higher-level units. This is a concept proposed by Hungarian economist Janos Korne when analyzing the shortage. Vertical shortage is a specific form of shortage. It indicates the relationship between superiors and subordinates when resources and products are allocated by administrative means. . ^[1]