The Economic Theory of Central Planning

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9780631142768: The Economic Theory of Central Planning

This text considers and interprets the theoretical literature on planning in a developed socialist economy. The focus is on Western contributions and particular attention is given to practical factors, such as the informational requirements and computational feasibility of models. The initial chapters are concerend with iterative models of plan construction. The theory of managerial incentives and some general distributional issues are examined, and the Weitzman "prices versus quantities" framework for evaluating plan implementation models based on the theory of temporary equilibrium with rationing are discussed (a comparison is made with Kornai's model of "shortage". The book ends with an examination of Kalecki's model of growth under socialism and the associated problems of long-term planning.

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Bennett, John
Published by Basil Backwell (1989)
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