Hayek is, with Mises, one the prominent Austrian economists who took part in the historical “socialist calculation debate” of the 1930s. After recalling precisely what Mises’s crucial argument against socialism was (socialism means the abolition of market prices which are necessary for real rational economic decisions to be taken in production), this paper goes on to show what Hayek’s main argument was (state planning of the economy is impossible because no super-brain can have all the necessary knowledge to be (...) economically efficient). I will further show that, while this last argument is theoretical, Hayek has also an argument about the preeminence of competitive economy from an evolutionary standpoint, which is an empirical question and thus forms a less conclusive argument. In the second part of this paper, I will summarize how Myrdal explains in his 1960 book, and from a completely different angle, how state intervention and planning historically occurred—and continues to work—in our Western Capitalist Welfare States. Myrdal’s account is explicitly presented by him as having empirical import, but also strong normative content. Hayek, on the contrary, argues that the efficiency of state planning is a problem for economists to solve on exclusively scientific grounds. My purpose is to show important divergences between these two economic viewpoints and to sketch a philosophical appraisal of both. (shrink)

ArgumentFollowing World War II, as macroeconomics and econometrics became a necessary tool for policy-making, economists worldwide rose in influence. Those economists in peripheral and new countries were especially important as they could wield the instruments essential in forming states. Israel was no exception. In Israel this process was associated with the establishment of the economics department at the Hebrew University in Jerusalem and the Falk Project, led by Don Patinkin and the community of economists that he nurtured. This article poses (...) three questions regarding Patinkin's influence and his role in the process of state formation. First, how did he affect economic policy discourse in Israel; second, what role did Patinkin and his students play in the process of state formation; and finally, what was the effect of Patinkin and his students on Israeli government policies? I argue that Patinkin had a specific and irreducible influence on the localization of pro-market ideas and policies in Israel, and that he and his students contributed to the consolidation of the state autonomy and capacity. Furthermore, I argue that they contributed to a more strict implementation of the recession policy in the mid-1960s. (shrink)

My paper reconstructs Fichte's property theory and political economy in Foundations of Natural Right and The Closed Commercial State. Fichte's theory of property requires the rejection of the classical liberal theory of property rights. Fichte's alternative theory of property, in conjunction with his republican account of the state's role in guaranteeing individual rights, further requires the rejection of a market economy in favor of a planned economy. For Fichte's view entails the normative necessity of a political economy in which the (...) production and transfer of goods and services, across large sectors of the economy, are mandated by the state in advance in accordance with an economic plan. As a result, Fichte reconceives his contractualism as necessarily including the negotiation of a state‐enforced plan for eco- nomic activity. Thus, Fichte's new theory of property in Foundations of Natural Right has extremely wide‐ranging implications for the rest of his political and economic thought. The negotiation of fair terms of political associa- tion characteristic of classical contractualist thought becomes in Fichte's hands the negotiation of an economic plan that defines each individual's socioeconomic rights. I conclude with some brief remarks on the sense in which Fichte's theory serves as a cautionary tale for later socialists. (shrink)

This 1987 book brings together the series of papers Kalecki wrote, between 1940 and his death in 1970, on economic planning, that contain the germ of his theory of growth in a socialist economy. They also contain an intriguing analysis of economic planning in a socialist society. This analysis anticipates many of the tenets of the disequilibrium school of economists of the 1970s. In his introduction, Jan Toporowski argues that Kalecki's work on the theory of growth in a (...) socialist economy is incomplete and has often consequently been misrepresented without the analysis presented in these papers, which are in this edition. This book will be of interest to all those interested in Kaecki's work, the economics of planning, and economic policy-making. (shrink)

The economic calculation of a central planner has traditionally been argued to result in irrational and inefficient allocation of resources, but this can be reasonably questioned given advances in computing technology, especially artificial intelligence. We conclude that central planning coupled with AI is still unable to allocate resources with the same efficiency as price signals and market forces through examinations of the technical structure of current AI approaches. AI-driven central planning is not viable in part due to incentives, computing (...) power, knowledge/data acquisition, and speed of collection. There are deep incentive problems for planners, programmers, and ordinary participants to complicate efforts at planning and bias data. Most importantly, AI cannot easily or quickly duplicate the signals of relative scarcity that are generated in markets. Some challenges we highlight are pertinent to planning generally, but many others arise from the introduction of an AI-planner. (shrink)

This 1987 book brings together the series of papers Kalecki wrote, between 1940 and his death in 1970, on economic planning, that contain the germ of his theory of growth in a socialist economy. They also contain an intriguing analysis of economic planning in a socialist society. This analysis anticipates many of the tenets of the disequilibrium school of economists of the 1970s. In his introduction, Jan Toporowski argues that Kalecki's work on the theory of growth in a (...) socialist economy is incomplete and has often consequently been misrepresented without the analysis presented in these papers, which are in this edition. This book will be of interest to all those interested in Kaecki's work, the economics of planning, and economic policy-making. (shrink)

ABSTRACT This paper examines the evolution of Michael Polanyi’s critique of economic planning. It portrays how the focal point of his critique shifted from addressing the ‘spirit,’ ‘social consciousness,’ and ‘public emotion’ of the people supporting planned economies to addressing the administrative ‘unmanageability’ and the logical impossibility of economic planning. Polanyi developed thought experiments of imaginary economies, contrasted the ‘pyramid of authority’ with the polygons of liberty, and explained organic and inorganic ways of adjusting economic relations. He (...) attempted to relax the Leviathan of Soviet economics, and drew the conclusion that mathematics is not sufficient in itself to properly address the economy. Eventually, Polanyi developed an institutionalist approach in order to be able to address both the variability of market economies and the failures of socialist ‘super-planners’ who claimed to eliminate the drift of individual economic adjustments. (shrink)

Abstract:This article examines the transformation that occurred in anarchist political economy during the interwar period by tracing the intellectual trajectory of Diego Abad de Santillán, an important labor organizer and policymaker during the Spanish Revolution and Civil War (1936–39). Representative of a broader intellectual struggle within anarchism, Abad de Santillán moved away from nineteenth-century ideas about inaugurating anarchism through autonomous communes and gravitated toward participatory national economic planning. Uncovering this shift sheds light on the techniques of governance available to (...) anarchists during the conflict and it highlights their efforts to steer elitist discourses about planning toward democratic management. (shrink)

Hayek is, with Mises, one the prominent Austrian economists who took part in the historical “socialist calculation debate” of the 1930s. After recalling precisely what Mises’s crucial argument against socialism was (socialism means the abolition of market prices which are necessary for real rational economic decisions to be taken in production), this paper goes on to show what Hayek’s main argument was (state planning of the economy is impossible because no super-brain can have all the necessary knowledge to be (...) economically efficient). I will further show that, while this last argument is theoretical, Hayek has also an argument about the preeminence of competitive economy from an evolutionary standpoint, which is an empirical question and thus forms a less conclusive argument. In the second part of this paper, I will summarize how Myrdal explains in his 1960 book, and from a completely different angle, how state intervention and planning historically occurred—and continues to work—in our Western Capitalist Welfare States. Myrdal’s account is explicitly presented by him as having empirical import, but also strong normative content. Hayek, on the contrary, argues that the efficiency of state planning is a problem for economists to solve on exclusively scientific grounds. My purpose is to show important divergences between these two economic viewpoints and to sketch a philosophical appraisal of both. (shrink)

The centrally-planned Soviet command economy was one of the twentieth century’s most radical and complex economic, political and social experiments. Its establishment did not coincide with the onset of Soviet power across the former Russian Empire in 1917-1918, but instead resulted from fifteen years of shifts, readjustments and breaks, and through experiments with both quasi-socialist market economics and centralised administrative command practices. The present article surveys the conflictual relationship between Soviet planning and Marxism in this period. It demonstrates how (...) the Stalinist command economy contradicted much of the theory and practice that the Bolsheviks themselves had thought ought to characterise the new economic system. (shrink)

On the basis of PM2.5 data of the national air quality monitoring sites, local population data, and baseline all-cause mortality rate, PM2.5-related health economic benefits of the Air Improvement Action Plan implemented in Wuhan in 2013–2017 were investigated using health-impact and valuation functions. Annual avoided premature deaths driven by the average concentration of PM2.5 decrease were evaluated, and the economic benefits were computed by using the value of statistical life (VSL) method. Results showed that the number of avoided (...) premature deaths in Wuhan are 21,384 (95% confidence interval (CI): 15,004 to 27,255) during 2013–2017, due to the implementation of the Air Improvement Action Plan. According to the VSL method, the obtained economic benefits of Huangpi, Wuchang, Hongshan, Xinzhou, Jiang’an, Hanyang, Jiangxia, Qiaokou, Jianghan, Qingshan, Caidian, Dongxihu, and Hannan District were 8.55, 8.19, 8.04, 7.39, 5.78, 4.84, 4.37, 4.04, 3.90, 3.30, 2.87, 2.42, and 0.66 billion RMB (1 RMB = 0.1417 USD On 14 October 2019), respectively. These economic benefits added up to 64.35 billion RMB (95% CI: 45.15 to 82.02 billion RMB), accounting for 4.80% (95% CI: 3.37% to 6.12%) of the total GDP of Wuhan in 2017. Therefore, in the process of formulating a regional air quality improvement scheme, apart from establishing hierarchical emission-reduction standards and policies, policy makers should give integrated consideration to the relationship between regional economic development, environmental protection and residents’ health benefits. Furthermore, for improving air quality, air quality compensation mechanisms can be established on the basis of the status quo and trends of air quality, population distribution, and economic development factors. (shrink)

Consider a firm as an organization that needs to efficiently coordinate several specialized departments in an uncertain environment. Decision making involves collective planning sessions and decentralized operational processes. In this setting this paper explores the role of economic modeling through an experimental game. Results support the idea that economic modeling favors higher performance. Economic modeling facilitates the emergence of common knowledge and the decomposition of a group decision problem into individual decision problems that are meaningfully interrelated.

With the progress of urbanization, urban management is facing a series of challenges in the new situation. The scale of the city is growing, urban management problems are increasingly prominent, the urban population is showing a rapid growth trend, and various elements of urban infrastructure management, such as rapid growth and urban expansion, have increased the load of urban infrastructure. To make overall planning for urban transportation, municipal administration, economic industry, and public service, intelligent urban planning and construction came (...) into being. Big data technology provides important support for the construction and development of smart city, which is not only an effective means to improve the design of smart city, but also the premise for the development of smart city. Therefore, this paper first introduces the characteristics of smart city, analyses the application of big data technology in smart city design, and finally evaluates the impact of smart city planning and construction based on big data on economic and social benefits. (shrink)

In an attempt to solve some serious economic and environmental problems, the Netherlands has embarked on an unique experiment over the past few decades. Based on a tradition of cooperation, consensus building, and democratic self-rule, the Dutch have revitalized a corporatist approach to economic and environmental planning. They refer to the polder model to describe the particular characteristics of this approach. Although the polder model is rooted in the past (i.e., the Golden Age of the 17th-century Dutch Republic), (...) its more recent application in planning efforts finds its start with the Wassenaar Accord in economic planning in 1982. A similar approach was used in environmental planning with the introduction of the first National Environmental Policy Plan in 1989. The key feature of the environmental plan is a covenant between business and government. In this article, the author compares the application of the polder model in both areas and concludes that there are serious challenges ahead for its survival. The article attempts to assess whether the model would work in the United States and why the approach used by the Dutch is the favored approach of Environmental Protection Agency chief Christie Whitman. (shrink)

This trilogy deals with an epistemology of economics, arguing for a radical overturning of conventional analysis and providing an alternative to political economy and social sciences, based not on positivism, but on a normative and programming paradigm. Volume III furthers and concludes work presented in Volume I and Volume II, and introduces a concrete and practical example of how to build a Planning Accounting Framework, as associated with Frisch's 'plan-frame', to demonstrate the extent to which decisions and negotiations can be (...) routed in the social sciences. The PAF is an instrument of the programming approach that can be used to verify the compatibility of decisions and their effects. The author builds on Frisch's classical PAF to maximise the phenomenology of economic systems, and assure a consistent and effective implementation of decision making. (shrink)

The field of labor market policy (LMP) is a highly contested issue because it directly addresses the power relations between labor and capital. Therefore, it is often in the center of political and...

This paper sets out a framework for understanding the impacts of the financial crisis and its aftermath that is based on the idea of three interacting spheres: finance, production and reproduction. All of these spheres are gendered and globalised. The gendered impact of the current crisis is discussed in terms of the impact on unemployment, employment protection and security, public sector services, social security benefits, pensions, and the real value of wages and living standards. Drawing on the analysis of the (...) UK Women's Budget Group, the paper demonstrates that the biggest falls in disposable income as the result of austerity policies by the Conservative-led government since 2010 have been borne by the most vulnerable women—lone mothers, single women pensioners and single women without children. Working-age couples without children have been least affected. The paper then goes on to discuss what an alternative economic strategy, based on feminist political economy, might look like. It utilises the notion of the ‘reproductive bargain’, first developed to understand the transition in Cuba in the 1990s. It sets out a possible feminist economic strategy that insists on the incorporation of reproductive and care work into the analysis of alternative economic policies and links employment, wages and social security payments to public provisioning of trans-generational reproductive services. It suggests feasible strategies to finance the proposed Plan F—a feminist economic strategy. (shrink)

The declaration of the COVID-19 pandemic by the World Health Organization on March 11, 2020, led to unprecedented events. All regions of the world participated in implementing preventive health measures such as physical distancing, travel restrictions, self-isolation, quarantines, and facility closures. The pandemic started global disruption of socio-economic systems, covering the postponement or cancellation of public events, supply shortages, schools and universities’ closure, evacuation of foreign citizens, a rise in unemployment and inflation, misinformation, the anti-vaccine movement, and incidents of (...) discrimination toward people affected by or suspected of having coronavirus disease. Attempts have been made to protect the oldest age group at risk, but in many cases, this has led to over-restriction and age discrimination. The rationale for working on the Research Topic "Socio-economic systems in the post-pandemic world: Design thinking, strategic planning, management, and public policy" was the need to start reflecting on resilience and lessons learned from this public health event that revealed the global unpreparedness in critical areas. Also, the pandemic triggered both top-down and bottom-up responses that needed more in-depth analyzes. This Research Topic covers interdisciplinary contributions addressing new thinking, challenges, and transformations required for post-pandemic global, national, regional, and local realities. The presented Research Topic combines studies focused on recognizing the actions and interventions leading to the recovery of socio-economic systems during the tail end and after the pandemic. The studies delivered recommendations regarding, among others, the care of vulnerable, planning socio-economic restart, and imagining the "new normal.". (shrink)

Abstractabstract:While the political aspects of the interwar dystopias have received much attention, less focus has been given to the specific correlation to the economic thinking and developments of the period, in particular the prominence of economic planning. This article suggests that such a connection is significant by examining a key Swedish novel from the period, Kallocain, in relation to the early economic theory of the Scandinavian welfare state. The article then relates these findings to links between Brave (...) New World and the thinking of John Maynard Keynes. Finally, the kinds of critique articulated in these fictional works are centered around the citizens’ emotional and interior lives in new planned societies, and around their views on bad, disloyal, or painful feelings. (shrink)

In China, the transformation from a centrally planned economy to one dominated by market forces has been characterized by the devolution of authority from the center to localities. This is as true of the enormous state bureaucracy associated with the control of fertility as it is with the economic bureaucracies more often studied in transitional societies. Using observations from several field sites, the authors document how county-, township-and village-level family planning cadres have gone from being agents of the state (...) to autonomous actors who must negotiate between the ongoing demands of the central bureaucracy and the new opportunities available in the locales in which they work and dwell. They suggest that any serious change in the draconian restrictions on fertility that have obtained in China for almost thirty years is likely to derive from initiatives at the local level. Local actors have already begun to adjust to the tensions between responsibilities and available resources that have tended to induce paralysis in the upper levels of this long-standing state bureaucracy. (shrink)

On 11 March 2020, the World Health Organization declared a pandemic of the COVID-19 coronavirus disease that was first recognized in China in late 2019. Among the primary effects caused by the pandemic, there was the dissemination of health preventive measures such as physical distancing, travel restrictions, self-isolation, quarantines, and facility closures. This includes the global disruption of socio-economic systems including the postponement or cancellation of various public events (e.g., sporting, cultural, or religious), supply shortages and fears of the (...) same, schools and universities closure, evacuation of foreign citizens, a rise of unemployment, changes in the international aid schemes, misinformation, and incidents of discrimination toward people affected by or suspected of having the COVID-19 disease. The pandemic has brought to the fore unpreparedness in critical areas that require attention, amid prospects and challenges. Moreover, considerable reorganization efforts are required with implications for assets, resources, norms, and value systems. COVID-19 is challenging the concept of globalization and stimulating responses at the levels of local and regional socio-economic systems that lead to the mobilization of assets that have been unrecognized earlier on, such as various forms of economic capital, social capital, cultural capital, human capital, and creative capital. For example, through digital channels, local groups are forming to create schemes of support for physical and mental wellbeing. These emerging exchanges lead to various social and technological innovations by building on skills and assets that are less important in the free-market economy, such as empathy, skills for crafts, making and fixing; locally grown microgreens; and micromanufacturing. Isolation and local living are also making it much harder to ignore the civic responsibilities towards communities, meant as individuals, vulnerable groups, and local businesses. Whilst the pandemic is limiting physical participation, this challenging time is uncovering alternative ways of mutual support, which may create long-term benefits for socio-economic systems, including environmental and biodiversity protection, reduction of the air pollution, and climate action. The pandemic’s threat to public health will hopefully be overcome with implications for disruption for an extended period that we are unable to forecast at this stage. It is key to focus on studies recognizing the activities and interventions leading to the recovery of socio-economic systems after the pandemic. Reflecting and planning on how societies and economies will go back to “business as usual” requires new forms of communication and cooperation, imaginative design thinking, new styles of management, as well as new tools and forms of participation in various public policies. Many questions related to the care of the vulnerable, economic restart, and the risk of future pandemics, to mention but a few, are already occupying the academic, scientific, experts, and activist communities, who have started to imagine the “new normal.”. (shrink)

Both Antonio Genovesi and Ferdinando Galiani devised strategies for Neapolitan economic development, which they realised was essential for preserving its recently acquired independent statehood. In order to avoid any socially disruptive effects they considered how economic processes changed the human mind. Both thinkers grounded their political visions on foreign trade on highly sophisticated ideas of the nature of self-interest. In spite of the similar characters of their projects, the political thought of Genovesi and Galiani has never been subject (...) to serious comparison. Instead the two thinkers have tended to be portrayed as opposite characters with highly divergent political leanings. It is argued here that this view is historically questionable and itself a product of a distorting canonisation process that was set in motion in the second half of the eighteenth century. Ironically, comparing the moral philosophies and economic ideas of Genovesi and Galiani, a picture emerges that inverts the myth that started at the end of the eighteenth century and that until this day has determined accounts of the early Neapolitan Enlightenment. (shrink)

This paper deals with the genesis, development, and impact of Military Keynesianism in the U.S. Its impact on the civilian sector is examined in terms of: geographical distribution of military spending, sectoral militarization, labor market and occupational distortion, the militarization of R & D, R & D's impact on American competitiveness in the international market, the parasitic role of the military contract system and the unethical and exploitative role of military contractors. This paper exarnines the issues related to disarmament and (...) economic conversion with special reference to bills pending before the Congress. The author suggests are definition of "national security" in tune with the INF Treaty and the end of cold-war ideology. (shrink)

This book shows through argument and numerous policy-related examples how understanding moral philosophy can improve economic analysis, how moral philosophy can benefit from economists' analytical tools, and how economic analysis and moral philosophy together can inform public policy. Part I explores the idea of rationality and its connections to ethics, arguing that when they defend their formal model of rationality, most economists implicitly espouse contestable moral principles. Part II addresses the nature and measurement of welfare, utilitarianism and cost-benefit (...) analysis. Part III discusses freedom, rights, equality, and justice - moral notions that are relevant to evaluating policies, but which have played little if any role in conventional welfare economics. Finally, Part IV explores work in social choice theory and game theory that is relevant to moral decision making. Each chapter includes recommended reading and discussion questions. (shrink)

Interest in computerised central economic planning (CCEP) has seen a resurgence, as there is strong demand for an alternative vision to modern free (or not so free) market liberal capitalism. Given the close links of CCEP with what we would now broadly call artificial intelligence (AI)—e.g. optimisation, game theory, function approximation, machine learning, automated reasoning—it is reasonable to draw direct analogues and perform an analysis that would help identify what commodities and institutions we should see for a CCEP programme (...) to become successful. Following this analysis, we conclude that a CCEP economy would need to have a very different outlook from current market practices, with a focus on producing basic “interlinking” commodities (e.g. tools, processed materials, instruction videos) that consumers can use as a form of collective R &D. On an institutional level, CCEP should strive for the release of basic commodities that empower consumers by having as many alternative uses as possible, but also making sure that a baseline of basic necessities is widely available. (shrink)

In earlier work, the author has studied the economic role of planning horizons in making a case for complementarity as the predominant feature of social interdependence. This paper compares the different choice strategies implied by substitution, opposition and conflicts of interest in an economics of fear with those arising from horizon effects, economic complementarity and concerts of interest in an economics based on love. The contrasting implications of a psychological literature on negative vs. positive emotions and their health (...) effects, along with the findings in neurophysiological research about how humans are hard-wired for empathy and compassion leads to some fundamental changes in how we might address and revise social problems through economic analysis. The aim of this paper is to extend a horizonal case for complementarity in the author's previous work into its psychological links to research findings on healthy cognitive function and its emotional basis. An economics of substitution yields quite different conclusions about optimal institutional forms and how we address and frame social relations than are implied by an explicitly horizonal economics of complementary social relations. Recent psychological and neurophysiological studies support a horizonal case for complementarity in social relations, showing that our orthodox substitution assumptions and models of competitive equilibrium should be rejected for a renewed economic analysis based on horizonal models of complementarity and cooperation as a means to achieve greater social well-being in a healthier and more integrative form of social organization. The issues to be explored are not entertained within the currently existing frame of orthodox economics, so we must step beyond our standard habitual assumptions. (shrink)