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Economic Calculation in Light of Advances in Big Data and Artificial Intelligence

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  • Lambert, Karras J.
  • Fegley, Tate

Abstract

In his 1920 essay “Economic Calculation in the Socialist Commonwealth,” Ludwig von Mises argued that economic calculation is impossible in a socialist system absent private property and exchange in the means of production. Without the social appraisement process by which the actions of consumers and entrepreneurs produce a money price structure, the commensurate cardinal numbers necessary to engage in capital accounting are not available. We argue that any claims regarding how advances in computer technology can solve the problem of economic calculation are based on an insufficient understanding of Mises' original argument. We restate Mises’ argument in consideration of recent developments in big data and artificial intelligence and argue that Mises’ original argument concerning the impossibility of economic calculation absent the institutional prerequisites of private property and monetary exchange in goods of all orders remains unrefuted.

Suggested Citation

  • Lambert, Karras J. & Fegley, Tate, 2023. "Economic Calculation in Light of Advances in Big Data and Artificial Intelligence," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 243-250.
    • Handle: RePEc:eee:jeborg:v:206:y:2023:i:c:p:243-250
    DOI: 10.1016/j.jebo.2022.12.009
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    References listed on IDEAS

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    1. Steven Horwitz, 1996. "Money, money prices, and the socialist calculation debate," Advances in Austrian Economics, in: Advances in Austrian Economics, pages 59-77, Emerald Group Publishing Limited.
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    Cited by:

    1. Gutierrez-Lythgoe, Antonio, 2023. "Movilidad urbana sostenible: Predicción de demanda con Inteligencia Artificial [Sustainable Urban Mobility: Demand Prediction with Artificial Intelligence]," MPRA Paper 117103, University Library of Munich, Germany.

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    More about this item

    Keywords

    artificial intelligence; big data; Cyber-Communism; economic calculation; Ludwig von Mises;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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