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A ‘Recoupment Period’ Model of Investment and Pricing in a Socialist Economy

In: Price Formation in Various Economies

Author

Listed:
  • Haim Barkai

    (Hebrew University)

Abstract

The tremendous investment effort of the ‘Socialist Economies’ is one of the outstanding features of their economic history. This process required, inevitably, decisions on the size of resources to be channelled into capital formation and on their allocation. Yet, beyond some vague generalities, not much is known positively about the economic criteria on the basis of which the strategic decisions on investment were taken. Economic factors per se were not presumably of major significance in determining the size of the investment effort. Nor, so it seems, were the decisions on the allocation of this investment, or the closely related decisions on production methods, much affected by purely economic considerations.

Suggested Citation

  • Haim Barkai, 1966. "A ‘Recoupment Period’ Model of Investment and Pricing in a Socialist Economy," International Economic Association Series, in: Douglas Hague (ed.), Price Formation in Various Economies, chapter 0, pages 183-202, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-08467-8_13
    DOI: 10.1007/978-1-349-08467-8_13
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