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Discussion of Professor Barkai’s Paper

In: Public and Private Enterprise in a Mixed Economy

Author

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  • William J. Baumol

Abstract

Professor Acosta asked whether the success of the kibbutizim in raising productivity and living standards had possible explanations other than the ideological fervour which had replaced material incentives. He wondered whether one could compare the kibbutz to a small-scale experiment under special favourable conditions, analogous to a greenhouse. The government had supplied infrastructure services out of general state funds. Machinery could be imported on credit with the interest rate kept below a preferential ceiling. Other physical inputs had also been subsidised. Under such conditions, neither a public nor a private enterprise could possibly fail. Mexico also had collective farms, called ejidos, which had a social structure similar to that of the Israeli kibbutzim. But the government did not have the resources to lead them to success.

Suggested Citation

  • William J. Baumol, 1980. "Discussion of Professor Barkai’s Paper," International Economic Association Series, in: William J. Baumol (ed.), Public and Private Enterprise in a Mixed Economy, pages 250-252, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-16394-6_26
    DOI: 10.1007/978-1-349-16394-6_26
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