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The Fundamental Problem of Command: Plan and Compliance in a Partially Centralized Economy

In: THE ECONOMICS OF COERCION AND CONFLICT

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  • Mark Harrison

Abstract

In The Economics of Soviet Planning Abram Bergson (1964: 327–9) distinguished between the economic merit and the rationality of socialism. The merit of socialism was to be gauged by the efficiency with which it satisfied consumer welfare. Its rationality could be measured not only against consumer welfare but also in relation to “planners' preferences”. Rationality in either sense, he suggested, is best measured by ‘the degree to which conduct conforms to the material ends sought.… We are thus led to ask, in respect to Soviet conduct regarding resource use, the cardinal question that arises in respect to economic conduct generally: In terms of what material ends and to what extent is such behavior economically rational?’…

Suggested Citation

  • Mark Harrison, 2014. "The Fundamental Problem of Command: Plan and Compliance in a Partially Centralized Economy," World Scientific Book Chapters, in: THE ECONOMICS OF COERCION AND CONFLICT, chapter 10, pages 305-323, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814583343_0010
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    Cited by:

    1. Mark Harrison, 2013. "Secrecy, Fear and Transaction Costs: The Business of Soviet Forced Labour in the Early Cold War," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(6), pages 1112-1135.
    2. Andrei Markevich, 2007. "The Dictator’s Dilemma: to Punish or to Assist? Plan Failures and Interventions under Stalin," Working Papers w0107, New Economic School (NES).
    3. Natalia A. Sadovnikova & Valery L. Abramov & Andrey A. Ogryzov & Olga A. Makhova, 2020. "Clean Energy in the EAEU in the Context of Sustainable Development: Compliance and Prospects," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 272-280.
    4. Péter Földvári & Bas van Leeuwen & Dmitry Didenko, 2015. "Capital formation and economic growth under central planning and transition: A theoretical and empirical analysis, ca. 1920–2008," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(1), pages 27-50, March.

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