Planning and Market Relations
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1 INTERNATIONAL ECONOMIC ASSOCIATION CONFERENCE VOLUMES. Numbers 1-50 NUMBER 31 Planning and Market Relations
2 Planning and Market Relations Proceedings of a Conference held by the International Economic Association at Liblice, Czechoslovakia EDITED BY MICHAEL KASER AND RICHARD PORTES M.. STOCKTON P R E S S
3 International Economic Association 1971 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright Act 1956 {as amended). Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1971 This 50-volume set reprinted 1986 jointly by THE MACMILLAN PRESS L TD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world and YUSHODO CO. L TD 29 Saneicho, Shinjuku-ku Tokyo 160 Japan. Tel: 03(357)1411 Distributed exclusively in Japan through Publishers International Corporation (P.I.C.) Published in the United States and Canada by STOCKTON PRESS 15 East 26th Street, New York, N.Y volume set ISBN ISBN (ebook) DOI / This volume ISBN
4 Contents Acknowledgements List of Participants vii ix SESSION I 1 Consumption and Accumulation as Economic Objectives of 3 Socialist Production Tigran S. Khachaturov 2 Economic Concepts: The Delicate Balance between Realism 19 and Romance Lynn Turgeon Discussion 37 SESSION II 3 Stability without Planning? The American Experience Evsey D. Domar and Jeremy J. Siegel 4 Instability with Planning A/eksander Bajt Discussion SESSION III 5 The Efficiency of Competition and Planning Assar Lindbeck 83 Discussion 108 SESSION IV 6 Social Decisions without Social Preferences Robert Dorfman 117 Discussion 130 SESSION V 7 Foreign Trade and State Regulation Susanne Havas Foreign Trade Regulations: A Comparison between Hungary 148 and Latin America Javier Marquez Discussion 153 SESSION VI 9 Economic Reforms in the U.S.S.R.: Improvement in 161 Planning and Utilisation of Commodity-Money Relations Gennady M. Sorokin Discussion 173
5 vi Contents SESSION VII 10 Capital Finance and Relevant Economic Calculations in a 185 Planned Economy Henryk Fiszel Discussion 196 SESSION VIII 11 Monopoly Policy Roger G. Opie Discussion SESSION IX 12 Some Theoretical Aspects of Merit Goods and Tutelage 225 Jean Benard Discussion 249 Closing Remarks Michael Kaser 254 Index 257
6 Acknowledgements The International Economic Association wishes to express its thanks to the organisations and persons who helped to make possible the Conference of which this volume is the report. It was financed under subsidies from UNESCO and from the Ford Foundation, and by services provided gratis by the Czechoslovak Academy of Sciences. The meeting took place at Liblice Castle, operated as a conference centre by the Czechoslovak Academy of Sciences, in May 1970, as a consequence of an invitation by the Czechoslovak Economic Association to the I.E.A. at an Executive Committee in Montreal, in September A programme committee was formed, comprising Professor Erik Lundberg (Chairman), Mr Michael Kaser, Professor Karel Kouba and Professor Imre Vajda. The latter's death in September 1969, shortly after his retirement from the Chair of Foreign Trade at the Karl Marx Economics University, Budapest, was deeply regretted by the I.E.A., which was represented at his funeral by Mr Kaser. All the organisational arrangements in Prague and Liblice were made by the Institute of Economics of the Czechoslovak Academy of Sciences, with the bulk of the actual work falling to Dr Jana Sereghyova. At the closing session, as President of the I.E.A., Professor Lundberg laid stress on the Conference's deep appreciation of her untiring efforts and those of the clerical, administrative and translation staff. The working languages of the conference were English, French and Russian and interpretation was also available in Czech. Papers were circulated in English, but those written in French were also reproduced in the original. The I.E.A. appreciates the restraint of those contributors who kindly set aside plans for separate publication in those languages in order to assure that texts first appeared in the present book. The record of the discussion was prepared by Professor Richard Portes, who was greatly aided by the notes of the contributions made by individual participants, supplied in most cases overnight during the Conference.
7 List of Participants Professor Aleksander Bajt, University of Ljubljana, Yugoslavia Professor Jean Benard, University of Paris, France Professor Evsey D. Domar, Massachusetts Institute of Technology, Cambridge, Mass., U.S.A. Professor Robert Dorfman, Harvard University, Cambridge, Mass., U.S.A. Professor Luc Fauvel, University of Paris, France; Secretary-General, International Economic Association Professor Drago Fi5er, Institute of Planning, Ministry of Planning, Professor Henryk Fiszel, University of Warsaw, Poland Professor Francesco Forte, School of Law and Political Science, University of Turin, Italy Dr Jaroslav Habr, Institute of Economics of the Czechoslovak Academy of Sciences, Dr Susanne Havas, Institute for Economic and Market Research, Budapest, Hungary Mr Michael Kaser, St Antony's College, Oxford, U.K. Professor Tigran S. Khachaturov, Academy of Sciences of the U.S.S.R., Moscow, U.S.S.R. Mr Kurt Klappholz, London School of Economics, U.K. Dr Antonin Kotulan, Institute of Economics of the Czechoslovak Academy of Sciences, Professor Karel Kouba, Institute of Economics of the Czechoslovak Academy of Sciences, Professor Assar Lindbeck, Stockholm School of Economics, Stockholm, Sweden Professor Erik Lundberg, Stockholm School of Economics, Stockholm, Sweden Professor Jean Marczewski, University of Paris, France Dr Javier Marquez, Centro de Estudios Monetarios Latino-americanos, Mexico, D.P. Dr Robin Marris, Cambridge University, U.K. Professor Adolf Nussbaumer, University of Vienna, Austria Professor F. Oelssner, Nationalkomitee ftir Wirtschaftswissenschaften bei der Deutschen Akademie der Wissenschaften zu Berlin, G.D.R. Mr Roger Opie, New College, Oxford, U.K. Dr Jan Pleva, Institute of Economics of the Czechoslovak Academy of Sciences, Professor Richard Portes, Princeton University, U.S.A. Dr Jana Sereghyova, Institute of Economics of the Czechoslovak Academy of Sciences, Dr Monika Sestakova, Slovak Institute of Economics, Bratislava, Czechoslovakia Mr Jeremy J. Siegel, Massachusetts Institute of Technology, Cambridge, Mass., U.S.A. Professor G. M. Sorokin, Academy of Sciences of the U.S.S.R., Moscow, U.S.S.R. Dr Jozef Stanko, Research Institute on Living Standards, Bratislava, Czechoslovakia Professor Lynn Turgeon, Hofstra University, Hempstead, N.Y., U.S.A. Dr Ludek Urban, Institute of Economics of the Czechoslovak Academy of Sciences, Professor Jaromir Walter, Institute of Econometrics, Prague School of Economics, Czechoslovakia Dr George Wheeler, Institute of Economics of the Czechoslovak Academy of Sciences,
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