• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Von Mises on Mill
      • The replication thesis
      • The improvement thesis
      • Proving the algorithm correct
      • Is market socialism incentive compatible?
      • The consequences of the calculation debate
      • Learning from the Soviet failure
        • The heroic in the Soviet economy
        • The ‘impossibility thesis’?
        • Is socialism robust?
    • See Also
    • Bibliography
    • How to cite this article

socialist calculation debate

David M. Levy and Sandra J. Peart
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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The socialist calculation debate centred on two questions: could a socialist society use planning to replicate the performance of a capitalist society? And could socialism improve on capitalism? Many economists answered both questions in the affirmative until shortly before the demise of the planned economies of the Soviet bloc. The calculation debate was about the interactions among models, motives and incentives. In hindsight, it is evident that the incentives in a planned economy are such that planners are not motivated to promote the public interest.
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How to cite this article

Levy, David M. and Sandra J. Peart. "socialist calculation debate." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 16 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_S000535> doi:10.1057/9780230226203.1570

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