Re: [Marxism] How to plan an economy.

["farmelantj@xxxxxxxx" <farmelantj@xxxxxxxx>]

I discussed some of these issues very briefly in a post on the A-List at:
http://archives.econ.utah.edu/archives/a-list/2007w22/msg00007.htm
http://lists.econ.utah.edu/pipermail/a-list/2002-December/040684.html


You might wish to keep in mind that the two bourgeois economists who 
articulated the theoretical case against the possibility of a planned economy 
were Ludwig von Mises and Friedrich Hayek.  Neither Mises nor Hayek were, 
strictly speaking, neoclassical economists, rather they were of the so-called 
Austrian school. Nevertheless, their arguments were embraced by most 
neoclassical economists.

Marxist and socialist responses to Mises and Hayek have taken a variety of 
forms.  Some socialists responded by arguing for a market socialist economy.  
That case was made by the Polish Marxist economist Oskar Lange who was very 
much influenced by Hayek but who still held out for socialism.  Other people 
like Michael Albert and Robin Hahnel have argued for what they call a 
participatory economy which would operate in a decentralized manner but without 
markets.  They argue for a kind of decentralized iterative planning process 
which they argue can achieve Walrasian equilibrium without relying upon market 
mechanisms. 

Then there are Pauk Cockshott and Allin F. Cottrell who have attempted to 
directly take on the arguments of Mises and Hayek and argue for the theoretical 
and practical possibility of a planned socialist economy: 

See their "Information and Economics:  A Critique of Hayek" 
(http://www.reality.gn.apc.org/econ/hayek.htm)

and "Calculation, Complexity and Planning: The Socialist Calculation Debate 
Once Again," (See http://ricardo.ecn.wfu.edu/~cottrell/socialism_book/  


Jim F.

-- David Picón Álvarez <david@xxxxxxxxxxxxx> wrote:
Hi,

I am new to the list, so I hope this is not a question that has been 
thrashed to death. I've read some of the basic texts by Marx, Engels, Lenin, 
but by no means would I consider myself an expert in Marxist theory, not yet 
at any rate. I have a strong interest in mathematics and programming, and so 
one of the questions that most concerns me is how one plans an economy. I am 
also worried that neoclassical economics has so much mathematical power 
behind it (even if its models are crude simplifications) and I'm not sure to 
what extent Marxist economics compete in sophistication with it. What is 
known about the allocation problem?

The only tool so far that I have found would help in planning an economy is 
linear programming (for which we can thank a Soviet economist, at least in 
part), and perhaps other discrete optimization techniques that I haven't yet 
looked into.

So, hopefully someone on this mailing list is interested in the technical 
infrastructural work of planning an economy without a market and price 
signaling and can point me in interesting directions.

--David.



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