Input-output planning and information

Jan Philipp Dapprich and William Paul Cockshott

Journal of Economic Behavior & Organization, 2023, vol. 205, issue C, 412-422

Abstract: In this paper, we show how socialist planning can be based on input-output data. We argue that the information required for this can be obtained by a central planning agency and thus dismiss Hayek’s information argument against socialism. We further show how economic planning can be made responsive to consumer demand through a feedback control mechanism. Output targets of products would be adjusted in response to observed consumer demand or based on predictions about future demand. Planners can use machine learning to make more accurate forecasts. The valuation of goods plays an important role in the feedback control mechanism. The values of goods can either be measured by the labour time necessary for their production (labour values) or through shadow prices based on linear programming.

Keywords: Socialism; Planning; Information (search for similar items in EconPapers)
JEL-codes: B51 P21 P22 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:205:y:2023:i:c:p:412-422

DOI: 10.1016/j.jebo.2022.10.043

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