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Plans and Exogeneity: The Genetic-Teleological Dispute Revisited

Wojciech Charemza () and Julia Király ()

Oxford Economic Papers, 1990, vol. 42, issue 3, 562-73

Abstract: This paper presents empirical results testing the nature of output in output-plans relations for net material product and consumption for seven European CMEA countries, 1960-1985. The dispute between the genetic and teleological schools of central planning is discussed. In general, a plan is defined as teleological if its conditional distribution does not contain information on output. It is found that the hypothesis of teleological planning can be maintained (with some reservations) for the U.S.S.R. and that of genetic planning for Hungary. For the remaining countries examined, results are less conclusive. Copyright 1990 by Royal Economic Society.

Date: 1990
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