Economic Analysis of Planned Economic Systems

Guoqiang Tian and Xudong Chen ()
Additional contact information
Xudong Chen: Shanghai University of Finance and Economics

Chapter Chapter 8 in China’s Reform: History, Logic, and Future, 2022, pp 91-95 from Springer

Abstract: Abstract In a planned economic system, society is organized as a unitary economic entity, in which the central planning agency allocates resources via administrative command rather than the price mechanism of the competitive market. Thus, two prerequisites must be satisfied for the efficient operation of the planned economy mechanism. The first is informational efficiency. The second prerequisite is incentive compatibility. However, these two prerequisites cannot be satisfied in most situations due to information asymmetry and the individual pursuit of self-interest.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-5470-2_8

Ordering information: This item can be ordered from
http://www.springer.com/9789811954702

DOI: 10.1007/978-981-19-5470-2_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().