Basic Institutions of the Soviet-Type Economy: State Ownership
The basic institutions of socialism in the Soviet-type economy are: (i) state ownership in productive assets, (ii) central planning of resources, and (iii) one-party political monopoly. Those institutions set the Soviet-type economy apart from other social systems. They generate incentives and transaction costs that have specific and predictable effects on the behavior of decision makers, the allocation of resources, and the flow of innovation.
KeywordsDemand Curve Capital Good Capital Formation State Ownership Production Frontier
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- Ioffe, O. and Maggs, P. The Soviet Economic System: A Legal Analysis, Boulder, Westview Press, 1987, chapters 1–3.Google Scholar