Abstract
Nearly thirty years ago Jan Drewnowski, in a seminal, but neglected, paper ‘The Economic Theory of Socialism: A Suggestion for Reconsideration’ (1961) proposed the division of any monetised economy into ‘the zone in which state preferences are supreme (the zone of state influence), the zone in which individual preferences are supreme (the zone of individual influence) and the zone in which state and individual preferences meet (the zone of dual influence). To determine which part of the national economy belongs to which zone means to define the nature of the economic system in question’ (p. 350). He pointed out that historical cases have existed where one of the two preference functions has been virtually exclusive of the other — Soviet ‘War Communism’ of the 1920s or the capitalism of a century ago — and that shifting the boundaries between them and with the intervening preference zone is constrained by property rights.
At the time of the conference I was Alexander von Humboldt Fellow at the University of Munich.
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© 1990 International Economic Association
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Kaser, M., Vojnić, D., Csaba, L. (1990). The New Concept of Planning: Duality with Market Forces. In: Bogomolov, O.T. (eds) Market Forces in Planned Economies. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11559-4_5
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