The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Planning

  • Rajiv Vohra
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1303

Abstract

Formally, planning in an economic context can be identified with a constrained maximization problem. The objective, whether it is simply social welfare or multiple individual utilities, is maximized subject to the resource and technological constraints. It needs to be emphasized that the planning problem is not simply one of characterizing the solution to the maximization problem but also of defining a computational procedure to obtain the solution. A planning process can be defined as an iterative procedure which, through successive approximations, finds a solution to the maximization problem.

Keywords

Convexity Decentralization Excess demand Increasing returns Informational efficiency Lange, O. R. Marginal rate of substitution Monotonicity Planning Shadow pricing Socialist calculation debate tâtonnement 
This is a preview of subscription content, log in to check access

Bibliography

  1. Aoki, A. 1971a. An investment planning process for an economy with increasing returns. Review of Economic Studies 38: 273–280.CrossRefGoogle Scholar
  2. Aoki, A. 1971b. Two planning processes for an economy with production externalities. International Economic Review 12: 403–413.CrossRefGoogle Scholar
  3. Arrow, K. 1951. An extension of the basic theorems of welfare economics. In Proceedings of the second Berkeley symposium, ed. J. Neyman. Berkeley: University of California Press.Google Scholar
  4. Arrow, K.J., and L. Hurwicz. 1960. Decentralization and computation in resource allocation. In Essays in economics and econometrics in honor of harold hotelling, ed. R.W. Pfouts. Chapel Hill: University of North Carolina Press; reprinted in K.J. Arrow and L. Hurwicz (1977).Google Scholar
  5. Arrow, K.J., and L. Hurwicz, eds. 1977. Studies in resource allocation processes. Cambridge: Cambridge University Press.Google Scholar
  6. Barone, E. 1908. The ministry of production in the collectivist state. In Collectivist economic planning, ed. F.A. von Hayek. London: Routledge, 1935.Google Scholar
  7. Calsamiglia, X. 1977. Decentralized resource allocation and increasing returns. Journal of Economic Theory 14: 263–283.CrossRefGoogle Scholar
  8. Champsaur, P. 1976. Neutrality of planning procedures in an economy with public goods. Review of Economic Studies 43: 293–300.CrossRefGoogle Scholar
  9. Champsaur, P., J.H. Drèze, and C. Henry. 1977. Stability theorems with economic applications. Econometrica 45: 273–294.CrossRefGoogle Scholar
  10. Cremer, J. 1977. A quantity–quantity algorithm for planning under increasing returns to scale. Econometrica 45: 1339–1348.CrossRefGoogle Scholar
  11. Cremer, J. 1978. A comment on ‘Decentralized planning and increasing returns’. Journal of Economic Theory 19: 217–221.CrossRefGoogle Scholar
  12. Dantzig, G.B., and P. Wolfe. 1961. The decomposition algorithm for linear programs. Econometrica 29: 767–778.CrossRefGoogle Scholar
  13. Debreu, G. 1954. Valuation equilibrium and Pareto optimum. Proceedings of the National Academy of Sciences 40: 588–592.CrossRefGoogle Scholar
  14. Debreu, G. 1959. Theory of value: An axiomatic analysis of economic equilibrium, Cowles Foundation Monograph no. 17. New York: Wiley.Google Scholar
  15. Drèze, J.H., and D. de la Vallée Poussin. 1971. A tâtonnement process for public goods. Review of Economic Studies 37: 133–150.CrossRefGoogle Scholar
  16. Heal, G.M. 1969. Planning without prices. Review of Economic Studies 36: 346–362.CrossRefGoogle Scholar
  17. Heal, G.M. 1971. Planning, prices and increasing returns. Review of Economic Studies 38: 281–294.CrossRefGoogle Scholar
  18. Heal, G.M. 1973. The theory of economic planning. Amsterdam: North-Holland.Google Scholar
  19. Hori, H. 1975. The structure of the equilibrium points of Heal’s process. Review of Economic Studies 42: 457–467.CrossRefGoogle Scholar
  20. Hurwicz, L. 1960. Optimality and informational efficiency in resource allocation processes. In Mathematical methods in social sciences, ed. K.J. Arrow, S. Karlin and P. Suppes. Stanford: Stanford University Press. Reprinted in Arrow and Hurwicz (1977).Google Scholar
  21. Hurwicz, L. 1969. On the concept and possibility of informational decentralization. American Economic Review 59: 513–534.Google Scholar
  22. Hurwicz, L. 1973. The design of resource allocation mechanisms. American Economic Review 58: 1–30; reprinted in Arrow and Hurwicz (1977).Google Scholar
  23. Kornai, J., and T. Liptak. 1965. Two-level planning. Econometrica 33: 141–169.CrossRefGoogle Scholar
  24. Lange, O. 1936–7. On the economic theory of socialism. Review of economic studies. Reprinted in On the economic theory of socialism, ed. B. Lippincott, Minneapolis: University of Minnesota Press, 1938.Google Scholar
  25. Lindahl, E. 1919. Just taxation – A positive solution. In Classics in the theory of public finance, ed. R.A. Musgrave and A. Peacock. London: Macmillan, 1958.Google Scholar
  26. Malinvaud, E. 1967. Decentralized procedures for planning. In Activity analysis in the theory of growth and planning, ed. M.O.L. Bacharach and E. Malinvaud. London: Macmillan.CrossRefGoogle Scholar
  27. Malinvaud, E. 1970–71. Procedures pour la determination d’un programme de consommation collective. European Economic Review 2: 187–217.CrossRefGoogle Scholar
  28. Malinvaud, E. 1971. A planning approach to the public goods problem. Swedish Journal of Economics 73: 96–112.CrossRefGoogle Scholar
  29. Malinvaud, E. 1972. Prices for individual consumption, quantity indicators for collective consumption. Review of Economic Studies 34: 385–406.CrossRefGoogle Scholar
  30. Marglin, S.A. 1969. Information in price and command systems of planning. In Public economics, ed. J. Margolis and H.K. Guitton. London: Macmillan.Google Scholar
  31. Milleron, J.C. 1974. Procedures to a Lindahl equilibrium corresponding to a given distribution of income. Paper presented at the European Meeting of the Econometric Society in Grenoble.Google Scholar
  32. Pareto, V. 1897. Cours d’économie politique. Vol. 1. Lausanne: Librarie de l’Université.Google Scholar
  33. Samuelson, P.A. 1949. Market mechanisms and maximization. In Collected scientific papers of Paul A. Samuelson, ed. J.E. Stiglitz. Cambridge, MA: MIT Press, 1966.Google Scholar
  34. Taylor, F.M. 1929. The guidance of production in a socialist state. American Economic Review 19: 1–8. Reprinted in On the economic theory of socialism, ed. B. Lippincott. Minneapolis: University of Minnesota Press, 1938.Google Scholar
  35. Tulkens, H. 1978. Dynamic processes for public goods: An institution-oriented survey. Journal of Public Economics 9: 163–201.CrossRefGoogle Scholar
  36. Uzawa, H. 1958. Iterative methods for concave programming. In Studies in linear and non-linear programming, ed. K.J. Arrow, L. Hurwicz, and H. Uzawa. Stanford: Stanford University Press.Google Scholar
  37. von Hayek, F.A. 1935. The present state of the debate. In Collectivist economic planning, ed. F.A. von Hayek. London: Routledge.Google Scholar
  38. von Mises, L.. 1922. Socialism. London: Jonathan Cape, 1936.Google Scholar
  39. Weitzman, M. 1970. Iterative multi-level planning with production targets. Econometrica 38: 50–65.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Rajiv Vohra
    • 1
  1. 1.