Abstract
The concept of a ‘command economy’, a construct in the theory of comparative economic systems, is defined, and its origins, characteristics, and consequences for any society in which it is implemented are explored. The impossibility of the absolute centralization which it requires generates compromises with the market forces it aspires to replace, fostering a symbiotic marketized ‘second economy’ which systematically undermines its foundations. Hence, although initially appearing to be a true alternative to the market economy, a command economy, most nearly realized in the Soviet Union (1930–87), proved to be ultimately non-viable, collapsing under reforms attempting to make it competitive with market systems.
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Ericson, R.E. (2018). Command Economy. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_170
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DOI: https://doi.org/10.1057/978-1-349-95189-5_170
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