Economic planning

From REBAG

Rebag may lend itself to a reconsideration of the debate on planned economies. One early issue in that debate was the concern with the "computing skills" that the central planner should have. Several authors (such as Bergson, 1966) pointed out that modern computers would have alleviated such computing requirements. Another prominent problem, whose lack of solution was ultimately one of the main causes for the demise of the Soviet block, was the need for a set of strong incentives - to individuals, and to firms, given their "soft budget constraint" (with reference to Kornai, 1980). It is worth enquiring whether a reputation-based governance, with its strong incentives and data abundance, could contribute to a debate whose intellectual relevance has not been cancelled by the demise of the Soviet system.