Comparative Economic Systems

by Gregory, Paul R.

• ISBN13: 9780395908150
• ISBN10: 0395908159
• Edition: 6th
• Format: Paperback
• Copyright: 1998-10-05
• Publisher: South-Western College Pub

Table of Contents

Preface	xiii
I Economic Systems: Issues, Definitions, Comparisons	1	(92)
Economic Systems After the Collapse of Communism	3	(11)
The New World	3	(5)
The Collapse of Communism	4	(2)
The Industrialized West	6	(2)
The Third World	8	(1)
Economic Systems in the New Era	8	(1)
Modern Methodology of Economic Systems	9	(1)
The Choice of Economic Systems	10	(2)
Summary	12	(2)
Definition and Classification	14	(22)
Economic Systems: Definition and Classification	14	(2)
Definition	15	(1)
Characteristics of Economic Systems	16	(9)
The Organization of Decision-Making Arrangements	16	(3)
Market and Plan	19	(2)
Property Rights: Control and Income	21	(1)
Incentives	22	(2)
Comparing Economic Systems: A Mode of Classification	24	(1)
The ``Isms'' and Organizations	25	(3)
Transition and Change in the Twenty-First Century	28	(1)
Summary	29	(7)
Evaluation of Economic Outcomes	36	(24)
Models versus Reality	36	(1)
Forces Influencing Economic Outcomes	37	(2)
The Evaluation of Outcomes: The Success Criteria Problem	39	(1)
The Determination of System Priorities	40	(1)
Performance Criteria	41	(6)
Economic Growth	42	(1)
Efficiency	43	(2)
Income Distribution (Fairness)	45	(1)
Stability	46	(1)
Viability of the Economic System	47	(1)
Tradeoffs	48	(1)
Economic Systems and Performance	48	(1)
Performance Comparisons: The Twenty-First Century	49	(1)
Summary	50	(10)
Measuring the Impact of the Economic Systems	55	(5)
Reform and Transition: Evolution or Revolution?	60	(33)
Reform of Economic Systems	60	(1)
Economic Development and Systemic Change	61	(1)
Marx's Theory of Change	62	(2)
Joseph A. Schumpeter: The Evolution of Capitalism	64	(1)
The New Institutional Economics	65	(1)
Change in Socialism	66	(4)
Hayek and Mises	66	(2)
Kornai: The Economics of Shortage	68	(1)
The New Institutional Economics Critique of Socialism	69	(1)
Changes in Capitalist Economies	70	(9)
Property Rights: Private versus Public	70	(3)
Trends in Competition	73	(2)
Income Redistribution	75	(2)
Worker Participation	77	(1)
Government Intervention	78	(1)
Change in Socialist Economies	79	(3)
Backdrop of Reform	80	(1)
Socialist Reform Models	80	(2)
Record of Socialist Reform	82	(1)
Transition	82	(1)
Summary	83	(10)
II Economic Systems in Theory	93	(62)
Theory of Capitalism	95	(20)
How Markets Work	95	(3)
Equilibrium and the ``Invisible Hand''	95	(1)
Market Equilibrium	96	(1)
Efficiency of Market Allocation	96	(2)
State Intervention	98	(9)
Monopoly Power	99	(2)
External Effects and Collective Action	101	(2)
Problems of Public Choice	103	(1)
Income Distribution	104	(1)
Macroeconomic Instability	105	(2)
Growth and State Policy	107	(1)
The Performance of Capitalist Economic Systems: Hypotheses	108	(2)
Efficiency	108	(1)
Stability	108	(1)
Income Distribution	109	(1)
Economic Growth	109	(1)
Viability of the Capitalist System	110	(1)
Summary	110	(5)
Theory of Planned Socialism	115	(23)
The Socialist Economy	115	(1)
The Marxist--Leninist View of Socialism	116	(1)
The Socialist Controversy: The Feasibility of Socialism	117	(2)
Barone: A Theoretical Framework	118	(1)
The Challenge of Mises and Hayek	118	(1)
The Planned Economy: Organizational Arrangements	119	(1)
Resource Allocation Under Planned Socialism	120	(12)
Origins: The Soviet Union in the 1920s	120	(1)
Economic Planning: A Paradigm for Planned Socialism	121	(1)
Material Balance Planning	122	(4)
The Input--Output Model	126	(3)
Optimization and Economic Planning	129	(2)
Coordination: How Much Market? How Much Plan?	131	(1)
The Performance of Planned Socialism: Hypotheses	132	(1)
Income Distribution	132	(1)
Efficiency	132	(1)
Economic Growth	133	(1)
Stability	133	(1)
Summary	133	(5)
Theory of Market Socialism	138	(17)
Market Socialism: Theoretical Foundations	138	(3)
The Lange Model	139	(2)
Critics of the Lange Model	141	(1)
Market Socialism: The Cooperative Variant	141	(6)
Criticism of the Cooperative Model	145	(1)
Advantages of the Cooperative Model	146	(1)
The Participatory Economy in the Twenty-First Century	147	(1)
Feasible Socialism in the Twenty-First Century	148	(1)
The Performance of Market Socialism: Hypotheses	149	(1)
Income Distribution	149	(1)
Economic Growth	149	(1)
Efficiency	149	(1)
Stability	150	(1)
Summary	150	(5)
III Economic Systems in Practice	155	(256)
The American Economy: Market Capitalism	157	(36)
Resource Allocation in the Private Sector	157	(10)
Business Organization	158	(1)
The Product Market	159	(4)
The Labor Market	163	(3)
The Capital Market	166	(1)
Government in the American Economy	167	(6)
The Scope of the Public Sector	167	(2)
Public Goods: The Case of National Defense	169	(2)
Health, Education, and Welfare	171	(2)
U.S. Policy Toward Monopoly	173	(7)
Government Ownership	173	(1)
Regulation	174	(2)
Auctions of Monopoly Rights	176	(1)
An Assessment of Regulation	176	(1)
Deregulation	177	(1)
Antitrust Legislation	178	(1)
Price Fixing and Mergers	179	(1)
An Evaluation of Antitrust Policy	180	(1)
Government and Macroeconomic Stability	180	(3)
Government Activity and Externalities	181	(1)
Government Policies and the Distribution of Income	182	(1)
Privatization	183	(2)
The United States and Economic Freedom	185	(1)
Summary	186	(7)
The Soviet Command Economy: Structure and Performance	193	(57)
Historical Perspectives	193	(2)
The Setting	195	(1)
The Soviet Economy: A Framework	196	(2)
Organizational Features	196	(2)
Planning in Practice	198	(2)
The Soviet Enterprise	200	(2)
Prices and the Allocation of Land, Labor, and Capital in the Command System	202	(8)
Soviet Prices: General Features	202	(2)
Input Prices: Land and Labor	204	(1)
Capital Allocation	205	(2)
Financial Planning	207	(1)
Market Forces in the Command Economy	208	(2)
Agriculture in the Command Economy	210	(3)
Differences Between Collective Farms and State Farms	211	(1)
Changes in Soviet Agriculture	212	(1)
International Trade in the Command Economy	213	(2)
Performance of the Soviet Command Economy	215	(3)
An Economic Profile: Structural Characteristics of East and West	215	(3)
Economic Growth	218	(10)
The Sources of Economic Growth: Efficiency	223	(5)
Income Distribution	228	(4)
Summary	232	(18)
Measuring Outcomes in the Command Economy	245	(5)
China: Moving Toward Market Socialism?	250	(23)
Revolution and Upheaval	251	(6)
The Setting	251	(1)
The Early Years and the Soviet Model	252	(1)
The Beginnings of Soviet-Style Industrialization and Collectivization	253	(2)
The First Upheaval: The Great Leap Forward	255	(1)
1960--1978: Development and Disruption	256	(1)
Reform	257	(6)
Reform and The Soviet Model	257	(1)
China's Modernization Reform: The Deng Era	258	(1)
The Deng Strategy	258	(1)
Agricultural Reforms	258	(2)
The Commanding Heights	260	(3)
Policy and Practice	263	(3)
China's Governance	263	(1)
Economic Performance	263	(1)
China's Future	264	(2)
Summary	266	(7)
The European Model: Variants of Industrialized Capitalism	273	(54)
Europe versus Asia	273	(6)
European Profiles	274	(2)
European Performance	276	(3)
France: Indicative Planning	279	(8)
France: The Setting	279	(1)
French Indicative Planning: The Background	280	(1)
Plan Administration	281	(1)
Characteristics of Indicative Planning	282	(1)
Did French Planning Work?	283	(2)
Structural Change	285	(2)
Great Britain: Sclerosis and Recovery?	287	(11)
Great Britain: The Setting	289	(1)
Background of the British Economy	289	(1)
The British Economy: The Early Postwar Era	290	(1)
The British Economy: Planning	291	(2)
The ``British Disease''	293	(1)
Nationalization	294	(1)
The British Economy Under Thatcher	295	(2)
Cure of the British Disease?	297	(1)
Germany: The Social Market Economy	298	(12)
Background	298	(1)
Origins of the Social Market Economy	299	(1)
Characteristics of the Social Market Economy	300	(1)
Social Correctives of the Market Economy	301	(1)
Codetermination and Labor Unions	302	(1)
Labor and Collective Bargaining	303	(1)
Public Enterprise	304	(1)
Germany: Unification	305	(3)
Germany in the 1990s: The End of the Economic Miracle?	308	(1)
The Costs and Mistakes of Reunification	308	(1)
The Limits of Consensus	309	(1)
Sweden: The Capitalist Welfare State	310	(4)
Sweden: The Setting	310	(1)
The Swedish Welfare State	311	(1)
Sweden: The Economic System	312	(1)
Performance: An End to the Swedish Model?	313	(1)
Growth or Eurosclerosis?	314	(13)
Summary	316	(11)
The Asian Model	327	(39)
The Lewis Two-Sector Model	328	(3)
The Theory	328	(2)
The Mechanism for Transferring Surplus	330	(1)
The Asian Model and the Surplus	330	(1)
Japan: Growth Through Capital Formation	331	(8)
Background of the Japanese Economy	331	(2)
Sources of Japanese Economic Growth	333	(2)
Industrial Organization	335	(1)
Japanese Planning	336	(1)
Japan: Industrial Policy?	336	(2)
Change in the Japanese Model?	338	(1)
Asian Tigers: South Korea, Singapore, Taiwan, and Hong Kong	339	(9)
Background	339	(1)
Performance: System and Policy	340	(1)
The Role of the State	341	(1)
Asian Growth and Income Distribution	342	(2)
Explanations of the Asian Miracle	344	(1)
The Future Growth of East Asia	345	(1)
The End of the Asian Miracle?	346	(2)
The Asian Crisis	348	(1)
India: The Failed Quest for Economic Growth	348	(10)
Characteristics	349	(1)
The Indian Economy: Historical Background	350	(2)
The Modern ``Socialist'' Indian Economy	352	(1)
Economic Planning in India	353	(1)
Economic Controls	354	(1)
Growth Performance	355	(1)
Capitalism in India	356	(1)
Problems and Prospects	357	(1)
The Indian Economy in the Twenty-First Century	357	(1)
Summary	358	(8)
The Command Economies: Performance and Decline	366	(45)
Problems of Evaluation	366	(2)
The Performance of Systems	368	(5)
The Choice of Countries	368	(1)
Data: Concepts and Reliability	369	(1)
An Economic Profile: Structural Characteristics of East and West	369	(4)
Economic Growth	373	(25)
The Sources of Economic Growth	379	(1)
Dynamic Efficiency	379	(6)
Consumption Costs of Growth	385	(2)
Static Efficiency	387	(3)
Income Distribution	390	(4)
Economic Stability	394	(4)
Performance Comparisons and Decline	398	(2)
Economic Decline in the Planned Socialist Systems	398	(2)
Summary	400	(11)
The Index Number Problem in International Comparisons	408	(3)
IV Moving Towards a Market Economy	411	(78)
Transition	413	(20)
Transition: The Basics	413	(6)
Transition: the Importance of Preconditions	415	(1)
Initial Conditions	415	(2)
Transition Policies	417	(1)
Transition and the Policy Setting	418	(1)
Transition and Convergence: When Does Transition End?	419	(1)
The Microeconomics of Transition: Privatization	419	(4)
Transition and the Macroeconomy: Monetary and Fiscal Arrangements	423	(1)
Opening a Closed Economy: Transition and Trade	424	(1)
The Safety Net During Transition	424	(1)
Summary	425	(8)
The Russian Economy in Transition	433	(21)
The Natural Setting	433	(1)
The End of the Command Era	434	(2)
The Transition Era	436	(5)
The Political Setting	437	(1)
Microeconomic Issues	437	(2)
Macroeconomic Perspectives	439	(2)
The Russian Economy: Performance and Sectoral Issues	441	(6)
Performance	441	(2)
Restructuring	443	(1)
Sectoral Issues	444	(3)
Summary	447	(7)
Eastern Europe: Poland, Hungary, and the Czech Republic	454	(27)
The East European Setting	454	(2)
Eastern Europe: Selecting the Cases	455	(1)
Poland: From Plan to Market via a Shock Therapy	456	(6)
The Setting	456	(1)
The Command Economy	457	(1)
Polish Transition: The ``Big Bang'' in Practice	457	(5)
Hungary: The New Economic Mechanism and Transition	462	(5)
The Setting	462	(1)
The Hungarian Command Economy: Implementation and Reform	463	(1)
Gradual Transition to Markets	464	(3)
The Czech Republic: Planning, Politics, and Transition	467	(5)
Natural Setting	468	(1)
The Command Experience	468	(1)
Transition and Political Change	469	(3)
Eastern Europe: Transition, Performance, and Restructuring	472	(1)
Summary	473	(8)
Conclusions and Prospects	481	(8)
Changing Economic Thought	482	(2)
Rising and Falling Economic Fortunes	484	(1)
A Golden Age?	485	(2)
Convergence of Incomes	487	(1)
Economic Systems in the Twenty-First Century	488	(1)
Index	489