A proposal for a democratic market economy

A type of market socialism is proposed for the United States both as a means of attaining more social equality than private ownership of corporate business makes politically and economically feasible, and of advancing a whole range of liberal purposes by undermining direct and indirect political power of the conservative business community. It is proposed to transfer ownership of corporate business to a system of local-government investment funds under specified national regulation. Such a system could retain all the economic advantages of capitalism, while facilitating better control of inflation, and would have genuine political feasibility in the United States.     

现代市场经济的现代性

现代市场经济不再是单一的自由放任的市场经济或单一的国家干预的市场经济，而是“看不见的手”和“看得见的手”两手并用互动的市场经济。就是那只“看不见的手”现在能见度也大为提高，不可同日而语。我们应当放弃把供给管理属市场、需求管理属国家的这种已不合时宜的形而上学的理念，同时注重供给管理和需求管理，在双重管理中发挥市场和国家和双重作用。中国对现代西方经济学各派理论只能采用同一态度：批判与借鉴，没有必要有倾向性的热一派冷一派，以免让人误以为中国是要崇尚那派而增加盲目性。     

The overlooked costs of the permanent war economy: A market process approach

How does the permanent war economy interact, and subsume, the private, non-military economy? Can the two remain at a distance while sharing resource pools? This paper argues that they cannot. Once the U.S. embarked upon the path of permanent war, starting with World War II, the result was a permanent war economy. The permanent war economy continuously draws resources into the military sector at the expense of the private economy, even in times of peace. We explore the overlooked costs of this process. The permanent war economy does not just transfer resources from the private economy, but also distorts and undermines the market process which is ultimately responsible for improvements in standards of living.     

论市场经济的复杂性

论证了市场经济作为一个自发生成的开放系统,其本源是非设计性的,其发展趋势是难以完全预测和驾驭的;作为一个开放的自组织系统,其本性不是像经典力学的封闭型热力学系统那样"自动趋于均衡",其常态是非均衡的、变动不居的;作为一个属人的复杂系统,其运行不能不受到具有迥然相异之意志、欲望和需求的人们的各种行为的干扰,也不能不受到它运行于其中自然环境、社会制度、历史文化、传统习俗等因素的制约,其未来充满不确定性.社会主义市场经济既具有市场经济一般意义上的复杂性,又具有基于社会主义初级阶段基本国情的特殊意义上的复杂性.中国的理论经济学研究应当正视这个基本事实.     

Business groups in a market economy

The purpose of this paper is to examine the nature and significance of the interfirm relationship called the business group. First, the nature of the Japanese business group is discussed. It is then pointed out that the business group is not a phenomenon unique to Japan, and an effort is made to explain the significance of the business group in the context of a market economy, using the Williamsonian approach to questions of internal organization and the market. Finally, the relationship between the input-output relationship of the firms and their group affiliation is tested.     

Giuseppe Eusepi,Richard E. Wagner: Public debt: An illusion of democratic political economy

The Review of Austrian Economics -     

The impact from changes in stock market valuations on investment: new economy versus old economy

This paper investigates whether there is a different impact from changes in ‘new’ and ‘old’ economy stock valuations on private investment for seven OECD economies. A vector autoregressive model is estimated for each individual country, using quarterly data over the period 1990–2000. It is found that the impact from changes in valuations of new economy stocks to investment is roughly the same in North America and in the United Kingdom as in continental Europe. By contrast, the impact from changes in old economy stock valuations on investment is, in general, larger in North America and in the United Kingdom than in continental Europe. Finally, the results suggest that in continental Europe the impact on investment from changes in the valuation of new economy stocks is bigger than for old economy stocks, whereas for North America and the United Kingdom, the impact is more similar.     

关于社会主义市场经济的若干思考

社会主义市场经济理论是邓小平理论的重要组成部分。众所周知,十九世纪,马克思、恩格斯在设想未来的社会形态时,认为商品生产将被取消,市场经济不复存在,取而代之的是社会主义的计划经济。这种观念的细枝末节虽有改动,但作为整体一直延续到十一届三中全会之前。十一届三中全会以后,我国实际上已经开始逐步从计划经济     

马克思再生产理论与社会主义市场经济

通过对资本主义再生产本质、形式以及总过程,从抽象到具体、从逻辑到历史的系统研究,马克思再生产理论还包含了许多市场经济条件下社会再生产的一般规律。目前国内外对此研究尚缺乏,或远远不够。本文从一个新的视角,从市场经济的层面对马克思再生产理论进行研究和探讨,探讨马克思再生产理论所揭示的市场经济形态下社会再生产的三个重要的一般规律,以及马克思再生产理论和社会主义市场经济的关系。     

Labour contracts in a stock market economy

In this paper, labour contracts are examined in the context of a general stock market economy where all shareholders are risk averse, and firms act in shareholders interest. The problem considered is whether some firm can offer a wage contract that will make all its shareholders better off. We show by example that, contrary to the arguments in the partial equilibrium framework, it is possible that no such contract will exist, even when there are potential gains to risk sharing. A sufficient condition for the existence of a feasible pareto improving contract is given. It is shown that contract trading will arise provided some firm has no large shareholders.     

Transition to a market type economy: The case of Czechoslovakia

Conclusion The privatisation and liberalisation steps referred to are an expression of the endeavour to accompany stabilisation efforts as quickly as feasible with the institutional and systemic changes as well as with policies for restructuring, to change the behaviour patterns of economics agents. Until this change takes place, the more effective the restrictive policies are in the financial sphere, the higher the costs incurred in the real sphere will tend to be.The achievement of the desirable trade-offs between the conflicting aims of the macroeconomic development is thus linked with the degree of success in the changes of behaviour of economic agents. The macroeconomic stabilisation will therefore in the longer run depend on the extent to which the regime actually changes, on the positive destabilisation of economic agents and on the progress in their restructuring.In Czechoslovakia there does not therefore seem to be as clear-cut a distinction, as in other reforming countries, between the phases of stabilisation policies, institutional and systemic changes and those of the restructuring policies.The measures to transform the Czechoslovak economy and the implementation of these measures represent an attempt to proceed on a wider front, to take coordinated steps in all the relevant spheres, implying a greater degree of simultaneity. This is a reflection of the strategy chosen which aims at a qualitative change to be accomplished rapidly, taking into account the fact that the individual steps in the various spheres of the transition process are closely interconnected. The approach followed could thus be considered a strategy to introduce groups of complementary policy measures, that is to say, to make several reform packages and to implement them sequentially.     

A model of the socialist firm in transition to a market economy

This paper models the dynamic adjustment path of a socialist firm in transition to a market economy by a price shock that renders old capital obsolete. The firm can adjust with investment in more productive capital equipments. The optimal time paths of investment, output, and employment are analyzed and the impact of fiscal incentives like investment subsidies and a reduced corporate income tax rate are studied. Like output, the aggregate capital stock follows a J-curve. The conditions for viability of firms and the impact of variables such as wage increases on the value of the firm are discussed.