Frisch and Tinbergen on economic planning

The Frisch-Tinbergen model of central economic planning represents the first important non-Soviet planning model. This constrained optimization model makes the central planner a staff adviser to the Premier. The central planner explores the Premier's preference ordering and recommends instruments that maximize the Premier's utility, given the constraints within an econometric model. This model assumes Premiers have no preference over instruments or models and that planning agencies have neither internal structure nor operating responsibilities. The paper explores the consequences of removing such limiting assumptions, utilizing the results of more recent contributions to the theory of.-economic systems.