The Relative Efficiencies of Market and Planned Economies
Author(s)
Lovell, C. A. K.; Moroney, John R.
Abstract
Are planned economies systematically more or less productive than market economies? This question provoked heated intellectual debate since the time of Hayek, Keynes, Lange, Lange and Taylor and Lerner. The collapse of the communist systems of East Europe since 1989 closed the debate: planned economies were without doubt less efficient in utilizing economic resources than market economies. But how much less efficient? This paper examines the relative efficiencies of market and planned economies.
