Input-output planning and information

  • In this paper, we show how socialist planning can be based on input-output data. We argue that the information required for this can be obtained by a central planning agency and thus dismiss Hayek’s information argument against socialism. We further show how economic planning can be made responsive to consumer demand through a feedback control mechanism. Output targets of products would be adjusted in response to observed consumer demand or based on predictions about future demand. Planners can use machine learning to make more accurate forecasts. The valuation of goods plays an important role in the feedback control mechanism. The values of goods can either be measured by the labour time necessary for their production (labour values) or through shadow prices based on linear programming.
Author details:Jan Philipp DapprichORCiDGND, William Paul CockshottGND
Title of parent work (English):Journal of Economic Behavior & Organization
Place of publishing:Amsterdam
Publication type:Article
Date of first publication:2022/12/01
Publication year:2023
Release date:2023/01/25
First page:412
Last Page:422
Funding institution:Initiative für Demokratie und Moderne e.V.
Organizational units:Wirtschafts- und Sozialwissenschaftliche Fakultät / Sozialwissenschaften
DDC classification:3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften
License (German):License LogoKeine öffentliche Lizenz: Unter Urheberrechtsschutz
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