Download e-book for iPad: Alternative Approaches to Economic Planning by Martin Cave

By Martin Cave

ISBN-10: 0333266900

ISBN-13: 9780333266908

ISBN-10: 1349165239

ISBN-13: 9781349165230

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Two points deserve particular attention. 2), check these levels for feasibility, and make appropriate adjustments to initial targets, whereas the planning system above starts from gross output targets, and tries to achieve consistency between these on the one hand and their input requirements and the vector of final demand stipulated at the start of the process on the other. x0) and a vector of net output targets (Y) which may be adjusted in the course of the planning process. x0). Subsequent iterations are made within the planning office but on an ad hoc basis, balance by balance.

In the latter, direct input coefficients must be collected using the same sectoral breakdown of inputs for the whole economy (this is necessary to establish a consistent matrix for inversion); yet many of these coefficients will be zero. In the material-balance system, on the other hand, because each product is balanced independently, a different disaggregation of the economy can be made in each balance. Thus compilers of balances can concentrate on important users of each product (the identity of which will of course vary from balance to balance), and this will permit a more flexible use of information (see Hare, 1978).

At enterprise level the output plan typically consists of a gross value of output target combined with more specific targets, often denominated in physical units, for principal products. This feature leads to distortions in plan implementation (discussed below). We have explained how the production and supply components of the enterprise annual plan are constructed. In fact, the plan document the enterprise receives, in the Soviet Union called the technical, industrial and financial plan, lays down targets for other aspects of enterprise activity.

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Alternative Approaches to Economic Planning by Martin Cave

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