Title :

The Grand Experiment of Communism: Discovering the Trade-off between Equality and Efficiency

Author(s) :

Farvaque, Etienne [Auteur]
Lille économie management - UMR 9221 [LEM]
Economie Quantitative, Intégration, Politiques Publiques et Econométrie [EQUIPPE]
Mihailov, Alexander [Auteur]
University of Reading [UOR]
Naghavi, Alireza [Auteur]
Alma Mater Studiorum Università di Bologna = University of Bologna [UNIBO]

Journal title :

Journal of Institutional and Theoretical Economics

Pages :

707-742

Publisher :

Mohr Siebeck

Publication date :

2018-12

ISSN :

0932-4569

HAL domain(s) :

Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

This paper examines how the interplay between economic incentives and social preferences transmitted by ideology plays a role in the rise and fall of communism. We introduce inequality-averse and inefficiency-averse agents ...
Show more >This paper examines how the interplay between economic incentives and social preferences transmitted by ideology plays a role in the rise and fall of communism. We introduce inequality-averse and inefficiency-averse agents and model their conflict in ideology, triggered by envy. The socioeconomic dynamics generate a pendulum-like switch from markets to a centrally planned economy abolishing private ownership, and back to restoring market incentives. The grand experiment of communism is thus characterized as leading to the discovery of a trade-off between equality and efficiency. The model also derives conditions under which the two systems converge and become stable.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL