Sociology Index


Laissez Faire, Market Economy

Command economy is economy directed by state authorities, rather than market forces. There are a variety of command economies. Mesopotamia and Egypt are have command economy. Command economy was found in the ancient world, especially those dependent on large scale systems of irrigation requiring extensive regional planning and coordination. Command economy was found in other ancient and medieval societies like Rome, China and among the Inca.

Command economy was dominant in the Soviet-style communist societies, where state central planning agencies allocated capital and resources, and fixed the levels of prices. Command economy, because they rely on centralized bureaucratic administration, appear to be less efficient than market mechanisms in allocating resources and stimulating economic growth. In command economy supply and price are regulated by the government, not market forces. Government decides which goods and services are produced and in what manner they are distributed.

A command economy is an economy where economic decisions are planned out by a government authority. Businesses don't freely responding to the laws of supply and demand. Government replaces the forces that operate in free market economics. The concept of a command economy was developed by Viennese economist Otto Neurath. The phrase command economy comes from the German "Befehlswirtschaft" and was initially used to describe the Nazi economy.

North Korea, China and Russia are the examples of command economies. Russia's Gosplan was the longest running.

The new global command economy - Mohameden Ould-Mey
Environment and Planning D: Society and Space 17(2) 155 – 180
The process of globalization has brought about more liberalization and decentralization of political economies at the national level. The shift of the center of gravity of political economy from the national to the international level is what the phrase the new global command economy attempts to grasp. I analyze how the new global command economy continues to perpetuate the core - periphery divide.

Profiting from Government Stakes in a Command Economy: Evidence from Chinese Asset Sales - Charles Calomiris, Raymond Fisman, Yongxiang Wang.
The market response to an unexpected announcement of proposed sales of government-owned shares in China. In contrast to the privatization premium found in earlier work, we find a negative effect of government ownership on returns at the announcement date and a symmetric positive effect in response to the announced cancellation of the government sell-off.

The Stalinist Command Economy - PAUL R. GREGORY
The ANNALS of the American Academy of Political and Social Science, Vol. 507, No. 1, (1990)
The key features of the traditional administrative command economy model used by the centrally planned socialist economies to allocate resources. The administrative command economy model permits the party leadership to set priorities and monitor their fulfillment through the state economic bureaucracy and local party apparatus.

Command Economy - Richard E. Ericson
Edited by Steven N. Durlauf and Lawrence E. Blume
The concept of a command economy, a construct in the theory of comparative economic systems, is defined. The impossibility of the absolute centralization which it requires generates compromises with the market forces it aspires to replace, fostering a symbiotic marketized second economy which systematically undermines its foundations. A command economy, most nearly realized in the Soviet Union (1930–87), proved to be ultimately non-viable.

Plan, siphoning and corruption in the Soviet command economy
Harrison, Mark, and Kim, Byung-Yeon
This paper reconsiders Andrei Shleifer and Robert Vishny’s suggestion that a socialist industry will always prefer to cut both price and output relative to a market-clearing equilibrium in order to maximise bribe income. The empirical evidence from recent archival studies of the Soviet economy does not support this conjecture.

Migration of railway freight transport from command economy to market economy: the case of China - Xie R.; Chen H.; Nash C.
Chinese railway freight transport has been facing great challenges from transport market reformation and economic expansion. Railway freight market share has decreased greatly, especially at the beginning of migration from command economy to market economy.

Dynamic instability of a command economy
Miyamoto Katsuhiro, School of Economics, University of Osaka Prefecture
In 1991, the former Soviet Union collapsed. It was mainly because of an inefficiency of the command economy of socialism. The command economy brought about a downfall of productivity in all industries. The counties of the former Soviet Union are planning to shift from the centralized command economic system to the market economic system. We will theoretically analyze that the centralized command economic system has its own instability of socialism.

A State under Siege: Military Origins of Command Economies - Osinsky, Pavel
A command economy refers to direct state control over production, distribution and consumption of resources. Command economy involves not a market regulation but an administrative regulation as a dominant form of economic organization. Command economies were first instituted among the major belligerent powers in Europe during World War One.

Although the transition from a command economy to a market economy is perilous, the author advises policymakers that retarding the tempo of change will invite economic and political disaster. While policymakers understand command economy only too well, they envision "market economy" only imperfectly.

Seasonal anthropometric cycles in a command economy: The case of Czechoslovakia, 1946–1966 - Tomas Cvrcek, Department of Economics, Vanderbilt University
Anthropometric evidence is used to shed light on the living standards in early communist Czechoslovakia (1946–1966). Height and weight variation of adolescent boys exhibit a pattern that is inconsistent with that for a normal healthy population. This pattern arose from periodic food supply shortages.

Managing human resources in a post-command economy: personnel administration or strategic HRM - Thomas Garavan, Michael Morley, Noreen Heraty, Jacinta Lucewicz, Adam Suchodolski
Reviews the changes in personnel and HRM practices within a post-command economy.

Priority, Duality, and Penetration in the Soviet Command Economy, Ericson, Richard E.
The analysis is carried out in a series of simple two-sector macromodels of plan implementation in a priority-driven command economy.

Coercion, compliance, and the collapse of the Soviet command economy. - Harrison, Mark
Are command systems that rest on coercion inherently unstable, and did the Soviet economy collapse for this reason?

From Command Economy to Hollow State? Decentralisation in Vietnam and China
Painter, Martin, City University of Hong Kong
In Vietnam and China, decentralisation is a by-product, both by default and design, of the transition to a state-managed market economy. A dual process of horizontal and vertical decentralisation is occurring simultaneously in both the economic and political arena.

The command economy cometh - Donald C. Wellington
The paper is a philosophical discourse on capitalism and its intellectual rationalization, economic theory. Both blithely ignore the most fundamental character of the human condition.

Increasing the Validity of Post Command Economy Research and Application
by Rene Dentiste Mueller and James D Mueller
The demise of communism in the post command economies (PCEs) has created considerable interest from both academics and practitioners. Post command economies researchers have failed to consider fundamental issues related to cross-cultural/cross-national research design. Highlights a number of problems researchers face when investigating Post Command Economy regional phenomena.