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Once Again on Calculating the Norm of Effectiveness on the Basis of a One-product National Economic Development Model

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  • L. V. Kantorovich
  • A. L. Vainshtein

Abstract

The question of the essence and methods of establishing and calculating the capital investment effectiveness norm is one of the most important for the planning of the socialist national economy. Therefore, it was to be expected that the attempt by the present authors to estimate the numerical norm of effectiveness for the Soviet national economy, proceeding from certain theoretical assumptions, on the basis of a one-product model of the national economy and summary national economic indicators [2] would prompt replies and criticisms, including the criticism by one of the founders of the mathematical analysis of the norm of effectiveness (N.E.) — A. L. Lur'e. Since his article contains, along with several correct observations and matters, some objections and assumptions that are incorrect in our view, we consider it necessary to review his criticism and introduce clarity to the discussion of the problem.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Problems of Economic Transition.

Volume (Year): 19 (1976)
Issue (Month): 4 (August)
Pages: 91-107

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Handle: RePEc:mes:prectr:v:19:y:1976:i:4:p:91-107

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106047

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