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Social Dividends, Entrepreneurial Discretion, and Bureaucratic Rules

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  • Douglas W MacKenzie

    (Carroll College)

Abstract

The current literature on market socialism neglects the issues of social dividend payment and bureaucratization. Socialism replaces private dividends and financial markets with social dividends and central planning of investment. Socialization of dividends also leads to bureaucratization. Social dividends relate to the Principal–Principal problem of forming rational investment plans. Market Socialists address Principal–Agent problems, but do not address the Principal–Principal problem of forming investment plans.

Suggested Citation

  • Douglas W MacKenzie, 2018. "Social Dividends, Entrepreneurial Discretion, and Bureaucratic Rules," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(1), pages 30-48, January.
    • Handle: RePEc:pal:easeco:v:44:y:2018:i:1:d:10.1057_eej.2016.5
    DOI: 10.1057/eej.2016.5
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    References listed on IDEAS

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