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Scratch a Would-Be Planner: Robbins, Neoclassical Economics and the End of Socialism

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Brigitte Granville
Judith Shapiro

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Abstract

Robbins’s central contribution to the debate on market versus plan links with identification of economics as science of how societies handle scarcity, a central contribution of the Essay. This was not a narrow focus on static efficiency; inflation was a key part of Robbins’s conception of (mis)handling scarcity. The irony that transition to the market led to movement away from the market in economics is analysed, highlighting the obscured role of macroeconomics, and questioning a new conventional wisdom that Russia should have followed the Chinese path of gradual and Pareto-improving institutional development. A conclusion is that the demise of the Washington Consensus should not lead to a new dogma: the neoclassical paradigm is not being replaced but extended.

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Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number 11.

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Date of creation: May 2008
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Handle: RePEc:cgs:wpaper:11

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Related research
Keywords: Transition; Lionel Robbins; socialist calculation debate; Russia; inflation;

Find related papers by JEL classification:
P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
B31 - Schools of Economic Thought and Methodology - - History of Thought: Individuals - - - Individuals

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  1. Pauline Grosjean & Claudia Senik, 2007. "Should market liberalization precede democracy? Causal relations between political preferences and development," PSE Working Papers 2007-17, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  2. Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  3. Coase, R H, 1992. "The Institutional Structure of Production," American Economic Review, American Economic Association, vol. 82(4), pages 713-19, September. [Downloadable!] (restricted)
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  5. Paul Gregory & Mark Harrison, 2005. "Allocation under Dictatorship: Research in Stalin's Archives," Journal of Economic Literature, American Economic Association, vol. 43(3), pages 721-761, September. [Downloadable!] (restricted)
  6. Justin Lifu Lin, 2004. "Lessons of China's Transition from a Planned Economy to a Market Economy," Development Economics Working Papers 446, East Asian Bureau of Economic Research. [Downloadable!]
  7. Peter Murrell, 2003. "Institutions and Firms in Transition Economies," Electronic Working Papers 03-004, University of Maryland, Department of Economics. [Downloadable!]
  8. North, Douglass C., 1993. "Economic Performance through Time," Nobel Prize in Economics documents 1993-2, Nobel Prize Committee. [Downloadable!]
  9. Murrell, Peter, 1991. "Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies?," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 59-76, Fall. [Downloadable!] (restricted)
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