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The Economic Problem of a Community: ontological reflections inspired by the Socialist Calculation Debate

Author

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  • Diogo Lourenço

    (Faculdade de Economia, Universidade do Porto)

  • Mário Graça Moura

    (Faculdade de Economia, Universidade do Porto)

Abstract

Implicitly, the Socialist Calculation Debate is about the connection between neoclassical theory and reality. It involves several ontological presuppositions, with wide-ranging implications. Our purpose is to discuss one of these presuppositions. We want to scrutinise the view, implicit in the ‘market socialist’ arguments, that things have economic roles or functions independently of the social environment in which they exist. ‘Primary factors’ and techniques of production are taken to exist independently of social arrangements; jointly with consumer preferences, they are supposed to define the economic problem of a community. In analysing this view, we borrow from F. A. Hayek, complementing his reflections with those of Donald Davidson, Willard Quine, and Tony Lawson. We also discuss a second problem, which follows from the first: if, in contrast with market socialists’ view, the economic roles of things depend holistically on complex social processes, how can we compare alternative forms of economic organisation?

Suggested Citation

  • Diogo Lourenço & Mário Graça Moura, 2016. "The Economic Problem of a Community: ontological reflections inspired by the Socialist Calculation Debate," FEP Working Papers 572, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:572
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    References listed on IDEAS

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    1. Hayek, F. A., 2012. "Hayek on Hayek," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226321202 edited by Kresge, Stephen & Wenar, Leif.
    2. Tony Lawson, 2012. "Ontology and the study of social reality: emergence, organisation, community, power, social relations, corporations, artefacts and money," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(2), pages 345-385.
    3. A. P. Lerner, 1938. "Theory and Practice in Socialist Economics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 6(1), pages 71-75.
    4. Hayek, F. A., 2010. "Studies on the Abuse and Decline of Reason," University of Chicago Press Economics Books, University of Chicago Press, number 9780226321097 edited by Caldwell, Bruce.
    5. Oskar Lange, 1936. "On the Economic Theory of Socialism," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(1), pages 53-71.
    6. A. P. Lerner, 1934. "Economic Theory and Socialist Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 2(1), pages 51-61.
    7. von Hayek, Friedrich August, 1989. "The Pretence of Knowledge," American Economic Review, American Economic Association, vol. 79(6), pages 3-7, December.
    8. Günther K. Chaloupek, 1990. "The Austrian Debate on Economic Calculation in a Socialist Economy," History of Political Economy, Duke University Press, vol. 22(4), pages 659-675, Winter.
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    More about this item

    Keywords

    Ontology; Socialist Calculation; Economic Function; Counterfactuals.;
    All these keywords.

    JEL classification:

    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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