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Full Description
This book examines the economy as an evolving entity and develops a new and coherent approach to the classification of economic systems. It demonstrates how the components of a decision-making system and the properties of a functioning economy are intrinsically linked. A well-functioning economy is shown to depend chiefly on 'correct' decisions. These in turn depend on an efficient decision-making system, an appropriate mix of markets, organizations and governments, and an optimal combination of the four enforcing mechanisms of a modern economic system: custom, command, competition and cooperation.Although this book is primarily about economics, non-economic considerations, including politics and ethics, are brought into the analysis. The most important decisions in life include choices between economic and non-economic issues. Hence, one of the aims of this book is to provide a conceptual framework to cope with these choices. The book also attempts to establish some plausible conditions for well-functioning economy and a 'just society'.
This thoughtful book will be of interest to economists of economic theory and economic systems as well as policymakers in both the private and public sectors.
Contents
Contents: Preface 1. Introduction Part I: Economic Systems and Decision-making 2. Structures of Decision-making 3. Decision-making Procedures 4. Structures of Information Flows 5. Decision-making Criteria 6. Types and Structures of Incentive Part II: The Evolution of Economic Systems 7. The Customary Economy 8. The Command Economy 9. The Competition Economy 10. The Composite Economy Part III: Towards a Well-functioning Economic System 11. The Principles of a Well-designed Decision-making System 12. The Properties of a Well-functioning Economy 13. The Decision-making Process of a Well-functioning Economy 14. Concluding Notes on the Problems of Transition to a Well-functioning Economy References Index
