Іnstitutional theory of economic planning and criticism using the neo-Austrian school of economics

Hryhorii Shamborovskyi


The article is devoted to the modern economic theories of institutionalism and liberalism. Distinct and common methodological approaches of institutional and neoclassical theories in analyzing consumer behavior, management of corporations, the nature of a market economy, and the problems of state regulation are defined.

The article deals with the theory of industrial and post-industrial society, according to which evolution is strongly influenced by the scientific and technological revolution, which alters the nature and structure of the economy, modifies the structure of interest, and causes an increase in prosperity. The main role in this process is played by the "society of technocrats," which is able to predict and plan economic processes.

The author opposes institutional theories of planning, neoliberal claims about limitations, and the subjectivity and spontaneous character of people's knowledge. He agrees with the thesis that the market does not yield to planning and it is not possible to determine in advance the balance of the economic system or to specify its parameters because no one has enough information for this.

The article analyzes the views of institutionalists and neoliberals on the needs of individuals and argues that it is possible to use introspective methods in modeling economic processes. Based on the theories of P. Drucker, J. Galbraith, F. Hayek, L. Mises, the author proposes to develop the concept of planning and motivational development.


institutionalism; liberalism; neoliberalism; subjectivism; planning; motivation; technocracy; post-industrial society



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