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

Authors

  • Hryhorii Shamborovskyi Ivan Franko Lviv National University, Ukraine

DOI:

https://doi.org/10.21847/1728-9343.2013.4(124).16953

Keywords:

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

Abstract

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.

Author Biography

Hryhorii Shamborovskyi, Ivan Franko Lviv National University

Candidate of Economic Sciences, Associate Professor of International Economic Relations Department

References

ЛІТЕРАТУРА

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REFERENCES

Shevchenko A. (2012), History of economics and economic thought: modern economic theories, Center of Literature, Kyiv, 280 p.

Drucker P. (1951). The new society: the anatomy of the industrial order, Heinemann, London, 339 p.

Galbraith J. (1958). The affluent society, Mifflin Boston, Houghton, 368 p.

Borisov E. (1997). Reader for Economic theory, Yurist, Moscow, 533 p. (rus).

Petrova Ju., Krasnova O. J. K. Galbraith, available at: http://www.e-reading.org.ua/bookreader.php/89713/Petrova_- _Dzh.K._Gelbreiit.html. (rus).

Shymanska O. (2011). John Galbraith – a prominent theorist of the new industrial society, Journal of Ternopil National Economic University, № 1,pp. 170-177. (ukr).

Galbraith J. (1976). The new industrial state, Progress, Moscow, 397 p. (rus)

Marshall A. (1983). Principles of Political Economy, Progress, Moscow, 415 p. (rus).

Shand A. (1984). The capitalist alternative: an introduction to neo-Austrian economics, University Press,New York, 242 p.

Rockvell L. Why Austrian Economics Matters, available at:http://mises.org/page/1444/Why-Austrian-Economics-Matters.

Published

2013-09-10

How to Cite

Shamborovskyi, H. (2013). Іnstitutional theory of economic planning and criticism using the neo-Austrian school of economics. Skhid, (4(124), 114–119. https://doi.org/10.21847/1728-9343.2013.4(124).16953

Issue

Section

Economy