This paper addresses whether neoclassical economics can provide the intellectual underpinning for a theory of reform. I examine whether the neoclassical model satisfies an essential condition to qualify for this role: does it give us a satisfactory explanation for the vast differences in performance between capitalist and socialist economic systems? First, I focus on the theoretical arguments that have traditionally been used to examine the comparative properties of central planning and markets.
Can Neoclassical Economics Underpin the Economic Reform of the Centrally-Planned Economies?Peter Murrell ,
4( 5 )
Journal of Economic Perspectives