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Journal articles
The Grand Experiment of Communism: Discovering the Trade-off between Equality and Efficiency
Abstract : This paper examines how the interplay between economic incentives and social preferences transmitted by ideology plays a role in the rise and fall of communism. We introduce inequality-averse and inefficiency-averse agents and model their conflict in ideology, triggered by envy. The socioeconomic dynamics generate a pendulum-like switch from markets to a centrally planned economy abolishing private ownership, and back to restoring market incentives. The grand experiment of communism is thus characterized as leading to the discovery of a trade-off between equality and efficiency. The model also derives conditions under which the two systems converge and become stable.
https://hal.archives-ouvertes.fr/hal-01794526
Contributor : Isabelle Celet <>
Submitted on : Thursday, May 17, 2018 - 3:49:57 PM
Last modification on : Monday, November 2, 2020 - 10:32:02 AM
Contributor : Isabelle Celet <>
Submitted on : Thursday, May 17, 2018 - 3:49:57 PM
Last modification on : Monday, November 2, 2020 - 10:32:02 AM
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