A Large Economic System with Minimally Rational Agents

2019 ◽  
pp. 53-138 ◽  
Author(s):  
Yoshinori Shiozawa ◽  
Masashi Morioka ◽  
Kazuhisa Taniguchi
Keyword(s):  
Economic System ◽  
Rational Agents

scholarly journals Homo Economicus in the Shortage Economy

2018 ◽  
Vol 9 (4) ◽  
pp. 207-226 ◽  
Author(s):  
Hana Lipovská ◽  
Lucie Coufalová ◽  
Libor Žídek
Keyword(s):  
Economic System ◽  
Market Economy ◽  
Rational Agent ◽  
Homo Economicus ◽  
Planned Economy ◽  
Rational Agents ◽  
Economic Agents ◽  
Centrally Planned Economy ◽  
Original Survey ◽  
Higher Law

Abstract Rational agents react to incentives in the market economy as well as in the centrally planned economy. Economic laws are persistent regardless of the economic system. The legislative system changes the outcome of the game between economic agents and managers. The aim of this paper is to show how rational agents reacted to legislative incentives in the Soviet-type economy in Czechoslovakia in the 1970s and 1980s, that is, how they reacted to the general shortage in the centrally planned economy. Based on the original survey among former managers as well as on the legislative sources from the 1970s and 1980s, a taxonomy was made of economic reactions to the shortage economy. This survey was possibly the last chance to map the experiences of socialist managers who tried to run companies in the centrally planned economy. We distinguish plan manipulation in order to ensure payment bonuses; bribery in order to obtain short-supplied inputs and the creation of reserves for the purpose of fulfilling the plan. It was shown that, if the rational agent wanted to obey the higher law, he was forced to ignore lower legislation.

Business-groups in Russian industries

2004 ◽  
pp. 121-134 ◽  
Author(s):  
S. Avdasheva
Keyword(s):  
Industrial Organization ◽  
Economic System ◽  
Institutional Economics ◽  
Business Groups ◽  
Control Rights ◽  
Organization And Management ◽  
Russian Economy ◽  
Main Determinants ◽  
Soviet Economic System

The chapter of “Institutional Economics” textbook is devoted to the development of business-groups as a specific feature of industrial organization in the Russian economy. The main determinants of forming and functioning of business-groups such as allocation of property rights in Soviet enterprises, networks of directors and executive authorities in the Soviet economic system as well as import of new institutes and inefficient state enforcement are in the center of analysis. Origins, structure, organization and management within the groups and the role of shareholding and informal control rights are considered.

Turbulence of Economic Processes: Theoretical Aspects

2009 ◽  
pp. 90-97 ◽  
Author(s):  
V. Burlachkov
Keyword(s):  
Economic System ◽  
Process Approach ◽  
Lorentz Transformations ◽  
Macroeconomic Dynamics ◽  
Turbulence Analysis

The article discusses turbulence of economic processes as a result of relative velocities of economic system elements. It is underlined that turbulence is the property of macroeconomic dynamics. The main reason of turbulence in economic system is the discrepancy between the velocity of deals contracting and the velocity of obligations executing. The process approach to the analysis of economic system as a set of processes is proposed. Using Lorentz transformations for turbulence analysis is discussed.

Kornai, Schumpeter, and Economic Theory

2012 ◽  
pp. 145-152 ◽  
Author(s):  
V. Maevsky
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
Evolutionary Theory ◽  
Economic Models ◽  
Macro Level ◽  
Mainstream Economic ◽  
Level Of Analysis

The author claims that J. Kornai in his paper Innovation and Dynamism (Voprosy Ekonomiki. 2012. No 4) ignored the understanding of socialism as a specific type of culture and not just as an economic system. He also shows profound differences between Schumpeters theory and mainstream economic models. Evolutionary theory, he claims, may itself become mainstream if Schumpeters legacy is not interpreted straightforwardly and if evolutionary economists consider not only micro-, but also macro-level of analysis in studying macrogenerations of capital of a different age.

Structural Alternatives of Russia’s Social and Economic Development

2008 ◽  
pp. 71-85 ◽  
Author(s):  
A. Shastitko ◽  
S. Afontsev ◽  
S. Plaksin
Keyword(s):  
Economic Development ◽  
Comparative Study ◽  
Economic System ◽  
Competitive Markets ◽  
Russian Government ◽  
Social And Economic Development

The article contains a general comparative study of four strategies of social and economic development: "Inertia", "Renter", "Mobilization", and "Modernization". The context for comparison is explanation of correlation between adaptive features of Russia’s contemporary economic system and particularities of the mentioned strategies with corresponding ways of managing economic development problems. The comparison is based on description of strategies essence, ways and tools to achieve results. Perspectives of achieving strategic purposes as well as expected results of implementation of each strategy are shown. Special comparative study of four strategies on the base of development of competitive markets as one of strategic aims of the Russian government is presented.

The principles of duality in the light of the system economic theory

2019 ◽  
pp. 127-149
Author(s):  
George B. Kleiner
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
External Environment ◽  
Black Box ◽  
Space Time ◽  
Production Cycle ◽  
Economic Systems ◽  
New Approach ◽  
Reproduction Cycle ◽  
Basic Concepts

This paper shows the diversity and significance of relations of duality among different economic systems. The composition of the principles underlying the system economic theory used for the analysis of duality in the economy is investigated. The concept of the economic system is clarified and the equivalence of three basic concepts of the economic system is shown: a) as a space-time volume (“black box”); b) as a complex of elements and connections among them; c) as a tetrad, including object, project, process and environment components. In a new way, the concept of the tetrad is revealed. The actual interpretation of the interrelationships of its components, based on the mechanisms of intersystem circulation of spatial and temporal resources and the transmission of abilities from one economic system to another, is proposed. On the basis of the obtained results, the most essential aspects of duality in the theory of economic systems are considered. It is shown that the interaction of internal content and the nearest external environment of economic systems lies in the nature of the relations of duality. A new approach to modeling the structure and to functioning of the economic system, based on the description of its activities in the form of two interconnected tetrads (the first tetrad reflects the intrasystem production cycle and the second one — the external realization-reproduction cycle) is put forward. It is shown that the concept of duality in a system economy creates prerequisites for adapting the functioning of local economic systems (objects, projects, etc.) in a market, administrative and functional environments and, as a result, harmonizing the economy as a whole.

The Role of Behavioral Models in the Ontological Structure of Modern Macroeconomics

2013 ◽  
pp. 98-110
Author(s):  
M. Likhachev
Keyword(s):  
Economic System ◽  
Government Regulation ◽  
Institutional Structure ◽  
Economic Environment ◽  
Behavioral Models ◽  
Macroeconomic Models ◽  
Basic Characteristics ◽  
Practical Implications

Behavioral models are considered in the paper as the link between the description of the institutional structure of the economic system and the formation of macro-aggregates, reflecting the results of its operations. The degree of homogeneity of the private sector’s economic environment and complementary goals of private entities and government regulation are noted as basic characteristics of behavioral models. The author examines the differences in the estimates of these characteristics as one of the most important factors underpinning the architecture of modern macroeconomic models and their practical implications.

SYSTEMIC CAUSES OF THE APPEARANCE OF “COBRA EFFECT” IN THE MANAGEMENT OF SOCIO-ECONOMIC DEVELOPMENT

2019 ◽  
Vol 86 (3) ◽  
pp. 51-61
Author(s):  
M. S. Mokiy ◽  
E. K. Borzenko
Keyword(s):  
Economic Development ◽  
Economic System ◽  
Gross National Product ◽  
The Family ◽  
Social And Economic Development ◽  
Socio Economic Development ◽  
Energy Consuming ◽  
The Right ◽  
Goals And Objectives ◽  
Least Energy

The article on the basis of extrapolation of system laws of management of social and economic development illustrates the system reason of the Cobra effect, that is, a situation where, despite the rather attractive goals that managers formulate, the result of the activities of subordinates is opposite to what was intended. The main problem of management is the development of a system of indicators, in which, working on the indicator, employees would change the state in the right direction. The reason for the Cobra effect is the manifestation of systemic patterns of socio-economic development. The main system regularity is the desire of the system for stability and self-preservation. This state of the system is achieved using the least energy-consuming way. It is shown that any worker, realizing system regularities, aspires to stability and self-preservation. Therefore, the employee is always forced to work for achieving the indicator. The article analyzes the manifestation of these laws at the level of enterprises and state. When managers understand these patterns explicitly or covertly, changes in the economic system are moving in the right direction. It is shown that the existing system of target indicators used as indicators to assess the effectiveness of management does not meet the goals and objectives of socio-economic development. At the meso- and macrolevel, absolute, volumetric indicators, such as gross national product and others, reduce the range of benefits to the population. The article defines the vector of change in the system of indicators for assessing the effectiveness of management at the regional and state levels, based on the fact that the key element is the family. At the same time, the targets should be indicators to assess the availability of benefits for households.

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