Strengths and weakness of economic calculation

Abstract

Many studies, relating to numerous disciplines, (economic, sociological, political) are now being published on decision-making theories. It therefore seems necessary to do some” stock-taking” about one of the oldest of these theories, economic calculation, to assess its importance in these theories and its use in practice. We will concentrate on two points: first try to see who economic calculation can guide the evolution of society towards a certain optimum. In other words, to consider whether the equilibrium concepts of walrus and Pareto are applicable to the world in which we live and whether their most immediate consequence, economic calculation, is really meaningful. This research will lead to qualified conclusions; economic calculation is rarely the sole guide to decisions. So we need to study how it can nevertheless be used to help to make the choices.