City Research Online

Economic calculation: private property or several control?

Denis, A. (2015). Economic calculation: private property or several control?. Review of Political Economy, 27(4), pp. 606-623. doi: 10.1080/09538259.2015.1083189


As the centenary of the Russian revolution of 1917 approaches, it is worth reviewing the past 100 years’ discussion amongst economists on the possibility – or otherwise – of economic planning under socialism. The socialist calculation debate is of fundamental importance, not merely as a specialist application of economic ideas, but as an investigation of the foundations of all economic activity. Every economic action whatsoever is premised upon calculation, every choice depends upon an assessment of the costs and benefits of each alternative between which the agent is to choose. The view taken of that choice and its attendant calculation, in market and non-market contexts, is constitutive of the schools of thought – Marxian, neoclassical and Austrian alike – which have contributed to the debate. An understanding of the calculation debate is therefore required in order to understand how these paradigms stand in relation to each other. This paper addresses one particular detail of that debate – the claim by Austrian economists that socialism is impossible because the absence of private property in the means of production precludes economic calculation. The paper suggests that several control rather than private property is required for economic calculation, and that several control is consistent with public ownership of the means of production. The Austrian argument on this point, therefore, is without force.

Publication Type: Article
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in Review of Political Economy which is, available online:
Publisher Keywords: Austrian economics, economic calculation, ownership and control, private property, several property, socialist calculation debate
Subjects: H Social Sciences > HB Economic Theory
Departments: School of Policy & Global Affairs > Economics
SWORD Depositor:
[thumbnail of Andy_Denis_SCD_Ver_4.pdf]
Text - Accepted Version
Download (380kB) | Preview


Add to AnyAdd to TwitterAdd to FacebookAdd to LinkedinAdd to PinterestAdd to Email


Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login