The term central administration economy designates an economic system, in which substantial Allokationsentscheidungen is central met by an administrative instance. Since that the 18. Stands for century of developed concepts of such contrary to free market systems, where the decision-making processes are decentralized.

Mainly meant with the key word central administration economy is the economic concept of which on Lenin decreases/goes back, who oriented itself thereby at the writings of Karl Marx. But the term central administration economy is the appropriate synonym.

In this central administration economy production, just as as services and trade, is (completely or almost completely) put under state control and/or nationalized (see also genossenschaftlicher possession, e.g. see in addition .LPG) and by a centralized instance is planned. The private property at means of production almost or completely forbidden is thereby. The central planning authority (e.g. see. National plan commission of the GDR) compiles in each case a plan for usually one year, that into multi-yearly plans (e.g. see. "“Five-year plan"”) is merged. By this plan exact defaults, to which they must adhere precise, are given to the individual enterprises. Into these plans, for production and exchange processes, production possibilities flow likewise like prognoses over the social needs.

For planning usually computed cost price is used, these does not develop not due to a market mechanism, but shows the costs of the production of a product.

The term becomes frequently related as name for the material-existing central administration managing of so-called material socialism. This is to that extent misleading, these on the goods exchange between different restaurant subjects (partly thus on elements of the free-market economy), obtained over food prices (thus value), be based to a large extent (t) EN. With this central administration managing it concerns in this sense therefore combinations between market and planned economy. Marx however rejected everyone over the goods exchange mediated form of managing - and with it concomitantly (market) value and (food) price - and endorsed instead a cooperative planning on broad democratic basis.

Also the term planned economy becomes colloquially often synonymously related. This is however misleading, since also in according to the free market organized systems the restaurant subjects plan internally.

See also

Collective combine

Critical literature

• Friedrich A. von Hayek; W. Kerber (1996): The arrogance of knowledge. Mohr Siebek.

Articles in category "Central administration economy"

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