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Uncertainty and economic planning: a selective survey and appraisal

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Information and Efficiency in Economic Decision

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 4))

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Abstract

In recent times economic planning in different countries has increasingly emphasized the role of risk and uncertainty in the planning process. Reasons have differed for different countries. For less developed countries (LDC) with large commodity exports, stabilization policies aimed at reducing income fluctuations have been found very important, along with policies for growth of income and employment; for centrally planned economies (CPE) divergences of actual production and distribution systems from the planned sectoral targets have been related to investment cycles and the need for building safety margins in different sectors has been particularly emphasized. For a developed economy with public and private sectors, the planning process, dependent on the theory of indicative planning ard decentralization of decisions has emphasized the various informational gaps and competing risks which may impede the cooperative framework of the solution. In a noncooperative game-theoretic framework, the need for building consistency in the set of strategies pursued by different players is all the greater in an environment, where the risk perceptions are different for different players.

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Authors
  1. Jati K. Sengupta
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© 1985 Martinus Nijhoff Publishers, Dordrecht

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Sengupta, J.K. (1985). Uncertainty and economic planning: a selective survey and appraisal. In: Information and Efficiency in Economic Decision. Advanced Studies in Theoretical and Applied Econometrics, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-5053-5_14

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  • DOI: https://doi.org/10.1007/978-94-009-5053-5_14

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-8737-7

  • Online ISBN: 978-94-009-5053-5

  • eBook Packages: Springer Book Archive

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