Abstract
Formally, planning in an economic context can be identified with a constrained maximization problem. The objective, whether it is simply social welfare or multiple individual utilities, is maximized subject to the resource and technological constraints. It needs to be emphasized that the planning problem is not simply one of characterizing the solution to the maximization problem but also of defining a computational procedure to obtain the solution. A planning process can be defined as an iterative procedure which, through successive approximations, finds a solution to the maximization problem.
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Vohra, R. (2018). Planning. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1303
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DOI: https://doi.org/10.1057/978-1-349-95189-5_1303
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