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The Socialist SystemThe Political Economy of Communism$
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Janos Kornai

Print publication date: 1992

Print ISBN-13: 9780198287766

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198287763.001.0001

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Price Reforms

Price Reforms

Chapter:
(p.513) 22 Price Reforms
Source:
The Socialist System
Author(s):

János Kornai (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198287763.003.0022

One of the major tendencies in the move away from the classical socialist system is a modification of the price system. This is closely related to the revival of the private sector and reform of the control of the state sector towards market socialism. The price reforms described in this chapter alter the coordination mechanisms and behaviour of participants in the economy. They do not cause a radical change but are sufficiently important to qualify as part of the reform process. The different sections of the chapter discuss changes in the determination of product prices as a result of a change in the proportions of the areas in which each of the three types of price determination (administrative, pseudoadministrative, and market) occur; determination of the prices of production factors; principles and practice of state price determination and fiscal redistribution; and the scope and limits of price reforms.

Keywords:   classical socialism, fiscal redistribution, price determination, price reform, prices, product prices, production factors, reform, socialist systems, state price determination

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