DP11866 Capitalism and Socialism: Review of Kornai's Dynamism, Rivalry, and the Surplus Economy

Author(s): Chenggang Xu
Publication Date: February 2017
Keyword(s): Capitalism, growth, innovation, Institution, Socialism, Soft-budget Constraint
JEL(s): A10, B10, D02, E02, H11, O11, O12, O30, P10, P20, P30
Programme Areas: Industrial Organization, Development Economics, Macroeconomics and Growth
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=11866

Understanding the nature of capitalism has been a central theme of economics. The collapse of the East Bloc and the global financial crisis spurred the reemergence of the political economy as a new frontier and the revival of interest in the nature of capitalism. Kornai's book fills an important intellectual gap in understanding the dynamic nature of capitalism by comparing it with its mirror image, socialism. To further develop the themes contained in the book, serious challenges are posted theoretically and empirically, as well as in subjects, such as hybrid capitalism.