Growth in Private and Command Economies

Dipankar Dasgupta

in Modern Growth Theory

Published in print November 2010 | ISBN: 9780198069966
Published online October 2012 | e-ISBN: 9780199080458 | DOI:
Growth in Private and Command Economies

More Like This

Show all results sharing this subject:

  • Macroeconomics and Monetary Economics


Show Summary Details


This chapter describes a fully planned economy and examines the optimal path a planner will choose. It introduces elements of control theory, an important mathematical tool employed by modern growth theory, and discusses the notion of a dynamic equilibrium over time as well as an equilibrium balanced growth path for an economy. It analyses the private economy and compares it with the command economy in terms of growth paths, presents a compact version of the necessary conditions in terms of the Hamiltonian function, and considers the optimal path of capital accumulation for the command economy. It also examines the optimal rate of saving, the discounted sum of population weighted utilities from per capita consumption, balanced growth, optimal balanced growth paths, the Golden Rule of accumulation, balanced growth equilibrium path, and irreversible investment.

Keywords: private economy; command economy; optimal balanced growth paths; control theory; dynamic equilibrium; equilibrium balanced growth; Hamiltonian function; saving; irreversible investment; accumulation

Chapter.  22398 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.