We present a new theory of pervasive shortages under socialism, based on the assumption that the planners are self … profit personally. The theory suggests that an increase in the official price of a good might reduce output. The theory also … suggests that market socialism is bound to fail even without computational complexities facing the planners …

costs must be strong. In essence, this is the case for capitalism over socialism, explaining the dynamic vitality' of free … enterprise. The great economists of the 1930s and 1940s failed to see the dangers of socialism in part because they focused on … the role of prices under socialism and capitalism and ignored the enormous importance of ownership as the source of …

corruption, which is more widespread in poor countries, reduces more the electoral appeal of capitalism than that of socialism …

In theory, we should expect tariffs to be partially offset by a currency appreciation in the tariff-imposing country or …