Many transition policies, based on neoclassical economics, failed in Eastern Europe, the former Soviet Union, and China. This paper argues that the failure is due to the viability assumption in neoclassical economics. Neoclassical economics implicitly assumes that a firm is expected to earn a...

This article constructs a model of technological choice in an economy where market exchanges in land and labour are prohibited. Empirical data on demand for tractors, tractor usage and chemical fertilisers in China are employed to test several hypotheses derived from the theoretical model. The...