Nielsen, Klaus (2008) Indicative planning. In: Durlauf, S.N. and Bloom, L.E. (eds.) The New Palgrave Dictionary of Economics. Basingstoke, UK: Palgrave Macmillan. ISBN 9780333786765.
Indicative planning aims to coordinate private and public investment and output plans through forecasts or targets. Compliance is voluntary. The underlying logic is that the plan can supply economically valuable information which, as a public good, the market mechanism cannot disseminate efficiently. It may be perceived as a substitute for non-existing forward markets. However, indicative planning takes into account only endogenous market uncertainty, not exogenous uncertainty (technology, foreign trade and so on). Indicative planning has been most consistently and continuously implemented in France and Japan but has been used in many other countries, although decreasingly so since the 1970s.
|Item Type:||Book Section|
|Keyword(s) / Subject(s):||Austrian economics, bounded rationality, forecasting, forward markets, general equilibrium, imperfect information, indicative planning, planning, rational expectations, uncertainty|
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management|
|Research Centre:||Innovation Management Research, Birkbeck Centre for|
|Date Deposited:||29 Mar 2011 14:53|
|Last Modified:||06 Dec 2016 10:10|
Additional statistics are available via IRStats2.