Nielsen, K. (2008) Indicative planning. In: Durlauf, S.N. and Bloom, L.E. (eds.) The New Palgrave Dictionary of Economics. Basingstoke, UK: Palgrave Macmillan. ISBN 9780333786765.Full text not available from this repository.
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 or Research Centre:||Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Management|
|Date Deposited:||29 Mar 2011 14:53|
|Last Modified:||17 Apr 2013 12:17|
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