Comparative Economic Systems

Econ 754

CRN xxxxxx

Semester, 200X

Day YYY at 0000-0000

B&E999


William N. Trumbull, Ph.D.

420 Business and Economics Building 

Department of Economics 

West Virginia University 

P.O. Box 6025 

Morgantown, WV 26506-6025 

Phone: 304-293-7860 

E-Mail: william.trumbull@mail.wvu.edu

Office Hours: TBA



 
COURSE OBJECTIVES AND LEARNING OUTCOMES:

Upon completion of this course, you will be able to:

  • Classify economies into the three basic types: capitalism, planned socialism, and market socialism
  • Understand the essential characteristics of a socialist economy
  • Evaluate the comparative performance of the capitalist, planned socialist, and market socialist economies
  • Know the essential tasks of transition
  • Assess transition in these countries in terms of these essential tasks


 


 
Prerequisites:  ECON 701

 


 

READINGS:

Most of our readings will be from four sources:

  • Bornstein, Morris, Comparative Economic Systems: Models and Cases (6th ed.). Irwin Publications in Economics, 1989.
  • Gros, Daniel and Alfred Steinherr, Economic Transition in Central and Eastern Europe: Planting the Seeds.  Cambridge University Press, 2004. Referred to below as G&S.
  • Kornai, Janos, The Socialist System: The Political Economy of Communism. Princeton University Press, 1992.
  • Woo, Wing Thye, Stephen Parker, and Jeffrey D. Sachs, Economies in Transition: Comparing Asia and Eastern Europe. MIT Press, 1997. Referred to below as WPS.
We will also read Friedrick Hayek's classic paper "The Price System as a Mechanism for Using Knowledge," AER, 1945, and Arthur Okun's Equality and Efficiency: The Big Trade-Off (Brookings), 1975, the latter excerpted in Bornstein.

 
 
RULES:

Your grade will be based on a research paper (50%), and a final exam (50%).

The research paper will be on any topic you want, as long as it relates to the course. It can be on transition of a single country. It can compare different types of transition. It can compare groups of countries. It can be on the struggle to maintain socialism in a capitalist world, such as in the cases of Cuba and North Korea. It can be theoretical or empirical. Whatever you like.


 


 

COURSE OUTLINE :

Notes are in PowerPoint files for you to download.  I suggest printing in handout (three slide) format.  Print in black and white if using a color printer.
 
TOPIC LECTURE READINGS
Introduction (Week 1)

 

Classification of Systems
Assessing Economic Systems
Bornstein, Ch. 2.
Bornstein, Ch. 1.
Capitalism (Week 2)

 

Hayeck's information argument
Okun and market fairness
Hayeck (1945).
Okun (1975).
The Antecedents of Planned Socialism (Week 3)

 

Marx's model of capitalism
Lenin's contribution
Revolution
Kornai, Chapters 1, 2.
Classical Planned Socialism (Weeks 4-7) Typical Planned Economy
Political Power Structure
Ideology of Socialism
Property
Coordination Mechanisms
Planning
Money and Price
Investment and Growth
Employment and Wages
Shortage and Inflation
Shortage and Inflation: Causes
Consumption and Distribution
External Economic Relations
Coherence of the Classical System
Bornstein, Chs. 19, 20.
Kornai, Chapter 3.
Kornai, Chapter 4.
Kornai, Chapter 5.
Kornai, Chapter 6.
Kornai, Chapter 7.
Kornai, Chapter 8.
Kornai, Chapter 9.
Kornai, Chapter 10.
Kornai, Chapter 11.
Kornai, Chapter 12.
Kornai, Chapter 13.
Kornai, Chapter 14.
Kornai, Chapter 15.
Market Socialism (Week 8) Market socialism and Yugoslavia Bornstein, Chs. 14, 15, 17.
Case Study of Classical Socialism:  Cuba (Week 9) Brief Economic History of Socialist Cuba
Crisis in Cuba
Reform Socialism (Week 10) Dynamics of Change
Perfection of Control
Political Liberalization
Rise of the Private Sector
Price Reform
Macro Tensions
Conclusions
Kornai, Chapter 16.
Kornai, Chapter 17.
Kornai, Chapter 18.
Kornai, Chapter 19.
Kornai, Chapter 22.
Kornai, Chapter 23.
Kornai, Chapter 24.
Transition: Introduction (Week 11) Introduction to Transition G&S Ch. 3 and 4.
Case Studies: Russia (Week 12) Russia in Transition WPS Ch. 6, G&S Ch.8.
The Visegrad Economies (Week 13) Visegrad  
Poland (Week 13) Poland WPS Ch. 5.
Czech Republic and Hungary (Week 14) Czech Republic

Hungary

WPS Ch. 3.
China (Week 15) China WPS Ch. 2.
Outlook (Week 15) Outlook G&S Ch. 11.



 
Maintained by William N. Trumbull. Updated 8/22/06