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2017 | 3(17) | 3 | 100-111
Article title

The motivation of business leaders in socialist and market-based systems (An essay to celebrate the 90th birthday of János Kornai)

Authors
Content
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Languages of publication
EN
Abstracts
EN
Janos Kornai was well ahead of mainstream economic thought in comprehending that senior executives have been operating in an intrinsically contradictory situation both in socialist and market-based economies and that there is no full remedy to handle conflicts of interest which arise. Kornai presented a comprehensive theory on this in his most important book, the Anti-Equilibrium, as early as 1971. The difficulties experienced by state-owned enterprises (SOEs) were not rooted merely in the socialist ownership form, but they were, to a significant extent, caused by the fact that SOEs were typically very large firms.
Year
Volume
Issue
3
Pages
100-111
Physical description
Dates
published
2017-09-30
Contributors
  • Corvinus University of Budapest, Corvinus School of Economics, Department of Macroeconomics, H-1093 Budapest, Fővám tér 8, Hungary, peter.mihalyi@uni-corvinus.hu.
References
  • Arrow, K. J. & Debreu, G. (1954). Existence of an equilibrium for a competitive economy. Econometrica, 22(3), 265-290.
  • Bauer, T. (1976). The contradictory position of the enterprise under the new Hungarian economic mechanism. Eastern European Economics, 15(1), 3-23.
  • Berle, A. A. & Means, G. C. (1932). The modern corporation and private property. New York: Macmillan.
  • Demsetz, H. & Lehn, K. (1985). The structure of corporate ownership: causes and consequences. Journal of Political Economy, 93(6), 1155-1177.
  • Fama, E. & Jensen, M. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325.
  • Galbraith, J. K. (1967). The new industrial state. Boston: Houghton Mifflin.
  • Girma, S., Thompson, S., & Wright, P. (2002). Multinational activity and CEO compensation. Preliminary evidence from large UK firms. Weltwirtschaftliches Archiv, 138(4), 680-693.
  • Kahneman, D. (2011). Thinking, fast and slow. New York: Farrar, Straus and Giroux.
  • Keynes, J. M. (1936/1964). The General Theory of Employment, Interest, and Money, A Harvest/HBJ edition, New York and London.
  • Kornai, J. (1971). Anti-equilibrium. On economic systems theory and the tasks of research. Amsterdam: North Holland.
  • Kornai, J. (1980). The economics of shortage. Amsterdam: North-Holland.
  • Kornai, J. (1992). The socialist system. The political economy of communism. Princeton: Princeton University Press.
  • Liberman, J. (1962). Plan, pribil, premija. Pravda, 9 September.
  • Mihályi, P. (1993). Property rights and privatization. The three agent model. A case study on Hungary. Eastern European Economics, 31(2), 5 64.
  • Mihályi, P. (1997). Corporate governance during and after privatisation. The lessons from Hungary. Discussion Paper, No. 17/97. Frankfurt: Frankfurter Institut für Transformationsstudien.
  • Mihályi, P. (2013). János Kornai’s Anti-equilibrium, a harbinger of evolutionary economics. Acta Oeconomica, 63(3), 367-375.
  • Mihályi, P. (2017). Kaldor and Kornai on economics without equilibrium: two life courses. Acta Oeconomica, Special issue (forthcoming).
  • Pejovich, S. (1990). The economics of property rights. Towards a theory of comparative systems. Boston: Kluwer Academic Publishers.
  • Smith, A. (1776/1976). An inquiry into the wealth of the nations. Chicago: Chicago University Press.
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.desklight-8088a96e-25d2-479a-aa28-0d1e4d8b1585
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