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Economics 347
entitled ‘Quantitative Relations in Production’, published in Ekonomista 4, 1964.
30. This view is at present generally criticized. Both anthropologists and economic
historians argue that in different socio-historical contexts the principle of rationality
takes different concrete forms. There is no reason for refusing rationality to the premarket
societies. The case of Weber-Mises, who, starting from the abstract principle
of rationality, denied the possibility of creating a rational socialist economy,
should be sufficient warning to those who rigidly link economic rationality only
with conditions provided by a commodity economy. On the discussion on rationality
in different socio-economic systems cf. M. GODELIER, Rationalite‘ et irrationalite‘ en
Pconomie, Paris, 1966.
31. We shall be mainly concerned here with macro-economics, because of its recent
and rapid expansion and its importance for planning. Moreover many already
elaborated and easily applicable tools of econometric analysis now exist in
micro-economics. On the other hand, the application of mathematical methods to
macro-economics involves a great number of difficulties, still unsolved, which will
probably demand the attention of economists for many years to come.
32. Such a problem does not exist in a pure market economy, where ex defilzitione
there are no macro-economic preferences, but only those of individual economic
agents. It appears, however, in the guided economy, even when comprehensive
planning is not aimed at. In neo-classical economics, the problem manifested itself in
attempts to make a distinction between individual and social profitability, and also
in elaborating the concept of external economies (as already mentioned). As for
‘welfare economics’ and its continuation by so-called ‘new welfare economics’, the
shift of emphasis from micro- to macro-economics is very clear.
33. This notion is borrowed from H. LEIBENSTEIN (Kyklos 19, 1966, Fasc. I), but the
meaning is slightly different here.
34. It is sufficient to mention the controversies on the Cobb-Doulas function.
35. This assumption in practice negates the direct application of the method, as there
is no objective quantitative yardstick for evaluating qualities of labour.
36. See e.g. F. J. DE JONG, Dimensional Analysis for Economists, Amsterdam, 1967.
37. See e.g. papers by J. & J. FOUR AS TI^ and A. KONUS in: The Social Sciences: Problems
and Orientations, Paris-The Hague, Unesco-Mouton, 1968, pp. 57-66 and 93-107.
38. Not to mention the technical difficulty, even in our mass media epoch, of asking too
many questions of too many people: whether the average public opinion has
sufficient imagination to decide on questions likely to affect the standards of
living and patterns of consumption of our grandchildren is open to doubt.
39. Anthropological studies have drawn attention to the existence in many primitive
economies of three categories of goods not subject to mutual exchange. The problem
then is simplified as, in each category, the possibilities of choice are as a rule
limited and are probably determined by comparing the inputs of indispensable
labour time for different products. But even there, a scale of social preferences is
called for to determine the amounts of labour time devoted to the production of
goods of each of the three categories, namely: the ‘necessities’, ‘luxuries’ and
‘ceremonial goods’.
40. The terms ‘theory of growth’ and ‘theory of dynamics’ are sometimes used interchangeably.
The theory of economic dynamics in the case of a capitalist economy
deals not only with the explanation of growth sensu stricto, but also of business
cycles (note the overlapping with the theory of functioning).
41. Which is not tantamount to abstracting them, as many an author of growth
models unfortunately does.
42. Cf. the excellent study by A. RAPOPORT, ‘Mathematical Aspects of General Systems
Analysis’, in: The Social Sciences: Problems and Orientations, op. cit., p.
331 : ‘A mathematical general system theory provides descriptions of these three
aspects of systems, namely, structure, behaviour and evolution, in abstract mathematical
language.’ In the case of economics, ‘evolution’ should be replaced by
‘growth’ and ‘development’.