Such costs that are excluded--in effect, for religious reasons--from economic calculations
, as part of the necessary "price of progress" that any good citizen should be willing to bear, include:
The Knowledge Problem and Economic Calculation
in Development Aid
The net present value is used to compare and rank competing investment projects in the present value approach to economic calculation
Hence, government cannot perform the rational economic calculation
necessary for economic progress because the kind of knowledge required for such a task is dispersed among all individuals producing and consuming in a society rather than being centralized in one omniscient figure.
Land-Use Planning: Implications of the Economic Calculation
Holcombe wisely notes the fundamental importance of economic calculation
and entrepreneurship, explaining the nature of economic profit as an indicator of economic progress and welfare enhancement.
The "same thing" in which lending and borrowing are done is money because only money provides the unit of economic calculation
He discusses entrepreneurship, socialism, Ludwig von Mises and the start of the debate on economic calculation
, the unjustified shift in the debate toward statics: the argument of formal similarity and the so-called mathematical solution, and Oskar Lange and the competitive solution.
Mises emphasized an intellectual division of knowledge in a private-property order that enables the formation of market prices for purposes of economic calculation
, without which a rational use of the society's means of production is "impossible.
Adam Smith and Ludwig von Mises on Social Cooperation and Economic Calculation
1) Warnings by Austrian economists that central planning was doomed to fail because of the impossibility of performing economic calculation
(Mises, 1981, 1990) and processing local knowledge (Hayek, 1945) fell on deaf ears.
Any classical liberal today can reenact the economic calculation
debate as easily as an old soldier might reenact on his dinner table the battles of his youth.