@misc{10481/71300,
year = {2021},
url = {http://hdl.handle.net/10481/71300},
abstract = {The Austrian school economics and neo-Marxist theories both have been reviving in recent
years. However, the current academic discussion lacks a debate between two schools of economics
with diametrically opposed views. This paper is the first and an initial Austrian challenge to NeoMarxist scholars Nieto and Mateo’s argumentation that cyber-communism and the Austrian theory
of dynamic efficiency are consistent to enhance economic development. Their argument focuses
on two issues: (a) the existence of circular reasoning in the Austrian theory of dynamic efficiency,
and (b) dynamic efficiency and full economic development could be strongly promoted in a socialist
system through new information and communication technologies (ICT) and the democratization of
all economic life. While cyber-communism refers to cyber-planning without private property rights
through ICT, dynamic efficiency refers to the entrepreneurs’ creative and coordinative natures. In
this paper, first, we argue that the hypothesis that dynamic efficiency and cyber-communism is not
compatible. Contrary to the above cyber-communist criteria, the Austrian theory of dynamic efficiency argues that to impede private property rights is to remove the most powerful entrepreneurial
incentive to create and coordinate profit opportunities, the entrepreneurial incentives to create and
coordinate profit opportunities are removed to identify human problems and the ability and willingness to solve them. Second, we argue that the cyber-communism system is inconsistent with
economic development. In this regard, we explain how the institutional environment can cultivate
or stifle dynamic efficiency and economic development. Having briefly outlined the central argument of Nieto and Mateo, we examine the institutional arrangement supporting cyber-communism.
After that, we evaluate the implications of cyber-communism in the dynamic efficiency process. It
becomes manifest that Nieto and Mateo’s accounts are too general to recognize the complexity of
how economic development works.},
publisher = {MDPI},
keywords = {Private property rights},
keywords = {Dynamic efficiency},
keywords = {Economic development},
keywords = {Entrepreneurship},
keywords = {Economic calculation},
keywords = {Socialism},
keywords = {Austrian economics},
keywords = {Cyber-communism},
keywords = {Neo-Marxism},
keywords = {Market process},
title = {Private Property Rights, Dynamic Efficiency and Economic Development: An Austrian Reply to Neo-Marxist Scholars Nieto and Mateo on Cyber-Communism and Market Process},
doi = {10.3390/economies9040165},
author = {Hongsong Wang, William and Espinosa, Víctor I. and Peña Ramos, José Antonio},
}