ECONOMIC  Systems

Kornai – a non-commodified vision with the neoclassics

Kornai – a non-commoditized vision with the neoclassics

According to János Kornai, in an economic system, institutions play an important role as a set of rules, norms, and values, both formal and informal, that govern intrasystemic relationships, establishing behavioral patterns.

The Hungarian researcher introduces the notion of "systemic tension," relying on four indicators:

(1) aspiration tension (the difference between the aspiration level and the result obtained through the effective decision);

(2) degree of aspiration tension (the ratio between the aspiration level and the result obtained through the respective decision);

(3) decision tension (the difference between the effective decision and the result obtained from its application);

(4) degree of decision tension (the ratio between the decision made and the result obtained from its application).

Such intensity (strain) indicators of the system demonstrate the realism of the decisions adopted and the degree of veracity of the forecasts. The behavioral differences between two economic systems of the same type can be explained by:

(a) the types of indicators that each system focuses on in decision-making and regulation processes;

(b) the regularities and trends that describe the evolution over time of the indicators;

(c) the intensity with which each system acts to achieve its objectives.

Unlike theorists (classical and) neoclassical, Kornai believes that many economic processes are characterized by the discrete nature of variables and the fragmented, abrupt, broken nature of relationships.

For this reason, the mathematical tools of Newtonian mechanics are not applicable to economic phenomena, which rather require a quantum vision. In his view, researchers' attempts to optimize economic processes using continuous variables and differential equations are doomed to failure (equilibrium and optimality—the primary objectives of classical and neoclassical thinkers—represent an inappropriate way to approach economic phenomena); the development of economic science, the author argues, cannot be done in isolation but through an interdisciplinary effort capable of integrating various branches of the field with sociology, anthropology, cybernetics, psychology, law, political science, etc. In other words, Janos Kornai proposes a multidimensional approach to the economy, in fact the fundamental principle from Anti-equilibrium.

[see: Tiberiu Brăilean – op. cit., p.40 and following.]