Economic calculation in socialist countries

In the 1930s, when the classical socialist system emerged, economic decisions were based not on detailed and precise economic methods of calculation but on rough and ready political methods. An important method of economic calculation - particularly in the post-Stalin period - was that of incrementalism. Input norms were a very important method of both inter-industry and consumption planning. Material balances, and later input-output, were also widely used. Project evaluation, linear programming, comparisons with the West, and economic intuition were other methods used. The influence of methods of economic calculation on economic outcomes should not be exaggerated.