The problem of economic calculation is a critique of the use of economic planning as a substitute for the market for the allocation of factors of production. It was first proposed by Ludwig von Mises in his 1920 article entitled "Economic Calculation in the Socialist Commonwealth" and later extended by Friedrich Hayek. In his first article, Mises describes the nature of the price system under capitalism, and describes how subjective values are translated into objective information required a rational allocation of resources in society. change the code
wiki
