Economic system efficiency in the history of economic thoughts: Tracing ideas from A. Smith to J. Stiglitz

Abstract

The economic system is a set of institutional arrangements used for the repartition of Resources. The economic systems are identified in function of their characteristics such as law of ownership, informational mechanisms, levels of responsibilities, authority of taking decision, and the incentive arrangements. The economic systems are considered as spectrum of arrangements for the types of economic systems such as decentralized, capitalist, incentive, social planned. The dichotomies within these systems bring us to the question to understand the differences between these types of systems and modelling the phases of transition towards an efficient system. We are using within this synthesis the historical economic thoughts analysis to diagnosis the transition towards an efficient economic system.