Kornai’s Limitation Rules

Abstract

János Kornai in [1] has shown why a socialistic economy should be an economy of shortage i.e. an economy where the supply does not keep up with the demand, and in [3] he has shown why a capitalistic economy should be a surplus economy i.e. an economy where the demand does not keep up with the supply. Unfortunately it is not quite clear what do the words socialism and capitalism mean, so instead of them two other theoretical types of polity are introduced. Next we apply the Gödel limitation theorem to the introduced model of polity and so we obtain a dichotomic partition of all economies into economies of shortage and surplus economies. In the second part of the article we apply the notions of shortage and surplus to a classification of state systems of law.