Economic System

An Economic System is a social system that organizes economic activity through economic relations and economic institutions for the production, resource allocation, exchange, and distribution of goods and services within a society.

AKA: Economic Order, Socioeconomic System, Socio-Economic System.
Context:
- It can (typically) organize Economic Production through economic production relations and economic production processes.
- It can (typically) manage Economic Distribution via economic distribution mechanisms and economic allocation principles.
- It can (typically) facilitate Economic Exchange through economic market structures and economic transaction systems.
- It can (typically) regulate Economic Consumption through economic consumption patterns and economic demand signals.
- It can (typically) control Economic Resources via economic resource allocation mechanisms.
- It can (typically) establish Economic Value through economic valuation processes and economic pricing mechanisms.
- It can (typically) define Economic Roles via economic division of labor and economic specialization.
- It can (typically) generate Economic Incentives through economic reward structures.
- It can (typically) form Economic Institutions such as economic markets, economic financial systems, and economic regulatory bodies.
- It can (typically) create Economic Relationships between economic agents including economic labor relations and economic consumer-producer dynamics.
- It can (typically) coordinate Economic Activity via economic price signals.
- It can (typically) enable Economic Value Creation through economic productive processes.
- It can (typically) manage Economic Resource Scarcity via economic distribution systems.
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- It can (often) create Economic Inequality through economic stratification mechanisms.
- It can (often) experience Economic Growth via economic productivity increase and economic innovation processes.
- It can (often) undergo Economic Cycles through economic expansion phases and economic contraction phases.
- It can (often) respond to Economic Crisis via economic stabilization mechanisms.
- It can (often) develop Economic Institutions to address economic coordination problems.
- It can (often) implement Economic Policy through economic intervention mechanisms such as economic trade protection, economic subsidy, economic targeted tax credits, and economic fiscal stimulus.
- It can (often) create Economic Externalities due to economic activity impacts on non-economic domains.
- It can (often) shape Economic Culture through economic value systems and economic behavior norms.
- It can (often) establish Economic Social Partnerships between different economic sectors and economic stakeholders.
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- It can range from being a Simple Economic Social System to being a Complex Economic Social System, depending on its economic complexity.
- It can range from being a Traditional Economic Social System to being a Modern Economic Social System, depending on its economic development stage.
- It can range from being a Local Economic Social System to being a Global Economic Social System, depending on its economic geographic scope.
- It can range from being a Free Market Economic Social System to being a Planned Economic Social System, depending on its economic coordination mechanism.
- It can range from being a Subsistence Economic Social System to being an Industrialized Economic Social System to being a Post-Industrial Economic Social System, depending on its economic production mode.
- It can range from being an Egalitarian Economic Social System to being an Unequal Economic Social System, depending on its economic wealth distribution.
- It can range from being a Sustainable Economic Social System to being an Unsustainable Economic Social System, depending on its economic environmental impact.
- It can range from being a Stable Economic Social System to being an Unstable Economic Social System, depending on its economic volatility.
- It can range from being a Private Ownership Economic Social System to being a Public Ownership Economic Social System, depending on its economic ownership structure.
- It can range from being a Competitive Economic Social System to being a Collaborative Economic Social System, depending on its economic competition level.
- It can range from being a Lightly Regulated Economic Social System to being a Tightly Regulated Economic Social System, depending on its economic regulation intensity.
- It can range from being a Human-based Economic Social System to being an Automation-based Economic Social System, depending on its economic labor composition.
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- It can provide Economic Welfare through economic goods provision and economic service delivery.
- It can perform Economic Coordination through economic information processing and economic decision mechanisms.
- It can have Economic Resilience via economic adaptation mechanisms and economic diversification.
- It can establish Economic Identity through economic class formation and economic occupational structures.
- It can enable Economic Social Functions as the economic institution through which a society's economic resources are economic exchanged and economic managed.
- It can make use of an Economic Monetary System, an Economic Barter System, and/or an Economic Debt System.
- It can interact with Political Systems through economic policy.
- It can affect Social Systems via economic wealth distribution.
- It can impact Environmental Systems through economic resource use.
- It can shape Cultural Systems via economic consumption patterns.
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- It can be Economically Integrated in economic globalization contexts.
- It can be Economically Disruptive during economic technological revolution periods.
- It can be Economically Efficient in economic competitive environments.
- It can be Economically Exploitative within economic power imbalance contexts.
- It can be Economically Inclusive through economic participatory governance structures.
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Examples:
- Economic Social System Scale Types, such as:
  - Microeconomic Social Systems, such as Household Economic Social Systems and Local Market Economic Social Systems.
  - Macroeconomic Social Systems, such as National Economic Social Systems and Regional Trade Bloc Economic Social Systems.
- Market-Based Economic Social Systems, such as:
  - Capitalist Economic Social Systems, such as:
  - Mixed Economic Social Systems, such as:
- Planning-Based Economic Social Systems, such as:
- Traditional Economic Social Systems, such as:
- Economic Social System Development Stages, such as:
- Economic Social System Sectors, such as:
- Region-Based Economic Social Systems, such as:
  - U.S. Economic Social System
  - Canada Economic Social System
- Emerging Economic Social Systems, such as:
  - Digital Economic Social Systems with platform-based exchange and data-driven production.
  - Sharing Economic Social Systems with collaborative consumption models and peer-to-peer provision.
  - Circular Economic Social Systems with resource reuse principles and waste elimination goals.
  - Social Economy Systems with not-for-profit economic entities providing economic goods and economic services to community members.
  - Local Exchange Trading Economic Social Systems (LETS) with locally initiated structures, democratic economic organization, and not-for-profit community exchange.
- ...
Counter-Examples:
- A Political Social System, which organizes political power distribution rather than economic resource allocation.
- A Legal Social System, which establishes legal rules rather than economic exchange patterns.
- A Kinship Social System, which structures family relations rather than economic production relations.
- A Religious Social System, which concerns spiritual beliefs rather than material resource management.
- An Educational Social System, which transmits knowledge rather than produces economic goods and economic services.
- A Moral Social System, which focuses on ethical norms rather than economic transactions.
- A Cultural Social System, which concerns cultural values rather than economic exchanges.
See: Social System, Economic Theory, Political Economy, Mode of Production, Economic Sociology, Karl Marx, Adam Smith, Karl Polanyi, Economic Anthropology, Social Economy, Capitalism, Socialism, Economic Input, Economic Output, Economic System Productivity, City Economy, Currency, Good (Economics), Demand, Supply (Economics), Barter, Medium Of Exchange.

References

2021

(Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/economic_system Retrieved:2021-2-22.
- An economic system, or economic order, ^[1] is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area. It includes the combination of the various institutions, agencies, entities, decision-making processes and patterns of consumption that comprise the economic structure of a given community. An economic system is a type of social system. The mode of production is a related concept. All economic systems must confront and solve the three fundamental economic problems: * What kinds and quantities of goods shall be produced. * What and how much economic resources will be used. * How will the output be distributed. ^[2] The study of economic systems includes how these various agencies and institutions are linked to one another, how information flows between them, and the social relations within the system (including property rights and the structure of management). The analysis of economic systems traditionally focused on the dichotomies and comparisons between market economies and planned economies and on the distinctions between capitalism and socialism. Subsequently, the categorization of economic systems expanded to include other topics and models that do not conform to the traditional dichotomy. Today the dominant form of economic organization at the world level is based on market-oriented mixed economies. ^[3] An economic system can be considered a part of the social system and hierarchically equal to the law system, political system, cultural and so on. There is often a strong correlation between certain ideologies, political systems and certain economic systems (for example, consider the meanings of the term “communism"). Many economic systems overlap each other in various areas (for example, the term “mixed economy” can be argued to include elements from various systems). There are also various mutually exclusive hierarchical categorizations.

2013

http://en.wikipedia.org/wiki/Economic_system
- … Economic systems is the category in the Journal of Economic Literature classification codes that includes the study of such systems. One field that cuts across them is comparative economic systems. Subcategories of different systems there include:
  - planning, coordination, and reform
  - productive enterprises; factor and product markets; prices; population
  - public economics; financial economics
  - national income, product, and expenditure; money; inflation
  - international trade, finance, investment, and aid
  - consumer economics; welfare and poverty
  - performance and prospects
  - natural resources; energy; environment; regional studies
  - political economy; legal institutions; property rights.^[4]

↑ Daniel J. Cantor, Juliet B. Schor, Tunnel Vision: Labor, the World Economy, and Central America, South End Press, 1987, p. 21: "By economic system or economic order, we mean the principles, laws, institutions, and understandings business is conducted."
↑ Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill. p. 34
↑ • Paul A. Samuelson and William D. Nordhaus (2004). Economics, McGraw-Hill, Glossary of Terms, "Mixed economy"; ch. 1, (section) Market, Command, and Mixed Economies.
• Alan V. Deardorff (2006). Glossary of International Economics, Mixed economy.
↑ JEL classification codes, Economic systems JEL: P Subcategories

2013

(Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/economy Retrieved:2013-12-26.
- An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.
  In the past, economic activity was theorized to be bounded by natural resources, labor, and capital. This view ignores the value of technology (automation, accelerator of process, reduction of cost functions), and creativity (new products, services, processes, new markets, expands markets, diversification of markets, niche markets, increases revenue functions), especially that which produces intellectual property.
  A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.
  A market-based economy is where goods and services are produced without obstruction or interference, and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network, such as a unit of currency and at some free market or market clearing price. Capital and labor can move freely to any area of emerging shortage, signaled by rising price, and thus dynamically and automatically relieve any such threat. Market based economies require transparency on information, such as true prices, to work, and may include various kinds of immaterial production, such as affective labor that describes work carried out that is intended to produce or modify emotional experiences in people, but does not have a tangible, physical product as a result.
  A command-based economy is where a central political agent commands what is produced and how it is sold and distributed. Shortages are common problems with a command-based economy, as there is no mechanism to manage the information (prices) about the systems natural supply and demand dynamics.
Granovetter, M. (1985). Economic Action and Social Structure: The Problem of Embeddedness. American Journal of Sociology, 91(3), 481-510.
North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
Hall, P. A., & Soskice, D. (Eds.). (2001). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press.
Piketty, T. (2014). Capital in the Twenty-First Century. Harvard University Press.
Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.
Marx, K. (1867). Das Kapital (Capital).
Weber, M. (1922). Economy and Society.
Polanyi, K. (1944). The Great Transformation.

[1] Daniel J. Cantor, Juliet B. Schor, Tunnel Vision: Labor, the World Economy, and Central America, South End Press, 1987, p. 21: "By economic system or economic order, we mean the principles, laws, institutions, and understandings business is conducted."

[2] Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill. p. 34

[3] • Paul A. Samuelson and William D. Nordhaus (2004). Economics, McGraw-Hill, Glossary of Terms, "Mixed economy"; ch. 1, (section) Market, Command, and Mixed Economies.
• Alan V. Deardorff (2006). Glossary of International Economics, Mixed economy.

[4] JEL classification codes, Economic systems JEL: P Subcategories

[1]

[2]

[3]

[4]