Oskar Ryszard Lange (Polish: [ˈlanɡɛ]; 27 July 1904 – 2 October 1965) was a Polish economist and diplomat. He is best known for advocating the use of market pricing tools in socialist systems and providing a model of market socialism. He responded to the economic calculation problem proposed by Ludwig von Mises and Friedrich Hayek by claiming that managers in a centrally-planned economy would be able to monitor supply and demand through increases and declines in inventories of goods, and advocated the nationalization of major industries. During his stay in the United States, Lange was an acade
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External links Media related to Oskar Lange at Wikimedia Commons Quotations related to Oskar R. Lange at Wikiquote Oskar Lange in Encyclopædia Britannica. Henderson, David R., ed. (2008). "Oskar Ryszard Lange (1904–1965)". The Concise Encyclopedia of Economics. Library of Economics and Liberty (2nd ed.). Liberty Fund. pp. 554–555. ISBN 978-0865976665. Oskar Ryszard Lange, 1904–1965. In the History of Economic Thought by the Institute for New Economic Thinking. New Poland, a documentary. Guide to the Oskar Lange Papers 1936–1944 at the University of Chicago Special Collections Research Center
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Oskar Ryszard Lange (Polish: [ˈlanɡɛ]; 27 July 1904 – 2 October 1965) was a Polish economist and diplomat. He is best known for advocating the use of market pricing tools in socialist systems and providing a model of market socialism. He responded to the economic calculation problem proposed by Ludwig von Mises and Friedrich Hayek by claiming that managers in a centrally-planned economy would be able to monitor supply and demand through increases and declines in inventories of goods, and advocated the nationalization of major industries. During his stay in the United States, Lange was an academic teacher and researcher in mathematical economics. Later in socialist Poland, he was a member of the Central Committee of the Polish United Workers' Party.
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Lange was born in Tomaszów Mazowiecki as the son of the Protestant manufacturer Arthur Julius Lange and his wife Sophie Albertine Rosner. His ancestors had emigrated at the beginning of the 19th century from Germany to Poland. He studied law and economics at the University of Kraków, where he defended a doctoral dissertation in 1928 under Adam Krzyżanowski. From 1926 to 1927, Lange worked at the Ministry of Labour in Warsaw, and then was a research assistant at the University of Kraków (1927–31). He married Irene Oderfeld in 1932. In 1934, a Rockefeller Foundation fellowship brought him to England, from where he emigrated to the United States in 1937. Lange became a professor at the University of Chicago in 1938 and was naturalized as a U.S. citizen in 1943. Joseph Stalin, who identified Lange as a person of leftist and pro-Soviet sympathies, prevailed on President Franklin D. Roosevelt to obtain a passport for Lange to visit the Soviet Union in an official capacity, so that Stalin could speak with him personally; he also proposed offering him a position in the future Polish cabinet. The State Department was opposed to Lange travelling as an emissary because they felt that his political…
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Oskar Lange worked for the Polish government while continuing his academic pursuits at the University of Warsaw and the Main School of Planning and Statistics. He was deputy chairman of the Polish Council of State in 1961–65, and as such one of four acting chairmen of the Council of State (a head of state function) when Aleksander Zawadzki died in 1964.
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The bulk of Lange's contributions to economics came during his American interlude of 1933–45. Despite being an ardent socialist, Lange deplored the Marxian labor theory of value because he was very much a believer in the neoclassical theory of price. In the history of economics, he is probably best known for his work On the Economic Theory of Socialism published in 1936, where he famously put Marxian economics and neoclassical economics together. In the book, Lange advocated the use of market tools (especially the neoclassical pricing theory) in economic planning of socialism and Marxism. He proposed that central planning boards set prices through "trial and error", making adjustments as shortages and surpluses occur rather than relying on a free price mechanism. Under this system, central planners would arbitrarily pick a price for products manufactured in government factories and raise it or reduce it, depending on whether it resulted in shortages or gluts. After this economic experiment had been run a few times, mathematical methods would be employed to plan the economy: if there were shortages, prices would be raised; if there were surpluses, prices would be lowered. Raising the prices would encourage businesses to increase production, driven by their desire…
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Bibliography 1934. "The Determinateness of the Utility Function," RES. 1935. "Marxian Economics and Modern Economic Theory," Review of Economic Studies, 2(3), pp. 189–201. 1936a. "The Place of Interest in the Theory of Production", RES 1936b. "On the Economic Theory of Socialism, Part One," Review of Economic Studies, 4(1), pp. 53–71. 1937. "On the Economic Theory of Socialism, Part Two," Review of Economic Studies, 4(2), pp. 123–142. 1938. On the Economic Theory of Socialism, (with Fred M. Taylor), Benjamin E. Lippincott, editor. University of Minnesota Press, 1938. 1938. "The Rate of Interest and the Optimum Propensity to Consume", Economica 1939. "Saving and Investment: Saving in Process Analysis", QJE 1939. "Is the American Economy Contracting?", AER 1940. "Complementarity and Interrelations of Shifts in Demand", RES 1942. "Theoretical Derivation of the Elasticities of Demand and Supply: the direct method", Econometrica 1942. "The Foundations of Welfare Economics", Econometrica 1942. "The Stability of Economic Equilibrium", Econometrica. 1942. "Say's Law: A Restatement and Criticism", in Lange et al., editors, Studies in Mathematical Economics. 1943. "A Note on Innovations", REStat "The Theory of the Multiplier", 1943, Econometrica "Strengthening the Economic Foundations of Democracy", with Abba Lerner, 1944, American Way of Business. 1944. Price Flexibility and Employment. 1944.…
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See also Lange model, a neoclassical model of market socialism Michał Kalecki Fred M. Taylor
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Sources Milton Friedman, 1946. "Lange on Price Flexibility and Employment: A Methodological Criticism", American Economic Review, 36(4), pp. 613– 631. Reprinted in Friedman, 1953, Essays in Positive Economics, pp. 277–300. Charles Sadler, 1977. "Pro-Soviet Polish-Americans: Oskar Lange and Russia's Friends in the Polonia, 1941–1945", Polish Review, 22(4), pp. 25–39.