Page 45 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 1, 2023, pp. 35-53

The spectrum of controls can be too broad and can include wide arrays of incentives,
punishments and sometimes supplanting the micro-actions by centralized decision. Finding
the suitable controls is the task of instrumental analysis while applying the controls in real
context is the practical aspect of political economics. Political economics envisages controls
as an operational principle which differs from the controls of conventional economic policy
in the sense that latter takes the behaviour of micro-units for granted while the former
concerns influencing the behaviour and motivational patterns themselves. Controls work at
multiple levels and may also take form of coercion or direct government intervention to
remedy the situation. Controls are to be seen in the context of goal-adequate behaviour and
regularly assessed of its efficacy through a feedback mechanism.

Fig. 2 below represents a logical framework of development planning based on Adolph
Lowe’s model of instrumental inference. It shows wide range of controls categorized
into price and non-price controls.

Fig. 2 Development planning based on Instrumental Inference
Source: Created by author

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