Enrico Barone

Enrico Barone (Italian: [baˈroːne]; 22 December 1859, Naples, Kingdom of the Two Sicilies – 14 May 1924, Rome, Italy) was a soldier, military historian, and an economist.

"[1] In 1908, he presented a mathematical model for a socialist economy under which certain relations, later identified with shadow prices, must be satisfied for "maximum collective welfare.

He stressed that such a result could not be arrived at a priori but only by experimentation on a large scale with great demands on data collection, even assuming unchanging productive conditions.

In this, he suggested that movement toward economic efficiency in a socialist economy was not inconceivable, outlining two types of socialism: a centralized and decentralized model.

For such regimes, whatever the distribution rule for output and income adopted by the Ministry of Production, the same economic categories would reappear for prices, salaries, interest, rent, profits, saving, etc., though perhaps with different names.