In Dynamism, Rivalry, and the Surplus Economy, János Kornai examines capitalism as an economic system and in comparison to socialism. Kornai explains his view of capitalism as an economy of surplus--a chronic excess of supply of goods and labor. This environment breeds rivalry among producers, which in turn encourages innovation. Socialism, on the other hand, is defined by a shortage of goods and labor and excess of demand. Whereas socialism is slothful and imitative, capitalism is dynamic and progressive. The two essays of this book will explore these differing ideologies on macro and micro levels, ending with definitive explanations of how the systems work and how they develop.

Kornai is one of the most profound, inspiring and leading economists in the study of fundamential regularities in capitalism and socialism. The uniqueness of this book is the comparative perspective that reveals the features of capitalism by comparing it with its mirror image, socialism.The book provides general guidance and provokes throughts for studying capitalism. * Chenggang Xu, Journal of Economic Literature *

Professor of Economics Emeritus, Harvard University and Corvinus University of Budapest. www.kornai-janos.hu