ABSTRACT
Reform of the steering mechanism involves reforms in wage policy, and reform of taxes paid by enterprises (see pp. 23–28). The policy parameters relating to wage policy are the parameter k(or g) which relates changes in the wage fund to changes in profit, and the tax on the wage fund, WT. These parameters are inputs into the response function of producers, forming coded instructions about decisions relating to labour and wages. It is instructive to recall that Williamson (1975, Ch.2 passion) points out that one of the efficiency gains of internal decision-making comes from the use of ‘in-house’ codes or jargon; here we have an example of organisational change producing changes in the in-house ‘code’ which conveys instructions from planners to producers.
