In his American Economic Association presidential address, Taylor (1929) laid out the conditions under which a socialist economy could in theory achieve an efficient allocation of resources. The conditions parallel those of a private-enterprise economy. They include the state providing money income to its citizens, citizens using their income as they choose to buy output produced by stateenterprises, and the state setting prices equal to marginal cost so as to compensate factors of production, including labor, with prices set by trial-and-error to clear markets. In this, Taylor stated principles of market socialism developed by Abba Lerner and Oscar Lange in the following decade and anticipated in mathematical form by Enrico Barone in 1908.
^Fred M. Taylor (1929). "The Guidance of Production in a Socialist State," American Economic Review, 19(1), pp. 1-8, reprinted in On the Economic Theory of Socialism (1938) and Socialism and the Market: The Socialist Calculation Debate Revisited (2000), pp. 1-8.
^*Z. Clark Dickinson (1960). "Fred M. Taylor's Views on Socialism," Economica, N.S. 27(105), pp. 42- 52.
^M. H. I. Dore and M. C. Kaser (1984). "The Millions of Equations Debate: Seventy Years after Barone, Atlantic Economic Journal, pp. 30-44.