ABSTRACT
The article assesses different forms of economic evaluation, and the kinds of criteria, rationality, and judgement used. In particular, it compares evaluation involving use-value measures and multiple criteria with “valuation” involving a single cardinal measure such as price. It is argued that while prices enable complex modern economies to be coordinated, they are seriously inadequate as indicators of economic value. The argument is developed via a comparison of a largely self-sufficient household economy or commune with a “catallaxy” or economy with an advanced division of labour coordinated by markets, such as capitalism. While coordination via market prices has significant advantages, it allows important information relevant to economic evaluation to be ignored. I argue that the household case holds important lessons regarding the kinds of economic evaluation and regulation that are necessary for an environmentally sustainable economy that is socially just and supports well-being.
