“Institutions and Economic Performance: The Use and Abuse of Culture in New Institutional Economics”: A Response to Heydemann

2008 ◽  
Vol 43 (2) ◽  
pp. 206-217 ◽  
Author(s):  
Jeffrey B. Nugent
Keyword(s):  
Economic Performance ◽  
Institutional Economics ◽  
New Institutional Economics

The Economy of Ancient Greece: A Conceptual Framework

2018 ◽  
pp. 1-28
Author(s):  
Alain Bresson
Keyword(s):  
Conceptual Framework ◽  
Economic Performance ◽  
Institutional Economics ◽  
Max Weber ◽  
Ancient Greece ◽  
New Institutional Economics ◽  
Ancient Greek ◽  
Homo Economicus ◽  
Ancient Economy ◽  
Greek Economy

This chapter describes the conceptual framework used by the book to study the economy of ancient Greece. It begins with a discussion of the debate between “primitivists,” represented by Karl Bücher, and “modernists,” represented by Eduard Meyer, over the nature of the ancient Greek economy. It considers Bücher's adherence to the so-called German Historical School of Political Economy and goes on to examine the views of Moses I. Finley and Max Weber regarding the ancient economy, Karl Polanyi's use of institutionalism as an approach to the study of the ancient economy, and the main assumptions of New Institutional Economics (NIE) with regard to the genesis and evolution of institutions. The chapter also analyzes the transaction costs theory and concludes with an assessment of criticisms against the classical economists' economic agent, the homo economicus, and the influence of constrained choices and limited rationality on economic performance.

scholarly journals Institutions, Entrepreneurship, and Post-Soviet Development: An Assessment of Moldova’s Entrepreneurial Climate (1991-2009)

2015 ◽  
Vol 5 (4) ◽  
pp. 44
Author(s):  
Olga Nicoara
Keyword(s):  
Economic Performance ◽  
Institutional Economics ◽  
Institutional Context ◽  
New Institutional Economics ◽  
Market Process ◽  
Local Institutions ◽  
Institutional Barriers ◽  
Policy Makers ◽  
Economic Stagnation ◽  
Entrepreneurial Climate

<p>This paper explores the relation between Moldova’s institutions, entrepreneurship, and poor economic performance 18 years after socialism. The prevailing local institutions determine the direction of entrepreneurship in society (North, 1990; Baumol, 1990; Olson, 1996; Boettke, 1998). Societies with a mix of institutions favorable to productive entrepreneurship experience sustained growth. Conversely, societies with institutions rewarding unproductive and destructive entrepreneurship experience economic stagnation. Using the conceptual frameworks of new institutional economics, Austrian market process theory, and interviews with local entrepreneurs, I explore the link between Moldova’s institutional context and the local entrepreneurship and underdevelopment. For a better understanding of Moldova’s poor economic performance after socialism, scholars and policy makers must investigate the existing underlying gap between the <em>de jure</em> and the <em>de facto</em> institutional barriers to productive entrepreneurship.</p>

Linking institutions to economic performance: the role of macro-structures in micro-explanations

2012 ◽  
Vol 8 (3) ◽  
pp. 327-349 ◽  
Author(s):  
CYRIL HÉDOIN
Keyword(s):  
Game Theory ◽  
Economic Performance ◽  
Institutional Economics ◽  
Cultural Beliefs ◽  
New Institutional Economics ◽  
Individual Agency ◽  
Causal Mechanisms ◽  
Game Theoretic

Abstract:Economists have been investigating the link between institutions and economic performance for several years. While econometric studies of this link have flourished, they are of limited use in understanding the causal mechanisms making some institutions responsible for economic performance. Several works using game theory and akin to the ‘new institutional economics’ have entertained the goal of developing micro-explanations of the institutions–performance link. Because game theory focuses on individuals’ actions and beliefs, game-theoretic studies of institutions are thought to oppose more ‘structuralist’ explanations that downplay the role of individual agents and put more emphasis on the importance of social (or ‘macro’) structures. This paper demonstrates that this claim is misconceived, as the micro-explanations produced by game-theoretic models must assume already existing macro-structures. Institutions produce downward effects, shaping each agent's action. Moreover, in a game-theoretic framework, macro-structures are constitutive of individual agency since, without them, agents would often be unable to choose. I illustrate this claim with the example of Avner Greif's study of the role of cultural beliefs in the economic organisation of medieval societies.

scholarly journals The market for the “old” and the “new” institutional economics

2018 ◽  
Vol 38 (3) ◽  
pp. 450-468 ◽  
Author(s):  
ADRIANO JOSÉ PEREIRA ◽  
HERTON CASTIGLIONI LOPES
Keyword(s):  
Transaction Cost ◽  
Economic Performance ◽  
Theoretical Basis ◽  
Institutional Economics ◽  
Transaction Cost Economics ◽  
New Institutional Economics ◽  
Mainstream Economics ◽  
Theoretical Approaches ◽  
Contractual Approach ◽  
Determining Factor

ABSTRACT This paper conceives of the market as an institution, and contrasts two theoretical approaches: Institutionalism, with an evolutionary and analytical bias, whose theoretical basis comes from “Old/Original” Institutionalism, and New Institutional Economics, with an analytical, contractual approach, linked to mainstream economics. Both approaches have given relevant contributions, as they consider the importance of institutions for economic performance. The limits of New Institutional Economics are particularly relevant, whose analysis of the operation of markets is centered on the logic of transaction cost economics as a determinant of economic performance. Evolutionary Institutionalism, in turn, sees the market within a broader scope, in which cost economies only partially explains economic performance, but it is not necessarily seen as a determining factor.

A Theoretical Basis For Innovation, Institutions And Insurance Penetration Nexus

2021 ◽  
Vol 8 (3) ◽  
pp. 61-72
Author(s):  
Usman Ahmed Hafiz ◽  
Fauzilah Salleh ◽  
Murtala Garba
Keyword(s):  
Economic Performance ◽  
Theoretical Basis ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Modern World ◽  
The Novel ◽  
Publish Or Perish ◽  
Diversity And Inclusion ◽  
Insurance Penetration ◽  
Novel Products

Insurance is one of the systematic solutions to risk reduction available in the modern world. Its contribution to socio-economic development is difficult to overestimate, bearing in mind that the level of diversity and inclusion of the sector explains the degree of financial progress of a nation.  This paper has a twofold objectives of ascertaining and discussing an overview of theories that stimulate economic performance from the angles of institutions and innovation. Keywords were used to search literature repository with the aid of Harzing’s publish or perish software. As a result of this process, the New Institutional Economics (NIE) and Schumpeter’s theory of Innovation found suitable to the objectives of the study. The paper concludes that efficient institutions coupled with the emergence of the novel products may likely promote trust and confidence in the market as well as specific needs of the large majority unserved potential consumers. Therefore, interaction between institutions and innovation could likely trigger insurance uptake.

scholarly journals Effet des coûts de transaction sur la performance économique et l’adoption du coton biologique au Centre et Nord du Bénin

2020 ◽  
Vol 14 (4) ◽  
pp. 1416-1431
Author(s):  
Barnabé Agalati ◽  
Pamphile Degla
Keyword(s):  
Transaction Costs ◽  
Economic Performance ◽  
Institutional Economics ◽  
Geographic Location ◽  
Negative Influence ◽  
Positive Influence ◽  
Organic Production ◽  
New Institutional Economics ◽  
Cotton Production ◽  
Organic Cotton

Face au défi de la dégradation de l’environnement et des problèmes sanitaires liés à la production du coton conventionnel au Bénin, la production du coton biologique initiée depuis quelques décennies peine à se développer. Cet article s’intéresse à l’analyse de l’effet des coûts de transaction (CT) sur la performance économique et l’adoption du coton biologique au Centre et au Nord du Bénin. Basée sur un échantillon aléatoire de 408 producteurs dont 168 adoptants du coton biologique, l’étude a utilisé l’approche d’estimation des CT, la régression logistique et le test t de Student pour l’analyse des données. Les résultats montrent que les CT, plus élevés dans le système du coton biologique réduisent considérablement la performance économique de ce système et affectent négativement la probabilité de son adoption. Outre cet effet, il ressort également l’influence négative d’autres facteurs tels que le sexe, le niveau de rendement, la distance domicile-exploitation, le nombre d’années d’expérience dans la production cotonnière et le mode de faire valoir direct sur l’adoption du coton biologique. La formation technique dans la production du coton biologique et la situation géographique exercent par contre une influence positive sur l’adoption du coton biologique.Mots clés : Déterminants, système de production, économie néo-institutionnelle, agriculture biologique English Title: Effect of transaction costs on the economic performance and the adoption of organic cotton in central and northern Benin Regarding the environmental degradation challenge and health problems due to the production of conventional cotton in Benin, organic cotton production initiated several decades ago is struggling to develop. This paper focuses on analyzing the effect of transaction costs on the economic performance and the adoption of organic cotton in central and northern Benin. The study is based on a random sample of 408 producers, including 168 adopters of organic cotton. The transaction costs estimation approach, the logistic regression and the Student's t-test were used for data analysis. The results show that the high transaction costs in the organic cotton system significantly reduce the economic performance of this system and negatively affect the probability of adoption of organic cotton. In addition, there is the negative influence of other factors such as gender, the level of yield, the distance from home to farm, the years of experience in cotton production as well as the direct tenure mode in the adoption of organic cotton. On the other side, technical training in the production of organic cotton and the geographic location have a positive influence on the adoption of organic cotton.Keywords: Determinants, production system, new institutional economics, organic production.

scholarly journals Why transaction costs are so relevant in political governance? a new institutional survey

2016 ◽  
Vol 36 (2) ◽  
pp. 330-352 ◽  
Author(s):  
GONZALO CABALLERO ◽  
DAVID SOTO-OÑATE
Keyword(s):  
Transaction Costs ◽  
Economic Performance ◽  
Research Program ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Transactions Costs ◽  
Political Markets ◽  
Economic Markets ◽  
Douglass North ◽  
Political Governance

ABSTRACT The New Institutional Economics, led by four Nobel laureates (Ronald Coase, Douglass North, Oliver Williamson and Elinor Ostrom), has showed that institutions and organizations are a medium for reducing transaction costs and obtaining a higher efficiency in economic performance. This paper goes into the research program of the New Institutional Economics to explain the relevance of transaction costs in political exchange and organization and show that transactions costs are even higher in political markets than in economic markets. The paper reviews the main contributions on institutions, transaction costs and political governance, and provides some lessons on political transacting and governance. The survey includes the most detailed catalogue of political transaction costs that has ever been published.

Vertical Restrictions: Development of Theory, Antitrust Legislation and Enforcement

2010 ◽  
pp. 110-122 ◽  
Author(s):  
S. Avdasheva ◽  
N. Dzagurova
Keyword(s):  
Institutional Theory ◽  
Institutional Economics ◽  
Theory Of The Firm ◽  
New Institutional Economics ◽  
Hierarchical Organization ◽  
Vertical Restraints ◽  
New Institutional Theory ◽  
Antitrust Laws ◽  
Antitrust Legislation ◽  
Market Organization

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.

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