The taming of institutions in economics: the rise and methodology of the ‘new new institutionalism’

2009 ◽  
Vol 5 (3) ◽  
pp. 289-313 ◽  
Author(s):  
PETER SPIEGLER ◽  
WILLIAM MILBERG
Keyword(s):  
Institutional Economics ◽  
Explanatory Power ◽  
Cost Benefit ◽  
Analytical Framework ◽  
Economic Modeling ◽  
New Institutional Economics ◽  
Formal Models ◽  
Modeling Tools ◽  
Pareto Improving

Abstract:We examine the origin and methodology of a ‘New New Institutional Economics’ (NNIE) – an emerging research agenda distinguished by its attempt to account for the role of institutions in complex socio-economic change by formally modeling institutions as the background conditions to parameterized cost–benefit calculations. The NNIE expands the application of economic modeling tools to new areas of inquiry, models institutional outcomes with parsimony and mathematical rigor, and introduces political and economic power, thereby allowing for consideration of institutional change that is not Pareto improving. Using a four-part analytical framework, we find that the explanatory power of NNIE analysis derives not from its formal models, but from a more vague, nuanced, and narrative version of the formal models, which we call ‘Quasi-Models’. We find that the NNIE's formal models are too parsimonious to meaningfully illuminate the complex institutions they ostensibly represent.

Political Settlements and Economic Transformation

2018 ◽  
Author(s):  
Hazel Gray
Keyword(s):  
Institutional Economics ◽  
Building Blocks ◽  
Analytical Framework ◽  
Economic Transformation ◽  
New Institutional Economics ◽  
Technological Learning ◽  
The Core ◽  
1960S And 1970S ◽  
The 1960S ◽  
Political Settlement

This chapter sets out the analytical framework of political settlements and elaborates the framework to account for the socialist experiences of Tanzania and Vietnam in the 1960s and 1970s. A political settlement, as defined by Mushtaq Khan, is a combination of power and institutions that is mutually compatible and also sustainable in terms of economic and political viability. The chapter clarifies the core building blocks of the approach and sets out the main differences between political settlements and new institutional economics. The chapter then defines a socialist political settlement where productive rights are formally held by the collective and formal institutions protect common and collectively owned assets. The attempts to construct a socialist political settlement left important institutional, political, and economic legacies. These shaped incentives and constraints which influenced a number of critical processes at the heart of economic development—related to technological learning, accumulation for investment, and political stabilization.

Institutions

2019 ◽  
pp. 30-41
Author(s):  
Stefan Voigt
Keyword(s):  
Institutional Economics ◽  
Research Area ◽  
Economic Transformation ◽  
New Institutional Economics ◽  
Transformation Property ◽  
Special Focus ◽  
Political Transformation ◽  
Definition Of ◽  
Transformation Processes

This chapter offers a look at transformation processes from the perspective of the new institutional economics (NIE). It briefly describes the main pillars of this research area, including its assumptions, the definition of institutions, and their interplay. It is shown that the NIE can contribute to explaining the outcome of transformation processes by pointing at the different institutions relied upon during transition. In the section surveying the large literature on institutions and transition, special focus is laid on the role of constitutions for political transformation, property rights for economic transformation, and internal or informal institutions as institutions largely exempt from deliberate transformation which can, hence, constitute an important constraint in transformation processes. The chapter concludes by pointing out some research gaps.

Transformation of the State and Political Economy of the Governance

2020 ◽  
pp. 239-257
Author(s):  
Emek Yıldırım
Keyword(s):  
Political Economy ◽  
Public Administration ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
The State ◽  
State Model ◽  
Functional Changes ◽  
The Public ◽  
Role Of The State

By the 1980s and 1990s, neoliberal policies such as privatizations and deregulations transforming the minimal state model to regulative state model from the Keynesian social welfare state system made some structural and functional changes in the state mechanism, and the public administration has been in the first place due to the changing relationship between the state and the market. In fact, within this context, the new institutional economics (NIE) had a remarkable influence upon the debates upon the altering role of the state. Hence, the transformation of the state in this regard also revealed the argumentations on the governance paradigm along with the doctrinaire contributions of the new institutional economics. Therefore, this chapter will discuss the transformation of the state and the political economy of the governance together with a critical assessment of the new institutional economics in the public administration.

Re-Thinking the Role of Institutions in Neoliberalism From New Institutional Economics Perspective

2020 ◽  
pp. 25-40
Author(s):  
Ilke Civelekoglu ◽  
Basak Ozoral
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Developing Countries ◽  
Property Rights ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
The Political ◽  
Formal Institutions ◽  
Fertile Ground

In an attempt to discuss neoliberalism with a reference to new institutional economics, this chapter problematizes the role of formal institutions in the neoliberal age by focusing on a specific type of formal institution, namely property rights in developing countries. New institutional economics (NIE) argues that secure property rights are important as they guarantee investments and thus, promote economic growth. This chapter discusses why the protection of property rights is weak and ineffective in certain developing countries despite their endorsement of neoliberalism by shedding light on the link between the institutional structure of the state and neoliberalism in the developing world. With the political economy perspective, the chapter aims to build a bridge between NIE and political economy, and thereby providing fertile ground for the advancement of NIE.

Ronald Coase's impact on economics

2014 ◽  
Vol 11 (2) ◽  
pp. 227-244 ◽  
Author(s):  
MARY M. SHIRLEY ◽  
NING WANG ◽  
CLAUDE MÉNARD
Keyword(s):  
Institutional Economics ◽  
Social Cost ◽  
Law And Economics ◽  
New Institutional Economics ◽  
Careful Study ◽  
Empirical Reality ◽  
Role Of Government ◽  
Institutional Issues ◽  
Rapid Transformation

AbstractRonald Coase had a profound impact on scholarship worldwide, and not for his ideas alone. Coase's ideas about transaction costs, the nature of the firm, the role of government, and the problem of social cost have been hugely influential. Throughout his long life, he also worked to change the conduct of economics, urging economists to ground their conclusions in careful study of empirical reality rather than theories that work only on the blackboard. Less well known, perhaps, is his work to nurture and shape the emerging fields of law and economics and new institutional economics, or his support to young scholars studying institutional issues around the world. In his final years, he was preoccupied by the rapid transformation of China and the institutional structure of production. This article summarizes Coase's significant intellectual contributions to economics, pointing out along the way some of the traits that made him such a powerful thinker and exceptionally influential scholar.

scholarly journals Creating Values for Sustainability: Stakeholders Engagement, Incentive Alignment, and Value Currency

2012 ◽  
Vol 2012 ◽  
pp. 1-9 ◽  
Author(s):  
Frank T. Lorne ◽  
Petra Dilling
Keyword(s):  
Value Creation ◽  
Institutional Economics ◽  
Evaluation Method ◽  
Evolutionary Process ◽  
New Institutional Economics ◽  
Incentive Alignment ◽  
Economic Role ◽  
Shareholder Theory ◽  
The Difference

A shareholder theory of firm and a stakeholder theory of firm may differ in their respective evaluation method of firm performance. Both theories however recognize the importance of value creation as the economic role of firms as institutions. The New Institutional Economics (NIE) emphasizes incentives alignment, while also viewing stakeholder engagements as methods to expand the boundaries of firms. The difference in performance evaluation between the two approaches can be reduced if stakeholders, while formulating incentive alignment, also evaluate the mechanisms of establishing a common currency value. The concomitant development of stakeholder engagement, incentive alignment, and value currency creation is argued to be an evolutionary process with the efficiency implications of the two theories tending to converge.

Greek Epigraphy and Ancient Economics

2012 ◽  
Author(s):  
Alain Bresson
Keyword(s):  
Institutional Economics ◽  
New Institutional Economics ◽  
Technological Advance ◽  
Textile Production ◽  
Ancient Economy ◽  
New Concepts ◽  
Ancient Economics ◽  
Greek Epigraphy ◽  
Land Exploitation

After initial comments on the role of Greek inscriptions as ‘archives’, this chapter reviews the drastic changes that have occurred since Finley's book of 1973 in the picture of the ancient economy, both by acknowledging development and growth, and by adopting new concepts, not least New Institutional Economics with its emphasis on transaction costs. The methodological impact of such new approaches is sketched in four fields, each of which is illustrated with epigraphic documentation: (1) production and growth, instancing technological advance, land exploitation and textile production; (2) finance, taxes, trade and prices, with emphasis on the need and opportunities for quantification; (3) money and coinage; and (4) the transformation of uncertainty into an assessment of risk, illustrated in respect of farming practices and recourse to consultation of oracles and curse-tablets.

scholarly journals The Role of CSR on Social Entrepreneurship: An International Analysis

2020 ◽  
Vol 12 (17) ◽  
pp. 6976
Author(s):  
Inmaculada Buendía-Martínez ◽  
Inmaculada Carrasco Monteagudo
Keyword(s):  
Social Entrepreneurship ◽  
Cultural Context ◽  
Structural Equation ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Research Trend ◽  
Policy Makers ◽  
The Subject ◽  
Corporate Social

The increase in the weight of social entrepreneurship (SE) in the economy has driven the increase in research on the subject. Within the set of approaches developed by scholars to analyse SE, the institutional approach has recently acquired greater relevance. Following this research trend, this article seeks to expand the empirical research on SE by focusing on the informal factors that are less studied in the literature and using a cross-national base. Using the New Institutional Economics and partial least squares–structural equation modelling (PLS-SEM), our findings show the influence of cultural context on the SE dimension. In addition, this influence occurs through two groups of variables led by social capital and corporate social responsibility, although their impacts show opposite signs. These factors have important implications for policy makers in charge of fostering SE development.

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