scholarly journals On fuzzy frontiers and fragmented foundations: some reflections on the original and new institutional economics

2014 ◽  
Vol 10 (4) ◽  
pp. 591-611 ◽  
Author(s):  
GEOFFREY M. HODGSON
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Human Motivation ◽  
Golden Triangle ◽  
Key Points ◽  
Dynamic Analyses ◽  
Douglass North

AbstractThese reflections are prompted by the papers by Ménard (2014) and Ménard and Shirley (2014). Their essays centre on the path-breaking contributions to the ‘new institutional economics’ (NIE) by Ronald Coase, Douglass North and Oliver Williamson. In response, while recognising their substantial achievements, it is pointed out that these three thinkers had contrasting views on key points. Furthermore, Ménard's and Shirley's three ‘golden triangle’ NIE concepts – transaction costs, property rights and contracts – are themselves disputed. Once all this is acknowledged, differences of view appear within the NIE, raising interesting questions concerning its identity and boundaries, including its differences with the original institutionalism. There are sizeable overlaps between the two traditions. It is argued here that the NIE can learn from the original institutionalism, particularly when elaborating more dynamic analyses, and developing more nuanced, psychologically-grounded and empirically viable theories of human motivation.

New Institutional Economics and Economic Development

2021 ◽  
pp. 27-40
Author(s):  
Manolis Manioudis ◽  
Giorgos Meramveliotakis
Keyword(s):  
Economic Development ◽  
Property Rights ◽  
Transaction Costs ◽  
Political Discourse ◽  
Power Relations ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Institutional Framework

In recent years, the concept of “institutions” has become central in scientific and political discourse. This reflects an increasing awareness of the role of institutions in the functioning of economies and in economic development more generally. Many of the catchphrases articulated within new institutional economics such as “institutions,” “organisations,” “transaction costs,” “property rights,” and “contracts” have become very common in orthodox economics discourse. This development is intellectually stimulating and interesting because it raises some fundamental issues with regard to the role and functioning of institutions. These concepts are seated on Smith's idea of the “harmony of interests.” However, Smith sees power as dominant in the formation of institutional framework. This chapter aims to provide a Smithian critique based on the notion of power, arguing that the formation of institutions and institutional framework cannot be considered apart from the intrinsic power relations which are vested in society.

scholarly journals IMPACTOS DA URBANIZAÇÃO BRASILEIRA E O DIREITO DE PROPRIEDADE

2020 ◽  
Vol 17 (3) ◽  
pp. 34
Author(s):  
Marco Aurelio Zazyki ◽  
Solange Marin ◽  
Gilnei Luiz de Moura
Keyword(s):  
Population Dynamics ◽  
Literature Review ◽  
Property Rights ◽  
Exploratory Study ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Economic Activities ◽  
Urbanization Process ◽  
The Subject ◽  
Douglass North

RESUMOO artigo analisa os impactos causados pelo processo de urbanização nacional relacionados à moradia, com base nos estudos de Douglass North, da Nova Economia Institucional (NEI). A metodologia é caracterizada por um estudo exploratório a partir de uma revisão de literatura referente ao processo de urbanização brasileiro e a abordagem sobre o direito de propriedade sob a perspectiva da teoria economia institucionalista. Os resultados teóricos e empíricos acumulados pela NEI oferecem um instrumental importante para uma melhor compreensão das várias interfaces entre o sistema econômico e as instituições legais e jurídicas que condicionam as atividades e transações econômicas relacionadas à moradia. As ideias de North mostraram-se adequadas na discussão do tema, haja vista que se o direito de propriedade for mais bem definido, atribuído e garantido, nessas comunidades, menores serão os custos de transação e, consequentemente, maior será o valor do ativo e da renda do proprietário deste.Palavras-chave: Urbanização brasileira. Dinâmica populacional. Direito de propriedade urbano. ABSTRACTThe article analyzes the impacts caused by the process of national urbanization related to housing, based on Douglass North studies of the New Institutional Economics (NEI). The methodology is characterized by an exploratory study based on a literature review regarding the Brazilian urbanization process and the approach on property rights from the perspective of institutionalist economics theory. The theoretical and empirical results accumulated by the NEI provide an important tool for a better understanding of the various interfaces between the economic system and the legal and juridical institutions that condition the economic activities and transactions related to housing. The ideas of North were adequate in the discussion of the subject, since if the property rights are better defined, assigned and guaranteed in these communities, the lower the transaction costs and, consequently, the greater the value of the asset and of the owner's income.Keywords: Brazilian urbanization. Population dynamics. Urban property rights.

Pouring Water out of the Tub, Do not Forget the Baby! (On the Correlation of Antimonopoly Policy and Economic Development)

2003 ◽  
pp. 111-119 ◽  
Author(s):  
A. Shastitko
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Property Rights ◽  
Transaction Costs ◽  
Institutional Economics ◽  
Mutual Exclusion ◽  
New Institutional Economics ◽  
Constructive Criticism ◽  
Bundle Of Rights ◽  
Analytical Tools

Key arguments on mutual exclusion of antimonopoly policy and economic development are criticized in the article. Analytical tools of the New Institutional Economics are used to identify the background of antimonopoly policy: property rights as a bundle of rights, externalities, transaction costs, comparative analysis of discrete structural alternatives. Perspective directions of constructive criticism and development of antimonopoly policy have been indicated.

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.

Governing the Environment: the Intitutional Economics Approach

2009 ◽  
pp. 61-86
Author(s):  
Arild Vatn
Keyword(s):  
Transaction Costs ◽  
Environmental Governance ◽  
Institutional Economics ◽  
Specific Area ◽  
New Institutional Economics ◽  
Neoclassical Economics ◽  
Institutional Perspective ◽  
Institutional Structures ◽  
Plural Rationalities ◽  
Jel Classifications

- Analyzing environmental governance implies foremost to analyze institutional structures and their implications. In doing so, the present paper utilizes insights primarily from the tradition of classical institutional economics. The paper is divided in three. In the first part I describe the main features of the classical position and compare it briefly with that of neoclassical economics and the tradition of new institutional economics. In the second part I clarify what is considered the main aspects of governance as seen from an institutional perspective. In part three I move to the more specific area of environmental governance. The concept of resource regimes is defined. Moreover I analyze how different regimes influence which environmental problems appear and how they can be treated. I discuss how institutions influence the formation and articulation of knowledge and values, how they form and protect interests, how they influence the level of transaction costs and hence the possibilities for coordination, and finally how they form the motivations underlying human choices in concrete contexts. Given that all these variables are shown to be endogenous to the institutional system, the use of comparative analysis in the assessment of various governance options is emphasized.Keywords: classical institutional economics, interdependence, resource regimes, value articulation, interest protection, transaction costs, plural rationalities.JEL classifications: B52; Q50; D02; D70.

scholarly journals Gender and Transaction Costs in Use of Zero Grazing Net for Tsetse Fly and Trypanosomiasis Control in Stall Feeding Systems in Kenya

2017 ◽  
Vol 7 (3) ◽  
pp. 96
Author(s):  
Jared Isaboke Mose
Keyword(s):  
Transaction Costs ◽  
Institutional Economics ◽  
Survey Design ◽  
Sampling Technique ◽  
New Institutional Economics ◽  
Tsetse Fly ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Men And Women ◽  
Zero Grazing

Trypanosomiasis is a widespread constraint in livestock production, mixed farming and human health in Africa. Several technologies have been developed to ameliorate the effects of the disease but delivery of these technologies to farmers has been undertaken on trial and error basis without a proper strategy leading to more failure than success and wastage of scarce resources. The purpose of this paper was to carry out an analysis of transaction costs incurred in accessing and using insecticide treated net in tsetse and trypanosomiasis control among smallholder cattle farms in Busia County, Kenya. The study utilized cross–sectional survey design and was guided by the New Institutional Economics approach and utilized stratified and simple random sampling technique to get 211 respondents for the study. Data was collected by use of structured questionnaires and analyzed using descriptive and inferential statistics. Conjoint analysis results for zero grazing net showed that cost was the most important factor influencing farmers’ decision, accounting for 38.52% of the total while durability and availability each accounted for 25% and retreatability accounted for 10% of the decisions. Further t-test results showed that there were significant differences between men and women with respect to attribute scores (at 99 d.f. and alpha = 0.05%) suggesting that men and women face different transaction costs in accessing T&T control technologies. Therefore there is need for gender sensitive strategies in T&T technology design and dissemination. Tsetse fly and Trypanosomiasis control by use of low cost technologies such as insecticide treated zero grazing net should be promoted by government and other development partners. The net should be affordable, available at supply outlets close to farmers, long lasting and re-treatable for famers to take it up.

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.

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