scholarly journals Coase’s Transactional Principle in The Light of System Economic Theory

2021 ◽  
Vol 13 (3) ◽  
pp. 006-019
Author(s):  
Georgе B. Kleiner ◽  
◽  
Keyword(s):  
Economic Theory ◽  
Transaction Costs ◽  
Optimal Level ◽  
Stable Complex ◽  
Internal Space ◽  
Optimal Size ◽  
Costs And Benefits ◽  
New Approach ◽  
Economic Interaction ◽  
Internal Costs

The problem of optimization of transaction costs is investigated in the article from system economic theory. The concept of a transaction is interpreted as an interaction that affects the products’ seller and the products’ buyer and the immediate system environment of each of them. The representation of such an environment in the form of a tetrad, which is a relatively stable complex of four basic subsystems of object, project, process, and environmental types, makes it possible to trace the consequences of the transaction impulse in the economic zone of the seller and the buyer. Based on the systemic expansion of the concept of transaction, we analyze the transaction costs and benefits arising from the transaction in all four subsystems of the internal space of the firm and its immediate external environment. When formulating the modified Coase’s transactional principle, which determines the optimal size of a firm depending on the ratio between transactional (external) and administrative (internal) costs, we take into account the change in the firm’s “effect of influence” on the immediate environment as boundaries of the firm expand. Considering the “effect of influence” becomes especially important in the context of the growing development of the ecosystem form of organizing economic interaction, characterized by an increased density and tightness of intersubjective relations within the ecosystem. Attention is drawn to the positive aspects of “institutional friction” in the economy, which allows a new approach to determining the optimal level of transaction costs. The expediency of considering the “double tetrad” as a combination of the seller’s tetrad and the buyer’s tetrad as a system unit of market analysis is substantiated.

The principles of duality in the light of the system economic theory

2019 ◽  
pp. 127-149
Author(s):  
George B. Kleiner
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
External Environment ◽  
Black Box ◽  
Space Time ◽  
Production Cycle ◽  
Economic Systems ◽  
New Approach ◽  
Reproduction Cycle ◽  
Basic Concepts

This paper shows the diversity and significance of relations of duality among different economic systems. The composition of the principles underlying the system economic theory used for the analysis of duality in the economy is investigated. The concept of the economic system is clarified and the equivalence of three basic concepts of the economic system is shown: a) as a space-time volume (“black box”); b) as a complex of elements and connections among them; c) as a tetrad, including object, project, process and environment components. In a new way, the concept of the tetrad is revealed. The actual interpretation of the interrelationships of its components, based on the mechanisms of intersystem circulation of spatial and temporal resources and the transmission of abilities from one economic system to another, is proposed. On the basis of the obtained results, the most essential aspects of duality in the theory of economic systems are considered. It is shown that the interaction of internal content and the nearest external environment of economic systems lies in the nature of the relations of duality. A new approach to modeling the structure and to functioning of the economic system, based on the description of its activities in the form of two interconnected tetrads (the first tetrad reflects the intrasystem production cycle and the second one — the external realization-reproduction cycle) is put forward. It is shown that the concept of duality in a system economy creates prerequisites for adapting the functioning of local economic systems (objects, projects, etc.) in a market, administrative and functional environments and, as a result, harmonizing the economy as a whole.

scholarly journals Fictions and frictions: Promises, transaction costs and the innovation of network technologies

2019 ◽  
Vol 49 (2) ◽  
pp. 264-277 ◽  
Author(s):  
Udo Pesch ◽  
Georgy Ishmaev
Keyword(s):  
Economic Theory ◽  
Transaction Costs ◽  
Cyclical Pattern ◽  
Critical Scrutiny ◽  
Network Technologies

New network technologies are framed as eliminating ‘transaction costs’, a notion first developed in economic theory that now drives the design of market systems. However, the actual promise of the elimination of transaction costs seems unfeasible, because of a cyclical pattern in which network technologies that make that promise create processes of institutionalization that create new forms transaction costs. Nonetheless, the promises legitimize the exemption of innovations of network technologies from critical scrutiny.

Cultural Capital as a Factor of Uncertainty and Transaction Costs

2015 ◽  
Vol 2015 (5) ◽  
pp. 3-21
Author(s):  
Elena Nikishina
Keyword(s):  
Social Capital ◽  
Economic Theory ◽  
Cultural Capital ◽  
Transaction Costs ◽  
Institutional Design ◽  
Bilateral Trade ◽  
Competitive Advantages ◽  
Suggested Approach ◽  
Definition Of ◽  
Reduction Of Uncertainty

The paper deals with the concept of culture and cultural capital in the economic theory. The concept of culture is analyzed through the points of criticism of social capital by R.Solow. The paper suggests a refined definition of culture and cultural capital. Several ways of productive use of cultural capital are described. Among them: through reduction of uncertainty and transaction costs, through use of competitive advantages, based on culture and harmonization of formal and informal rules. The effect of cultural capital on bilateral trade through reduction in uncertainty and transaction costs is tested in the empirical part of the paper. A suggested approach to cultural capital, based on transaction costs theory can be useful for institutional design, and policy-advice, aiming at the increase in competitiveness of society and the efficiency of formal institutions.

The Causes and Consequences of Terrorism in Africa

2014 ◽  
pp. 723-738
Author(s):  
Juliet U. Elu ◽  
Gregory N. Price
Keyword(s):  
Economic Theory ◽  
Rational Choice ◽  
Choice Model ◽  
Costs And Benefits ◽  
African Countries ◽  
Economic Agents ◽  
The Past ◽  
Rational Choice Model ◽  
Economic Good ◽  
Counterterrorism Policy

African countries have experienced relatively high levels of terrorism. Terrorism has been linked to the theory of deprivation, but the extent to which terrorism is an economic good can be explained using a rational choice model of economic agents. Terrorism is also possibly motivated largely by existential other-worldly goals. If terrorism reflects a solution to a problem with identifiable costs and benefits that accord with the behavior assumed in economic theory, then it may be possible to contain terrorism by altering those costs and benefits. Terrorism as a manifestation of conflict could be a historically persistent phenomena with roots in the past. This chapter examines the causes and consequences of terrorism in Africa, and considers the extent to which existing evidence rationalizes the various explanations for it, and its implications for counterterrorism policy in Africa.

Optimal level and order detection in wavelet decomposition for PCG signal denoising

2019 ◽  
Vol 64 (2) ◽  
pp. 163-176 ◽  
Author(s):  
Mohamed Rouis ◽  
Abdelkrim Ouafi ◽  
Salim Sbaa
Keyword(s):  
Signal To Noise Ratio ◽  
Optimal Level ◽  
Signal Denoising ◽  
Discrete Wavelet ◽  
Clinical Environment ◽  
Mother Wavelet ◽  
New Approach ◽  
The Mean ◽  
Pcg Signals ◽  
Selection Of

Abstract The recorded phonocardiogram (PCG) signal is often contaminated by different types of noises that can be seen in the frequency band of the PCG signal, which may change the characteristics of this signal. Discrete wavelet transform (DWT) has become one of the most important and powerful tools of signal representation, but its effectiveness is influenced by the issue of the selected mother wavelet and decomposition level (DL). The selection of the DL and the mother wavelet are the main challenges. This work proposes a new approach for finding an optimal DL and optimal mother wavelet for PCG signal denoising. Our approach consists of two algorithms designed to tackle the problems of noise and variability caused by PCG acquisition in a real clinical environment for different categories of patients. The results obtained are evaluated by examining the coherence analysie (Coh) correlation coefficient (Corr) and the mean square error (MSE) and signal-to-noise ratio (SNR) in simulated noisy PCG signals. The experimental results show that the proposed method can effectively reduce noise.

WHY ECONOMIC GROWTH IS NEVER SUSTAINABLE

2011 ◽  
Vol 2 ◽  
Author(s):  
Ivars Brīvers
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Sustainable Development ◽  
Steady State ◽  
Great Depression ◽  
Costs And Benefits ◽  
Global Crisis ◽  
The Great Depression ◽  
The People ◽  
State Economy

The first decade of the XXI century clearly shows that the notion of the people concerning the values and goals in economy should be revised. As a result of global crisis economic theory may experience essential changes, as it was during the Great Depression in the XX century. The aim of the paper is to show the necessity of reconsidering the goals in economy. The hypothesis is that growth economy has become non-sustainable and it should be substituted by an economy of a different design – steady-state economy. The paper contains a review and analysis of various ideas about the problem, focusing mainly on the interpretation of the notion of sustainable development and the costs and benefits of economic growth; the way, how we measure things in economy and about the widespread illusions about the possibility of perpetual economic growth. The conclusion is that any growth, including economic growth is never sustainable.

La struttura istituzionale della produzione *

1991 ◽  
Vol 9 (3) ◽  
pp. 163-173
Author(s):  
Ronald H. Coase
Keyword(s):  
Economic Theory ◽  
Transaction Costs ◽  
Market Economy ◽  
Government Regulation ◽  
Social Cost ◽  
Economic Planning ◽  
Invisible Hand ◽  
Eastern European ◽  
Eastern European Countries ◽  
Wealth Of Nations

Abstract During the two centuries following the publication of Adam Smith’s Wealth of Nations the economists’ main objective has been to improve his analysis and in particular his basic statement that government regulation and economic planning are not necessary for the functioning of an efficient economy, since the price system (the «invisible hand») can successfully coordinate the economy.However, the excessive attention to prices deviated research from other aspects of the economic system. Coase’s effort, through his articles on «The nature of the firm» (1937) and «The problem of social cost» (1960), was to introduce in the traditional economic theory some institutional elements. The contribution of the first article was essentially the introduction into economic analysis of transaction costs. In the second article it was shown that contracting in absence of transaction costs maximizes the wealth, quite apart from the assignment of property rights.The introduction of institutional elements can be very helpful for reforms in Eastern European countries, because market economy can only work through appropriate institutions.

scholarly journals Economic regulation business of construction organizations

2021 ◽  
pp. 233-243
Author(s):  
Ihor Yatsenko ◽  
◽  
Volodymyr Kaskiv ◽  
Oleksandr Chechuha ◽  
◽  
...  
Keyword(s):  
Business Processes ◽  
Residential Buildings ◽  
Optimal Level ◽  
Economic Regulation ◽  
Financial Flows ◽  
New Approach ◽  
Construction Organizations ◽  
Construction Organization ◽  
Main Components ◽  
Definition Of

The thesis presents methodological approaches to diagnosis and restructuring the system of economic regulation business processes of construction organizations, aimed to stabilize their economic development. It was suggested a new definition of the term «business process of construction organization» and performed the decomposition of business processes in construction. It was determined main components of management of construction organizations, which allow improving their structure and consolidating all processes with strategically goals. It was improved the outsourcing mechanism to optimize financial processes and flows of subcontract construction organizations under condition of constrains on resources and deadlines on the construction of residential buildings designed and optimal measures of pre-payment. A new approach for the management of financial flows by means of fuzzy sets. Found out typical failings in administration of business processes in «effective» and «ineffective» of construction organizations to restructure their activity. It was conducted determinative factor analysis of profitability of operating activity in construction industry and worked out measures to improve the situation. Worked out the quantitative characteristics of key business processes, which allow defining the size of the advance payment of a customer to optimal level.

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