Post-Soviet Privatization in the Light of the Coase Theorem (Transaction Costs and Governance Costs)

2003 ◽  
pp. 120-136 ◽  
Author(s):  
V. Andreff
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Theoretical Perspective ◽  
Transition Process ◽  
Initial Distribution ◽  
Coase Theorem ◽  
Early Years ◽  
Firm Boundaries ◽  
Governance Costs ◽  
The Relationship

A Coasian theoretical perspective is assumed to be in the background of most post-Soviet economies' privatization drives. The assumption of zero transaction costs underlying the Coase theorem guarantees an efficient reallocation of property rights whatever is their initial distribution. Once this assumption is relaxed, the result predicted by the Coase theorem is less certain and clashes with the nature of the firm as it has been analyzed earlier by Coase himself. This preliminary presentation is used as a critical driver to provide a non-mainstream assessment of privatization objectives in Russia that became so obviously high in the early years of the transition process. A Coasian analysis also helps to figure out the post-privatization firm boundaries and to design in-house restructuring as well as industrial restructuring - between industrial branches. The issue of the firm boundaries is crucial in the relationship between privatization and restructuring. Finally, we come to terms with the analysis of post-privatization property rights and corporate governance and their possible (governance) costs for in-house restructuring. The last section is devoted to an evaluation of standard and non-standard methods of privatization.

The Insight and the Legacy of the Theory of Share Tenancy

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Douglas W. Allen ◽  
Dean Lueck
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Contract Design ◽  
Coase Theorem ◽  
The Future ◽  
Economics Of Contracts ◽  
Share Tenancy ◽  
Phd Thesis

Abstract The Theory of Share Tenancy by Steven Cheung, first published as a PhD thesis 50 years ago, was an important watershed study on the economics of contracts. It contained the first formal demonstration of the Coase Theorem, linked the concepts of property rights and transaction costs, laid early foundations for the future economics of contracts, and can even lay claim to originating the idea of a risk/incentive tradeoff in contract design. This essay examines Cheung's key contributions in Share Tenancy, and considers reasons for its somewhat limited legacy outside of China.

scholarly journals Theoretical perspective on the route to turbulence in a pipe

2016 ◽  
Vol 803 ◽  
Author(s):  
D. Barkley
Keyword(s):  
Pipe Flow ◽  
Theoretical Perspective ◽  
Transition Process ◽  
Turbulent Pipe Flow ◽  
Rapid Expansion ◽  
Clear Understanding ◽  
Percolation Transition ◽  
Spatiotemporal Process ◽  
Physical Features ◽  
The Relationship

The route to turbulence in pipe flow is a complex, nonlinear, spatiotemporal process for which an increasingly clear understanding has emerged in recent years. This paper presents a theoretical perspective on the problem, focusing on what can be understood from relatively few physical features and models that encompass these features. The paper proceeds step-by-step with increasing detail about the transition process, first discussing the relationship to phase transitions and then exploiting an even deeper connection between pipe flow and excitable and bistable media. In the end a picture emerges for all stages of the transition process, from transient turbulence, to the onset of sustained turbulence in a percolation transition, to the modest and then rapid expansion of turbulence, ultimately leading to fully turbulent pipe flow.

scholarly journals Geblendet vom Feuerwerk – der Beitrag von Coase über Umweltnutzungskonflikte | Dazzled by fireworks – the contribution made by Coase in the case of conflicts in environmental use

2010 ◽  
Vol 161 (4) ◽  
pp. 135-146
Author(s):  
Martin Hostettler
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Environmental Problems ◽  
Coase Theorem ◽  
Forest Economics ◽  
Environmental Conflicts ◽  
Economic View ◽  
Way Of Thinking ◽  
Economics Research

The contributions of the economist Ronald Coase (1959, 1960) have radically changed the analysis and rectification of environmental problems. A subtly differentiated notion of property and the recognition of the double-sided nature of environmental conflicts enabled him to develop a new economic view on environmental problems. Property rights will be exchanged – provided that transaction costs make this possible. His insights led to several new fields of research, though misunderstandings about the Coase Theorem are still prevalent today. Forest economics research has followed more strongly the Coasean way of thinking in recent years; however, the potential is not yet exhausted by a long way.

Does the Colour of the Cat Matter? The Red Hat Strategy in China's Private Enterprises

2007 ◽  
Vol 3 (1) ◽  
pp. 55-80 ◽  
Author(s):  
Wenhong Chen
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Resource Constraints ◽  
Institutional Environment ◽  
Early Years ◽  
Organizational Dynamics ◽  
Social Embeddedness ◽  
Private Enterprises ◽  
Private Firms ◽  
The Public

The proliferation of new property rights regimes in transitional economies provided an opportunity to examine the interaction between institutions and organizations. Some private enterprises in China developed the Red Hat strategy whereby they disguised their private ownership by registering as a public-owned organization. Drawing on a national survey, this study investigated how institutional variations, transaction costs and social embeddedness affected the firms’ Red Hat strategy. The findings suggest that private firms preferred a fuzzy property rights arrangement in the early years of market transition. The temporal and regional variation of the institutional environment contributed to the adoption of the Red Hat strategy. High transaction costs — networking cost and resource constraints — were positively related to the adoption of the Red Hat strategy. Social embeddedness also played an important role. The reliance on transaction partners in the public sector increased the pressure to adopt the Red Hat, while connections with high-ranking cadres facilitated the process. However, private firms opted for clearly delineated property rights as the institutional environment improved. In turn, the decisions of individual firms affected the institutional environment at the aggregate level. The Red Hat strategy exemplifies the co-evolution of institutional change and organizational dynamics.

scholarly journals The Coase theorem: coherent, logical, and not disproved

2014 ◽  
Vol 11 (2) ◽  
pp. 379-390 ◽  
Author(s):  
DOUGLAS W. ALLEN
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Coase Theorem ◽  
The Other ◽  
Long Line ◽  
Adequate Definition ◽  
Definition Of

Abstract:There exists a long line of challengers to the ‘Coase Theorem’. All of these rest on fundamental misconceptions of property rights, transaction costs, and their interaction. Here I examine two attacks that have gone unchallenged: one by Halpin, the other by Usher. I argue that both, in failing to either use or understand an adequate definition of transaction costs, fail to deliver a fatal blow to Coase's famous idea.

scholarly journals Swiss land improvement syndicates: ‘Impure’ Coasian solutions?

2020 ◽  
pp. 147309522092362 ◽  
Author(s):  
Sina Shahab ◽  
François-Xavier Viallon
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Policy Instrument ◽  
Coase Theorem ◽  
Theory And Practice ◽  
Planning Theory ◽  
Local Authorities ◽  
Correct Information ◽  
Development Processes ◽  
Land Improvement

An increasing number of planners have explored the implication of Coase theorem for planning theory and practice. As there are often a large and dispersed number of actors involved in planning issues, the application of ‘Pure’ Coasian solutions has proved to be limited. However, some studies argue that when the conditions for a ‘Pure’ Coasian solution do not exist, ‘Impure’ Coasian solutions may still be achievable. This article examines how, when conditions of ‘Impure’ Coasian solutions are available, local authorities in Switzerland use land improvement syndicates as a policy instrument in order to achieve negotiated solutions in relation to development processes involving multiple landowners. With a syndicate in the commune of Cheseaux as an illustrative example, the article analyses how this policy instrument has been utilised to reduce transaction costs, correct information asymmetries and clarify property rights. The focus has been on an interpretation of the Coasian theorem that identifies attempts to reduce transaction costs and clarify property rights as the main roles of governments or local authorities.

scholarly journals FORMS OF MANAGEMENT IN AGRICULTURE IN UZBEKISTAN: SCIENTIFIC AND THEORETICAL BASIS OF ITS EFFECTIVENESS

2013 ◽  
Vol 1 ◽  
pp. 50-60
Author(s):  
Dilorom Tadjibaeva
Keyword(s):  
Statistical Analysis ◽  
Property Rights ◽  
Institutional Theory ◽  
Transaction Costs ◽  
Theoretical Basis ◽  
Early Years ◽  
Institutional Changes ◽  
Main Role ◽  
Theoretical Point ◽  
Definition Of

During the early years of independence (1990s), agricultural and institutional changes in Uzbekistan were made based on the specific characteristics of our country. During transformation, almost nothing has changed in terms of effectivity in regards to transformation of state farms to collective farms still did not make these farms profitable. Only with the formation of dehkan farms (a form of individual farming) after 2004 did agricultural entities started becoming profitable. How can this be explained? Why are these agricultural forms of management more efficient and coincide with the mentality of our population? In this article, using the neo-institutional theory, we have discussed these questions in an attempt to answer these questions by justifying a theoretical point. This theory shows that major issue property rights and transaction costs play main role in the definition of forms of farms management. Statistical analysis of transaction costs and local specifics resulted in a conclusion that the dehkan farming form has significant advantages.

From transaction costs to transaction value: Overcoming the frictional paradigm

2020 ◽  
pp. 51-81
Author(s):  
D. P. Frolov
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Path Dependence ◽  
Transaction Cost Economics ◽  
Cost Minimization ◽  
Low Cost ◽  
Coase Theorem ◽  
Transactional Analysis ◽  
Transaction Sector ◽  
Transaction Value

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about transaction costs as frictions, the dogma about the unproductiveness of transactions as a generator of losses, “Stigler—Coase” theorem and the logic of transaction cost minimization, and also the dogma about the priority of institutions providing low-cost transactions. The listed dogmas underlie the prevailing tradition of transactional analysis the frictional paradigm — which, in turn, is the foundation of neo-institutional theory. Therefore, the community of new institutionalists implicitly blocks attempts of a serious revision of this dogmatics. The purpose of the article is to substantiate a post-institutional (alternative to the dominant neo-institutional discourse) value-oriented perspective for the development of transactional studies based on rethinking and combining forgotten theoretical alternatives. Those are Commons’s theory of transactions, Wallis—North’s theory of transaction sector, theory of transaction benefits (T. Sandler, N. Komesar, T. Eggertsson) and Zajac—Olsen’s theory of transaction value. The article provides arguments and examples in favor of broader explanatory possibilities of value-oriented transactional analysis.

The Germans and their Jewish Neighbors on the Ukrainian Areas at the Second Half of the 19th Century

2020 ◽  
pp. 17-27
Author(s):  
D. Meshkov
Keyword(s):  
Everyday Life ◽  
19Th Century ◽  
Russian Empire ◽  
Early Years ◽  
Criminal Cases ◽  
South West ◽  
Multiethnic Population ◽  
The Russian Empire ◽  
The 19Th Century ◽  
The Relationship

The article presents some of the author’s research results that has got while elaboration of the theme “Everyday life in the mirror of conflicts: Germans and their neighbors on the Southern and South-West periphery of the Russian Empire 1861–1914”. The relationship between Germans and Jews is studied in the context of the growing confrontation in Southern cities that resulted in a wave of pogroms. Sources are information provided by the police and court archival funds. The German colonists Ludwig Koenig and Alexandra Kirchner (the resident of Odessa) were involved into Odessa pogrom (1871), in particular. While Koenig with other rioters was arrested by the police, Kirchner led a crowd of rioters to the shop of her Jewish neighbor, whom she had a conflict with. The second part of the article is devoted to the analyses of unty-Jewish violence causes and history in Ak-Kerman at the second half of the 19th and early years of 20th centuries. Akkerman was one of the southern Bessarabia cities, where multiethnic population, including the Jews, grew rapidly. It was one of the reasons of the pogroms in 1865 and 1905. The author uses criminal cases` papers to analyze the reasons of the Germans participation in the civilian squads that had been organized to protect the population and their property in Ackerman and Shabo in 1905.

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