Posts Tagged ‘New Institutional Economics’

Policy Relevance of New Institutional Economics?: Assessing Efficiency, Legitimacy and Effectiveness

October 25th, 2013 humas No comments

Oleh: Eva Lieberherr (EPFL)

Policy Relevance ...

Neoclassical economic theory played a central role in the public policy shift from the monopoly paradigm with strong government intervention to the liberalization of utility sectors in the early 1980s (Groenewegen 2005; Geradin 2006; Guthrie 2006). Yet the removal of governmental interferences and the devolvement of public sector activities to private contractors has not produced consistently successful results (Williamson2000; von Weizsacker, Young et al. 2005; Schouten and Pieter van Dijk 2007).

Institutional economists argue that this lack of achievement is in part due to the reliance on neoclassical economic theory, which focused on economic coordination via the price mechanism and production efficiency while ignoring considerations such as rules, behaviors and social norms (Coase 2000; North 2000; Joskow 2008).

Their argument suggests that since lessons learned from new institutional economics (NIE) can provide valuable insights into public policy-making (specifically the process of restructuring), NIE should therefore have more clout in public policy-making (Joskow 2008). NIE is indeed gaining widespread attention in social science literature as it is becoming a more mainstream subject (Joskow 2008). Particularly with respect to liberalization of utility sectors, NIE is increasingly used to analyze modes of economic coordination (Rothenberger and Truffer 2003; Finger, Groenewegen et al. 2005).

Download: Eva Lieberherr, Policy Relevance of New Institutional Economics?: Assessing Efficiency, Legitimacy and Effectiveness

The Approach of Institutional Economics

October 23rd, 2013 humas No comments

Geoffrey M. Hodgson

TODAY, THE TERM “new institutional economics” is in widespread use and is associated with a vast literature. Clearly, the temporal adjective in the adopted title of this broad set of postwar theories and approaches has been intended to demarcate the “new institutional economics” from the “old” institutional economics of Thorstein Veblen, John Commons, and Wesley Mitchell.

This earlier institutionalism had actually been dominant in economics departments in American universities just after the First World War. Despite this, little detailed reference has been made by leading exponents of the “new” institutional economics to this predecessor. Two factors may help to explain this oversight. The first is that the history of economic thought is currently a much neglected subdiscipline, and there is now widespread unfamiliarity with the “old” American institutionalism, despite its favored geographic location and accessible language.

The second reason is that since its decline in America after 1930 the “old” institutionalism has been repeatedly written off, and is dismissed for failing to provide a systematic and viable approach to economic theory. It is also widely—and wrongly—believed that institutionalism was essentially anti-theoretical and descriptive.

Download: Hodgson, Geoffrey M. (1998). “The Approach of Institutional Economics,Journal of Economic Literature, 36(1), pp. 166-192 (close Bookmarks).

The New Institutional Economics- Its Start, Its Meaning , Its Prospects

February 19th, 2009 humas 4 comments


UPDATE: Download dan baca versi terbarunya: The New Institutional Economics- Its Start, Its Meaning , Its Prospects -

Apakah arti dari New Institutional Economics? Dari manakah kemunculannya dan bagaimana prospeknya? Download dan baca tulisan The New Institutional Economics- Its Start, Its Meaning , Its Prospects - yang disusun oleh Rudolf Richter.

Substansi isinya relatif lengkap, tetapi mohon untuk dicermati secara hati-hati karena masih bersifat For discussion only! dan Please do not quote.

Substansi isinya juga membahas beberapa teori, yang umum dikategorikan dalam pokok bahasan NIE, yaitu:

  1. property rights economics,
  2. transaction cost economics,
  3. evolutionary economics,
  4. constitutional choice,
  5. collective action theory,
  6. public choice theory,
  7. economic contract theory, dan
  8. new institutional economic history.

Economic Performance through Time

October 31st, 2008 humas 1 comment

Douglass C. North

Douglass C. NorthEconomic history is about the performance of economies through time. The objective of research in the field is not only to shed new light on the economic past but also to contribute to economic theory by providing an analytical framework that will enable us to understand economic change.

A theory of economic dynamics comparable in precision to general equilibrium theory would be the ideal tool of analysis. In the absence of such a theory we can describe the characteristics of past economies, examine the performance of economies at various times, and engage in comparative static analysis; but missing is an analytical understanding of the way economies evolve through time.

Read more…

New Institutional Economics

October 24th, 2008 humas No comments

By Peter G. Klein, University of Missouri at Columbia – Contracting and Organizations Research Institute (CORI)

// essay surveys the new institutional economics, a rapidly growing literature combining economics, law, organization theory, political science, sociology, and anthropology to understand social, political, and commercial institutions.

This literature tries to explain: what institutions are, how they arise, what purposes they serve, how they change, and how they may be reformed. Read more…