Institutional Economics: Social Order and Public Policy

Author: Guo Wu Gang
Publisher:
Publish Date: 2002-01-01
Features: In recent years, the reputation of institutional economics has been on the rise. Standard economic explanations often fail to address many major contemporary policy issues, such as economic reforms in developing countries, transitions in socialist planned economies, and regulatory issues in emerging industrial economies. Institutional economists argue that the rule system is crucial in explaining these problems, and the key to finding robust solutions lies in institutional innovation. Institutions must provide a solid foundation for increasingly complex interpersonal interactions, as human exchanges and cooperation rely on delicate and fragile chains of trust. This important work offers an accessible introduction to the developing methods of institutional economics and the core issues surrounding private property and its competitive applications. The book explores its themes based on fundamental assumptions about human cognition and motivation. It includes the following policy-oriented discussions:
● The logical foundation of institutions and their importance;
● Institutional arrangements that underpin domestic markets and international trade;
● Institutional arrangements that establish the foundation for business organizations;
● The role of government, the relative advantages of private and public choices, and methods to control opportunistic use of political power;
● Reforms that can be implemented in mature economies that deeply value government regulation yet must face challenges from new competitors;
● The causes of problems in socialist institutional systems;
● The impact of globalization on institutional development in the modernization processes of third-world countries.