New Institutional Economics

Author: Lu Xianxiang
Publisher:
Publish Date: 2004-01-01
Features: This course introduces students and others with a basic understanding of economics to the rapidly developing field of New Institutional Economics. Since the mid-1970s, "New Institutional Economics" (newinstitutionaleconomics), represented by Coase, has been gaining increasing influence in economic theory, becoming a notable theoretical phenomenon in Western academia. New Institutional Economics has also emerged as a prominent discipline in modern economics. As the renowned figure of New Institutional Economics, Professor Coase once said, "Contemporary institutional economics should study people from a practical perspective, focusing on how individuals act within the constraints imposed by real-world institutions." Another prominent figure in New Institutional Economics, North, argued that the goal of institutional economics is to study how people make decisions in the real world under the context of institutional evolution and how these decisions, in turn, shape the world [2]. Both Coase and North emphasized that New Institutional Economics should focus on studying people, institutions, and economic activities, as well as their interrelationships. As Coase put it, what characterizes contemporary institutional economics is that the issues it explores are those raised by the real world. Although the theories of New Institutional Economics have not yet provided complete answers to many real-world economic problems, the wisdom embedded in its theories can offer us some insights. Particularly in the process of transitioning from a traditional planned economy to a market economy, New Institutional Economics has provided a fresh perspective and a valuable methodology for economic theoretical research.