New Institutional Economics

Author: Cheng Enfu
Publisher:
Publish Date: 2005-01-01
Features: The formation of New Institutional Economics is closely related to the serious drawback of Western mainstream economics in neglecting institutional analysis. Coase and North, among others, analyzed from new perspectives such as property rights, transaction costs, and institutions, attempting to restore the "explanatory power" of Western economics over the real economic world. It is closely associated with anti-Keynesianism, advocating minimal government intervention and emphasizing that only when private property rights are clearly defined will transaction costs decrease, leading to automatic maximization of resource allocation efficiency. It is also relevant to developing countries, socialist countries undergoing economic transformation, and reforms, with significant spread and influence.