New Institutional Economics and its Dissemination and Application in China

Author: Lü Zhonglou
Publisher:
Publish Date: 2005-03-01
Features: New Institutional Economics attempts to apply mainstream Western economic theory (primarily neoclassical economics) to analyze the formation and operation of institutions, and to discover their roles and functions within the economic system. The philosophical ideology of New Institutional Economics is the economic liberalism upheld by neoclassical economics, with its basic assumptions and analytical tools also inherited from neoclassical economics—specifically, the "rational actor" paradigm and marginal analysis. What distinguishes New Institutional Economics from neoclassical economics is its introduction of the concept of "transaction costs." "Transaction costs" are the core concept of New Institutional Economics, serving as the basis for analyzing all institutional and organizational choices by its scholars. New Institutional Economics is primarily composed of corporate theory, property rights theory, economic growth theory, state theory, and institutional change and innovation theory. This book discusses these theories separately.