Structural Changes in Economic History (Pinyin - Translated Classics)

Author: Douglas
Publisher:
Publish Date: 2003-01-01
Features: North, in this book, focuses on expressing a central idea: Due to the constraints of human productive capacity and living environment, only through the basic activity of exchange, i.e., transactions, can economic benefits and security be obtained. Property rights are the fundamental prerequisite for transactions, and the efficiency of the property rights structure leads to economic growth, stagnation, or economic recession. The state determines the structure of property rights and ultimately bears responsibility for the efficiency of the property rights structure. Additionally, since the measurement costs of constraints are high, if individuals are not restrained by ideological beliefs from pursuing maximum interests, the vitality of economic organizations will be threatened. Therefore, the role of ideology is irreplaceable. It is a time-and-energy-saving tool that helps simplify the decision-making process and enhances social stability and the cohesion of economic institutions. North's explanation of long-term economic growth and the evolution of human society from the perspectives of institutional innovation and institutional change is clearly enlightening.