Institutions are the formal or informal 'rules of the game' that facilitate economic, social, and political interactions. These include such things as legal rules, property rights, constitutions, political structures, and norms and customs. The main theoretical insights from Austrian economics regarding private property rights and prices, entrepreneurship, and spontaneous order mechanisms play a key role in advancing institutional economics. The Austrian economics framework provides an understanding for which institutions matter for growth, how they matter, and how they emerge and can change over time. Specifically, Austrians have contributed significantly to the areas of institutional stickiness and informal institutions, self-governance and self-enforcing contracts, institutional entrepreneurship, and the political infrastructure for development.
Author(s): Liya Palagashvili, Ennio Piano, David Skarbek
Publisher: Cambridge University Press
Year: 0
Language: English
Pages: 54
Cover......Page 1
Title page......Page 3
Copyright page......Page 4
The Decline and Rise of Institutions: A Modern Survey of the Austrian Contribution to the Economic Analysis of Institutions......Page 5
Contents......Page 6
1
Introduction......Page 7
2.1
Carl Menger against the German Historical School......Page 8
2.1.1
Social Institutions as Organic Social Phenomena......Page 10
2.1.2
The Genetic-Causal Method and the Study of Institutions......Page 11
2.2 The Socialist Calculation Debate and the Rise of Institutionally Antiseptic Economics......Page 13
2.2.1
Mises’s Impossibility Theorem......Page 14
2.2.2
The Debate......Page 16
2.3
Law, Legislation, and Social Order......Page 20
3 Toward a Genuine Institutional Economics:
The Robust Political Economy Paradigm......Page 23
3.1
Soviet Socialism and the Problem of Transition......Page 29
3.2
Institutions, Entrepreneurship, and Development......Page 31
3.3 Spontaneous Orders, Self-Enforcing Exchanges,
and Self-Governance......Page 36
4
Conclusion......Page 42
References......Page 44
