Showing papers in "Journal of Economic Issues in 2006"
TL;DR: The use of the term institution has become widespread in the social sciences in recent years, reflecting the growth in institutional economics and the use of institution concept in several other disciplines, including philosophy, sociology, politics, and geography as discussed by the authors.
Abstract: The use of the term institution has become widespread in the social sciences in recent years, reflecting the growth in institutional economics and the use of the institution concept in several other disciplines, including philosophy, sociology, politics, and geography. The term has a long history of usage in the social sciences, dating back at least to Giambattista Vico in his Scienza Nuova of 1725. However, even today, there is no unanimity in the definition of this concept. Furthermore, endless disputes over the definitions of key terms such as institution and organization have led some writers to give up matters of definition and to propose getting down somehow to practical matters instead. But it is not possible to carry out any empirical or theoretical analysis of how institutions or organizations work without having some adequate conception of what an institution or an organization is. This paper proposes that those that give up are acting in haste; potentially consensual definitions of these terms are possible, once we overcome a few obstacles and difficulties in the way. It is also important to avoid some biases in the study of institutions, where institutions and characteristics of a particular type are overgeneralized to the set of institutions as a whole. This paper outlines some dangers with regard to an excessive relative stress on self-organization and agent-insensitive institutions. This paper draws on insights from several academic disciplines and is organized in six sections. The first three sections are devoted to the definition and understanding of institutions in general terms. The first section explores the meaning of key terms such as institution, convention, and rule. The second discusses some general issues concerning how institutions function and how they interact with individual agents, their habits,
1,615 citations
TL;DR: In this article, an economic psychological approach to herding behavior is presented, which is based on the concept of an economic model of herd behavior, with the goal of finding the root cause of herding behaviors.
Abstract: (2006). An Economic Psychological Approach to Herd Behavior. Journal of Economic Issues: Vol. 40, No. 1, pp. 75-95.
99 citations
TL;DR: In this article, it is argued that all parts of the economy are inhabited by complex adaptive systems operating in complicated historical contexts and that this should be acknowledged at the core of economic analysis.
Abstract: Economics is viewed as a discipline that is mainly concerned with ‘simplistic’ theorizing, centered upon constrained optimization. As such, it is ahistorical and outcome focused, ie, it does not deal with economic processes. It is argued that all parts of the economy are inhabited by complex adaptive systems operating in complicated historical contexts and that this should be acknowledged at the core of economic analysis. It is explained how economics changes in fundamental ways when such a perspective is adopted, even if the presumption that people will try to optimize subject to constraints is retained. This is illustrated through discussion of how the production function construct has been used to provide an abstract representation of the network structures that exist in complex adaptive systems such as firms. It is argued that this has led to a serious understatement of the importance of rule systems that govern the connections in productive networks. The macroeconomics of John Maynard Keynes is then revisited to provide an example of how some economists in earlier times were able to provide powerful economic analysis that was based on intuitions that we can now classify as belonging to complex systems perspective on the economy. Throughout the paper, the reasons why a complex systems perspective did not develop in the mainstream of economics in the 20 th Century, despite the massive popularity of an economist like Keynes, are discussed and this is returned to in the concluding section where the prospect of paradigmatic change occurring in the future is evaluated.
68 citations
TL;DR: The New Ruthless Economy: Work and Power in the Digital Age as discussed by the authors is a book about the digital economy with a focus on women and women's empowerment. Journal of Economic Issues: Vol. 40, No. 1, pp. 235-237.
Abstract: (2006). The New Ruthless Economy: Work and Power in the Digital Age. Journal of Economic Issues: Vol. 40, No. 1, pp. 235-237.
67 citations
TL;DR: In the early 1990s, the former socialist countries of Central and Eastern Europe (in the following: CE and EE) were generally expected to quickly turn into democracies with market economies as mentioned in this paper.
Abstract: In the euphoria of the early 1990s the former socialist countries of Central and Eastern Europe (in the following: CE and EE) were generally expected to quickly turn into democracies with market economies. The experience of the last 15 years, however, has shown that only some of them (the Baltic States, Poland, Hungary, the Czech Republic, Slovakia and Croatia) have done so. With Russia, Belarus, Bulgaria, Moldavia, the Ukraine, Romania, and Serbia and Montenegro it is not yet clear where the journey goes. The increasing gap between the two groups of transition countries with regard to both their economic and political orders (see Kitschelt 2003) cannot be explained by their different starting conditions after the breakdown of the Soviet Union alone.' Rather it also has its causes in the cultural and historical circumstances shaping their particular traditions and societal environments. The experience of transition has strongly challenged the neoclassical paradigm (see Murrell 1991), and it has led to a growing awareness of the role of informal institutions in the process of institutional change, not only in institutional and evolutionary economics, but also increasingly in the mainstream. In view of the variety of transitional trajectories, the countries of CE and EE are now sometimes seen as prime examples of historical path dependence with the performance of individual countries "dependent on informal rules carried over from the pre-communist past" (Winiecki 2004, 143). As much as the idea of path dependence has contributed to a better understanding of transition in CE
60 citations
TL;DR: In this article, the evolution of national innovation systems is discussed and discussed at the 2006 AFEE Meeting, where the authors present a paper entitled "The Evolution of National Innovation Systems".
Abstract: (2006). The Evolution of National Innovation Systems. Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 277-285.
58 citations
TL;DR: In this article, the authors focus on the processes that explain institutional stability rather than those that explain organizational change, and further conceptualize and seek empirical evidence for when, why and how organizational actors influence change while embedded in the institutional fabric of their organizational setting.
Abstract: Institutional theories offer more insight into the processes that explain institutional stability than those that explain institutional change. This article starts by elaborating this general diagnosis and proceeds with a more specific focus on institutional change in organizations. Much institutional research focuses on the relative stability of organizational practices over time (Burns and Scapens 2000). Notwithstanding that such research usually acknowledges that institutional change can occur, a major scholarly challenge is to further conceptualize and seek empirical evidence for when, why, and how organizational actors influence change while embedded in the institutional fabric of their organizational setting.
55 citations
TL;DR: In this paper, the core economic principles to be implemented for protected transactions in developing and transitional countries to trigger economic development are discussed, and two approaches have been developed which claim to answer this question: (i) the theory of property rights, or new institutional economics, originating from Armen Alchian (1977) and Harold Demsetz (1967; see also Alanchian and Demsettz 1973) and developed by Nobel laureate Douglass C. North (1973, with Robert P. Thomas, see also North 1981 and 1990)1 and (ii) the property-
Abstract: 'What are the core economic principles to be implemented for protected transactions in developing and transitional countries to trigger economic development? In recent decades, two approaches have been developed which claim to answer this question: (i) the theory of property rights, or new institutional economics, originating from Armen Alchian (1977) and Harold Demsetz (1967; see also Alchian and Demsetz 1973) and developed by Nobel laureate Douglass C. North (1973, with Robert P. Thomas; see also North 1981 and 1990)1 and (ii) the property-based theory of the economy, or property
45 citations
TL;DR: The Long Emergency: Surviving the Converging Catastrophes of the Twenty-first Century as mentioned in this paper is a seminal work in the field of economic crisis analysis, which is also related to our work.
Abstract: (2006). The Long Emergency: Surviving the Converging Catastrophes of the Twenty-first Century. Journal of Economic Issues: Vol. 40, No. 3, pp. 827-830.
44 citations
41 citations
TL;DR: In fact, there is ample evidence that the country's informal economy has expanded considerably since Saddam's overthrow as discussed by the authors, and the only part of the economy to have survived both Saddam Hussein and the post-2003 period of instability and insurgency is the country’s informal economy.
Abstract: Iraq’s economy has undergone a number of profound changes over the last several decades, many of which have had significant implications for the manner in which the country’s informal economy has evolved. The statist, heavy-handed economic policies of the Ba'athist government concentrated much of Iraq’s productive capacity in nationalized factors, which degraded under the sanctions regime of the 1990s, when both industrial and agricultural production faltered for lack of inputs. When coalition officials arrived in Iraq after the war, they planned on turning Iraq into a free market economy – a model for capitalism in the Middle East (Looney 2003). As part of this plan, they expected private companies, both foreign and domestic, to play a leading role in jump-starting the economy. Free market incentives driven by pentup demand and a massive aid-financed reconstruction program were thought to be sufficient to induce a massive wave of investment and hiring of Iraqi workers (Cha 2004). But violence, crime and uncertainty over the future have undermined investor confidence, preventing market-driven mechanisms from playing their anticipated role. As a result, nominal Gross Domestic Product (GDP) contracted by about 35 percent in 2003. It has recovered little since then, despite the U.S.-led reconstruction efforts. The only part of the economy to have survived both Saddam Hussein and the post-2003 period of instability and insurgency is the country’s informal economy. In fact, there is ample evidence that the country’s informal economy has expanded considerably since Saddam’s overthrow. In this regard, Iraq’s informal economy is following a pattern seen in other parts of the world – the informal economy tends to grow during periods of economic crisis. This phenomenon has occurred on each of the main continents:
TL;DR: In this paper, cultural species and institutional change in China are discussed. But the authors do not discuss the impact of cultural species on the evolution of China's economic system, instead they focus on institutions.
Abstract: (2006). Cultural Species and Institutional Change in China. Journal of Economic Issues: Vol. 40, No. 3, pp. 539-574.
TL;DR: In this article, the authors discuss institutions, recessions and recovery in the Transitional Economies, and propose a model for the transition from one transition to another, which they call Transitional Reconstruction.
Abstract: (2006). Institutions, Recessions and Recovery in the Transitional Economies. Journal of Economic Issues: Vol. 40, No. 4, pp. 875-894.
TL;DR: In this paper, has institutionalism won the development debate? Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 369-375, 2006.
Abstract: (2006). Has Institutionalism Won the Development Debate? Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 369-375.
TL;DR: The authors established a conceptual distinction between institutions, social norms, and decision-theoretic norms, arguing that some institutions may not be norms of any kind, and examined whether and how institutions have been treated as norms in institutional economics and in sociology.
Abstract: The concept of institutions and the related theoretical issues of their normativity and enforcement are still a matter of controversy among social scientists, including economists. The present article establishes a conceptual distinction between institutions, social norms, and decision-theoretic norms, arguing that some institutions may not be norms of any kind. Using the concepts developed previously, it then examines whether and how institutions have been treated as norms in institutional economics and in sociology.
TL;DR: In this article, the authors present a free and open access article by the Business Administration, College of at DigitalCommons@University of Nebraska -Lincoln, which has been accepted for inclusion in CBA Faculty Publications by an authorized administrator.
Abstract: This Article is brought to you for free and open access by the Business Administration, College of at DigitalCommons@University of Nebraska -Lincoln. It has been accepted for inclusion in CBA Faculty Publications by an authorized administrator of DigitalCommons@University of Nebraska -Lincoln. For more information, please contactproyster@unl.edu.
TL;DR: In this paper, Difficulties in Adopting Formal Water Trading Rules within Users' Associations are discussed in the context of a water trading rule within users' associations.
Abstract: (2006). Difficulties in Adopting Formal Water Trading Rules within Users’ Associations. Journal of Economic Issues: Vol. 40, No. 1, pp. 27-44.
TL;DR: In this article, the authors look at how sprawl impacts traffic fatalities and EMS response times in the Southeastern United States and find that sprawl is a negative influence on community life and urban development in the US.
Abstract: Many writers have covered the negative consequences of sprawl on community life and urban development in the US over the years. This paper looks at how sprawl impacts traffic fatalities and EMS response times in the Southeastern United States.
TL;DR: In this paper, the evolution of Macao's casino industry from Monopoly to oligopoly is discussed, and the social and economic reconsidership of the industry is discussed. Journal of Economic Issues: Vol. 40, No. 4, pp. 967-990.
Abstract: (2006). Evolution of Macao’s Casino Industry from Monopoly to Oligopoly: Social and Economic Reconsideration. Journal of Economic Issues: Vol. 40, No. 4, pp. 967-990.
TL;DR: In this article, an integrated evolutionary approach to technology stability and change is presented. But this approach does not consider the impact of technological evolution on economic stability and the environment, and it is not suitable for all technologies.
Abstract: (2006). Technology Stability and Change: An Integrated Evolutionary Approach. Journal of Economic Issues: Vol. 40, No. 3, pp. 707-742.
TL;DR: In this paper, the Institutional Evolution of Environmental Management under Global Economic Growth is discussed, and the authors present a survey of the 2006 AFEE Meeting on the evolution of environmental management under global economic growth.
Abstract: (2006). Institutional Evolution of Environmental Management under Global Economic Growth. Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 421-429.
TL;DR: In this paper, Veblen's radical theory of social evolution has been studied in the context of economic issues, and the authors present a survey of the results of their work.
Abstract: (2006). Veblen’s Radical Theory of Social Evolution. Journal of Economic Issues: Vol. 40, No. 3, pp. 651-672.
TL;DR: In this article, the authors discuss the use of state lottery power to fleece the poor in the state of New York, using state power to Fleece the Poor (State Lotteries: Using State Power to Fleeces the Poor).
Abstract: (2006). State Lotteries: Using State Power to Fleece the Poor. Journal of Economic Issues: Vol. 40, No. 4, pp. 955-966.
TL;DR: In this paper, the authors consider the problem of balancing inertia and innovativeness in task environments of intermediate complexity, in other words, when organizational attributes are more or less interdependent.
Abstract: Since Thorstein Veblen, perennial themes in institutionalist writings have included the role of imitation (or emulation) and the tension between inertia (or conservatism) and innovation in individual and organizational behavior. Prior models of organizational behavior have examined two search processes that represent this tension. One is local search, in which an organization restricts experimentation to a single attribute at a time. In contrast, distant search is associated with changing all of the organization’s attributes, in other words, extreme innovativeness. In both cases, the organization adopts the new form if its fitness is thereby improved. Previous research has established that high levels of complexity favor extreme innovativeness (distant search) over a modest level of inertia (local search). However, it is unclear if organizations balancing inertia and innovativeness at intermediate levels may have an advantage over these extremes (Sorenson 2002). In order to address this gap in our knowledge, we are here concerned with balancing inertia and innovativeness in task environments of intermediate complexity, in other words, when organizational attributes are more or less interdependent. The present work is related to literature which has developed agent-based models of interacting innovators and imitators. Peter Allen and J. M. McGlade (1986) described two distinct search strategies among fishing vessels: “stochasts” who randomly seek out new areas, and “cartesians” who watch where stochasts go and then fish in the most promising areas. The fisheries model is a topical variation on the well-known exploitation-exploration problem (March 1991), with
TL;DR: The 2006 AFEE Meeting on Competition, Knowledge, and Institutions as mentioned in this paper was devoted to competition, knowledge, and institutions, with a focus on the role of competition in knowledge sharing.
Abstract: (2006). Competition, Knowledge, and Institutions. Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 457-463.
TL;DR: The Media, the News, and Democracy: Revisiting the Dewey-Lippman Debate as mentioned in this paper was a seminal work in the history of the media, the news, and democracy.
Abstract: (2006). The Media, the News, and Democracy: Revisiting the Dewey-Lippman Debate. Journal of Economic Issues: Vol. 40, No. 1, pp. 135-152.
TL;DR: In economics, the concept of scarcity has no right to a monopoly position in academic economics as mentioned in this paper, since it is the antithesis of the notion of adequacy, not satiation.
Abstract: The purpose of this brief exercise in the history of economic thought is to demonstrate that the concept of scarcity has no right to a monopoly position in academic economics. While scarcity has dominated economic analysis for nearly two centuries, many of the great economists wrote convincingly about the possibility of an economy of abundance. The \"abundance economists\" include Adam Smith, Karl Marx, Thorstein Veblen, John Maynard Keynes, and many others from diverse schools of thought and diverse perspectives. Abundance is the antithesis of scarcity. Abundance means that everyone has adequate health care, nutrition, education, transportation, recreation, housing, self-expression, and personal security. Abundance does not mean that goods are free. Abundance means adequacy, not satiation. The level of adequacy is not constant but is relative to the progress made in the community's joint stock of knowledge. In a Stone Age community there is a lower level of adequacy than in a Space Age community. The Space Age level of adequacy is higher because such a higher standard is practical with a larger joint stock of knowledge. Scarcity means that some members of the community suffer from inadequate health care, nutrition, education, transportation, recreation, housing, self-expression, or personal security.
TL;DR: In this paper, the human capital attainment and female labor force participation in the Indian state of Kerala are discussed, and the Kerala puzzle is solved by means of the Human Capital Attainment and Female Labor Force Participation.
Abstract: (2006). Human Capital Attainment and Female Labor Force Participation—The Kerala Puzzle. Journal of Economic Issues: Vol. 40, No. 3, pp. 779-798.
TL;DR: For example, this paper argued that the purchase of brand items that are heavily advertised and sold is a form of revealed preference for luxury goods, and that consumers can be persuaded to buy goods and services that they do not need.
Abstract: It is important to note that Thorstein Veblen's Theory of the Leisure Class (1899) largely predated the development of the advertising industry whose primary genesis came in the 1920s, a decade noted for its ostentatious display and waste of status-enhancing goods. In fact, one of his chief accomplishments in that study was to anticipate the role of modern advertising by analyzing theoelf-advertisement of the leisure class. He also came to believe that the massive expenditures on advertising and salesmanship indicated the view of marketers that consumers can be persuaded to buy goods and services that they do not need. The purchase of brand items that are heavily advertised and sold is thus a form of revealed preference for luxury goods. In keeping with these trends, the literature on consumption by marketing specialists, historians of advertising and salesmanship, literary critics, aestheticians, and social scientists has grown to massive proportions in recent years. Although economists still lag behind in their contributions to what can only be labeled a growth industry of impressive size, more social scientists than ever before are studying consumption. Much of this literature mentions Veblen on conspicuous consumption at least in passing.! An increasingly popular twist on Rene Descartes' \"I think, therefore I am\" can be added: \"I shop, therefore I am.\" Without ignoring the role of the upper class as a catalyst in the dynamics of middle-class consumer frenzy, it is evident that status emulation and consumer gratification have become a rationale for the existence of the class itself. If he were alive, what would Veblen say about such? We can only speculate, of course, but what can logically be derived from his writing are warnings against consuming nature, invidious and wasteful consumption, and the continuation of an unsustain-
TL;DR: In this paper, Evolutionary Keynesianism: A Synthesis of Institutionalist and Post Keynesian Macroeconomics is presented as a synthesis of the two types of macroeconomic models.
Abstract: (2006). Evolutionary Keynesianism: A Synthesis of Institutionalist and Post Keynesian Macroeconomics. Journal of Economic Issues: Vol. 40, Papers From The 2006 AFEE Meeting, pp. 405-412.