ECONOMIC DEVELOPMENT. A HISTORICAL - NEOINSTITUTIONAL APPROACH OVERVIEW
Abstract
This paper aims to investigate economic development through a historical-neoinstitutional approach, to improve the understanding of the process of economic change. It will try to demonstrate how the intervention of the institutions can trigger a virtuous circle able to reduce transaction costs, facilitate the dissemination of information, in order to make the functioning of the economy more efficient. In this sense, economic change is identified as an intentional process triggered by the combination of the beliefs and preferences of individuals. All this takes place through the intervention of rules, procedures and organizations. This scenario differs from that represented by the neoclassicists, both for the importance given to the market, to companies and other organizations linked to the institutional environment, and for the importance given to transaction costs. In this regard, the reasons for the existence of institutions such as companies and hierarchical organizations have been researched. The survey will therefore focus on the importance of the link between institutions and economic development, in order to achieve an improved understanding of the process of economic change.
References
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[43] North, D.C., and Thomas, R.P. 1971. The rise and fall of the manorial system: a theoretical model. The Journal of Economic History, 31(4): 777-803.
[44] North, D.C. 1984. Government and the cost of exchange. Journal of Economic History, 44(2): 255-264.
[45] North, D.C., and Weingast, B.R. 1989. Constitutions and commitment: the evolution of institutions governing public choice in seventeenth-century England. The Journal of Economic History, 49(4): 803-832.
[46] North, D.C. 1994. Economic performance through time. American Economic Review, 84(3): 359-368.
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[51] Satz, D., and Ferejohn, J. 1994. Rational choice and social theory. Journal of Philosophy, 91(2): 71-87.
[52] Radner, R. 1979. Rational expectations equilibrium: generic existence and the information revealed by prices. Econometrica, 47(3): 665-678.
[53] Rodrik, D., Subramanian, A., and Trebbi, F. 2004. Institutions rule: the primacy of institutions over geography and integration in economic development. Journal of Economic Growth, 9(2): 131-165.
[54] Rosenberg, N., and Birdzell, L.E. 1986. How the West Grew Rich. New York, Basic Books.
[55] Rossitto, R. 2008. La Decisione Tra Cognizione e Convenzione. Enna, Citta Aperta Edizioni.
[56] Schotter, A. 1981. The economic theory of social institutions, Cambridge, Cambridge University Press.
[57] Simon, H.A. 1982. Models of Bounded Rationality, Cambridge (MA), MIT Press.
[58] Solow, R. 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1).
[59] Stigler, G.J. 1961. The economics of information, Journal of Political economy, 69(3): 213-225.
[60] Takizawa, H. 2017. Masahiko Aoki’s conception of institutions. Evolutionary and Institutional Economics Review, 14(2): 523-540.
[61] Tebaldi, E., and Elmslie, B. 2008. Institutions, innovation and economic growth. Journal of Economic Development, 33(2): 339-392.
[62] Tebaldi, E., and Mohan, R. 2008. Institutions-augmented Solow Model And Club Convergence. MPRA Paper 10386, Germany, University Library of Munich.
[63] von Hayek, F.A.1952.The Sensor Order: an Enquiry into the Foundations of Theoretical Psychology. Chicago, University of Chicago Press.
[64] von Neumann, J., Morgenstern, O. 1944. Theory of Games and Economic Behavior. Princeton, Princeton University Press.
[65] Walliser, B. 1989. Théorie des jeux et genèse des institutions.Recherches Économiques de Louvain, 55(4): 339-364.
[66] Weingast, B.R. 1995. The economic role of political institutions: market-preserving federalism and economic development. Journal of Law, Economics, and Organization, 11: 1-31.
[67] Williamson, O. 1964.The Economies of Discretionary Behavior: Managerial Objectives in A Theory of the Firm. Englewood Cliffs N.J., Prentice-Hall.
[68] Williamson, O. 1973. Markets and hierarchies: some elementary considerations. American Economic Review, 63(2): 316-325.
[69] Williamson, O. 1981. The economics of organization: the transaction cost approach. American Journal of Sociology, 87(3): 548-577.
[70] Williamson, O. 1998. Transaction cost economics: how it works; where it is headed. The Economist, 146(1): 23–58.
[71] Vercesi, M. 2015. Una teoria politica della prosperità economica. Quaderni di Scienza Politica, 22(3): 427-456.
[2] Acemoglu, D., Robinson, J.A. 2013. Perché le Nazioni Falliscono, Milano, Il Saggiatore.
[3] Aoki, M. 2000. Information, Corporate Governance, and Institutional Diversity. Competitiveness in Japan, the USA, and the Transition Economies. Oxford, Oxford University Press.
[4] Aoki, M. 2001. Toward a Comparative Institutional Analysis. Cambridge, MIT Press.
[5] Aoki, M. 2007. Endogenizing institutions and institutional changes. Journal of Institutional Economics, 3(1): 1-31.
[6] Aoki, M. 2011. Institution as cognitive media between strategic interactions and individual beliefs. Journal of Economic Behavior& Organization, 79(1-2): 20-34.
[7] Aumann, R.J. 1987. Correlated equilibrium as expression of Bayesian rationality. Econometrica, 55(1): 1-18.
[8] Aumann, R.J., and Sorin, S. 1989. Cooperation and bounded recall. Game and Economic Behavior, 1(1): 5-39.
[9] Axelrod, R. 1984. The Evolution of Cooperation. New York, Basic Books.
[10] Bendor, J., and Swistak, P. 2001. The evolution of norms. American Journal of Sociology, 106(6): 1493-1546.
[11] Blume, L.E., and Easley, D. 2008. Rationality, in Durlauf, Blume (a cura di), The New Palgrave Dictionary of Economics, II ed., 6, Basingstoke, Palgrave Macmillan.
[12] Chavance, B. 2010. L’economia Istituzionalista. Bologna, Il Mulino.
[13] Coase, R.H. 1937. The nature of the firm. Economica, 4(16): 386-405.
[14] Coase, R.H. 1960. The problem of social cost. Journal of Law and Economics, 3: 1-44.
[15] Coase, R.H. 1988. The new institutional economics. American Economic Review, 88(2): 72-74.
[16] Coase, R.H. 1992. The institutional structure of production. American Economic Review, 82(4): 713-719.
[17] Denzau, A.T., and North, D.C. 1994. Shared mental models: ideologies and institutions. Kyklos, 47(1): 3-31.
[18] Field, A. 1979. On the explanation of rules using rational choice models. Journal of Economic Issues, 13(1).
[19] Greif, A. 1994. On the political foundations of the late medieval commercial revolution: Genoa during the twelfth and thirteenth centuries. Journal of Economic History, 54(2): 271-287.
[20] Greif, A. 1998. Historical and comparative institutional analysis. American Economic Review, 88(2): 80-84.
[21] Greif, A. 2006. Institutions and the Path to the Modern Economy: Lessons from Medieval Trade. Cambridge-New York, Cambridge University Press.
[22] Hall, P., and Soskice, D. 2001.Varieties of Capitalism. Oxford, Oxford University Press.
[23] [Harsanyi, J.C. 1967. Games with incomplete information played by “Baesian” players. Management Science, 14(3), Part I. The basic model: 159-182.
[24] [Hodgson, G. 2018. The approach of institutional economics. Journal of Economic Literature, 36(1): 166-192.
[25] [Huntington, S. 1968. Political Order in Changing Societies. New Haven and London, Yale University Press.
[26] Hutchins, E. 1995.Cognition in the Wild. Cambridge, MIT Press.
[27] Kreps,D.hi, Milgron, P., Roberts, J., and Wilson, R. 1982. Rational cooperation in the finitely repeated prisoners’ dilemma, Journal of Economic Theory 27(2): 245-252.
[28] Libecap, G.D. 1998. The new institutional economics and economic development. ICER Working Paper, 15: 1-34.
[29] Loasby, B.J. 1999. Knowledge, Institutions, and Evolution in Economics. London, Routledge.
[30] Mankiw, N.G., Romer, D., and Weil, D.N. 1992. A contribution to the empiric of economic growth. The Quarterly Journal of Economics, 107(2): 407-437.
[31] Marzano, F. 2011.Crescita e Ciclo Nell’economia Dualistica Italiana. Milano, Mondadori.
[32] Mauro, P. 1995. Corruption and growth. Quarterly Journal of Economics, 110(3): 681-712.
[33] Megiddo, N. 1986. Remarks on Bounded Rationality. Research report 5270 (54310). New York, IBM Research Division.
[34] Montalbano, P., Triulzi, U. 2012. La Politica Economica Internazionale, Torino, Utet.
[35] [Morselli, A. 2015. L’economia convenzionale nel processo decisionale. Rivista di Politica Economica, IV-VI (3): 269- 301.
[36] Morselli, A. 2017. From Keynes to a theoretical political approach to conventional economics. Policy Studies, 38(6): 622-639.
[37] Morselli, A. 2018a. From nation-state to world society: an institutional reading of globalisation. Journal of Economic Issues, 52(3): 653-675.
[38] Morselli, A. 2018b. Building decision making in the economy between schools of thought and alternative approaches. Rivista Internazionale di Scienze Sociali, 139(2): 153-186.
[39] Myrdal, G. 1957. Economic Theory and Under-Developed Regions. London, Duckworth &Co.
[40] Myrdal, G. 1974. What is development? Journal of Economic Issues, 8(4): 729-736.
[41] Nelson, R. 1995. Recent evolutionary theorizing about economic change. Journal of Economic Literature, 33(1): 48-90.
[42] North, D.C., and Thomas, P.R. 1970. An economic theory of the growth of the western world. The Journal of Economic History, 23(1): 1-17.
[43] North, D.C., and Thomas, R.P. 1971. The rise and fall of the manorial system: a theoretical model. The Journal of Economic History, 31(4): 777-803.
[44] North, D.C. 1984. Government and the cost of exchange. Journal of Economic History, 44(2): 255-264.
[45] North, D.C., and Weingast, B.R. 1989. Constitutions and commitment: the evolution of institutions governing public choice in seventeenth-century England. The Journal of Economic History, 49(4): 803-832.
[46] North, D.C. 1994. Economic performance through time. American Economic Review, 84(3): 359-368.
[47] North, D.C. 1999. Understanding the Process of Economic Change. Occasional paper, 106, London, The Institute of economic affairs.
[48] North, D.C. 2005. Understanding the Process of Economic Change. Princeton N.J., Princeton University Press.
[49] Polanyi, K. 1944.The Great Transformation. Origins of Our Time. New York, Farrar and Rinehart.
[50] Polanyi, K. 1981.Structure and Change in Economic History. New York, W.W. Norton & Co.
[51] Satz, D., and Ferejohn, J. 1994. Rational choice and social theory. Journal of Philosophy, 91(2): 71-87.
[52] Radner, R. 1979. Rational expectations equilibrium: generic existence and the information revealed by prices. Econometrica, 47(3): 665-678.
[53] Rodrik, D., Subramanian, A., and Trebbi, F. 2004. Institutions rule: the primacy of institutions over geography and integration in economic development. Journal of Economic Growth, 9(2): 131-165.
[54] Rosenberg, N., and Birdzell, L.E. 1986. How the West Grew Rich. New York, Basic Books.
[55] Rossitto, R. 2008. La Decisione Tra Cognizione e Convenzione. Enna, Citta Aperta Edizioni.
[56] Schotter, A. 1981. The economic theory of social institutions, Cambridge, Cambridge University Press.
[57] Simon, H.A. 1982. Models of Bounded Rationality, Cambridge (MA), MIT Press.
[58] Solow, R. 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1).
[59] Stigler, G.J. 1961. The economics of information, Journal of Political economy, 69(3): 213-225.
[60] Takizawa, H. 2017. Masahiko Aoki’s conception of institutions. Evolutionary and Institutional Economics Review, 14(2): 523-540.
[61] Tebaldi, E., and Elmslie, B. 2008. Institutions, innovation and economic growth. Journal of Economic Development, 33(2): 339-392.
[62] Tebaldi, E., and Mohan, R. 2008. Institutions-augmented Solow Model And Club Convergence. MPRA Paper 10386, Germany, University Library of Munich.
[63] von Hayek, F.A.1952.The Sensor Order: an Enquiry into the Foundations of Theoretical Psychology. Chicago, University of Chicago Press.
[64] von Neumann, J., Morgenstern, O. 1944. Theory of Games and Economic Behavior. Princeton, Princeton University Press.
[65] Walliser, B. 1989. Théorie des jeux et genèse des institutions.Recherches Économiques de Louvain, 55(4): 339-364.
[66] Weingast, B.R. 1995. The economic role of political institutions: market-preserving federalism and economic development. Journal of Law, Economics, and Organization, 11: 1-31.
[67] Williamson, O. 1964.The Economies of Discretionary Behavior: Managerial Objectives in A Theory of the Firm. Englewood Cliffs N.J., Prentice-Hall.
[68] Williamson, O. 1973. Markets and hierarchies: some elementary considerations. American Economic Review, 63(2): 316-325.
[69] Williamson, O. 1981. The economics of organization: the transaction cost approach. American Journal of Sociology, 87(3): 548-577.
[70] Williamson, O. 1998. Transaction cost economics: how it works; where it is headed. The Economist, 146(1): 23–58.
[71] Vercesi, M. 2015. Una teoria politica della prosperità economica. Quaderni di Scienza Politica, 22(3): 427-456.
Published
2020-12-31
How to Cite
MORSELLI, Alessandro.
ECONOMIC DEVELOPMENT. A HISTORICAL - NEOINSTITUTIONAL APPROACH OVERVIEW.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 11, n. 2, p. 81-94, dec. 2020.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/5775>. Date accessed: 24 apr. 2024.
doi: https://doi.org/10.14505/tpref.v11.2(22).01.
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