Vahabi, Mehrdad (2005): Destructive power, enforcement and institutional change. Published in: Journal of Economics and Business , Vol. 9, No. 1 (March 2006): pp. 59-89.
Download (227kB) | Preview
Institutions are usually defined as rules of the game. But if rules are dead letters without being enforced, then what is the role of destructive power in the genesis of institutions? This is the first question which will be addressed in the present paper. While the importance of incremental or evolutionary changes in informal rules is undeniable, what is the role of destructive power or revolution in politics with regard to institutional change? To what extent is destructive power involved in the change of rules? This is the second question that will be tackled in the present paper. The purpose of this paper is to answer these two questions focusing on a point that current scholarship regarding institutions usually fail to notice, with an emphasis on rules and laws: the power that enforces those rules and laws. The analysis of different forms of power will demonstrate the fact that the capacity to destroy as well as the capacity to produce plays a role in generating and maintaining institutions. I will try to show that the recognition of destructive power sheds new light on at least three major issues: i) the relationship between property rights and sovereignty, ii) the importance of revolution as well as evolution in social change, iii) the emergence of various means of collective expression such as Luddism, universal suffrage, and association.
|Item Type:||MPRA Paper|
|Original Title:||Destructive power, enforcement and institutional change|
|Keywords:||Destructive power; creative power; exit, voice and scream; institutional change; enforcement|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
K - Law and Economics > K0 - General
F - International Economics > F5 - International Relations and International Political Economy
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional; Evolutionary
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E11 - Marxian; Sraffian; Institutional; Evolutionary
|Depositing User:||Pr Mehrdad VAHABI|
|Date Deposited:||08. Feb 2009 10:14|
|Last Modified:||12. Feb 2013 03:01|
Agulhon Maurice, 1973, 1848 ou l’apprentissage de la république, 1848-1852, Paris, Seuil.
Arendt Hannah, 1970, On Violence, San Diego, N.Y., London, A harvest Book Harcourt Brace and Company.
Boulding Kenneth E., 1989, Three faces of power, Newbury Park, London, New Delhi, Sage Publications.
Bourdieu P., 1986, “Forms of Capital,” in Richardson J.G. (ed.), Handbook of Theory and Research for the Sociology of Education, Westport, CT, Greenwood Press, pp. 241-60.
Bukharin Nikolai I.,  1976, The Economics of the Transition Period, Part III, New York, International Publishers.
Chavance Bernard, 1999, Marx et le capitalisme. La dialectique d’un système, Paris, Nathan (Circa no 37).
Commons John R.,  “Institutional Economics,” The American Economic Review, vol. XXI, pp. 648-657, Reprinted in James A. Gherity (ed.), 1965, Economic Thought, A Historical Anthology, New York, Random House, pp. 512-526.
Commons John R., 1970, The Economics of Collective Action, Madison, The University of Wisconsin Press.
Freeman R.B., 1976, « Political Economy: Some Uses of the Exit-Voice Approach, Individual Mobility and Union Voice in the Labor Market,” The American Economic Review, vol. 66, no. 2, pp. 361-368.
Gupta Dipak, 1990, The Economics of Political Violence, The Effects of Political Instability on Economic Growth, New York, Praeger.
Hart Oliver, 1995, Firms, Contracts, and Financial Structure, Oxford, Clarendon Press. Hart O. and Moore J., 1999, “Foundations of Incomplete Contracts”, The Review of Economic Studies, vol. 66, pp. 115-138. Hirschman Albert O., 1970, Exit, Voice, and Loyalty, Cambridge Mass., Cambridge University Press.
Hirschman Albert O., 1974, ““Exit, voice, and loyalty”: Further reflections and a survey of recent contributions”, Social Science Information, vol. 13, no. 1, February, pp. 7-26.
Hirschman Albert O., 1976, “Some uses of the Exit-Voice approach-discussion,” American Economic Review, vol. 66, no. 2, May, pp. 386-391.
Hirschman Albert O., 1981, Essays in Trespassing, Economics to Politics and Beyond, N.Y., Cambridge University Press.
Hirschman Albert O., 1982, Shifting Involvements, Private Interest and Public Action, Princeton, New Jersey, Princeton University Press.
Hirschman Albert O., 1988, “Exit and voice,” in Eatwell, Milgate, Newman (eds.), The New Palgrave a dictionary of economics, vol. 2, pp. 219-224.
Hobsbawm Eric, 1962, The Age of Revolution 1789-1848, London, Weidenfield and Nicolson.
Hobsbawm Eric, 1963, Primitive Rebels, Studies in Archaic Forms of Social Movement in the 19th and 20th Centuries, Manchester, The University of Manchester Press.
Hobsbawm Eric, 1977, Histoire économique et sociale de la Grande-Bretagne, Tome 2. De la révolution industrielle à nos jours, Paris, Seuil.
Kornai Janos, 1995, “Transformational Recession: A General Phenomenon Examined through the Example of Hungary’s Development,” in Kornai Janos, Highway and Byways, Cambridge, Mass., The MIT Press.
Landes David, 1998, The Wealth and Poverty of Nations: Why Are Some So Rich and Others So Poor?, New York, W.W. Norton. Lane F.C., 1979, Profits from Power, Albany, State University of New York Press.
Lange O., 1970, “The role of planning in a socialist economy,” in Lange O., Papers in Economics and Sociology, Warsaw and London, PWN and Pergamon Press.
Mann Michael, 1986, The Sources of SocialPower, vol. 1, A history of power from the beginning to A.D. 1760, Cambridge, Cambridge University Press.
Marx Karl,  1972, “The Eighteenth Brumaire of Louis Bonaparte”, in Marx K., Engels F., and Lenin V.I., On Historical Materialism, Moscow, Progress Publishers.
Marx Karl,  1978 Capital, A Critique of Political Economy, Volume 1, Moscow, Progress Publishers.
Milonakis D. and Fine B., 2007, “Douglass North’s Remaking of Economic History: A Critical Appraisal”, Review of Radical Political Economics, Vol. 39, No. 1, pp. 27-57.
Nicholson Michael, 1972, “Uncertainty and Crisis Behaviour: An Illustration of Conflict and Peace Research,” in Carter C.F. and Ford J.L. (eds.), Uncertainty and Expectations in Economics, Essays in Honour of G.L.S. Shackle, Oxford, Basil Blackwell.
North D., 1990, Institutions, Institutional Change and Economic Performance, Cambridge, Cambridge University Press.
Ollman Bertell, 1993, Dialectical Investigations, London, Routledge.
Palermo G., 2000, “Economic Power and the Firm in New Institutional Economics: Two Conflicting Problems”, Journal of Economic Issues, Vol. XXXIV, No. 3, September, pp. 573-601.
Price Roger, 1972, The French Second Republic, London, B.T. Bastford.
Rokkan Stein, 1974, “Politics between economy and culture,” Social Science Information, vol. 13, no. 1, pp. 27-38.
Russell Bertrand, 1971, Power, A New Social Analysis, London, Unwin Books, Sixth impression.
Schumpeter, J.A., 1951, Capitalism, Socialism, and Democracy, London, George Allen and Unwin Ltd.
Shackle G., 1972, Epistemics and Economics, Cambridge, Cambridge University Press.
Simmel G, 1987, Philosophie de l’argent, Paris, PUF.
Simon H.A., 1951, “A formal theory of the employment relationship,” Econometrica, vol. 19, pp. 293-305.
Simon H.A, 1997, “Organizations and Markets,” in Simon H.A, Models of Bounded Rationality, vol. 3, Cambridge, Mass., MIT Press, pp. 217-240.
Smith Adam, 17761961, An Inquiry into the Nature and Causes of the Wealth of Nations, London, Methuen.
Thompson Edward Palmer, 1972, The Making of the English Working Class, London, Penguin.
Usher Dan, 1992, The Welfare Economics of Markets, Voting and Predation, Manchester, Manchester University Press.
Vahabi Mehrdad, 2004, The Political Economy of Destructive Power, Cheltenham, Northampton, MA, Edward Elgar.
Veblen Thorstein, 1898, « The Beginning of Ownership, » American Journal of Sociology, vol. 4, pp. 352-65.
Weber Max, 1954, On Law in Economy and Society, Cambridge, Cambridge, Mass., Harvard University Press.
Williamson O., 1985, The economic institutions of capitalism. Firms, markets, relational contracting, New-York, The Free Press, Macmillan.