Maslov, Alexander and Volchik, Vyacheslav (2010): Neutral Markets, Non-neutral Institutions and Economic Evolution. Published in: Economic Herald of Donbas Quaterly No. 4 (22) (2010): pp. 26-33.
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The article argues the neutral nature of markets. It describes the ways neutral markets expand or fold under the influence of non-neutral institutions. A demarcation is lined up between efficacy of a market process and a market result. The paper shows inconsistency of existing neoclassic models in their objective to depict equilibrium parameters. The evolutionary nature of economies compels economists to concentrate on process efficacy which might also conduce to selection of suboptimal institutions. The latter may become extremely robust and evolve into stable populations if an existing institutional framework contributes to the expansion of exchanges. These issues are analyzed through the prism of "bottle-neck" and "founder" effects. The comparative inefficiency of economic evolution claims for effectiveness of a process but not the general system.
|Item Type:||MPRA Paper|
|Original Title:||Neutral Markets, Non-neutral Institutions and Economic Evolution|
|English Title:||Neutral Markets, Non-neutral Institutions and Economic Evolution|
|Keywords:||market efficacy, congenital development, institutional transformation, bottle-neck effect, founder's effect|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional; Evolutionary
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O30 - General
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B53 - Austrian
|Depositing User:||Alexander Maslov|
|Date Deposited:||18. Nov 2012 13:56|
|Last Modified:||24. Feb 2013 02:23|
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