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.
Download (298Kb) | Preview
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|
Akerlof G.A. (1970). "The Market for "Lemons": Quality Uncertainty and the Market Mechanism." The Quarterly Journal of Economics 3, 488-500.
Arthur W.B. (1989). "Competing Technologies, Increasing Returns, and Lock-in by Historical Events" The Economic Journal 394, 116-131.
Ayala F.J. and Kiger J.A. (1984). Modern Genetics. Benjamin-Cummings Pub Co; 2d edition.
David P.A. (1985). "Clio and the Economics of QWERTY" The American Economic Review 2, 332-337
Dosi G. (1997). "Opportunities, Incentives and the Collective Patterns of Technological Change" The Economic Journal 444, 1530-1547.
Dosi G. (1988). "Sources, Procedures, and Microeconomic Effects of Innovation" Journal of Economic Literature 3, 1120-1171.
Greif A. (1992). "Institutions and International Trade: Lessons from the Commercial Revolution" American Economic Review 2, 128-133.
Hodgson G. (1988). Economics and Institutions: A Manifesto for a Modern Institutional Economics. Polity Press, Cambridge, and University of Pennsylvania Press, Philadelphia.
Kapelushnikov R.I. (1990). Economic theory of property rights, Moscow (in Russian).
Lakatos I. (1978). The Methodology of Scientific Research Programmes: Philosophical Papers Volume 1. Cambridge: Cambridge University Press.
Maevskiy V.I. (2001). "Evolutionary economic theory and some problems of contemporary economic science" Herald of young scientists: Economic sciences 2, 324-337 (in Russian).
Mayr E. (1988). Toward a New Philosophy of Biology; Observations of an Evolutionist. Cambridge, MA: Harvard University Press.
Menger C. (1871). Principles of Economics. http://mises.org/Books/Mengerprinciples.pdf.
Mises L. (1949). Human Action: A Treatise on Economics. http://mises.org/books/humanaction.pdf.
Mokyr J. (1992). "Technological Inertia in Economic History" The Journal of Economic History 2, 325-338.
Mokyr J. (1990). "Punctuated Equilibria and Technological Progress" The American Economic Review 2, 350-354.
Mokyr J. (1990). The lever of Riches: Technological Creativity and Economic Progress. N.Y.: Oxford University Press.
Nelson R.R. and Winter S.G. (1985). An Evolutionary Theory of Economic Change. Belknap Press of Harvard University Press.
North D. (1994). "Economic Performance Through Time" American Economic Review 3, 359-368.
North D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
Olson M. (1984). The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. Yale University Press.
Polterovich V.M. (2000). Institutional dynamics and theory of reforms. Evolutionary economics and "mainstream". Moscow: Nauka, 31-54 (in Russian).
Soto H. (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. Basic Books; 1st edition.
Soto H. (1989). The Other Path: The Invisible Revolution in the Third World. Harpercollins; 1st edition.
Volchik V.V. (1997). Institutionalization of property: institutional provisos and models of establishment in rural sphere, PhD thesis, Rostov-on-Don (in Russian).
Volchik V.V. and Berezhnoy I.V. (2008). The investigation of economic evolution of power-property institution. - Moscow: Unity-Dana (in Russian).