1. The concept of institutions and their classification
Institutions are the framework of the framework of behavioral, which are created by people, regulating political, economic and social interaction. Their main role is to reduce uncertainty by establishing a stable structure of interaction between people. Institutions ensure mutual understanding between people by forming agreed expectations with minimal information exchange. Institutions include coercion mechanisms (sanctions). Sanctions are: political, economic, moral
Formal - rules that are created purposefully, easy to induce in writing and act as a recruitment limiter alternatives.
According to the classification of Norta, the rules are divided into: political, economic, contractual rules.
Political define the hierarchical structure of society and the most important characteristics of control over political procedures
Economic establish possible forms of organizing economic activity, within which individuals compete with each other. Set property rights, beam rights on the use and receipt of income from property, restrictions on access of other individuals to resources
Contracting rules - determine the method, procedure and conditions of a specific exchange agreement.
2. Formal and informal institutions. Insalcations. Norm as a basic element of the institute
Institutes are divided into formal and informal
Informal-generally accepted conventions, codes of behavior.
Not recorded in writing and protected by other (not state) coercion mechanisms.
The main element of the informal institutional environment is the norm.
Norma-basic people interaction regulator. Norma-prescription of certain behavior, mandatory for execution. Its main function is to maintain order in relationships
Norms of behavior are divided into: inherited, genetically transmitted and acquired.
Formal-rules that are specified purposefully, are easily fixed in writing and act as a recruitment limiter alternatives, protected by the state
Formal rules-legal norms (laws)
Formal can be artificially invented and imposed, and informal are determined by past processes, formed in the process historical Development.
Communication between formal and informal:
· Netform are the source of formation and sharing of the form, if the system develops evolutionary
· Informal can be continued formal
· Informal can replace formal
3. Coordination and distribution aspect of institutions
Institutions have a dual nature. One side
Reducing the uncertainty of choice and ensuring the predictability of the results of a set of actions, they facilitate the process of interaction between people. This shows their coordination function. Formal and informal rules acquire signs of public goods. Unformalized public blessings in the case when they are separated by all or most of them, the problem of the flaile disappears under the action of public censure.
But on the other hand, institution is access to resources, both political and economic. This is a distribution effect.
Therefore, in society there is an active struggle for changes in rules, in order to change the possibilities of access to limited resources
There is a point of view that coordination aspects arise and reproduce as side results of distribution processes.
4. The role of institutions in the functioning of economic systems
In the framework of the traditional society, institutions limited economic development. In this system, the relationship was prevailed not to cocoon, asotheticity, determined by social and cultural values. As the mechanism of coercion opposed public opinion. The exchange was carried out strictly in accordance with the norms of behavior and because of this, there were practically no fraud, deception, opportunism. The exchange is characterized by repeatability and absence of control and pressure from third parties. Cost of conclusion of transactions are low due to a dense social network of interaction. Because of the personalized exchange, the limited division of labor occurs and, as a result, high production costs, limiting economic growth. As the number of subjects increases increasing the problem of belligerent and the need to introduce formal rules. In the traditional system of the norm, human behavior is behavior, as well as the purpose and directions of economic development. Trudes. Society Institutes worked on maintaining and maintaining the current order aimed at survival of the community, maintaining group solidarity, orientation economic activity For direct consumption.
A huge role with the establishment of a market system was played by the state and its policy of protectionism (state-in providing protection of property rights and contracts) within the market system reform the right of ownership. Inalienable Individual Rights: Freedom to have, with their actions and its property. At the heart of the model of an economic person. The main task of the state is the protection of private property. In the market becoming favorable deception and opportunistic behavior. There is a need to establish institutions as an internal element of motivation (internationalization of norms) -Mehanism forcing for execution. The Institute of Competition and Entrepreneurship was freed and justified the passion for the progress as a result of release commercial structure from religious and cultural framework. which ensured the economic takeoff in western Europe. Elevation of evolutionary development, such as the mechanism for strengthening the personal reputation of a merchant (is the starting point in the evolution of depersonalized mutual confidence in the market) Trade Codes and the principles of self-government in medieval cities were elements of the formation of Western European capitalism
5. The main concepts of the theory of property rights. Property rights, their parameters
Property can be considered bicon. On the one hand, as the property mode, as the most important institute, on the other, as separate rights that are elements of a holistic system. In the first case, property acts as "Rules of the game", regulating relations between people about limited resources. In the second case, property is interpreted as puppies of the right, which are available from a particular individual. In the last quality, it is considered as an individual's right to identify all possible ways to use assets. Property rights arise in connection with the existence of relative rarity benefits and relate to their use. At the same time, the concept of good includes the designation of everything that brings a person to benefit or satisfaction. It covers powers both above the material and the intangible objects, up to the inalienable personal freedoms, at the same time, the right of ownership are social rules. They are those authorized and adopted in society behavioral relations between economic agents, which determine the list of possible ways to use limited resources as the exclusive right of individual individuals or groups.
Thus, ownership can be considered as the actual exemption system in society from access to material and intangible resources. They are fixed not only by state power, but also traditions, norms, and therefore are indeed the "rules of the game" adopted in society. T. O, property rights are not reduced exclusively to formal legal norms, the effectiveness of which is supported by the punitive power of the state, but are supported by the social rules of conduct. The type of social rules is the mechanism for the formation of ownership of resources. However, in any case, property rights are determined and guaranteed by a certain control structure (or order), i.e., the system of laws and norms, as well as tools that protect this procedure. Providing order can be purely internal when compliance with the economic rules is an act of voluntary economic Choice Or guaranteeing the expectations of possible sanctions for their violation. And it is precisely the powerful powers that determine the mechanisms of formation of property rights as a mechanism of exceptional access to the resources speaking the basis of their rationing .. The most complete definition of property rights is proposed by the English lawyer A. ONOR. It includes 11 elements, the most important of which are:
1. The right of ownership, i.e., exceptional physical control over the thing;
2. The right to use, i.e. personal use; the right to control, i.e. decisions, how and who a thing can be used;
3. Right to income, i.e., on benefits arising from the preceding personal use of a thing or from permission to other persons to use it;
4. The right to the "capital value" of things involving the right to alienation, consumption, change or destruction of things.
The elements included in the ONORA in the full determination of property rights are also related: the right to security, i.e. immunity from expropriation; the right to move things by inheritance or in the will; indefense; prohibition of harmful use, i.e. the obligation to refrain from using a thing harmful to other ways; Responsibility in the form of recovery, i.e. the possibility of mailing things to pay the debt; Waiting for a "natural" refund transferred to any respect after the expiration date or in case of loss of force for any other reason. The combination of all elements implies the determination of property rights as exceptional. The most important are the rights that determine which embodiments of the asset are legal. This includes both the right to transform and destroy the asset and the right to receive income from its use and conclude contracts for conditions with other individuals. Revenue receiving income, as well as for a certain time to transfer ownership to the Active to the other party, i.e. the right to alienate it. Property rights are the type of social rules. And therefore, an important element of the protection of property rights is the content of not only law enforcement agencies, but also the field of education to the extent that it provides for informing people about the existing legal and social conditions of exchange. In other words, the socialization process is important, which causes the relevant fulfillment of obligations, which significantly reduces the costs of their protection.
6. Characteristics of the processes of limitation, splitting and erosion of property rights
The limited property rights is associated with such an element included in the "list" of the ONORA, as the prohibition of harmful use, i.e. the absence of the right to make material damage to the resources belonging to other people. In other words, the freedom of actions of the owner is limited to the requirement of unfortunately for others. What should be considered to be harmful to others, is determined by socio-legal norms. The splitting of rights, i.e., the separation of individual equity between the owners, then it occurs in the form of bilateral voluntary exchange, on the initiative of the owners themselves. In other words, the splitting process is expressed simply in the transmission to another person. The limitations of property rights are imposed, as a rule, by the state in a compulsory. They take place when the state, in addition to the will of the transaction participants, establishes prices for which authority can be transmitted or eliminated. The state may also prohibit the exchange of puestly even when the transaction participants mutually desire, the empowerment may not only be assigned to a state, but generally to withdraw from turnover. The restriction of property rights is observed when the state establishes some limits of the exceptional rights of the right of ownership are exclusive in the absence of restrictions of the rights of the individual to use assets, extract income and exchange assets from them. The exclusiveness of the right means that it will be crammed only by the restrictions that are legitimate. The exclusiveness of property rights, among other things, assumes that:
Only on the owner is falling negative and positive consequences Economic activities carried out. And this is an essential economic incentive that ensures the effectiveness of decisions made;
In the process of exchange, they will be transferred to the individual, which will offer the highest price. The splitting is definitely positively, the restriction is as a source of numerous negative phenomena. The erosion occurs when ownership rights are inaccurately installed or poorly protected, i.e. are not sufficiently specified. Specify ownership of the resource means to exclude others from free access to it. In the absence of a specification, that is, in a situation where ownership would remain completely uncertain, any activity aimed at satisfying momentary needs would be impossible. And because more accurate determination of property rights is the most important condition for the effective functioning of the market economy. Infidency specification in. market system Management leads to ineffective distribution and use of the resource, generating, among other things, external effects, since the economic agent establishes its decisions on comparison of private benefits with private costs, this leads to either overproduction of goods with negative external effects, or to prereparation of benefit external benefits. . In such cases, the allocation of resources is ineffective from the point of view of the whole society. In the neoclassical theory implicitly present is the assumption that all rights having values \u200b\u200bare privately owned. And it is this package that lies in the models of the general economic equilibrium of both Valras and Pareto, which suggest that prices reflect all the benefits and costs caused by the actions of a separate economic entity. In these models, all resources are privately owned and can be used by anyone and after selling them in the market factors manufactured. The missed benefit falls on the seller, but the price paid by the buyer reflects and compensates for this loss.
7. "Cone theorem", its role in the development of economic theory of law
Like A. Pig, one of the founders of the Neo-Institutional Direction of R. Coase in the famous article "The Nature of Social Costs" considers the problem of external effects. (Example: a dispute between a factory and a farmer), as the struggle goes for access to the resource, then the COUPE proposes to give the decision to direct conflict participants. Thus, ownership of the resource (despite the fact that any exchange is interpreted as an exchange of pencils of puzzles) As a result of the bargaining, they will move to the side for which they represent the greatest value. Voluntary talks about the transaction are able to eliminate all discrepancies between private and social cost / benefit ratios.
Thus, the state does not have any reason to intervene in order to adjust the market process. His role is "Doryunkaya": it is intended to protect the rights of ownership of the participants of the transaction. Thus, the path to overcoming "external effects" lies through the creation of new property rights in those areas where so far they have not yet been established. This is the role of the state (eliminating artificial barriers of any kind in this process, providing legal protection of voluntary contracts of the transaction participants and establishing an accurate specification of ownership of all resources that have economic value). If all property rights were clearly defined and were prescribed if the transaction costs (costs associated with the exchange of penalties) would be equal to zero and if people agreed to firmly adhere to the results of voluntary exchange, there would be no external effects. With all the originality of the approach, the Couce Theorem can be imposed in unrealistic. In the economy, there are always some ownership rights not enough, and transaction costs are never equal to zero. In the conditions of high transaction costs, the Court should be given the right right of the side that would ensure maximizing welfare.
8. Property Systems, their characteristics in terms of an indecisional approach
Property acts as an institution that provides people with certain freedom to be limited. The institution of ownership is a prerequisite for the implementation of all economic processes: production, distribution, exchange and consumption. In economic literature, there are three basic legal regimes.
In the honest property system, the owner is an individual, whose Word in solving issues of the use of the resource, the Company recognizes final. In this context, the following elements of ownership are very important: the right to change the form and substance of the good; The right to transfer it to other persons by mutually agreed price. Representatives of neoliberal directions made a great contribution to private property. From the point of view of L. Mises, only private property contributes to the optimal use of resources. F. Hayek believed that the system of private ownership is primarily the most important guarantee of freedom. The most important assumptions in protecting private property is that all the costs and benefits of decision-making fall on the individual. Mode state owned suggests: firstly, the rules that determine the content of public interest; Secondly, ways to make decisions on the use of a particular resource. It is important to emphasize the difference between state ownership from private in the form of joint stock ownership.
The main difference is that state ownership co-owners cannot sell or convey their share of participation in it, and co-owners joint Stock Company may. Under state ownership, the costs of any decision or choice in incommensurately smaller than its co-owner than the owner in the context of shareholder (private) property. Another legal regime is the mode common propertywhich, within the framework of neo-constitutional analysis, is interpreted as a free access system, meaning that access to resources is open to everyone without exception. According to representatives of the neo-intestitutional direction, the system of common ownership (understood as the lack of restrictions of access to the resource) with its principle "first took, the first took advantage of" internally contradictory and unstable.
Open access reduces the well-being of society, so there are always public mechanisms for the restriction of this access. Municipal property is such a mode of use of limited resources, a group of persons has exceptional rights. And it does not mean any open access to resources, nor predatory uses. With this mode, there is no possibility of free transfer of the Parv property.
9. Transaction as a basic element of neo-institutional analysis. Taxations
The category "Transaction" was introduced into the economy by a representative of traditional institutionalism by American economists J. Kommons, according to which the transaction represents COL BON not just the exchange of goods, but the alienation and assignment of the rights of ownership and freedoms created by society. Within the framework of this transaction approach, there are transactions or sharing agreements to share ownership, acting as a social form of interaction1. The transaction is a basic relation during economic activity, since without it there could be no damage, consumption, investment and so on.
Commons allocated three types of transactions, inseparable from each other,: trade management and rationing. Trade transactions suggest the redistribution of the rights of the values \u200b\u200bon a mutually beneficial basis, i.e., recognition of the equivalence of the beneficial and the alienated good. This type of transaction is characterized by the symmetricity of the ratio of counterparties in the absence of opportunism, mutual benefit. A distinctive feature is, according to Commons, voluntary transmission (and not production) of wealth from hand to hand. As an example, a futures contract, assignment of debts, a credit transaction.
Examples of trading transactions include the actions of the employee and the employer in the labor market, the actions of the lender and the borrower on the market temporarily free money. Each Party independently accepts the final decision on participation in the exchange. The state is an invisible participant of all | trading transactions. Material values \u200b\u200bare made and shipped using control transactions that imply relationships and subordination between legal levels of hierarchy. In other words, this type of transaction and is built on the "Management-submission" relations, which implies a final decision to only one of the counterparties with this preferential right. This type of transaction takes place in bureaucratic organizations, intra-profitable relations, i.e., where it is possible to carry out the transfer of the right to make a decision (as the right of freedom) in exchange for income greater than the market rate of salary1.
An example of the interaction of the head, in the control transaction, the legal relations are asymmetrical. The result of trading transaction is to move wealth, and the result of the transaction of management is its production. The objects of trading transaction are right to exchange benefits, and the management transaction facilities are the behavior of one of the parties to the legal relationship. As for the transactions of rationing, then, according to Conmons, they are negotiations on achieving an agreement between several participants who have the right to raise profits and losses, that is, the rights of the real distribution of wealth or income. They also imply asymmetricity of relationships and subordination between the legal levels of the hierarchy (this applies to the development of dividend policies, and the development of tax policy by government agencies, etc.). In the transaction of incidents, legal asymmetry is maintained, but the decision-making right is transferred to the collective management body that performs the function of the rights specification. An example of an incident transaction is the direction of the organization's spending or the choice of investment projects by the Board of Directors. This applies to the compilation of the federal budget by the government, the transaction of the rationing distribute profits and losses from the creation material values on the prescription of the upper levels of power. transactions (sometimes in an implicit form) contain three characteristics that are a reflection of three types of social relations; conflict, dependence, order. Commons determines the conflict as a relationship of mutually exclusion about the use of a limited resource interdependence - the ratio reflecting the mutual understanding of the possibilities of improving well-being through interaction. The order of the same as a relationship through which not only the total winnings is determined, but its distribution between stakeholders is determined. As part of the neoclastic theory, only the type of trading transaction was considered, and without any costs. Cost categories here refers to the costs associated with the transformation and travel raw materials into the finished product.
10. The concept and classification of transaction costs, methods of their minimization
In economic science, the term "transaction costs" entered due to R. Cuezu. Transaction costs, this is the cost of concluding a transaction.
R. Kouz nominates one of the fundamental ideas of the neo-astriciscular economic theory, which is that the reduction in transaction costs is the main function of institutions.
transaction costs are the value of resources spent on transactions. And to explain the phenomenon of transaction costs [the most significant two points:
Missing the economic interests of individuals interacting with each other;
The existence of uncertainty.
transaction costs arise when individuals are exchanged by property rights and cover the activities related to this process. Such activities include: Search for information about prices and quality, trading, supervision of contract partners, protection of property rights from encroachment by a third party. There are views (or elements) of transaction costs.
Costs for finding information, or the cost of identifying an alternative. Costs caused by the search for the most favorable price and other terms of contract. It is quite obvious that before dealing with or a contract, the contract will be made, it is necessary to have information on where you can find potential buyers and sellers of relevant goods and factors of production, which are this moment Prices and so on. The costs of this kind are made up of the time and resources required for searching, as well as the losses associated with the incompleteness and imperfection of the acquired information. To minimize this kind of costs, institutions such as stock exchanges are used, as well as advertising or reputation. The stronger the trademark is a source of information and the more significant savings on the costs of the search, the higher, with other things being equal, there may be the price that the seller appoints.
The variation of information search costs are the costs of measurement. The costs of this kind are related to the fact that any product or service is a characteristics complex, and only some of them are inevitably taken into account in the exchange certificate, and the accuracy of their assessment (measurement) is extremely approximate. The costs of measurement grow with increasing accuracy requirements. These measurements are to determine some of the physical parameters of the excreted rights (colors, size, weight, quantity, etc.), as well as in determining property rights (rights of use, the right to receive and alienate the course).
There are 3 categories of benefits: experienced, studied, trusting. Goods with prohibitive high cost measurement costs before their acquisition are called experienced. The benefits with a relatively cheap procedure for preliminary quality definition are called studied. The quality of the latter is relatively easy to be appreciated before the purchase. The quality of the second type (studied) quality can be established by inspection of the prior purchase, while the quality of goods belonging to the first type (experienced) is only in the process of using this product. As for trusting products, there are high costs of measurement both before and after purchase. Trust benefits include medical and educational services, the action of which is stretched in time and is quite difficult to identify.
Institutional reaction to the costs of measurement primarily was not advertising, but a system of measures and scales. The latter made comparable various amounts, thereby substantially facilitating the exchange and ensuring the enormous savings cost of measurement. An important element of transaction costs are the cost of negotiating.
Obviously, the development of the terms of the contract designed to give sustainability to the relationship requires both time resources and distracting significant funds for negotiation conditions for the exchange, for the conclusion and design of the contracts themselves. The tool for reducing the costs of this kind is the standardization of contracts, if there are situations that are governed by these contracts are typical from the point of view of mutual obligations of the Parties. In addition, to reduce the costs of concluding a contract, use a third party as a guarantor, which partly compensates for the lack of mutual confidence of the parties.
Costs of opportunistic behavior. These include various cases of lies, deception, idle at work, etc. At the same time, it is accepted for Axoma that the maximizing the usefulness of individuals will always shy away from the terms of the contract in terms of which it does not threatese them economic security. Thus, the costs of opportunistic behavior are reduced to costs that prevent this type of behavior.
Costs of specifications and protection of property rights. The problem of property rights specifications occurs almost everywhere if the system of interaction between people about limited resources is reproduced. This includes costs associated with the protection of concluded contracts from their non-fulfillment, as well as from encroachment on ownership of third parties. At the same time, protection can be carried out by both the participants in the Treaty and neutral with respect to them by the party serving a fair, the state of an impartial arbiter for this role in the process of historical development was nominated. And, of course, in this category of transaction costs includes expenses for the maintenance of ships, arbitration, government agencies. This also includes the costs of the time and resources necessary to restore violated rights.
However, there are other classifications of transaction costs. Williamson they are divided into two groups: preliminary and final. Preliminary stages of the transaction include the search for partners of the transaction and coordination of their interests. The final stages of the transaction include the design of the transaction and control over its implementation. to "preliminary": costs of searching for information, the cost of negotiation costs of measuring the quality of goods and services of the contract concluding costs. To the "final": costs of monitoring and preventing opportunism, costs of specification and protection of rights, costs of protection against unreasonable claims by third parties.
11. The main factors of the emergence and existence of transactional costs
In the real world, information refers to the category of rare, limited resources is therefore economic benefit and is not free. It is not by chance that one of the economists called the world with zero transaction costs as strange as the physical world without friction. This means that the economic system also exists with some "friction", which complicates the implementation of economic exchanges. This is "friction" when exchanging goods, which in neo-constitutional theory is interpreted as an exchange of pencils of puzzles, and generates transaction costs that are real economy Positive value, and high enough.
It is precisely the informative of information that causes a decree of transaction costs, since the latter, one way or another, are related to the costs of obtaining information about the exchange. Transaction costs consist of Tex costs, the existence of which is impossible to imagine in the Robinson economy Cruzo. That is, they are costs over and in addition to their own production costs.
With the existence of completeness of information from participants in the economic process and zero transaction costs, exchanges within the market system would be ensured by the optimal distribution of resources and the maximum public welfare in accordance with the optimum of Pareto1.
The presence of transaction costs can lead to a number of negative for the economic development of the consequences. They prevent market formation process, and in some cases they can fully block it, which breaks obstacles to implement the principle of comparative pre-property underlying trade.
As a result, due to saving transaction costs on the scale of the market, the shower income of the population may increase even in the absence of technical progress due to the growing "market" of the economy. The latter is caused precisely a decrease in transaction costs accompanying the exchange, and allows you to implement the benefits of division of labor or specialization.
As you can see, transaction costs are one of the central] categories of the neo-constitutional theory.
12. Methods for estimating transaction costs
One approach is to clearly specify costs in each case. In one case, for example, it may be the cost of market entry, in another - the costs associated with the conclusion and protection of contracts, etc. With a level of elementary partition, many components of these costs are quite measurable.
A slightly different approach is marked with American economists Wallis and D. North: the basis of the analysis is the difference between "transformational" (associated with physical impact on the subject) and transaction costs. Transformation costs are the costs associated with the transformation of resources in finished products. To determine the transaction costs, the following criterion is used: from the point of view of the consumer, these costs are all its costs, the cost of which is not included in the price paid by the seller; From the point of view of the seller, these costs are all its costs that he would not believe if "selling" goods to himself.
Developing this approach, these economists tried to determine the size of the so-called transaction sector in the economy, or the proportion of transaction costs relative to the GNP and the trend of its development. The calculation was made on the basis of determining the total amount of resources used by firms selling transaction services, as well as measuring the resources allocated for transaction services by firms producing other goods and services.
Such a classification made it possible to allocate a special category of firms whose activities are related to the provision of transaction services. This category of firms includes intermediaries that provide net transaction services or mainly transaction services.
16) transaction and transformational costs, their dynamics in the process of becoming the development and development of a market economy.
Transaction Ed. - It is from the central categories of the neo-constitutional theory. Their inclusion in economy analysis makes it possible to explain almost all the phenomena with t. Of vision efficiently achieved by minimizing transaction costs. The transaction costs of the Yavl as part of the neopserts analysis of the key to understand the processes occurring in the economy. Then attempts began to develop methods for assessing transaction costs. One approach is to clearly specify costs in each case. (PR. Passenger's expenditures on the market or costs associated with the conclusion and protection of contracts.) Another approach was identified by Amer economists Wallis and North. - Jowl analysis of the formation of them the difference between transformational (associated with physical impact on the subject) and transactional costs .. In their opinion, the cost transforms are the costs associated with the transformation of resources into finished products. For the use of transaction costs, with consumer vision, the consumer costs all its costs, the cost of which is not included in the price, who is fought by the seller, with t. Of vision of the seller by this costs, all its costs that he would not be Goods yourself. These economists tried to determine the size of the transaction sector in the US economy, or the proportion of transaction costs relative to the GNP and the trend of its development. The calculation was made on the basis of the determination of the total amount of resources used by firms selling transactional services, as well as measuring the resources allocated for transaction services by firms, produce other goods and services. Such a classification made it possible to allocate a special category of firms whose activities are associated with the provision of transaction services. The category of firms includes intermediaries that provide transaction services. North and Wallis included groups of firms operating in the field of spheres: 1) Finance and Real Estate Transactions, 2) Banks and Insurance, 3) Legal and Jurisical Services, 4) Wholesale and Retail.
13. Factors defining the development of the transaction sector of the economy, its components
The North and Wallis economy transaction sector related to the services of the state and intra-profit transaction services. The transaction services in the total or state sector are: National Defense, Police, Air and Water Transport, Healthcare.
North and Wallis allocated three main factors to expand the transaction of the economy sector. 1) the increase in the costs of the specification and protection of property rights, maintaining contractual relations. The TC with the development of market relations is to exchange all in greater stpeyment becomes an impersonal and requires widespread use of experts in the field of law. 2) technological changes. Caidal textures can be profitably used if it is possible to provide a consistently high level of output. To do this, it is necessary to establish the provision of rhythmic, uninterrupted receipt of resources and the creation of a system of stock management and sales of products and the creation of a system for coordination and control over the actions of people within the firm. That is, these processes led to an increase in the specific gravity of intra-profit transaction services into the transformation sector of the economy. 3) Reducing the costs of using the political system for redistributing property rights. A sharp increase in the transaction sector in the opinion of economists began in the mid-19V due to the development of the network railwaysWhat has prepared the ground for the population urbanization and the expansion of the markets. And it is this process that was accompanied by an increase in an impersonal exchange, which requires a detailed definition of the transaction conditions and the developed legal protection mechanisms.
14. Concept of contract. The main provisions of the economic theory of contracts
Stern general rules The defining the structure of property rights exist rules structuring over time and in space between two and more economic agents based on the specification of the exchanged rights and obligations in accordance with the agreements achieved between them. They define a specific interaction framework that describe the conditions for making transactions. This is and calling the rules of contracts. The provisions of the contract indicates what rights and under what conditions are transmitted. When the rights are transmitted temporarily, stipulates how it is necessary to face a resource. In the case of transmission rights, defined are defined forever qualitative characteristics Transmitted object. The fundamental principles of contractual obligations: freedom of contract, i.e. freedom of its conclusion, freedom of choice of counterparties, responsibility for the implementation of the contract, that is, violation of the condition of the contract is the basis for attaching a violation of responsibility. The social status of participants in exchange with necessity should be taken into account in the exchange in the assessment of the contract and to ensure more benefits to the one who means more for public life. According to the English philosopher, Gobbs, the moral approach to contracts does not make sense. If the contract complies with the laws, it is fair. The justice of the contract participants is to fulfill the contract, and not at all in taking into account the status of the other party. The difference of the contract from the volume is that the terms of the contract are determined in advance and are coordinated. Individuals prior to the implementation of the exchange set which utility and in what amount they alienate or acquire. As part of the analysis of the analysis by defining factors when choosing the type of contracts of the Yavl: transaction costs, natural risk and legal and political structure of the OBA. The magnitude of the transaction costs-important factor when choosing one or another contract form.
15. Precompetitive and post-accompaning opportunism. Forms of its manifestation
The contract can be called any agreement on the empowerment and their protection, where a bilateral (or multilateral) legitimate transaction will be understood under the contract, in which the parties agreed to certain mutual commitments.
The difference between the exchange contract is that the terms of the contract are determined in advance and are coordinated. As part of a neopstitial analysis of the defining factors when choosing a type of contracts are: transaction costs; Natural (economic) risk; Legal and political structure of society. Neo-register theory retains a motivational prerequisite on the maximization of its own benefit, its following is selfish interests. This motivational premand Representatives of this area include the behavior of a person of a traditional society with the only reservation that there is a weak form of egoistic behavior. According to Williamson, a weak form of orientation for his own interest is obedience. Williamson highlights the semi-satisfying and strong forms of selfish behavior. The semi-sile form of egoistic behavior is to follow their own interests in conditions of certainty (completeness of information). The strong form of egoistic behavior is opportunism, interpreted by Williamson as a persecution of personal interest with the help of cunning. This type of behavior includes such forms as false, theft, as well as the provision of incomplete or distorted information, especially when we are talking about deliberate deception, misleading, distortion and concealment of truth and other methods of confusing the partner.
Within the framework of inconspicient analysis, there are two main forms of opportunistic behavior.
The first is called "Blossy", meaning that the individual works with an impact lessthing is required by the contract. For example, it is very difficult to distinguish the personal contribution of each employee in the aggregate result of the "Team" of the enterprise.
The second form of opportunistic behavior is "extortion". Opportunities for it appear when several production factors work in close cooperation for a long time and they "get stronger" to each other, that everyone becomes indispensable, unique for the other members of the "team." This means that if some factor decides to leave the "team", the remaining participants in cooperation will not be able to find it equivalent to replacement in the market and will carry irrelevant losses.
If you classify opportunist behavior from the point of view of the contract process, then two types of it should be selected; Pre-attachment and post-accommodation.
Pre-propelled opportunist behavior is possible during the conclusion of the contract. Pre-propelled opportunism is expressed in concealing true information. This may occur both when purchasing goods and the hiring of workers and is a consequence of the existence of hidden for the economic agent characteristics of goods. The result of pre-propelled opportunism is unfavorable, or worsening the terms of exchange, selection.
A classic example illustrating this situation is the market for used cars, on which cars of the worst quality displacing the best quality cars. This is due to the fact that the buyer is ready to pay for the car a certain amount, but it is not capable of assessing its full quality.
Postcomptepp, opportunism is in violation of the terms of the contract. It is expressed in concealing information one of the parties, which allows you to benefit to the detriment of the other party. For example, the use of working hours for their own purposes or the use of money obtained to implement an investment project for operations with securities. A situation is also possible when one of the parties, using favorable circumstances, will insist on changing the contract. Thus, post-flow off the opportunist behavior includes the "Blowjack" and "extortion" considered above.
As can be seen, one of the reasons for the occurrence of post-accommodation opportunism is inflicted contract, since it is impossible to predict all possible actions of agents. Another reason for the occurrence of post-accompanied opportunistic behavior is the complexity of measuring the quality of the parties.
16. Classification of contracts
In economic theory, there are three types of contracts that received the names of classical, neoclassical and implicit (obligatory, or relative).
The classic contract is based on ideas about the fullness of information from the participants of the transaction, i.e. the absence of uncertainty, and, as a result, zero transaction costs. The. The type of contracts is meant within the framework of the classical political economy exploring the relationship of purchase and sale as a one-time exchange of rights. The third party services in this case are necessary only to ensure the reliability of the threat of punishment, since the court decision is initially obvious.
From the completeness of the classic contract it also follows that if one of the counterparties violated the terms of the contract, the relationship with it is immediately interrupted, i.e. the transaction is self-destruction. Therefore, such contracts are considered to be self-fulfilling.
The neoclassical contract is a long-term contract in conditions of uncertainty, since not all future events may be provided and stipulated. At the same time, the participants in the neoclassical contract agreed to attract the arbitration side, the decisions of which are obliged to perform in the case of the events non-refined in the contract. One of the most important conditions for concluding agreements here becomes the confidence of the parties to the dispute settlement mechanism.
The implicit (not agreed before the end) is interesting to the fact that it does not have a clear definition of interaction conditions, participants are counting on its specification in the progress of the contract. Certain parameters are not negotiated due to the fact that the costs of contracting are excessively large. Contracts of this type are addressed in conditions of long-term, complex and mutually beneficial relations between the parties. Contracts (implicit) contracts arise when, in case of interruption, no one can find an equivalent replacement in the market, so the disputes are solved in the process of informal negotiations.
According to O. Williamson, the choice of a specific form of the contract is dictated by several factors. In particular:
uniqueness (specificity) of the exchange of resources;
the degree of uncertainty (imperfection of information) accompanying the transaction;
the frequency (regularity) of business contacts between the parties.
The problem "Principal is an agent" as the problem of incompleteness of implicit contracts. Options for its solution in the framework of the company.
interesting classifications of contracts that are directly related to the analysis of the nature of the company is their separation.
for contracts for the sale and contracts for hiring.
The contract for the employer received its name in connection with the model of interaction between the employee and the employer, in which the hired employee acts as an opponent of risk, and the employer is neutral (or inclined) to risk.
The contract for hiring is a type of implicit (from-noshenny) contract, is characterized by all its features and is directly related to the theory of agency relations. In turn, the agency relationships are established when a certain principal (in the future we will call it a principal) delegates some rights (for example, the right to use the resource) to a certain agent obligated in accordance with the contract to represent the interests of the principal in exchange for a remuneration of one or another. An example of agency relations are the relationship of an entrepreneur and a hired employee, shareholders and managers in the company, etc. 1
With the agency relationship system, the agent usually has a large fact that the principal, the amount of information on the details of the individual tasks set in front of it. Thus, the information is distributed among the principal and agent asymmetrically. Often agents resort to evasion from the implementation of contractual obligations, or opportunistic behavior. Naturally, opportunistic behavior imposes costs on the principal, because the latter discovers that in its interest to carry out the NPVP for the agent and give the contract such a structure that would reduce the costs of agency relations. Sometimes it is possible to reduce the costs of agency relations, developing such contracts, where the interests of the principal and the agent partially coincide. For example, contracts involving the equity distribution of profits between them. Contracts may also contain a position, clearly outlining the permissible behavior of agents. However, it is impossible to completely exclude opportunistic behavior, and therefore the cumulative costs of the agency relations for the principal will be equal not only to the amount of investment in the containment of opportunistic behavior (bulging and extortion), but also include the costs associated with unrelated or residual chipping.
it should be noted that the legal and political structure of society, as well as the subjective economic risk, are influenced by the choice of type of contracts.
17. The result of the company as a result of the existence of the operation of the market mechanism. Theory of the company Kouza
Until the middle of the twentieth century, as part of the neoclassical analysis, the company was interpreted as a kind of "black box", at the entrance to which - work and capital, and at the exit - products. As a motor of this process, a self-supporting interest was considered to maximize wealth.
There were questions about the basic nature of the company, whether the company complements the firm or replaces it. Why in one case resources are accommodated through the price mechanism, in others - the efforts of an entrepreneur-coordinator.
COUPE answers this question as follows: the market requires sometimes excessively high transaction costs.
An explanation of the company as a substitute for market operations was proposed to reduce the costs associated with the action of a market mechanism. According to Cone, the firm is a hierarchical structure, which, unlike market transactions, is managed by non-bilateral contracts, but direct directives.
It is the increase in the costs associated with the organization and coordination of market transactions, leads to the movement of operations from the market to the firm.
Why is all production is not carried out by one big company?
First, they can increase the cost of organizing additional transactions.
Secondly, it may be that with an increase in transactions an entrepreneur is not able to place the factors of production at such points where they have the highest value.
There is a problem that is interpreted by economists as a "decreasing return of management" due to savings at the costs of one kind, an increase in the cost of the costs of another kind.
The optimal sizes of the firm are determined by the boundary where the costs of market coordination are equal to the costs of centralized control.
The firms give a greater gain in terms of negotiating costs. On the other hand, the firm, which, by definition of the Cone, belongs to hierarchical structures, is a fertile soil for opportunistic behavior.
According to the coza, to the extent that the mechanism of policy management allows to save transaction costs, the firm displaces the market.
18. Contract nature of the company. Interpretation of the company Alchianov and DemS
In the modern neo-constitutional economy, the firm theory is defined as a network or plexus of contracts, where business communications, permanent contracts and periodic coordination of conditions without contacting the assistance of the Court and other intermediaries implies under the contractual relationship. Intercommunicative relations are interpreted in categories of the implicit (or relative) contract. America Economists Alchian and Demmets made a great contribution. According to these economists, there are no such powerful powers or mechanisms in the arsenal that would significantly differ from the relations provided for by conventional market contracts between two people. Unlike the consideration of the company as hierarchical relations, Alchian and DemSets consider the company as an analogue of market relations, i.e., a system of voluntary mutually beneficial contracts, where the consent of the Parties involved means that they have chosen the best alternative to possible.
The main characteristic of the company is the presence of a central position of the Participant of the Contract in the Command Production, and not a certain highest guide or disciplining force of an authoritarian nature. Also, the authors consider what team production and why it causes a contractual form to life called the company. Command Production Activities are activities in which the combined or joint use of resources provides a higher issue than the amount of products obtained through the use of resources separately. The advantage of the coalition is that the volume of the issue produced by the team may be larger than the amount of individual contributions made by the participants.
With such a interpretation, the company is a coalition associated with a network of contracts. The core of the coalition forms a long-term relational contract for interdependent resources. And in other words, the coalition will disintegrate and will not be able to find participants in return and interested in each other. When making the production of the entire team, it is impossible to determine the individual contribution and as a result, opportunism appears in different forms. And, according to Alchian and Demests, it is in order to prevent this phenomenon, the coalition allocates a central agent that has a bunch of rights. What is the value of such a beam of property rights? The existence of economies of negotiation costs is achieved, the effectiveness of control over the behavior of team members, solves the problem of opportunistic behavior. Who is considered by the central agent - entrepreneur. According to the concept of Schumpenter, entrepreneurial activities are associated with the use of already having funds, and not the creation of new ones. The entrepreneur sells them, overcoming technological and financial difficulties And opens up new ways to receive profits. By the Calon, entrepreneurial profit is a question of foresight and desire to take the risk, and the Entrepreneurship itself - economic function A special kind, consisting in bringing the proposal in accordance with the demand for various goods. DemSets and Alcians interpret the entrepreneur as the owner of the most specific resource whose value is in more than Depends on the continuation of the existence of a coalition. Entrepreneur as a person seeking and implementing a valuable combination production resources In terms of the principal incompleteness of information or certainty.
With the view of Alchian and Demesh, thanks to the flow of information flowing towards the side of the contract, the company acquires the characteristic of an efficient market where information on the qualities of a large set of resources becomes available. The company is a tool for increasing competition between resource sets. The company arises as an answer to the high cost of market coordination, contributing to saving transaction costs. Minimizes the costs associated with ensuring the implementation of the contract. Contracts play a key role. The theory of firm is the theory of imperfect contracts. If the contract was perfect, then the need for the firm would have walked.
19. The problem of moral risk, unfavorable selection and extortion. Fighting methods for the fight against opportunistic behavior
The theory of contracts pays special attention to the traxt costs, as the cost of the opportunity of behavior. The weak form of selfish behavior is obedience. The semi-dimmist is to follow their own interests in conditions of certainty. The strong form is opportunism interpreted by Williams as persecution of personal interest with the help of cunning. The two main forms of opportunistic behavior differ. 1) "Blowjack" Individual works with an impact less than it is required under the contract. So, the moral risk arises when in the contract one side relies on the other, and obtaining really information about its behavior requires large costs or is not at all possible. Special soil for leaning is created in the context of the collaboration of the whole group. And in firms are created special complex expensive structures. Includes control over the behavior of the agent. 2) "extortion" is possible with long work in close cooperation and so take effect to each other that everyone becomes indispensable. If some factor decides to leave the team, the rest will not be able to find it replacing the market and will carry the losses. By classification, two types of pre-attachment and post-flow accommodation are distinguished. The precompetrate is possible during the conclusion of the contract. It is expressed in concealing true information.
The result of the pre-contracting is unfavorable or worsening the exchange conditions, selection. Example of supported machines. Cars of worst quality displacing better quality. This is due to the fact that the buyer is ready to pay a certain amount. But it is not able to assess the fullest. Another problem of unfavorable selection gives the labor market. If the Z / P rate is established by the company at the labor productivity level, the most produces employees will refuse to conclude a contract under such conditions. Institutions Reaction to the existence of a worsening selection may be the use of data on the potential of the employee.
The postcontract is inflict in the contract, if it is compiled, it is impossible to predict all actions. Opportunist behavior means violation of the terms of the contract in which there is a strategy for taking information. The costs caused by opportunistic behavior arise due to the asymmetry of information and associated with the difficulties of an accurate assessment of the behavior of another participant in the transaction. Williamson introduced an analysis of new concepts in economies in relation to the theory of contract and the theory of firm. These are assigned quasirens, specific resources, dependence. Specific resources include resources that are adapted to relationships with a specific partner and are non-returnable. Resources can not without loss in their value to be deployed on alternative use options. Quasirew corresponds to the difference between the current revenue with the best alternative use and occurs as a result of specific investments. Specific resources not only create the possibility of obtaining quasirents, but also fall into a relationship relationship, leading to the fact that it can be seized by the owner of this resource. The method of protection of quasirents may be long-term contracts, designed to limit the many future options for choosing the owners of production resources, the positions of which allows them to assign a quasi-seater.
20. Types of economic organizations, their analysis in the framework of the theory of property rights and theories of transaction transactions
Each form economic organization With a certain structure and magnitude of transaction costs, turns into the most effective way to coordinate economic activity. The mechanism of market coordination is relatively more efficient in saving information costs. Such organizations as a company give a large gain in terms of negotiating costs, at the same time hierarchical structures - fertile soil for opportunistic behavior. The first type of unitary firm, i.e., the company is in sole ownership. Several economic resources owners conclude bilateral contracts not with each other, but with a certain central agent in order to minimize the transaction costs and the cumulative value of their assets. Characteristic: Production related to joint use of resources, the presence of several resource owners.
The central agent is the owner of the company and the employer. There is no authoritative control, all relations represent a contract structure that occurs as a means of increasing the efficiency of command-made. Plus the fact that clear specifics of property rights. Minus - due to the high transaction costs of external financing of the company, located in sole ownership. Minus and high risk taking costs that could increase the cost of the company. Common form of economy organization is joint-stock company Open type or open corporation. Owned corporation owners have a smaller bunch of rights, have no right to change the team member. Benefit: In the Rights Scheme for residual income, which contributes to risky investments with relatively low costs. Joint-stock ownership is a group, joint possession of a single bunch of rights. It is a way to protect against opportunism. Shareholders can sell their share, but the resources themselves remain in the company. The main problem generated by a joint-stock form of ownership is control over the highest manager, which has a wide field for opportunistic behavior.
The state firm does not have the most important elements from the bunch of law. This is the lack of right to the free sale of all the rest of the right, as well as restrictions on the rights to residual income and management. That is, there is a weakening of control by the owner for the behavior of the manager, it becomes impossible to express the cost of the future consequences of the current actions of the manager. Raising prices for the company's services does not increase the monetary income of the participants of his team. State Enterprise Updated Conditions establish low prices for products. And also weaker reacts to change in demand. The most important contribution A transaction approach to the problem of the company is formed so that there are no a priori reasons in order to give the absolute preference to some kind of form of an economic organization before all others, each with a certain structure of transaction costs turns into the most effective way to coordinate economic activity. A variety of organizational forms is a reaction to the problem of minimizing transaction costs.
21. State as an institution. Justification of the functions of the state-Wa from the position of neo-institutional economic analysis
Institutions are general rules (formal and informal). IN modern conditions The main one, the most important part of the rules is reflected in the aggregate of laws, judicial and administrative acts. As a result, the state "acts as an essential element of the institutional structure of the Company. Political institutions are primary in relation to economic institutions. This means that the state determines the norms and rules for the behavior of economic activities. The functioning of the economy is largely determined by the state structure. Representatives of the neopstitutional directions are continuents of tradition Loaded by classical political economy. In the classic school of the function of the states are minimal_y, refer to the establishment of justice laws.
Consequently, the state was supposed to: protect society from violence and invasions of other independent societies; to fencing, as far as possible, each member of society from injustice and oppression from its other members; ensure the execution of voluntarily concluded contracts, which are, as noted above, exchange channels Puzzles of the right. In this concept, the duty of the state is simple and unequivocals and are reduced to the protection of members of the Company from coercion from their fellow citizens or from outside. It is freedom of choice involves the voluntaryness and mutual benefit of the subsequent exchange and is in this capacity as a condition for increasing the efficiency of social production and the growth of the wealth of the nation. There must be some kind of method to resolve controversial issues. So the economic law arose where the state function was the development of economic legislation. This role of the state includes the establishment of general rules of economic activity. Representatives of traditional institutionalism assesses these rules from the position of ensuring the overall well-being and the implementation of justice in public relations, then representatives of the neo-constitutional direction. In their opinion, the role of the state should be econ. The sphere is reduced to establishing rules that promote the simplification and development of voluntary exchange mechanisms.
The state within the framework of neo-constitutional analysis is considered as an institution affecting the amount of transaction costs. With the formation of the national, market for replacing the personal exchange between the counterparties well knowing each other. The state acts as an effective mechanism for coercion, designed to protect laws and contracts from possible violations. Taking as an axiom that the purpose of development is the growth of the wealth of the nation. The main function of the state is to protect property rights, which reduces the transaction costs and create a favorable environment for exchanging. The intervention of the third party (state) is necessary to create guarantees from the opportunist behavior of the contract participants. The production of public benefits generates the problem of "flaile", which requires the use by the state for coercion to finance their production. Those functions that contribute to the reduction of transaction costs are added. These include: 1) Creating information exchange channels 2) Development of standards of measures and weights - the activities of the state in this direction makes it possible to reduce the cost of measuring the quality of exchanged goods. The organization of money circulation is also related to the same function. In general, the functions of the state are seen by the representatives of Neoinste. Directions in creating and ensuring the functioning of rules or institutions that reduce transaction costs and providing a favorable environment for carrying out voluntary mutually beneficial exchange. In the ideology of economic liberalism, they pay attention to the "failures" of the state. In their opinion, state. Intervention directly into economic processes is unacceptable; And if it happens, this is done, according to representatives of both liberal and neoliberal directions, exclusively in the interests of the state apparatus. That is, again, the state functions are reduced to the specifications and protection of property rights (meaning, of course, the Institute of Private Property). The state, establishing legal norms and ensuring their observance, stimulated trade.
22. The characteristic of the "contract" and "exploitative" state. State theory D. Norta
the two main theories of the social cheese, which can be conventionally indicate as the approaches of T. Gobbs_i J. Locke. At the same time, the basis of both doctrines is the recognition of the existence of natural (in bourgeois understanding), inalienable rights and freedoms of the individual - as the right to dispose of themselves and its property. The state of Gobbs is absolutely necessary precisely because of the fact that the first natural law is freedom, which in the conditions of unsaturability of the need for people, permanent rivalry and distrust leads to the "War of all against all. Only the world can ensure guarantees of the existence of human retention of their property; And the desire for it to the SCC once and causes a rather reasonable refusal of 0t on the right to the life and property of another ch-capriciousness to need to establish a common power, provided. The world and the achievement of well-being provided. Ch-ku more features than arbitrary. Thus, the government of the state (represented by the sovereign) over citizens is almost complete.
And the only right to whom subjects are subject to life. According to the views of J. Locke, the sovereign "is obliged to rule under established constant laws, proclaimed by the people and the famous people, and not by improvised decions. But in the fact, and in another case, the state is interpreted as a result of a public contract between_individe. The result of the manifestation of their free will and awareness of the benefit of the graciousness of some of their own. Desires that may harm others / in exchange for similar actions of other community members. The initial contract suggesting the recognition of the rights of the individual on certain resources from other participants in the Treaty in exchange for consent to respect other people's rights to other resources. This model of the state implicitly present in the classical school is based on such postulates as recognition of natural and inalienable rights and freedoms of the individual, i.e., on the concept of natural law. And, secondly, on the recognition of equal distribution of the potential of violence among the participants of the contract. The state (within these assumptions) will contribute economic flourishing Nation through the best specifications and protection of property rights and the creation of institutions that reduce transaction costs. In the theory of public contract, the state appears as a result voluntary transmission Citizens of the rights to coercive to the fulfillment of contracts and the protection of the rights of an independent and neutral arbitrator The modern stage of the development of the theory of public agreements is associated with the works of J. Buchenane. "The scheme proposed by them is as follows. Initially, it is assumed that at the" first stage "there is a natural distribution of goods, which is determined by the efforts spent by individuals on the seizure and protection of limited goods. They determine the value hierarchy,
Then the constitutional contract is concluded, the result of the state is the state of protecting. Constitution - key concept of bouquenne concept. Under the term "Constitution" means a set of pre-agreed rules, according to which OCYMAL is follow-up.
The third stage is a post-constitutional contract. On this etc, the rules on which the state should act, engaged in the production of public goods, while they should not contradict the rules of constitutional.
Within the framework of this hierarchy, O Oyuda is the pre-constitutional (or supreme-institutional) rules, and they are of particular interest. In other words, the development of the rules for which this constitution is accepted. These rules will act as ancestor defining the procedure and maintenance of the lower rules. The difficulty is that they are largely informal rules. Buchenane nominates the rule of unanimity for the adoption of the initial, constitution, Buchanan so proposes to organize this exchange so that all participants can count on obtaining a pure positive result at the level of constitutional choice. He considers the issue of adopting a constitution from the standpoint of individual members of society for all the differences, the above theories involve the existence of a public contract between citizens and the state and,
as a result, the model of the contract state is taken as the basis. In essence, the contract state is a state in which every citizen delegates to the state part of the functions according to the specification and the protection of exceptional puins, the A- state uses a monopoly on violence within the framework of him delegated.
At the heart of this beautiful design - a number of prerequisites:
the presence of clear constitutional frameworks of the state;
The existence of the mechanisms of participation of citizens in the activities of the state;
the existence of the Institute of Market as the main alternative; The mechanism for the distribution of property rights to the emergence of a contract state.
However, all these prerequisites did not have a place in real reality.
The theory of exploitative, which nominates the other version of its origin looks more believable, with this approach, they see the instrument of dominant groups or classes 1. As a result, the main function "state in this case will objectively be in the transfer of income from. Other members of the Society in favor of the rule of the Group or class. The state will establish such structures of property rights that would maximize the income in power of the group, no matter how It would affect the welfare of society.
In the framework of the neo-secret institutional economic theory, the version of the origin of the state from the anarchy situation was closest to the theory of the exploitative state.
In his opinion, the primitives of the state. Appear in the collision of the "robber with a large road", the terrorizing population of a separate area, and the authorities represented by a certain military man, which protects the people from the oppression of the nomadic robber, but at the same time, there are some tribute to lack the workers.
Olson interprets this warlord as a "sedentary" robber, seeking to assemble as much tribute as possible, (tax). The aftermaths will receive a maximum of tax robbery if possessions, by he captured, will remain productive. Therefore, its purpose becomes the development of incentives for the pro-Wu, in other words, the creation of laws and moral order. First of all, legitimizing certain property rights, which gives a powerful impulse to an increase in production, i.e. investment. This is due to the fact that in the conditions of the law and the procedure, people will be confident that after paying taxes, their ownership will remain a significant part of their income. Since robbery through tax fees was much more efficient than rare raids. The self-supporting interest of the conqueror forced him to introduce the law and the public order in the territory of the area subject to it, which prevented abuses. The state, at least theoretically, is the most effective organ of coercion, since it carries out with the smallest transaction costs. Or, otherwise, the state has comparative advantages in the implementation of coercion to the execution of the contract, etc. "There is a savings on the scale. Thus, the presence of the state is a factor to save on costs of violence. State-speakers acts as a public benefit, minimizing transaction costs. The role of the state is:
In support of an existing position based on the current system of formal rules, consistent with informal norms;
B identifying such a ratio of interests of various parties, which provides social economic system Sustainable, although not in all cases effective (according to the criterion of economic growth) development. In other words - in ensuring institutional equilibrium. Here the criterion for evaluating the state is put forward from the position of preserving the established institutional environment. The effective "nature of the state is assumed in the model of the contract state, ineffective - in the model of the exploitative state.
Once again we emphasize that the differences in the contract and exploitative theories of the state are:
First, in discrepancies relative to the interpretation of the state;
Secondly, in the characterization of the recipients of residual income in the broad sense of the word (i.e., the benefits of ensuring the security and ordering of exchanges and in general property rights).
According to the exploitative theory, only the ownership team receives additional benefits, and according to the contract theory, the benefits are more or less equally distributed among all members of society; i.e. in the exploitative theory of the state we are talking
About rental led by the ruling group, in the contract - about the benefits that all participants in the initial treaty receive. The very function of making order does not depend on the nature of the origin of the state. In any case, a distinctive feature of the state is a monopoly on violence or a threat to the use of force that the OVL. necessary and to maintain domination, and for the protection of a public contract. The theory of contract nature of the state implies an equal distribution of the potential of violence among the participants of the contract; The theory of exploitative, or robbing state-visual distribution of violence. However, according to North, the ability of the ruler to increase its income have limitations related to the following factors:
the threat of the appearance of potential rivals within the state or beyond (the presence of candidate candidates for the ruler);
a tendency to the opportunistic behavior of state agents (government officials);
a variety of measurement costs, especially the cost of measuring the tax base.
In other words, political systems tend to establish an inefficient structure of property rights. This is due, according to North, or with the fact that the income of the ruler is greater in the inefficient structure of property rights; or so that the introduction of effective property rights impede powerful political groups with special interests; Or fear that effective property rights will cause dissatisfaction with a significant part of the subjects, which will make the ruler's position less reliable.
As a result, several criteria for the distribution of property rights may be faced:
effectiveness under which the maximization of the cumulative product is meant;
relative contractual force of the parties; Maximizing income in the treasury.
North draws attention to the fact that the role of the state in the economic development of contradictory. It can contribute to both economic growth (establishing and protecting effective ownership) and economic decline (in particular, due to the inefficient distribution of property rights).
In general, the North's approach is a synthetic theory, which includes elements of the contract and exploitative theory of the state, recognizes both productive and potentially "robber" nature of the government. In the model proposed by him:
it is understood as the agency "selling" services of defense and justice in exchange for taxes is endowed with the features of the "discriminatory monopolist". This means that it breaks the population into groups and for each establishes such property rights to maximize revenues to the treasury;
the state (ruler) is limited in its actions by the presence of competitors applying for power
23. The problem of the "Agent Principal" in this state and citizens
the state has not only signs of the institute, but also is an organization, and in this capacity acts on the role and principal (guarantor), and agent (or artist)
Moreover, these relationships are in this case are quite peculiar, because in the relationship "State - citizens" there is a double model of the "Principal Agent", or the "performer guarantor". In other words, citizens and the state are simultaneously and "principal", and the "agent".
So, a citizen is a principal when delegates part of his rights to the State Agent. Submitting to the decisions established by the state-principal, as a guarantor of the execution of contracts, a citizen acts as an agent. A person perceives himself at the same time and participant - the object government controlled, and subject to comply with the norms of behavior, which, he may not choose
The model "Principal Agent" allows you to identify a number of problems related to the functioning of the state:
Will the state seek to extend the scope of its control outside the transactions agreed by the parties;
Will the state, using his monopoly on the use of violence, ignore the interests of citizens and not consider them even as a restriction when maximizing their own interests;
There will be no citizens to behave opportunistically, seeking to avoid payment of services provided by the state.
the contract state (ideally) is a product of a voluntary agreement between free individuals, which found potential benefits in limiting the manifestation of the individual free will of other individuals and their own.
Already at the dawn of the formation of a market system and the corresponding political system, representatives of liberal ideology have perfectly realized that the government (state) is a body with a monopoly on the legal use of force (or the threat of its use). This is the necessary function of the state, since institutions include not only the rules, but also mechanisms ensuring their implementation However, in connection with this, one of the most serious issues arises: how to ensure that the authority to apply violence provided by the state in order to protect freedom remained as part of this particular function and could not turn into a threat to freedom? Here two problems are on the fore;
How to arrange power to ensure equality of passive political rights, and for a certain part of society - and active political rights;
: - How to end with the principle of focusing power in the center.
In other words, how to ensure legal guarantees of personal freedom and personal self-expression, i.e., to carry out that A. Smith later called the sacred laws of justice. And, on the other hand, how to dispel power in different parts of the state mechanism and various institutions civil society. The latter is especially important, since society can only control TU: power, which is fragmented, and its separate parts are opposed to each other (legislative, executive, judicial). We emphasize that the decision of these issues and meant the creation of a constitutional state state-of a political mechanism, which in its formation approved the priority of liberal values \u200b\u200bon the values \u200b\u200bof democracy, in particular freedom of equality.
It is assumed that in the conditions of a political system based on these principles (i.e., if there is a contract state), citizens, being the principles, "entrust" to the state (agent) to create conditions for maximizing their welfare.
However, agency relationships involve the existence of the problem of the behavior of the Contractor. In the theory of contracts, among other things, situations are considered when the performers \\ (agents) may create reliable threats or the use of rules to the detriment of guarantors (principles), or the establishment of new rules that improve them economic situation. This phenomenon was called "Rent Removal". "From the state of the state in relation to citizens, rent extortion can take diverse forms, including the threat of establishing rules that impede the activities of the business entity, .. Promise does not apply an excessive tight rule in exchange for payment (bribe). According to representatives of the neopsertion, the most important means, Restricting the unscrupulousness of the state is the development of competition. This is due to the fact that in the context of competition incentives for economic agents, the amount of payment from each subject for the "reasonable" decision of the dispute is also reduced. For them, the central question is not What size should the state should be, and in what types of activities and how government officials will be stimulated. The individualistic concept of a collective organization, including the state, is a characteristic feature of the neon direction. The most bright And expressed in the theory of public selection of J. Buchenane, who considers any collective action as actions of individuals who have decided to achieve some goal as part of the team, and not individually. And in this case, the state logically characterizes as a simple set of techniques, a machine that makes it possible to carry out such actions. It is not surprising that this economist represents a state as an amount of its individual members acting as a team, and the government, from its point of view, is only a collective will expressive. And can not assign themselves the right to maximize anything. According to Buchenane, a person maximizes the usefulness and market, and in political exchange (political activity is considered as a special form of exchange). In the economy, as in politics, people pursue similar goals to benefit, profit. In other words, in theory, public selection, the main prerequisite is that there is no insurmountable face between economics and politics, because both in the economic and in political sphere People pursue mercenary interests.
The focus in this_ theory is made on the characteristics of the state not as much as the institution (or the totality of the rules), but on its characteristic as an organization - that is, the teams playing, like other teams (firms, trade unions, political parties, etc.) , Pa by an institutional field and seeking to win within the framework of existing restrictions (rules) or change them.
When adopting such a prerequisite, an idea of \u200b\u200bthe state is destroyed, which has no other goals, except for public interest care, and it appears as an isna of competition of people for the impact on decision-making, for accessing the distribution of resources for places in the hierarchical staircase. In such a interpretation, the state is people who use government agencies in their own interests. In this regard, the state loses signs of the Institute and Neutral Arbitrator, following the fulfillment of rules and forcing (despite persons) to their execution.
It is not surprising that within the framework of this interpretation there is a problem of abuse of political power. However, in reality, ordinary voters (the concept of an "economic person" is adopted here again) cannot afford significant waste related to obtaining the necessary information about the upcoming elections. There is a kind of threshold effect - minimum value The benefit that needs to be exceeded so that the voter participates in the political process. The rational voter should relate limit benefits from the impact on the deputy with limit costs. As a rule, the latter significantly exceed the first, so the desire to continue to influence the deputy at the voter is minimal.
A completely different situation in voters whose interests are concentrated on separate questions (for example, manufacturers of certain goods). Creating groups, they can significantly compensate for the costs if they arrange them, the bill will be adopted. The fact is that the benefits of the adoption of the law are implemented within the group, and costs are distributed to society as a whole. It can be said that in these conditions, concentrated interest to a few wins the spray interests of the majority. Aggravates the situation of interest to deputies in active support from influential (voters, because it increases the chances of their re-election on new term. The peculiarities of the modern political SIS-we imply the implementation of the principles of democracy, determine the possibility of abuse of political power. It should be borne in mind that a politician seeking to remain in power (or on the power) can affect the number of voters in three ways:
Conducting policies and actions explicitly aimed at the benefit of the W organized electorate (people);
supporting policies of groups pursuing special interests.
In the latter case, the state becomes an isna, within which groups of special interests fight each other or enter into a coalition in order to influence the decisions of the state relating to, including the redistribution of income. They are characterized as redistributive coalitions. Naturally, the provision of pressure on the state and, accordingly, the costs of resources for the adoption of certain decisions are appropriate if it is possible to make decisions in favor of certain groups, which involves the yield of the state beyond the functions derived from the classical political economy.
As you remember, A. Smith limited the objectives of the state by the protection of "Sacred Laws of Justice",
However, from the end of the XIX century. There is a sharp strengthening of the trend towards the creation of the manufacturer's state, etc. E. Public benefits or collective goods
and performing redistribution processes. The concept of a socio-responsible state. The state begins to be treated as an institution to implement its interests by all classes and social groups. Not least, this was due to the introduction of a system of universal electoral law, which ensures the wide participation of all citizens in the political life of the country
These processes led to a continuous increase in state intervention in the economy under these conditions. Economic agents seek to use those huge resources that the state has, in their own interests. This process contributes to the decline in the provision of pressure on political power in order to redistribute property rights.
At the same time, an increase in state intervention and the economy leads to strengthening the impact of managers and bureaucrats. One of the research directions in the theory of public selection is the bureaucracy economy. As part of this approach, the bureaucracy is a system of organizations that satisfies two criteria: it does not produce economic benefits and extracts part of income from sources that are not related to the sale of the results of its activities
This means that they seek to adopt such solutions that would open access to independent use of various resources for them, where the most popular measure is the increase in government spending. Decisions taken by government officials, methods for the formation of the main elements of the economic policy of the government are currently exposed to strong pressure on the part of lobbying groups and often do not correspond to social interests.
24. The theory of rantoriented behavior, its application to the analysis of the state
The state-in has not only signs of the Institute, but also by the Organization, it acts as a principal (guarantor) and agent (performer), if we consider the relationship between the state and citizens in the theory of agency relations. And citizens, and the state at the same time are both a principal and agent. A citizen of Jawn Principal, when delegates part of his rights to the State Agent. Submitting to the decisions established by the state-principal, as the guarantor of the execution of contracts, the citizen acts as an agent. In the ideal case, the contract state is a product of a voluntary agreement between people and state. In this case, coercion is absent. But it is and the state can use it in his own interests. Speaking about the functions of the state-in need to find out: what are the goals of the state, whether they coincide with the goals of society, whether it intends to serve society. QC provide legal guarantees of personal freedom and personal self-expression. On the other hand, how to dispersed power in different parts of the State Mechanism and various institutes of the Common Society. Citizens of Jaw-Smi Principles entrust the state to create conditions for maximizing their welfare. As part of this doctrine, the state is considered only as a tool that ensures the formal equality of all before the law, as the Institute implements the concept of "natural law".
From the side of the state extortion of rent can take a variety of forms, including the threat of establishing rules, the promise does not apply a cruel rule in exchange for payment (bribe), etc. The point is that the beneficiary's interests do not coincide with the interests of the Contractor, and that information is distributed in favor of the latter. The question is how to reduce the possibility of the abuse of the agent, what should be the means to increase the costs of this behavior. According to the neo-drug directions, the most important means, limiting the unscrupulousness of the State-Wa, the Java Development of Competition. In the context of competition, the incentives for randor-oriented behavior are blurred. The cetral question of the Neoinste direction is what types of activities and how they will be implemented how government officials will be stimulated. J. Buchen considered any collective action as actions of individuals who decided to achieve a goal as part of the team, and not individually. In his opinion, a person maximizes utility and market and political exchange. It does not exist an insurmountable face between the economic and political, since people pursue mercenary interests. The state is an organization whose members seek to maximize the benefits. There is a problem with the abuse of power.
F. Hayek, said that any power should be limited, but especially democratic. Features of the modern political system, offering the implementation of the principles of democracy, determine the possibility of abuse of political power. The provision of pressure on the state is appropriate if it is possible to make decisions in favor of those groups, which suggests the exit of the state outside the functions that are separated by the classical political economy. From the point of view of Smith, the state can well be interpreted as state-in-mag. However, at the end of the 19th century there is a strengthening of the trend towards creating a manufacturer's state, that is, the structures of the social benefits or products of collective use and performing redistribution processes. The state is considered as an institution to implement its interests by all classes and social groups. This led to a strong state intervention in the economy. Today in developed market economies, 40-60% of GNP is redistributed through the state budget. At the same time, an increase in the state intervention leads to strengthening the impact of managers and bureaucrats. Serving the interests of the law and the executor, the bureaucrats are implementing their own interests.
State orders and loans, tax reliefs have become an object of struggle, in which huge resources are spent. The awareness of this process was the basis for the development of such a direction of the theory of public selection, as the theory of searching for rent and rantoriented behavior. The object of its study is the unproductive activities of individuals aimed at making a profit by creating and capturing privileged positions. At the same time, the latter are interpreted as rent seekers, i.e., persons received benefits at the expense of the half and the public process. Under the rent understand income, which is a consequence of exceeding the cost of services of the factor of production over its competitive level. The rent is defined as part of the board of the resource owner, over the part that these resources could bring with their alternation. The theory of research of rent argues that the costs of state intervention are associated with the distraction of resources on the unproductive activities of private agents aimed at receiving rent, this intervention generated. In the framework of the processes under study, bureaucratic and political rent are allocated. The bureaucratic rent is defined as income, illegally received by state officials who use their position. Political rent - income, source of Java, special government benefits, subsidies and other privileges obtained by few groups as a result of lobbize.
These two rents exist as a number of conditions: 1. There must be the possibility of influencing the state-in part of private agents. 2 These are the most agents that incur in the search activity. 3. In the process of searching, the rent should be a competition, since in case of its absence there is no need to spend resources to receive rental income. These rentals are different sides of the same medal. The possibility of using the bureaucracy of its position in personal interests implies information from the existence of an asymmetry of information. Traditional institutionalism is based on organic, and neo-propitismalism - on the individualistic theory of groups or organizations. According to the first theory, state-in is considered as an independent force with its own target function. Collective organization is similar to the individual. Representatives of the German historical school are seen in the state not only the guarantor of maintaining order, but also the tool for achieving goals that cannot be achieved by individual personalities. From the position of the theory of contracts for state-in not only control over the observance of the law, but also the tasks of functioning and provide processes and services that fall under the category of public goods. -Institutionalism Traditional-state-to the highest instance of decision-making in order to maximize public goods. And representatives of the neo-drug directions are in favor of all possible reduction. economic Roll GOS-BA. In particular, the condition for effective struggle with the renodorentyant behavior of the state bureaucracy, they consider privatization. The state should not take on the functions of participation in the manufacturing deagi. Neoinste view state-in as an organization, it is possible for a long time to argue that this is the Institute (Trads Institute) or the Organization (Neoinste), but in any case, we recognize, it has a completely non-closed economy processes, being the most important subject of institutional changes.
25. The reasons and mechanisms of institutional changes in the interpretation of the neo-secret institutional economic theory
Institutions are "Rules of the game" in society, i.e., a limited framework that organize relationships between people. The distributional nature of institutions is a consequence of limited resources in relation to the needs of people, which entails the emergence of this or that mechanism of their rationing. The mechanism is a set of rules that determine the procedure for access to resources. Rules that determine access to the resource limitance, the mechanism of determining the resulting share, etc. will be a competitive control. Institutional changes - the ownership of formal and informal rules, which define the institutes of the Space of this company. The representative of the neo-constitutional direction is D. North, who pays attention to that such institutions as patent law, the laws on commercial secrecy increased the profitability of innovation. Information and knowledge is more derived from a particular institutional environment, which determines the directions of their acquisition. This direction can be a decisive factor in the long-term development of society. As part of the neo-drug analysis, the mechanism of institutional changes was proposed by North. As subjects of institutions, he is the institutes of the entrepreneur, and as a source of such fundamental shifts in the price ratio.
In his opinion, it was the shifts in the structure of relative prices that affect changes in the proportions between the prices of production factors (land, labor, capital), changes in the cost of information and change in technology. Changes price indicate changes in various social groups. For example, bourgeois revolutions should be considered as a fight for changing political rules and rights. The Russian revolution of 1917, such as land - peasants, a factory - workers. An example of testifies that economic entities can direct resources to implement new advantageous opportunities, but also if it is not possible - attempt to change them. As part of the uninstalistic analysis of the organization, they are treated as players on the institutional field. If the institutes are defined as the rules, then under organizations should imply a group of people united by the desire to achieve any goal. Organizations are the main agents of institutional changes. There is an alternative: to play within the framework of existing rules or change the rules in order to achieve more enjoyable results.
Attempts by institutional changes are attempts to regroup the rights of ownership. The source of institutions of changes to the Java ideology. North binds the change in ideology with changes in prices, believes that it is they lead to changing people of stereotypes of behavior. It is an economic growth that accompanied by a change in prices gives incentives to institutional changes. North believes that in the process of historical development, institutions contribute to the ENGRESS will survive. Savings of the transaction costs of the Java, the main function of institutions within the framework of the inconsistent analysis, etc. will be economic growth. Any institute-rules of the game can be considered as a result of power. The power is primary, and the institute is a consequence of power. Power can be realized by direct violence and economic coercion, and legitimate statement of authority. The rules are more often created in the interests of private, rather public well-being. It is political organizations that are the initiator of changes in formal rules.
26. The concept of institutional environment. The value of the effect of historical defectivity as a factor limiting its change
Any institute-rules of the game can be considered as a result of power. The power is primary, and the institute is a consequence of power. Power can be realized by direct violence and economic coercion, and legitimate statement of authority. The rules are more often created in the interests of private, rather public well-being. It is political organizations that are the initiator of changes in formal rules.
The change in institutions implies the costs associated with a change in the institutional environment, that is, the costs of its transformation. Here are the costs associated with the elimination of old institutions, the formation of new and adaptation in the ek-oh system. Cardinal changes in the institutes-oh environments involves changing the person himself, if it is considered as a carrier of a certain system of values. The revolutionary change in the medium comes down to changing the formal framework according to known samples, the possibility of revolutionary change in the institutes-oh environments is based on the assumption that there is no dependence on the previous development that we are free to choose the trajectory of changes. But a lot of doubts in the validity of the approach. The development of the institutional system depends on the trajectory of the preceding development (cultural, historical values). Specificity of institutions - they depend on the provisions and conditions that precede their appearance. Of great importance is the nature of the relationship between old and new institutions.
There are differences dependency: 1 deep dependence on the preceding path of development, when new institutions are developing in older. 2. The possibility of emerging in the process of evolutionary development in the old environment of new institutions. 3. It does not have an explicit connection between the old and new institutions, has a revolutionary nature and means gathering from the previous trajectory of development. The interaction of basic economies, political and ideological institutions ensures the integrity of the Company, forming the institutions-uu matrix of development. In the framework of the inconsistent analysis, the criterion for the effectiveness of the Institute of Java, a decrease in transaction costs, which leads to the EK-MUG. Changing goals is a question of ideology (system of social values), this is the destruction of old values \u200b\u200band the introduction of new ones. Ideology - the form of capital representing the fund of social values \u200b\u200band power controls people with propaganda, with the help of education. Changes in the ideologies of the Java's main factor of institutions. Successful changes implies the presence of comprehensive soil (the Company's willingness to the approval of institutions.
The order of the economy and society is based on both self-interest and in moral motives, on what we call the best motivations of a person. Among them, far from the last place is the desire for good, truth, justice. Liberalism does not withstand any criticism. There are many natural and social factors containing the behavior of an egoistic person in a traditional society, a traditional image of the board, based on everyday routine practice, is carried out. A person in traditional society acts as a member of the team and is obliged to construct all its actions and actions with him. The formation of the institutional environment of a developed market economy meant a change in the system of social values, and first of all, the motives of the behavior of the famous part of society. The replacement of food comes the motive of profits. At the dawn of the formation of the market economy, the idea of \u200b\u200ba self-regulating market did not exist in principle. The market system has acquired a comprehensive nature, more precisely, when the exemption of economic activities from political and religious regulations occurred.
Recognizing the statement that the economy should be managed exclusively by market prices. That is, nothing should impede the formation of the markets, and the incomes should be accomplished exclusively through sales (all transactions are transformed into cash. The institution of private ownership stimulated technical innovations. In a society based on the principles of the market, their uninterrupted influx could be provided only in one way - Make them accessible to purchase, i.e. turn outgoing products, money, work. The development of a market system in SECH relationship turns into an attachment of the economic system. In the Neo-Institz theory, when analyzing economic and social phenomena, the toolkit of neoclassical theory is used: equality of limiting revenue Costs as a condition for maximizing profits. A smooth account does not change the introduction of the category of transaction costs, which are key to explaining both the nature of the firm and the existence of various types of contracts and even the nature and structure of political coalitions.
That is, the neo-drug approach can be used in explaining the changes in institutions only in the context of the adoption of the model of a person. But it is not applicable to explaining institutional changes in a long historical perspective. The transition to the market system, as well as the introduction of the values \u200b\u200bof individualism, contributing to the expansion of the traditional social structure of society. The great value of power, determines the possibility of valuables. The introduction of new institutions as the result of the consciousness of their profitability is not always legitimate. It is difficult to deny the value of power in the process of instit transformations. The government is not only directly related to the process of establishing formal rules and ensuring coercion mechanisms to their execution, but also, controlling a largely ideological sphere, determines changes in the system of informal institutions.
The economic actions of the individual proceed not in an isolated space, but in a certain society. And therefore is of great importance as society will respond to them. Thus, transactions acceptable and income-generating in one place are not necessarily appropriate even under similar conditions in the other. To avoid coordination of a set of external factors affecting the success of the very possibility of making a certain decision, in the framework of economic and social order, schemes or behavior algorithms are produced, which is the most effective under these conditions. These schemes and algorithms, or matrices of the behavior of individuals, there is nothing but institutions.
Regardless of the way of economic relations, whether at the level of the company, state or international level, the problem of choosing institutions is always facing the subjects of socio-economic activities that make decisions from themselves personally or on behalf of organizations. This choice should be based not on subjective submissions and not by copying and importing institutions from "developed countries", but through an objective assessment of their economic efficiency on the method of institutionalization in accordance with the conditions and features of this particular country, region, sphere and type of activity in accordance and Finally, individual. To do this, the criteria for determining the effectiveness of the Institute regardless of its concrete form should be revealed, i.e. "Institute in general."
The development of a market economy requires adequate institutional mechanisms, however, their creation is a complex and long-term process. They are difficult to borrow, the action of laws effectively regulating the economy in developed countriesWhen borrowing is modified by an existing institutional environment.
The institutional structure of the economy of any country is, above all, the result of past actions of the state and spontaneous evolutionary selection of the most effective institutions. Western countries with market economies have a developed institutional structure corresponding to the dominant method of economic coordination.
Therefore, these countries can afford the use of direct and indirect state intervention methods in order to conduct the desired economic policy without significant damage to the entire national economy. Such measures, although they deform the institutional structure in the industry, but to a small extent.
Definition of the concept of "Institute"
Institutions are very diverse, and the definition must be common to cover all their diversity. In the literature you can meet several different definitions of institutions:
1. Institutions are defined as "Rules of Game", which structures the behavior of organizations and individuals in the economy;
2. Institutions are defined as cultural norms, faith, mentality;
3. Institutions are defined as organizational structures, for example, financial institutions - banks, credit institutions;
4. The concept of "institute" can be used in relation to personality or to a certain post (for example, the presidency institution);
5. The theoretical and game approach is considering institutions as balance in the game.
Neo-intestitial economic theory uses the definition that belongs to D. North, who received the Nobel Prize for research in the field of new economic history - Cleisiometry: "Institutions - these are the" Rules of the game "in society, or, expressing more formally created by man restrictive frameworks, which organize the relationship between people (political, economic and social). They include informal restrictions (sanctions, taboos, customs, traditions and norms of behavior) and formal rules (constitutions, laws, ownership), as well as mechanisms that ensure their implementation. "
In this definition, the main emphasis is on the fact that institutions form a restrictive framework for the economic behavior of people. Consequently, institutions set the structure of the motives of human interaction - whether in politics, social sphere or economy. Institutional changes determine how societies develop in time, and thus are the key to understanding historical changes.
D. North conducts an analogy with the rules of the game in team sports games (for example, in football). These rules of the game consist of formal written rules and unwritten codes of behavior that are deeper than formal and complement them - for example, prohibit conscious injury to the leading opponent's player. Rules are sometimes broken, and then the intruder is punished, i.e. There is a certain mechanism forcing players to comply with the rules of the game.
No one will challenge the fact that institutions affect the functioning of economic systems. But, no modern economic theory, nor the story show visible interest in the role of institutions in the functioning of the economy and economic behavior, because there are still not developed analytical principles that would allow the institutional analysis to the theory of economics and economic history.
Institutions structure everyday life, reducing uncertainty. They organize relationships between people, so that when we want to say hello, go by car, make a purchase, take money, organize your business or perform any other actions faced in ordinary life, we know (or can easily learn) as do it. Talking by the professional language of economists, institutions define and limit the set of alternatives that have each person.
Institutions include all forms of restrictions created by people in order to give a certain structure of human relationships. Institutions may be a product of conscious human plan - as, for example, the US Constitution, or simply to develop in the process of historical development, like ordinary law.
Institutes are a framework, within which people interact with each other. They are absolutely similar to the rules of the game in team sports games. Institutions consist of formal written rules and usually unwritten behavior codes that lie deeper formal rules and complement them. And as follows, the rules, and informal codes are sometimes broken, and then the intruder is punished. And formal, and informal institutional restrictions lead to the formation of well-defined organizations structuring interaction in society. These organizations arise on the basis of incentives laid out in the institutional system, and therefore the effectiveness of their activity depends on this system. Therefore, an important element of the mechanism of the functioning of institutions is that the establishment of the fact of violation does not require special efforts and that the intruder is subjected to severe punishment.
The manual was prepared at the Department of Economic Theory of the Penza State Agriculture Academy and intended for students of the Economic Faculty, which studying the institutional economy. The main concepts and terms are proposed, issues are formulated for self-inspection of knowledge, recommended literature, dictionary of basic concepts and terms. All this will contribute to a more complete assimilation of theoretical material, develop the skills of the practical application of the knowledge gained and independence of thinking.
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Led Book Foreign Fragment Institutional Economics (D. N. Porfiryev, 2013) Granted by our book partner - LITRES.
Topic 1 Subject for the study of the institutional economy and its place in modern economic theory
1. The concept of the Institute. The role of institutions in the functioning of the economy.
2. Institutionalism and neoclassical economic theory.
3. Old and new institutionalism.
4. The main flows of modern neo-propitismalism.
Institutional economy, the subject of the institutional economy, the functions of the institutional economy, the principle of institutescentrism, the principle of incorruptment, the principle of limited rationality, the principle of historicism, the dialectical method, the method of scientific abstraction, the method of analysis and synthesis, the method of induction and deduction, the historical method, the sociological method.
Institute, Organization, Rules of Economic Behavior, Formal Rules, Informal Rules.
Institutional theory, old institutionalism, the socio-psychological direction of old institutionalism, the legal direction of old institutionalism, neo-institutional theory, new institutional theory.
Starting to the study of the institutional economy is necessary, first of all, to know the features and complexity of the institutional theory, which plays a large role in the development of modern society. It is important to correctly determine the subject of the institutional economy. The institutional economy studies institutional economic relations, organizing the interaction of individuals and various subjects of social production.
Institutional economy performs the following functions: cognitive, practical, ideological and social. It is based on the following basic principles: institutescentrism, incorruptment, limited rationality, historicism. The principle of institutescentrism claims that it is impossible to study a kind of economic process, distracted by a particular institutional form. The principle of incorruptment establishes a clear boundary between social and natural scientific knowledge. The principle of limited rationality means that an individual decisive is not able to take into account all possible alternatives in the formation and solution of the problem, as the attention and intelligence of a person are limited resources. The principle of historicism argues that the phenomena of economic life cannot be explained, without taking into account the established social and cultural institutions, that is, the image and style of thinking, the features of the worldview, habits and traditions.
The main methods of the institutional economy are: dialectical, scientific abstraction, method of analysis and synthesis, the method of induction and deduction, historical, sociological.
Special attention In this science, the concept of the institute, with which other concepts are related to: organization, transaction costs, ownership, opportunistic behavior. Douglas North understands the rules of the Games in society under the institutions that organize relationships between people. Hayek believed that institutions are located between the mind and instincts. This is what is expressed in the daily activities of people. In modern textbooks on institutional theory, under the institutes are a number of rules that perform the function of restrictions on the behavior of economic agents and streamline interaction between them, as well as the relevant monitoring mechanisms for compliance with these rules. In the neo-secret institutional economic theory, money, property, taxes, credit, market, etc. are considered as institutions.
If institutions are defined as the rules, then under organizations implies many economic agents of ownership and freedoms. Organizations suggest the existence of power relations and determine the framework of specific interaction. These include the enterprise, the state. The Institute is a condition for the rational behavior of people and efficient placement of resources. Institutional ideas arose at the end of the 19th century. To the early institutionalists include Torsetin Weblein (socio-psychological direction of old institutionalism), John Commons (legal direction). Old institutionalists moved from law and policies to the economy, trying to approach the analysis of economic problems with the help of methods of other sciences. So, for example, the weblin explains the economic behavior of people with such categories as an envious comparison and displacement consumption.
In the second half of the twentieth century, neo-institutional economic theory appeared. It includes the theory of public selection of James Buchenane, the theory of transaction costs Ronald Cone, the theory of institutional changes in Douglas Norta. The main postulate of the theory of public selection of Buchene is that people act in the political sphere, pursuing their personal interests, and that there is no insurmountable face between business and politics. Public selection theory studies various methods and methods with which people use government agencies in their own interests. In accordance with the theory of R. Cowus, the economy cannot exist in the form of a solid market, as it requires high transaction costs of production. According to D. North theory, the beginning of the process of institutional changes is associated with changes in the price ratio, which lead to a change in the aggregate of formal and informal norms.
Representatives of the Neo-Second Economic Theory are trying to use the methods of neoclassical economic theory for analyzing political, legal and other problems. For neo-propitismalism, institutions are important to explain the behavior of economic agents and the emphasis is on the aspects associated with the effectiveness, explaining it on the basis of a model of rational choice. Unlike neoclassical theory in neo-propitismalism, there is a comparison of institutional alternatives with each other, and not with an ideal model. In the neo-elect-institutional theory, rational behavior is considered as a variable, which depends on the complexity of the choice of choice, the repeatability of the selection situation in the individual of the information, the degree of motivation of the individual. Representatives of the new institutional theory are trying to create a new theory of institutes that are not associated with the previous postulates of neoclassics.
Currently, the institutional theory is also developing in our country. The most widely known works of such scientists as A.N. Oleinik, V.V. Radaev, V.L. Tambovtsev, A.E.
Shastitko.
Problem issues for discussion at the seminar
1. Why in the 90s in Russia there was an interest in institutional theory?
2. What does an institutional economy study?
3. What is the relationship of institutional economy with other sciences?
4. How does the institution differ from the organization?
6. What are the main differences between the neo-drug theory from neoclassical?
7. What is the importance for the development of modern economic theory, the scientific regulations D. Norta have?
8. Is it possible to apply the theory of transaction costs R. Cowus in practical activity russian enterprises?
1. The subject of the institutional economy is ...
a) productive forces of society;
b) economic resources;
c) institutional economic relations.
2. In the institutional economy is used ...
a) the principle of limited rationality;
b) the principle of complete rationality;
c) the principle of considerance.
3. Under the institutes are understood ...
a) organizations that ensure the functioning of the economy;
b) the rules of the game in society that organize relationships between people;
c) political standards.
4. The main content of the neo-electory theory is ...
a) in an attempt to approach the analysis of economic problems with the help of methods of other sciences;
b) in an attempt to use the methods of neoclassical economic theory for analyzing political, legal and other problems;
c) in the development of new not related to neoclassical theory provisions.
5. Which direction of the institutional theory is the theory of transaction costs R. Cowus?
a) old institutionalism;
b) neo-constitutional theory;
c) new institutional theory.
Main literature:1,2
1. Erznkyan, B.A. Theoretical and methodological changes in the institutional economy / B.A. Ersnkyan // Economic science of modern Russia. - 2012. - № 1. - C.11-30.
2. Irhin, Yu.V. Institutionalism and Neozzitismalism: Directions and Opportunities for Analysis / Yu.V. Irkhin // Social humanitarian knowledge. - 2012. - № 1. - S.58-77.
3. Moscow, A. Instationalism: Theory, the basis of decision-making, critics method / A. Moscow // Economy issues. - 2009. - № 3. - C.110-124.
4. Breakov, D. Rhetoric New Institutional Economic Theory // Questions of the economy. - 2010. - № 5. - P.81-95.
5. Rakhaev, B. Economic Institutions: Appointment and Evolution / B. Rakhaev // Society and Economics. - 2011. - № 7. - S.99-112.
The institutional economy deals with the study of the mechanism of individual selection of economic agents, methods, with which a variety of institutional restrictions could be applied. Traditions and norms are used as tools for motivation economic Subjects Act according to certain rules of behavior in society.
Experts allocate the following areas of development of the institutional economy:
- traditional institutionalism;
- modern institutional economy.
In the last direction allocate:
- neo-secretationalism;
- new institutional economy.
Traditional or, in other words, the "old" institutionalism was formed at the end of the XIX century. Its representatives are T. Weblin, J. Commons. They emphasize in their research the importance of the Institute for Economics, are trying to understand their role and evolution. Representatives of this area introduced into the economy the concept of "institute". They argued that such institutional entities as the state, trade unions, the law, the Institute of the Family, Ethics are significantly affected on human behavior.
Since the 70s of the XX century, a new direction appears in the development of an institutional economy - neo-secretationalism. His representatives - R. Kouz, J. Stiglitz, R. Posner. Neo-pin stores read that social institutions They matter and is amenable to analyzing with standard tools of economic theory. They suggest that it acts in the conditions of perfect competition, the deviation from which means "market failure".
Neo-constitutional economy includes the following theories:
- property rights;
- transaction costs;
- optimal contract;
- public selection;
- new economic history.
The new institutional economy deals with the study of various government management structures that are the elements of which are organizations (that is, institutions), a contract and economic system, the institutional structure of society. The interpretation of the term "institute" by representatives of this direction was slightly expanded. D. North allocates formal and informal rules of behavior in it, which determine the relationship between economic agents, also organizations. In addition, the researcher believes that there are institutions of coercion mechanisms that ensure compliance with the rules (police, courts).
Depending on the nature of the definition of institutional norms, various changes in the economic system may occur. Institutions are considered by representatives of the new institutional economy of Dvoyko:
- as a condition for the rational behavior of an organization, an economic agent;
- as a means, with which the ability to save on rationality is provided.
Place of the Institute in the Institutional Economics
The Institute is the central category of the institutional economy. Specialists in different ways interpret this concept:
- institute is specific rules behaviors that determine economic relations, as well as all socio-economic development of society;
- the institute is a combination of behavioral norms, which is structured and facilitated by the interaction between people;
- the Institute is certain rules of the game, the restrictive framework created by a person for the best organization of relationships in society.
In the institutional economy allocate two types of institutions:
- generally accepted rules of conduct;
- shapes of collective action.
Allocate the following collections form institutions:
- institutions of the state;
- institutions of enterprises;
- institutes of various forms of entrepreneurial activities (banking institutions, stock exchanges, consulting and investment firms, pension funds, insurance companies).
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The concept of the institute was borrowed by economists from social sciences, in particular from sociology.
Institute Called a set of roles and status, designed to meet a certain need.
The definitions of institutions can also be found in the work on political and social. For example, the category of the Institute is one of the central in John Rolza "Theory of Justice".
Under institutes I will understand the public rules system that determine the position and position with the relevant rights and obligations, power and integrity, and the like. These rules specify certain forms of action as permitted, while others as prohibited, and on them are punished by some actions and protect others when violence occurs. As examples, or more general social practices, we can bring games, rituals, courts and parliaments, markets and ownership systems.
For the first time, the concept of the institute was included in the analysis of the television web.
Institutions - It is essentially a common image of thought in terms of individual relations between society and the personality and individual functions performed; and a system of life of society, which is composed of the aggregate in force or at any time of the development of any company, can be characterized in general terms as a prevailing spiritual position or a common idea of \u200b\u200bliving in society.
Also under the institutes Welen understood:
- familiar ways to respond to incentives;
- structure of the production or economic mechanism;
- currently adopted system of public life.
Another founder of institutionalism John Commons determines the Institute as follows:
Institute- Collective action to control, exemption and expansion of individual action.
In another classic institutionalism - Wesley Mitchell can find the following definition:
Institutions - dominant, and highly standardized, public habits.
Currently, within the framework of modern institutionalism, the most common is the interpretation of the Institutes of Douglas Norta:
Institutions - These are the rules, mechanisms that ensure their implementation, and the norm of behavior that structure repetitive interactions between people.
The economic actions of the individual proceed not in an isolated space, but in a certain society. And therefore is of great importance as society will respond to them. Thus, transactions acceptable and income-generating in one place are not necessarily appropriate even under similar conditions in the other. An example of this can serve as limitations imposed on various religious cults.
To avoid coordination of a set of external factors affecting the success of the very possibility of making a certain decision, in the framework of economic and social order, schemes or behavior algorithms are produced, which is the most effective under these conditions. These schemes and algorithms or matrices of the behavior of individuals have nothing like institutions.
"Institutions - the basis of economic behavior"
The founder of the institutional direction is Torstain Weblin (1857-1929), the author of the "Celebrated Class" theory (1899).
The main thesis of the work of Belamines: "Institutions - the basis of economic behavior." Weblen spoke out against a unilateral interpretation of the motives of the behavior of the "Economic Man", which was distributed from the times of classics (A. Smith).
Weblin considers the wrong thing that economic science Human behavior is not considered, its patterns, and focuses on the tools of the market mechanism, the monetary system.
Poison has two main ideas. The economy is constantly developing, evolving. Economic changes They occur under the influence of institutions, which are also constantly changing. But often institutional changes are lagging behind, and institutions brake development. To debug institutes, West countries needed 400-300 layers. This is a very complex, controversial process. Hence the conclusion: the market mechanism itself changes, and institutes, institutional environment, customs, laws; Each country has its own specific institutions; Economists should learn not ideal schemes, but real norms, traditions, structures.
Criticizing the classics, the weblated said: a person should not be interpreted as a mechanical ball or counting machine, a kind of "Calculator of pleasure and burden." It is guided not only by the motive of profits and not strictly arithmetic calculation, commensurating the amount of costs with the size of the benefit.
The behavior of the individual as a consumer and the participant in production is very ambiguous. His economic interests are a complex and controversial system, so social conditions should be fully taken into account, psychological motives.
Institutions - The usual ways of implementing the process of public life. At the heart of the adopted lifestyle lies a system of views that social groups adhere to. The formation of institutions conservatively. The previously established forms and the rules do not respond today and should constantly change.
