Economics at your fingertips  

Transaction Costs in the Course of the System Transformation in Bulgaria

Teodor Sedlarski ()

Economic Thought journal, 2009, issue 2, 35-55

Abstract: This article is a study of key theoretical aspects of the transaction cost concept, being vital for the economic development, such as their impact on structuring and allocating the property rights – incorporated in the general issue of the changes in the institutions within the paradigm of the new institutionalism. Unlike the theory of Coase, the outcome of the privatization process shows that the initial allocation of the property rights is very important. The available transaction costs prevent from aligning the private costs and the social costs by means of case-by-case negotiations – the holders of some property rights are not aware of the consequences of their business activities. The reforms, required for liberalization of the market, pursuant to the standard neoclassical economy give inefficient results in Bulgaria. Therefore according to the theory of D. North the reason could be the incompatibility among the formal institutions, on the one part, and the informal rules and ideologies, on the other part, resulting in high levels of transaction costs.

JEL-codes: O43 Z10 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) ... 2f-8488-1d6c8f3a0c9c
Fee access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economic Thought journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().

Page updated 2020-10-23
Handle: RePEc:bas:econth:y:2009:i:2:p:35-55