Toward a More General Theory of Transformation

Bernhard Seliger

Eastern European Economics, 2002, vol. 40, issue 1, 36-62

Abstract: Scientific interest in studying the problems of the transformation of economic systems remains high more than ten years after the revolutionary changes in Central and Eastern Europe (CEE). At the same time, transformation theory has revealed several problems that are not possible to solve using mainstream economic theory. A reformulation of transformation theory is proposed, using the discussion of the Ordnungsproblem by the German ordo-liberals, the Austrian tradition, especially the evolutionary competition process for institutions, new institutional economics (NIE), and public choice as the main ingredients. Such a theory could also be applied to transformation processes apart from those in CEE.

Date: 2002
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