 A Model of Institutional Change in Transition EconomiesChapter 4 in Institutions, Human Development and Economic Growth in Transition Economies, 2011, pp 136-155 from Palgrave Macmillan Abstract: Abstract In this chapter I will introduce a model of institutional change in transition economies, in which the behaviour of agents is affected not only by formal institutions such as new laws and organisations but also by social norms, those old values and habits which influence the shape of new institutions. The analysis is inserted within a political economy framework, where political preferences, social constraints and consensus as well as international conditionality matter. I will argue that institutional costs, which go beyond mere transaction costs, are emerging from the lack of consistency between formal and informal rules, and negatively affect economic performance (an extra cost of transaction). Among FCEs, an important example of this is given in what I call the ‘dichotomy thesis’. Adaptation and changes in the social behaviour of people are difficult and take time, as many surveys today show (New Russia Barometer, 2005;Levada Centre nationwide survey 2008). Keywords: Transaction Cost; Market Economy; Institutional Change; Transition Economy; Economic Agent (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-0-230-31388-0_5 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Studies in Economic Transition from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.