Handbook of New Institutional Economics

874 Pages·2005·25.69 MB·English

by  Claude Menard, Mary M. Shirley (auth.), Claude Menard, Mary M. Shirley (eds.)

HANDBOOK OF
NEW INSTITUTIONAL ECONOMICS
HANDBOOK OF
NEW INSTITUTIONAL ECONOMICS
Editedby
CLAUDEMENARD
UniversityofParis(Pantheon-Sorbonne),France
and
MARYM.SHIRLEY
TheRonaldCoaseInstitute
ChevyChase,MD,U.S.A.
AC.I.P.CataloguerecordforthisbookisavailablefromtheLibraryofCongress.
ISBN-10 1-4020-2687-0(HB)Springer,Dordrecht,Berlin,Heidelberg,NewYork
ISBN-13 978-1-4020-2687-4(HB)Springer,Dordrecht,Berlin,Heidelberg,NewYork
ISBN-10 0-387-25092-1(e-book)Springer,Dordrecht,Berlin,Heidelberg,NewYork
ISBN-13 978-0-387-25092-2(e-book)Springer,Dordrecht,Berlin,Heidelberg,NewYork
PublishedbySpringer
PPP.O.Box17,3300AADordrecht,TheNetherlands.
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(cid:1)C 2005Springer
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Contents
Contributors . . . . . . . . . . . . . . . . . . . . . . ix
Acknowledgement . . . . . . . . . . . . . . . . . . . xiii
Introduction
ClaudeMe´nardandMaryM.Shirley . . . . . . . . . . . 1
SectionI TheDomainofNewInstitutionalEconomics
1. InstitutionsandthePerformanceofEconomiesoverTime
DouglassC.North . . . . . . . . . . . . . . . . . . . 21
2. TheInstitutionalStructureofProduction
RonaldH.Coase . . . . . . . . . . . . . . . . . . . . 31
3. TTTransactionCostEconomics
OliverE.Williamson . . . . . . . . . . . . . . . . . . 41
SectionII PoliticalInstitutionsandtheState
4. ElectoralInstitutionsandPoliticalCompetition:Coordination,
PersuasionandMobilization
GaryW.Cox . . . . . . . . . . . . . . . . . . . . . . 69
5. PresidentialversusParliamentaryGovernment
JohnM.Carey . . . . . . . . . . . . . . . . . . . . . 91
6. LegislativeProcessandtheMirroringPrinciple
MathewD.McCubbins . . . . . . . . . . . . . . . . . 123
7. ThePerformanceandStabilityofFederalism:
AnInstitutionalPerspective
BarryR.Weingast . . . . . . . . . . . . . . . . . . . 149
v
vi Contents
SectionIII LegalInstitutionsofaMarketEconomy
8. TheManyLegalInstitutionsthatSupport
ContractualCommitments
GillianK.Hadfield . . . . . . . . . . . . . . . . . . . 175
9. LegalSystemsasFrameworksforMarketExchanges
PaulH.Rubin . . . . . . . . . . . . . . . . . . . . . 205
10. MarketInstitutionsandJudicialRulemaking
BenitoArrun˜adaandVenetaAndonova . . . . . . . . . . 229
11. LegalInstitutionsandFinancialDevelopment
ThorstenBeckandRossLevine . . . . . . . . . . . . . 251
SectionIV ModesofGovernance
12. ANewInstitutionalApproachtoOrganization
ClaudeMe´´nard . . . . . . . . . . . . . . . . . . . . . 281
13. VVVerticalIntegration
PaulL.Joskow . . . . . . . . . . . . . . . . . . . . . 319
14. SolutionstoPrincipal-AgentProblemsinFirms
GaryJ.Miller . . . . . . . . . . . . . . . . . . . . . 349
15. TheInstitutionsofCorporateGovernance
MarkJ.Roe . . . . . . . . . . . . . . . . . . . . . . 371
16. FirmsandtheCreationofNewMarkets
ErinAndersonandHubertGatignon . . . . . . . . . . . 401
SectionV ContractualArrangements
17. TheMake-or-BuyDecisions:LessonsfromEmpiricalStudies
PeterG.Klein . . . . . . . . . . . . . . . . . . . . . 435
18. AgriculturalContracts
DouglasW.AllenandDeanLueck . . . . . . . . . . . . 465
19. TheEnforcementofContractsandPrivateOrdering
VVVictorP.Goldberg . . . . . . . . . . . . . . . . . . . 491
SectionVI Regulation
20. TheInstitutionsofRegulation.AnApplicationto
PublicUtilities.
PabloT.SpillerandMarianoTommasi . . . . . . . . . . 515
Contents vii
21. StateRegulationofOpen-Access,Common-PoolResources
GaryD.Libecap . . . . . . . . . . . . . . . . . . . . 545
22. PropertyRightsandtheState
LeeJ.AlstonandBernardoMueller . . . . . . . . . . . 573
23. LicitandIllicitResponsestoRegulation
LeeBenham . . . . . . . . . . . . . . . . . . . . . . 591
SectionVII InstitutionalChange
24. InstitutionsandDevelopment
MaryM.Shirley . . . . . . . . . . . . . . . . . . . . 611
25. InstitutionalandNon-InstitutionalExplanationsof
EconomicDifferences
StanleyL.EngermanandKennethL.Sokoloff . . . . . . . 639
26. InstitutionsandFirmsinTransitionEconomies
PeterMurrell . . . . . . . . . . . . . . . . . . . . . . 667
27. SocialCapital,SocialNormsandtheNew
InstitutionalEconomics
PhilipKeeferandStephenKnack . . . . . . . . . . . . . 701
28. Commitment,CoercionandMarkets:TheNatureand
DynamicsofInstitutionsSupportingExchange
AAAvnerGreif . . . . . . . . . . . . . . . . . . . . . . 727
SectionVIII Perspectives
29. EconomicSociologyandNewInstitutionalEconomics
VVVictorNeeandRichardSwedberg . . . . . . . . . . . . 789
30. DoingInstitutionalAnalysis:DiggingDeeperthan
MarketsandHierarchies
ElinorOstrom . . . . . . . . . . . . . . . . . . . . . 819
SubjectIndex . . . . . . . . . . . . . . . . . . . . . 849
AuthorIndex . . . . . . . . . . . . . . . . . . . . . . 867
Contributors
ALLEN,DOUGLASW. DevelopmentResearchGroup
BurnabyMountainProfessor TheWorldBank
ofEconomics
SimonFraserUniversity
BENHAM,LEE
ProfessorofEconomics
WWWashingtonUniversityinSt.Louisand
ALSTON,LEEJ.
TheRonaldCoaseInstitute
ProfessorofEconomics,Director
ProgramonEnvironmentand
Behavior,InstituteofBehavioral CAREY,JOHNM.
Sciences AssociateProfessor
UniversityofColoradoand DepartmentofGovernment
NationalBureauofEconomic DartmouthCollege
Research
COASE,RONALDH.
ANDERSON,ERIN CliftonR.MusserProfessorEmeritus
JohnH.LoudonChairedProfessorof ofEconomics
InternationalManagementand TheUniversityofChicago
ProfessorofMarketing
INSEAD COX,GARYW.
ProfessorofPoliticalSciences
DepartmentofPoliticalScience
ANDONOVA,VENETA
UniversityofCalifornia,SanDiego
ProfessorofBusinessAdministration
InstitutoTecnolo´gicoAuto´nomo
deMe´´xico ENGERMAN,STANLEYL.
ProfessorofEconomicsandHistory
DepartmentofEconomicsandHistory
ARRUNADA,BENITO
UniversityofRochesterandResearch
ProfessorofBusinessOrganization
Associate,NationalBureauof
UniversitatPompeuFabra
EconomicResearch
Barcelona
GATIGNON,HUBERT
BECK,THORSTEN ClaudeJanssenChairedProfessorof
SeniorFinancialEconomist BusinessAdministrationandProfessor
ix
x Contributors
ofMarketing, KNACK,STEPHEN
INSEAD SeniorResearchEconomist
DevelopmentResearchGroup
TheWorldBank
GOLDBERG,VICTORP.
ThomasMacioceProfessorofLaw
Co-Director,CenterforLawand LEVINE,ROSS
EconomicStudies CurtisL.CarlsonProfessorofFinance
ColumbiaUniversity CarlsonSchoolofManagement
UniversityofMinnesota
GREIF,AVNER
TheBowmanFamilyEndowedProfessor LIBECAP,GARYD.
inHumanitiesandSciences AnhenserBuschProfessor,
DepartmentofEconomics EntrepreneurialStudies,Economics
StanfordUniversity,andSeniorFellow andLaw;
StanfordInstituteforInternational DirectorKarlEllerCenter
Studies UniversityofArizona;andResearch
Associate,NationalBureauof
EconomicResearch
HADFIELD,GILLIANK.
ProfessorofLawandCo-Director
CenterforLaw,Economicsand LUECK,DEAN
Organization BartleyP.CardonProfessorof
UniversityofSouthernCalifornia Agricultural&ResourceEconomics
ProfessorofEconomics,andProfessor
ofLaw
JOSKOW,PAULL. TheUniversityofArizona
ElizabethandJamesKillianProfessor
ofEconomics
McCUBBINS,MATHEWD.
MassachusettsInstituteof
ProfessorofPoliticalScience
TTTechnology
DepartmentofPoliticalScience
UniversityofCalifornia,SanDiego
KEEFER,PHILIP
LeadResearchEconomist ME´NARD,CLAUDE
DevelopmentResearchGroup ProfessorofEconomicsand
TheWorldBank DirectorCentreATOM
Universite´´deParis(Panthe´´on-Sorbonne)
andTheRonaldCoaseInstitute
KLEIN,PETERG.
AssociateProfessorofAgribusiness
andAssociateDirector MILLER,GARYJ.
ContractingandOrganizations ProfessorofPoliticalScience
ResearchInstitute DepartmentofPoliticalScience
UniversityofMissouri WWWashingtonUniversityinSt.Louis
Contributors xi
MUELLER,BERNARDO SHIRLEY,MARYM.
DepartmentofEconomics President
UniversidadedeBrasilia TheRonaldCoaseInstitute
MURRELL,PETER SOKOLOFF,KENNETHL.
ProfessorofEconomics UniversityofCalifornia
DepartmentofEconomicsandIRIS LosAngelesandNationalBureau
Center ofEconomicResearch
UniversityofMaryland
SPILLER,PABLOT.
NEE,VICTOR
JeffreyA.JacobsDistinguished
GoldwinSmithProfessorofSociology
ProfessorofBusinessandTechnology
CornellUniversity
HaasSchoolofBusiness
University of California, Berkeley, and
NORTH,DOUGLASSC. NationalBureauofEconomicResearch
SpencerT.OlinProfessorinArtsand
Sciences
SWEDBERG,RICHARD
DepartmentofEconomics
ProfessorofSociology
WWWashingtonUniversityinSt.Louis,
DepartmentofSociology
andBartlettBurnopSeniorFellow,
CornellUniversity
HooverInstitution
StanfordUniversity
TOMMASI,MARIANO
Chairman,DepartmentofEconomicsand
OSTROM,ELINOR
Director,CenterofStudiesfor
Co-DirectorWorkshopinPolitical
InstitutionalDevelopment
TheoryandPolicyAnalysis
UniversidadSanAndre´s
Co-Director,CenterfortheStudy
BuenosAires
ofInstitutions,Population,and
EnvironmentalChange
DepartmentofPoliticalScienceat WEINGAST,BARRYR.
IndianaUniversity SeniorFellow,HooverInstitutionand
WWWardC.KrebsFamilyProfessor
ROE,MARKJ. DepartmentofPoliticalScience
BergProfessorofCorporateLaw StanfordUniversity
HarvardLawSchool
WILLIAMSON,OLIVERE.
RRRUBIN,PAULH. EdgarF.KaiserProfessorofBusiness
SamuelCandlerDobbsProfessor Administration,Economics,
ofEconomicsandLaw andLawatthe
EmoryUniversity UniversityofCalifornia,Berkeley
Acknowledgements
We are grateful to The Nobel Foundation 1991 for permission to publish the
PrizeLecture“TheInstitutionalStructureofProduction”byRonaldH.Coase,
withchangesintroducedbyProfessorCoase.
Eachchapterinthisbookwentthroughaveryextensivereviewprocess.Beside
asystematicreviewbythetwoeditors,thefollowingreviewersdidaremarkable
jobandweareverygratefulfortheirassistance:
Douglas Allen, James Alt, Wladimir Andreff, Nicholas Argyres, Benito
Arrunada, Kathleen Bawn, Lisa Bernstein, Jean-Claude Berthelemy, Thomas
Borcherding, George Clarke, Regis Coeurderoy, Robert Cull, Lance Davis,
BrunoDeffains,ArthurDenzau,PhilippeDesbrieres,DanielDiermeier,Gregory
Dow, John N. Drobak, David Epstein, Gillian K. Hadfield, Christian Harm,
Pierre-CyrilleHautcoeur,GeorgeHendrikse,P.J.Hill,JonathanIsham,Simon
Johnson, Philip Keefer, Peter G. Klein, Charles Knoeber, Richard Langlois,
Philippe Le Gall, Gary D. Libecap, Stephen Littlechild, Dean Lueck, Mary
Morgan,JacksonNickerson,DouglassNorth,SethNorton,JeffreyB.Nugent,
John Nye, Bruce Rayton, Rudolf Richter, Gerard Roland, Alan Schwartz,
KennethScott,AndreiShastitko,KennethA.Shepsle,MatthewShugart,Brian
Silverman,JohnWallis,ScottWallsten,StevenB.Webb,OliverE.Williamson,
DeanWilliamson,MichaelWoolcock,BennetZelner,andDecioZylberstajn.
xiii