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Economic Analysis of Institutions and Systems (International Studies in Economics and Econometrics), by S. Pejovich
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In the late 1980s, the field of comparative economics and NATO faced a similar problem: the threat of obsolescence. A predictable reaction of those who had made major investments in both comparative economics and NATO was to look for a new job. It was time to say: comparative economic systems are dead, long live comparative economic systems. The purpose of this book is to redirect study of what we called comparative economic systems toward analysis of the development of institutions and the effects of alternative institutional arrangements on economic performance. To that end, the book internalizes into a theoretical framework (1) the effects of alternative property rights on the costs of transactions and incentives structures, (2) the effects of the costs of transactions and incentives on economic behavior, and (3) the evidence for refutable implications of those effects. Analysis here focuses on the issues, propositions and conclusions that lend themselves to the only known scientific test: empirical verification. Thus, this book is not about what socialism or capitalism could have been, should have been, or should be. Nor is it an ode to capitalism. Its purpose is not to assert that capitalism is a better economic system than socialism. The history of this century and the market for institutions have done that. My purpose is to explain what is it that makes the institutions of capitalism better in terms of economic outcome than all other alternatives that have been tried since the beginning of recorded history.
- Sales Rank: #6449941 in Books
- Brand: Brand: Ieee
- Published on: 1997-10-31
- Original language: English
- Number of items: 1
- Dimensions: 9.21" h x .56" w x 6.14" l, 1.13 pounds
- Binding: Hardcover
- 221 pages
- Used Book in Good Condition
Review
`... this book makes a great contribution to understanding and comparing economic systems. It is an important basis for building a new approach to the comparison of different economic systems and my hope is that it will contribute to the development of the analytical debate among comparativistsend.'
Economic Systems, 23:3 (1999)
Most helpful customer reviews
0 of 0 people found the following review helpful.
Powerful Case for Why Property Rights and Incentives Matter
By A Customer
Pejovich's book deals primarily with the consequences of institutional arrangements, and the book's strength lies not in an exhaustive survey of recent work but in a vivid, compelling, accessible, and often outstanding analysis of the role of incentives and transaction costs in economic life. The book provides intelligent people everywhere with a clear and reader-friendly introduction to the nature of economic systems.
In an effort to establish the link between institutions and wealth, the author examines how alternative institutional arrangements affect the costs of transactions and incentive structures and how costs of transactions and incentives influence economic behavior and economic outcomes.
My first impression was that the book was of mixed quality, including both brilliant and rather sloppy sections, and the underlying research at times appeared to be thin. Occasionally, I did not appreciate the book's spirit of advocacy, even as a strategy for winning converts. The pros, however, overwhelm the cons.
ECONOMIC ANALYSIS OF INSTITUTIONS AND SYSTEMS is a powerful essay that examines the consequences of incentives and property rights for economic activity. Pejovich has made a valuable contribution to redefining the field of economic systems by an intelligent discussion of the damaging effects on human society of perverse property rights and disincentives. Although the volume sometimes pastes over problems and weaknesses in systems based on private ownership, its emphasis on the relative merits of a decentralized market system based on private property fully justifies its existence.
Thr�inn Eggertsson writing in THE INDEPENDENT REVIEW.
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