The state and economic efficiency: A behavioral approach

    Research output: Chapter in Book/Report/Conference proceedingChapter

    6 Citations (Scopus)

    Abstract

    According to standard neoclassical economic theory, institutions do not matter for understanding the process of economic change or why economies operate inefficiently. In contrast, a behavioral approach lets institutional parameters have a substantive impact on the economy. This paper argues that to understand economic efficiency one must understand the bargaining power of different players in the economic game and that this is critically affected by institutional parameters. Economic efficiency is not the natural product of competitive markets; rather, it is affected by the institutions within which markets operate, including the institutions that establish property and labor rights.

    Original languageEnglish
    Title of host publicationAlternative Theories of the State
    PublisherPalgrave Macmillan
    Pages164-190
    Number of pages27
    ISBN (Electronic)9780230372795
    ISBN (Print)9781403999399
    DOIs
    Publication statusPublished - 10 Oct 2006

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)
    • General Business,Management and Accounting
    • General Social Sciences

    Fingerprint

    Dive into the research topics of 'The state and economic efficiency: A behavioral approach'. Together they form a unique fingerprint.

    Cite this