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The aim of this course is to introduce students an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
An Introduction to Institutions and Institutional Change. Cooperation: the Theoretical Problem. The Behavioural Assumptions in a Theory Of Institutions. A Transaction Cost Theory of Exchange. Informal Constraints. Formal Constraints. Enforcement. Institutions and Transaction and Transformation Costs. Institutional Change: Organizations, Learning, and Institutional Change. Stability and Institutional Change. The Path of Institutional Change. Institutions, Economic Theory, and Economic Performance. Stability and Change In Economic History.
Upon succesful completion of this course, a student will be able to
1. Explain the nature of institutions and the role of transaction and production costs in their development.
2. Analyze cooperation and behavioral assumptions in institutions theory.
3. Clarify the factors effecting the institutions in the economy.
4. Discuss the role of institutional change in development.
5. Explains how institutional development may lead to a path-dependent pattern of development.