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The initial objective of the paper is to describe the way in which the term ‘New Institutional Economics’ (NIE) emerged in the literature and became the designation for a new field concerned with the study of various analytical techniques designed for the exploration of institutional phenomena. It is then shown how some of the more important of these techniques, transaction-cost economics, property-rights analysis and contract theory, have been applied in two central lines of neoinstitutional thought – the Williamsonian and the Northian. Criticisms of these two disparate theoretical positions on the NIE are considered and assessed. Next, a brief review of some of the empirical literature is undertaken so that the explanatory powers of NIE themes can be gauged. Finally, the paper offers a few general remarks on the present state of the NIE and its possible influence on the further development of economics. [ABSTRACT FROM AUTHOR]

The purpose of this article is to estimate the size of the informal economy in Vietnam, describe its development from 1995 to 2015, and assess the country's potential tax loss from this activity. The MIMIC model indicates that the informal economy accounts for between 15 per cent and 27 per cent of GDP. The informal economy has grown sharply in Vietnam since 2007, while its size has decreased in other comparable nations. Potential tax revenue lost annually amounts to between 3.3 per cent and 5 per cent of gross domestic product. [ABSTRACT FROM AUTHOR]

International migration, seen as a powerful force of truly global character that is shaping today's socio-economic reality, is a highly controversial and politicised issue. This paper explores its ramifications in the context of a growing backlash against immigration across the rich world. Specifically, it argues that the free flow of people - like the free movement of goods and capital - is beneficial to developed and developing economies alike and, in doing so, shows how migration produces win-win outcomes. Thus the study, while admitting that inflows of foreign-born workers pose challenges and entail trade-offs, makes a case for the liberalisation of immigration policies. The paper deepens our understanding of the issues at hand and constitutes a voice in favour of liberal-policy choices. [ABSTRACT FROM AUTHOR]

This paper uses Douglass North's theories of institutional economics to explain progress in Muslim Spain. It argues that it was efficient economic institutions in the guise of a free-market economy where the property rights of different strata of society were well protected, which ensured lasting prosperity. This paper postulates that while a population explosion could have been responsible for the initial growth in Spain, it was an efficient formal–informal institutional matrix that ensured a high level of long-term growth. [ABSTRACT FROM AUTHOR]

In the December 2005 issue of Economic Affairs , a collection of authors considered alternative institutions for planning and managing urban affairs. Following up the idea of ‘planning by contract’, this paper reflects on the role of negotiation in securing gains from trade over contested local environmental resources. The idea of an obstructive classical planning game is contrasted with the concept of creative negotiation by reference to two case studies. [ABSTRACT FROM AUTHOR]

This paper makes recommendations for policy on bilateral foreign aid. The recommendations are based on criticism of the current structure and also a wave of new policy suggestions that have, to date, not been implemented on a significant scale. The paper concludes that we need to move away from the orthodoxy of bilateral aid payments, and experiment in new policy areas with a focus on scientific, independent evaluation of results. [ABSTRACT FROM AUTHOR]

The article discusses the need for well-based information about the comparative size of different national economies to understand the events and relationships in the world economy. It mentions the derivation from systematic cross-country comparisons of the prices of the goods and services that enter into gross domestic product (GDP). The concept of a country's systemic relevance in the global economy is also tackled.

In Great Britain, a basic inter-urban network of motorways was completed in a very short period between the end of 1959 and 1972. We calculate that this substantial investment had the potential to reduce most inter-urban journey times by about one third. In spite of this, a recent OECD study suggested that the investment had no discernible positive impact on the trend rate of economic growth. We attribute this outcome to a serious misalignment of the early investments with the then predominant flows of industrial and commercial traffics and a significant, and probably endogenous, increase in real wages in a road transport industry in which labour productivity was slow to improve. We conclude with a number of policy recommendations. [ABSTRACT FROM AUTHOR]

This article deals with the link between complexity economics and the Austrian concept of dynamic efficiency. The conventional notion of efficiency used in economic science, regarded as static in this article, is rejected for being incompatible with complexity economics in epistemic terms. The concept of dynamic efficiency is thus presented as an alternative definition of efficiency, given its epistemic and theoretical similarities with complexity economics; more concretely, with Santa Fe complexity. Consequently, a direct, causal relationship between economic complexity and dynamic efficiency is highlighted. This relationship is confirmed in light of recent applications of both dynamic efficiency theory and complexity economics to the study of economic development. Finally, it is pointed out that economic complexity and dynamic efficiency can be combined to improve our understanding of the development process. [ABSTRACT FROM AUTHOR]

New types of marketplace are now becoming viable. They can slash transaction costs, bring new resources into the economy and expand economic opportunity. These markets can be grown by the private sector. But, to deliver their full potential, they need a change in the mindset of government. [ABSTRACT FROM AUTHOR]

The author reflects on non-governmental organizations (NGOs) and development. The author states that NGOs advance development activities in poor countries however, most of them engage in political activism which influences political events that affect local people and disrupt economic development. The author suggests ending direct support for NGOs and restricting indirect support to address the issue.

The design and operation of Britain's energy networks have not changed significantly in 50 years. Energy networks will have a central role to play in decarbonising the economy. Unprecedented levels of technical and commercial innovation are likely to be necessary. The existing incentive-based approach to regulating the monopoly networks has been a success in lowering prices whilst delivering investment and improved reliability. But it will need to change to encourage and reward these levels of innovation. This paper sets out some of the regulators' thinking on the changes required. [ABSTRACT FROM AUTHOR]

This paper describes the process of trade liberalisation experienced by the Spanish economy between 1960 and 2000. The path towards liberalisation involved progressive reductions of quantitative restrictions, which were replaced by border taxes. Over the period external openness grew, although along an irregular path. [ABSTRACT FROM AUTHOR]

Since the 1960s economic growth rates have been far lower in sub-Saharan Africa than in other developing regions. This poor performance has resulted primarily from endemic rent-seeking and the over-regulation of markets. To achieve high growth rates, African countries must improve the investment climate by reforming institutions, enhancing infrastructure and protecting property rights. [ABSTRACT FROM AUTHOR]

Government regulation in general has over-expanded. However, in British energy markets, a new form of regulation, concentrating on promoting competition in gas and electricity, has emerged to the benefit of consumers. If the government pursues its policy of targeting favoured energy activities, these gains will disappear, the costs of achieving environmental targets will be unnecessarily heavy and energy markets will be re-politicised. [ABSTRACT FROM AUTHOR]

This article focuses on the "World Conference on Education for All," held in Thailand in 1990. An article by James Tooley, implies that it might not, if it continues to focus only on what governments can do and fails to take into account the role of private education. Drawing on evidence from various developing countries, Tooley points to the burgeoning private sector for the poor, and its superiority over government education in terms of the crucial issue of accountability over the issue of finance. The third article offers a rejoinder, challenging Watkins on empirical evidence and conceptual issues, and points to non-state mechanisms for helping poor parents access private education and for private education to improve.

Last year, 2020, was the 50th anniversary of the opening of the 'Chilean road to socialism' by Salvador Allende. Although the Allende government is the political reference for the 'socialism of the 21st century' in Latin America, international supporters tend to disregard the primary cause of its downfall, focusing instead on the circumstances of Allende's death. This article explains the link between the Allende government's development policies and its macroeconomic outcomes between 1970 and 1973. It finds that Chile's economic collapse had an endogenous cause related to government policies. This supports the views of Mises and Hayek on the feasibility of socialist economic policies. Policymakers and commentators should recognise essential lessons from the Chilean experience to learn from past errors and effectively promote Latin America's economic development. [ABSTRACT FROM AUTHOR]

This article explores the association between money and long‐run economic growth in a panel of 27 countries over 200 years. It presents evidence of a complementarity between freedom and decentralisation of the monetary system in terms of their contribution to growth in GDP per capita. The significant and positive association between freedom and economic growth is found to be significantly stronger in a decentralised (market‐based) than in a centralised (government‐controlled) monetary system. For the average level of freedom across the 27 countries today, shifting from a centralised to a decentralised monetary system is predicted to almost double growth rates. [ABSTRACT FROM AUTHOR]

Inclusive financial systems play a critical role in fostering economic growth and development. However, the question of what is the best means of achieving this has long been a puzzle. In this article, I use the mobile money revolution in Sub‐Saharan Africa to show that the greatest examples of financial development have come from nations embracing a market‐led approach that removes repressive regulations and gives entrepreneurs the freedom to discover innovative ways to access the unbanked. Comparing the successes and failures of mobile money across the continent over the past decade, I argue that the best predictor of whether a country will reap the benefits of these transformative innovations is whether its government embraces a laissez‐faire, or 'enabling', regulatory approach that encourages entrepreneurship and experimentation. [ABSTRACT FROM AUTHOR]

Abstract: This article demonstrates the existence of conglomerates of nations that seem to have similar ideological attitudes towards capitalism. The main finding is the existence of relatively homogeneous global cultural clusters, the Anglosphere and Northern European nations showing the highest appreciation for free markets, followed by the Sinosphere. The rest of the world tends to be more anti‐capitalist, with the Middle East and Eastern Europe standing out for being at the end of the spectrum. Statistical analysis suggests that the capitalist mentality is to some extent autonomous, and does not seem to be determined strongly by other variables such as income, growth or inequality. At the same time, the capitalistic mentality appears to correlate with economic freedom, as measured by the Economic Freedom of the World index. If a pro‐capitalist ideology is connected to institutional development, then some conglomerates seem to be in a better position to attain or maintain economic growth in the future. [ABSTRACT FROM AUTHOR]

The article discusses the scenario in Great Britain where downfall in labour productivity hampered economic development, which it depicts has happened due to developments in the cost of capital. Topics discussed include implications of the rising cost of capital, historical analysis of the matter with regard to the economy of Great Britain and policy implications.

This article examines the impact of multilateral trade policy liberalisation on countries' levels of economic development, proxied by their real per capita income. The study is particularly relevant in the current context of growing rhetoric against international trade, which could fuel domestic protectionism and would likely undermine multilateral trade liberalisation. The analysis has been conducted on a panel data set of 155 countries, over non-overlapping four-yearly sub-periods during 1995-2014. The empirical results suggest strong support for the view that multilateral trade liberalisation promotes economic development. Hence, the rise in unilateral protectionist trade measures around the world would likely endanger the prospects of further multilateral trade liberalisation and ultimately undermine countries' prospects of economic development. [ABSTRACT FROM AUTHOR]

The market economy can be defended using the lens of virtue ethics. Modern virtue ethics was developed originally by the English philosopher Elizabeth Anscombe. Virtue ethics rejects consequentialism and focuses on the virtues. And human nature appears to be collaborative in both language and economic relations exemplified by exchange. By adapting the concept of 'characteristic virtues', developed by Alasdair MacIntyre, it follows that collaboration has its own particular virtues. These virtues can produce prescriptions which mitigate the costs of economic transactions and collaboration. The development of behavioural economics has shown human beings sometimes fall short of the rationality described by neo-classical microeconomics. But virtuous action tends to correct these deficiencies. [ABSTRACT FROM AUTHOR]

We consider the resilience of a group of 20 Western economies after the financial crisis of the late 2000s. We measure resilience by the growth of real GDP between 2007, the previous peak level, and 2015. The countries exhibit a broad range of experience, from a rise in GDP of 18 per cent in Australia to a fall of 26 per cent in Greece. A substantial proportion of the differences in growth rates can be accounted for by just two variables: the perceived level of corruption and membership of the Eurozone. The euro did have a negative impact on the recovery paths of the Mediterranean economies ( Greece, Italy, Portugal and Spain), but their perceived corruption scores in 2007 had a bigger impact, especially on the first three of these economies. [ABSTRACT FROM AUTHOR]

) does not deny that he made errors in economic theory, logic and fact, and that he had misused evidence. He says that I misrepresented a large body of theory, that I distorted what he said in four places and that I was wrong in one sentence. These statements are false. [ABSTRACT FROM AUTHOR]

Throughout his considerable body of work, William Easterly has identified several critical problems with foreign aid and economic development programmes. In particular, he argues that many working in areas of development act as 'planners', who believe they can implement effective policies but who in fact lack the necessary knowledge. Moreover, Easterly claims that these agents face perverse incentives that lead to suboptimal development outcomes. This article explores the theoretical roots of Easterly's critiques and relates them to the work of two Nobel prize-winning economists, F.A. Hayek and James M. Buchanan. It explores the broader applicability of Easterly's criticisms by applying a similar framework to military activity. [ABSTRACT FROM AUTHOR]

The article discusses the importance of infrastructure and how decentralization affects financial innovation. Topics covered include the rise in demand for infrastructure when the world's population grows and countries become urbanized. Also mentioned is the expected cause of improving infrastructure across the world before 2030.

Austrian Business Cycle Theory can shed light on the ways in which the current Chinese economic boom is unsustainable. On the one hand, government interventions, such as land monopolies, have raised costs for real estate developers. By limiting the availability of investment instruments and access to external markets, government interventions have created a strong demand for housing as a hedging tool. On the other hand, a loose monetary policy and artificially low interest rates have made the property market tempting for developers. Over-construction and over-consumption in the housing sector epitomise the capital structure analysis that Austrian economists regard as the core of their business cycle theory. [ABSTRACT FROM AUTHOR]

As the population of an economy ages saving declines and, through that channel, economic growth can decline too. Returns to physical capital fall, making the provision of pensions more and more difficult. The income of the working population deteriorates and they respond by having fewer children. This intensifies the problem even further. [ABSTRACT FROM AUTHOR]

We attempt to provide an economic theory and the empirical evidence to explain why slow-growth regions, like Quebec in Canada, enjoy as high living standards as rapidly growing regions. In the long term quantities not prices adjust (except for the price of land, a resource in fixed supply). Despite variations in regional growth rates, real per capita income adjusted for housing costs converge in all regions. The analysis offers important insights into regional development and has far-reaching implications for federalism. [ABSTRACT FROM AUTHOR]

Good governance is a pre-condition for economic development. Good governance, in turn, requires peace. The second Battle of Waterloo, in Sierra Leone, showed what the West can do in this regard. A small military intervention, not hemmed in by the typical restrictions on what ‘peacekeepers’ can do, made a huge difference to the development prospects of the country. This has important implications for the use of external military forces as part of the overall strategy for poverty reduction in Africa. [ABSTRACT FROM AUTHOR]

China's recent economic growth has been driven by an apparent acceptance by the Chinese government of many of the key insights of Hayek's economic and social thought. Current Chinese economic policies stand in stark contrast to those being pursued by the EU and many European countries, where interventionist policies of the kind Hayek predicted would lead to relative impoverishment and declining freedom are being pursued. The long-term consequence of these two trends is likely to be the economic dominance of China over Europe in the present century. [ABSTRACT FROM AUTHOR]

The microfinance movement has gained tremendous popularity over the past 30 years, but it is still far from meeting its full potential. The industry stands at a crossroads between increased commercialisation and increased philanthropic aid. Standard economic discourse does little to resolve the debate. F. A. Hayek's concept of the‘extended order’ sheds new light on how we might understand the future development of microfinance. [ABSTRACT FROM AUTHOR]

Switzerland has a tradition of decentralized government, decentralized tax setting and direct reference to the voters through referendums. Such mechanisms should give rise to lower taxes, better provision of public goods and higher economic growth. However, these mechanisms have not been effective in the last 30 years at preventing the growth in government spending and centralization. This is partly because of the consensus in favor of centralization that exists among institutionalized politicians. The performance of the Swiss economy since 1970 has consequently been dismal. Real per capita post-tax incomes have been stagnant. There is now an opportunity for the growth of centralization to be reversed. [ABSTRACT FROM AUTHOR]

The author proposes a definition of corruption which requires five conditions to be satisfied simultaneously. The definition is applicable to both the state and private sectors. Empirical work shows that corrupt countries receive less inward investment, pay higher interest on borrowings and achieve lower rates of investment overall. Ways of combating corruption are suggested. [ABSTRACT FROM AUTHOR]

The blinkered insistence upon formalistic modelling has prevented economics from developing in a way that helps us understand the world in which we live. There are alternative approaches to the study of economics that do not use the formal, often closed-form, models that contemporary mainstream academic economists rely upon. These provide a more promising avenue for future teaching and research. [ABSTRACT FROM AUTHOR]

Slight systematic deflation is ideal in a growing economy. However, adopting negative inflation targeting would not be stable. Instead, we should use trend deflation under price–level targeting. [ABSTRACT FROM AUTHOR]

Argues that the economic revolution of the 1980s, brought about the administration of Margaret Thatcher, represents a genuine structural improvement in the British economy. Fundamental structural improvement; Medium-term control of the budget deficit; Attitudes to trade unions; Reform of taxation and benefits; Overmanning in industry; Wider share-ownership.

Explores the implications of trade-unions for industrial operations and productivity in Great Britain. Monopoly power of trade-unions; Emphasis on the printing, railways, medicine and music industries; Allocative costs of unionism; Negative implications for economic growth.

Presents an overview of the economic conditions and growth in the U.S. for the year 1984. Monetary policies; Financial conditions; Fixed exchange rate system; Rate of inflation; Implications for economic policies.

Had the Arab Spring been widely interpreted as a revolution for 'laissez faire', it would certainly have stimulated more reflection on the central place of the entrepreneur in economic development, and the fundamental role of economic freedom to let this prosperity-generating entrepreneurship flourish. The future of the Arab Spring depends on the capacity of the new democratically elected governments to implement measures to prevent crony capitalism, restore the rule of law and promote economic freedom in order to ensure general prosperity. [ABSTRACT FROM AUTHOR]

In an Economic Viewpoint published in the September 2005 edition of Economic Affairs , ‘Can Globalisation Depress Living Standards in the West?’, Professor E. J. Mishan argued that globalisation may reduce living standards in the West by decreasing the labour–capital ratio in developed countries as firms move production to countries where labour is cheaper and/or migrants to the West from the developing world bid down wage rates. In a reply to Professor Mishan's article, Dr John Meadowcroft argues that this view of globalisation is far too pessimistic and explains why free trade, not protection, will secure the prosperity of developed and developing economies. In a final comment, Professor Mishan responds to this critique of his analysis. [ABSTRACT FROM AUTHOR]

Discusses why the world economy is expected to improve. Economic growth; Expansion of modern technology; Development of new materials; Wealth and gross national products of different nations.

The article presents the author's opinion on child poverty in several economically developed countries. He says that poverty is being given lot of public attention but the causes of it is not cared for. The author says that living standard and prosperity are relative terms that varies from country to country. He believes that the indicators of poverty and the poverty line should change with time in a given territory and the poverty indices should reflect the attitude about poverty change.

This article looks into the moral justification of the market economy. Market economists are somehow successful in exposing the failures of central planning. However, as times pass by the intellectual ground shifted. Currently the politicians and economists view marketplace as a ground for prosperity. Most people also look at the market place as an opportunity for wealth. To further elaborate the sudden shift of interests of most economists to the marketplace, the author provided the reasons behind the blind spots of the economists. The other main strands of thinking in this article relate to the modes of behavior that are necessary to make a market economy work well and the moral requirements of actors in the market. The author provided some elements for the market economy to function well.