Institutions and Economic Theory or Capitalism as if the World Matters

Institutions and Economic Theory: The Contribution of the New Institutional Economics

Author: Eirik G Furubotn

A much-needed exploration of the New Institutional Economics, or NIE, including a critical assessment of its central theoretical contributions since the field's early beginnings in the 1960s, is this book's objective. It traces the development of major ideas about the genesis and significance of institutions as these ideas have been presented in the NIE. Given the fundamental understanding underlying work in this new area of research--that transactions involve the use of real resources and have costs--the book views the NIE as an amalgam of transaction-cost economics, property-rights analysis, and contract theory.

Efforts are made to explain how the various theoretical strands discussed in the NIE literature fit into the general fabric of modern institutionalism, and how the new concepts put forward can be applied to institutional analysis. Since the new institutionalist approach contrasts sharply with that of the traditional neoclassical model, special attention is given to elucidating the points of difference between the two. And, along these lines, a final chapter deals with the troubling question of whether neoinstitutionalist theory can be advanced by efforts to extend or generalize neoclassical theory.

The book will be essential reading for economists attracted to the NIE approach. In addition, scholars from such disciplines as political science, sociology, and law will find the work useful as the NIE continues to gain wide academic acceptance.

About the Authors:

Eirik G. Furubotn is currently serving as Research Associate, University of Texas at Arlington; he recently retired as James L. West Professor of Economics, Texas A&M; University. Rudolf Richter is Professor of Economics, Center for the Study of the New Institutional Economics, University of Saarlandes.

New interesting textbook: Macroeconomics or Consumers

Capitalism as if the World Matters

Author: Amory B Lovins

When first published in 2005, Capitalism as if the World Matters, by one of the leading eco-warriors of our time, shocked both a generation of environmentalists and a generation of business people by brushing aside their petty squabbles and artificial battle lines with a powerful argument that the only way to save the world from fuel shortages, climate change and environmental catastrophe is to embrace a new type of capitalism, and to do it quickly.

In this substantially revised and updated edition, Porritt extends his powerful and controversial argument and answers his critics by providing fresh evidence and suggests new actions in a tightly argued and highly accessible book. New material includes in-depth coverage of the United States and the politics of climate change, the state of environmental debate and the massive upsurge in religious engagement with climate and the environment. Fresh case studies include the role of huge US corporations such as Walmart and General Electric in our sustainable capitalist future. Porritt also looks in-depth at China and the global impact this economic giant may have as it grows into the most environmentally damaging—or perhaps the first sustainable—superpower of the 21st century.

This is a must read for all readers with a stake in the future of the world from business executives to environmental activists and community leaders to students to the very politicians with their hands on the levers of power.