Dr Zhen YeThe University of HertfordshireBusiness School.ppt

 Dr Zhen Ye The University of Hertfordshire Business School The Easter island puzzle Jared Diamond “Collapse: how societies choose to fail or succeed” (2005) Giant statutes in a remote island on the south Pacific, about 2000 miles west to the Chilean coast Site of human society and early civilization which has collapsed What has caused the collapse of the Easter island society? What lessens can we learn? Structure and learning outcomes Structure Lecture 1: Emerging Paradigm and Applications Lecture 2: Evolutionary Theorising of Economic Change Lecture 3: Applying Evolutionary and Institutional Theories Learning outcomes for lecture 1 Provide an overview of evolutionary and institutional economics Understand the key concepts of new institutional economics (NIE) / transaction cost economics (TCE) Be able to apply transaction cost economics concepts in the analysis of business venture What are institutions? The rules of the game of a society (North, 1997) Systems of established and embedded social rules that structure social interactions (Hodgson, 2006) Giambattista Vico Sienza Nuova 1725 (ibid.) Latin roots: instituere，in + statuere : to make stand; similar French usage Institutions ＝ or ≠ or ≡ 制度? 中文“制度”一词早期用法：“凡将立国，制度不可不察也，治法不可不慎也，国务不可不谨也，事本不可不抟也。制度时，则国俗可化，而民从制。”《商君书》；另见《说文解字》。 现代定义：复旦大学李韦森教授《社会制序的经济分析导论》：“中文的‘制序’概念对应于标准欧洲通语中宽泛含义的‘institutions’ ”，祥见《从语言的经济学到经济学的语言》。 Questions? Why are institutions important? To what extent economic actions are underpinned by the rules of the game of a society? Can an individual learn without a habit of learning? Can an organisation function without established routines? Why is the computer keyboard layout follows the sequence QWERTY? Why are some production systems more successful than others? e.g. Fordism versus Just in Time (JIT) What do we learn from contrasting paths of economic reforms in China and the Central and Eastern Europe (CEE) ? Experiment versus ‘big bang’ The old and new IE Old institutional econo