ppt课件-statesandmarketscomplementsorsubstitutes.pptVIP

States and markets: complements or substitutes? Richer countries have larger governments– why? Changing conceptions of market capitalism: capitalism 1.0 Insight: the market is the most creative and dynamic economic engine known to man Textbook renditions (still common) presume it requires a minimal state National defense, protection of property rights, and the administration of justice Not necessarily Adam Smith’s own view Corresponds to the 19th century “liberal” view and today’s libertarian vision Changing conceptions of market capitalism: capitalism 2.0 Insight: markets are not self-creating, self-regulating, self-stabilizing, or self-legitimizing Therefore they need to be embedded in a wide range of institutions Regulatory institutions, redistributive institutions, monetary and fiscal institutions, institutions of conflict management, … In practice: Keynes + the welfare state A national system of capitalism, not a global one Bretton Woods made the system work by throwing lots of “sand in the wheels” of international commerce and finance Capital controls plus a highly permissive GATT Why markets need states The institutional prerequisites of markets A typology of institutions Sources of institutional divergence Implications for globalization Institutions: definitions Institutions are “the rules of the game in a society” (Douglass North) Institutions are a set of humanly devised behavioral rules that govern and shape the interactions of human beings, in part by helping them to form expectations of what other people will do. Lin and Nugent (1995, 2306-2307). Can be formal (laws, regulations) or informal (patterns of behavior, conventions, moral codes) The example of social insurance (I) The example of social insurance (II) More recent evidence “ … we have documented that the association between openness and social spending is positive but has become shallower over time. Extending the specification to indicators of financial development, private financial mar