Abstract
The article contains the analysis of the views of the Nobel laureate in economics Ronald Coase (1910–2013) as the founder of neo-institutionalism. it provides a comparative description of the “old” and “new” institutionalism and shows the relationship and difference between neoclassicism and neo‑institutionalism. I analysed in detail the most famous articles of Coase and, first of all, “The Nature of the Firm” and “The Problem of Social Costs”. in these works, Coase showed that in the absence of transaction costs there is no economic novelty for the existence of a firm, in the second — that in the lack of transaction costs the legal system does not matter. With an exact specification of property rights, the market economy itself is able to cope with environmental pollution without resorting to government intervention, adjusting taxes and subsidies. The article shows the history of lighthouses in economic theory. Usually, the lighthouse is listed as a purely public good. Ronald Coase shows that even a public good — like lighthouses —was paid for by shipowners. The last part is devoted to essays on economics and economists.
Highlights
The situation, changed radically in was formed at the beginning of the twentieth the 60s and 70s
Neo-institutionalism puts an independent individual at the forefront, who, of his own free will and following his interests, decides which collectives are more profitable for him to be a member of
It is partly due to an attempt to overcome the limitations of several prerequisites characteristic existing in economics and, to consider modern economic, social, and political processes more comprehensively and comprehensively; partly — with an attempt to analyse the phenomena that arose in the era of scientific and technological revolution, the application of traditional research methods to which does not yet give the desired result
Summary
NEOINSTITUTIONALISM From economics to politics and law Economic neoclassical (methods of microeconomics and game theory) Deductive Independent individual Methodological individualism. Traditional institutionalism was based mainly on the inductive method, aspired to go from particular cases to generalisations, as a result of which a general institutional theory never took shape. Neo-institutionalism follows a deductive path — from the general principles of neoclassical economic theory to the explanation of specific phenomena of social life. It is partly due to an attempt to overcome the limitations of several prerequisites characteristic existing in economics (axioms of complete rationality, absolute awareness, perfect competition, the establishment of equilibrium only through the price mechanism, etc.) and, to consider modern economic, social, and political processes more comprehensively and comprehensively; partly — with an attempt to analyse the phenomena that arose in the era of scientific and technological revolution, the application of traditional research methods to which does not yet give the desired result. Let us first show how the development of the premises of the neoclassical theory took place within it
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