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A Comparative Analysis on State Theory between North and Barzel

Author: JiCao
Tutor: YaoEnQuan
School: Dongbei University of Finance
Course: Political Economics
Keywords: North Barzel the State theory comparative analysis
CLC: F091.349
Type: Master's thesis
Year: 2010
Downloads: 127
Quote: 0
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Abstract


Since the new institutional economics has been established, the new institutional economics has a considerable development. Transaction cost theory, Property Rights theory, Institutional Change theory, Enterprise theory, the State theory have greatly enriched the analysis framework and research field of the new institutional economics. During recent years, the Nobel Prize has awarded to the new institutional economics scholars on contributions of development about new institutional economics at least three times. Stiglitz who won the Nobel Prize winner, had predicted the new institutional economics would be a new prosperous and crazy times during the 21st century.If economics has tendency to imperialism, the development of the new institutional economics would explain the problem exactly. The research of the new institutional economics research involves many fields, such as the State, politics, public choice, collective action, the sociological behavior problems and many other aspects. From reform experience and path with over 30 years of China’s economic reforms, government lies in middle of the action. During the process of economic reform, which role can be the government, especially in the transformation of the crossroad. The government function change is the way to promote the process of institutional change, which has been concerned. Based on the thinking of the new institutional economics, the author would try to find some solutions on the basic theory of the state.It is no exaggeration to say that the development of the new institutional economics is the research process which is from Coase to North. Since Coase established the institutional analysis framework of modern economics, the new institutional economics was beyond the effective theory of system which turned into determinism of system. As Europe’s history on the economic research, North found that the system still had no efficiency. Then, he wrote a book named Structure and Change in Economic History to explain the existence of system without efficiency in 1982. And then, he led that the ruler would need power interest group and transaction cost would exist. North thought continuously that the country was long-term existing with the inefficient property right, so he turned research on institutional change to research on the State. North put forward new trails in the State theory with a groundbreaking into the analysis of economic performance, in which take it as a endogenous variable to explore his State model. North tried to build an economic history analysis framework by using transaction cost theory and ideology theory in order to rebuild his own State model. After making these significant contribution, he felt somewhat regretful. On his research goal on the State, there is no good explanation of North Paradox at the same time. In addition, his research on the research history based on economic history in order to put his own opinion, which is not mostly persuasive naturally.With the new institutional economics directed, the research of the new political economics also matured gradually. During this time, North published a book named Institutions, Institutional Change and Economic Performance, in which he put the main property right theory and economic performance linked together and discussed different political structure evolution to different institutional arrangements in order to make a conclusion that political ideological decides economic rules. Meanwhile, another new institutional economist, Barzel, who had a very high attainment in property right field. Barzel also published his book on the State theory. Barzel tries to put property right theory, transaction cost, collective action theory into modern political economy as his analysis, who put forward the concept of public sphere, and took contract as the media and the logic starting point of its implementation about the State theory. In addition, Barzel tried to explain-North Paradox in order to build his own State model.The Statel theory of North and Barzel study has a lot of similarities, in which they also take transaction costs into the State mode as the main factor. But in both analysis tools and the logic starting points, there are many different places, which is the starting point for the author. According to the similarities and differences of their study, the author tries to build a comprehensive theoretical analysis framework on the State theory, for which provides some guides for China which is during the transition.This paper has five chapters except introduction.The first chapter briefly includes the introduction, such as topic significance, literature review, research methods of this paper and so on. Chapter 2 briefly introduces the development trend of NIE, as well as the state of the theory of the new institutional economics. Chapter 3 briefly introduces the State theory on North, including logic research paradigm, the State model, North Paradox and so on. Chapter 4 briefly introduces the State theory on Barzel, including the States model, the state characteristics and so on. Chapter 5 is the core part of the paper, which detailed comparison between North and Barzel from the logic research ideas, research contents, and the development trend of the theory in order to expounds the differences and similarities between the ideas of North and. Barzel. Chapter 6 briefly introduces the enlightenment of our country which lies in the economy transformation by the comparison between North and Barzel.

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CLC: > Economic > Economics > History of Economic Thought > World > Modern Economic Thought ( 1640 ~) > Vulgar economics > System of school,the new system,school ( the modern system of school )
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