Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that...

This volume serves as an introduction to the new field of positive political economy and the various economic and political processes with which it is concerned. Grounded in the rational-actor methodology of microeconomics, positive political economy is devoted to the dual analysis of the role of economic behavior in political processes and of political behavior and constraints in economic exchange. The field has focused on three main subjects of study: models of collective action in industrialized democracies; the organization of markets and alternative mechanisms of exchange in the Third...

Many of the fundamental questions in social science entail an examination of the role played by social institutions. Why do we have so many social institutions? Why do they take one form in one society and quite different ones in others? In what ways do these institutions originally develop? And when and why do they change? Institutions and Social Conflict addresses these questions in two ways. First it offers a thorough critique of a wide range of theories of institutional change, from the classical accounts of Smith, Hume, Marx and Weber to the contemporary approaches of evolutionary...

The states of Egypt, India, Mexico, and Turkey have all developed extensive public enterprise sectors and have sought to regulate most economic activities outside the state sector. Their experiences have been typical of scores of developing countries that followed similar paths of industrialization. This study examines the origins of these state sectors, the dynamics of their growth and crises, and the efforts to reform or liquidate them. It is argued that public ownership creates its own culture and pathology that are similar across otherwise different systems. The logic of principal-agent...

This book explores how the political process in the United States influences the economy and how economic conditions influence electoral results. It explains how the interaction between the President and Congress lead to the formulation of macroeconomic policy and how the American voters achieve moderation by balancing the two institutions. Fluctuations in economic growth are shown to depend on the results of elections and, conversely, electoral results to depend on the state of the economy. The final chapter of the book establishes striking similarities between the American political economy...

Making and Breaking Governments offers a theoretical argument about how parliamentary democracy works. The authors formulate a theoretical model of how parties create new governments and either maintain them in office or, after a resignation or no-confidence vote, replace them. The theory involves strategic interaction, derives consequences, formulates empirical hypotheses on the basis of these, and tests the hypotheses with data drawn from the postwar European experience with parliamentary democracy.

Building on min-max methods, Professor Ghoussoub systematically develops a general theory that can be applied in a variety of situations. In so doing he also presents a whole new array of duality and perturbation methods. The prerequisites for following this book are relatively few; an appendix sketching certain methods in analysis makes the book self-contained.

This book adapts a formal model of elections and legislative politics to study party politics in Israel, Italy, the Netherlands, Britain, and the United States. The approach uses the idea of valence, that is, the party leader's non-policy electoral popularity, and employs survey data to model these elections. The analysis explains why small parties in Israel and Italy keep to the electoral periphery. In the Netherlands, Britain, and the US, the electoral model is extended to include the behavior of activists. In the case of Britain, it is shown that there will be contests between activists...

Just when Japan and the United States are both caught up in a major debate over the effectiveness of their governments, this volume offers new explanations of their comparative strengths and weaknesses. Why can Japan keep building nuclear power plants while it has a hard time building an information superhighway? Why is the opposite the case in the United States? Will political reform change public policy in Japan? Would it make a difference in the United States? This volume explains why and how. This is one of the few volumes on the two countries that offers detailed studies of value to...

Just when Japan and the United States are both caught up in a major debate over the effectiveness of their governments, this volume offers new explanations of their comparative strengths and weaknesses. Why can Japan keep building nuclear power plants while it has a hard time building an information superhighway? Why is the opposite the case in the United States? Will political reform change public policy in Japan? Would it make a difference in the United States? This volume explains why and how. This is one of the few volumes on the two countries that offers detailed studies of value to...