Economic Analysis of Institutions and Systems

If money only grew on trees – The Russian forest sector in transition

“…Property rights are not the same as ownership, but rather how economic actors define their relations to one another and to the resource in question. "Property rights are the relations among individuals that arise from the existence of scarce goods and pertain to their use7' (Pejovich 1998). If these relations were formed solely through day-to-day decisions, kinship, corruption, crime, etc., the world would be less predictable, enterprises would not be able to plan and make accurate calculations on investments -all essential factors in a market economy.…”

“…. ] the prevailing institutional framework in a society consists of formal and informal rules" (Pejovich 1998). Thus, the institutional framework affecting the Russian forest sector is obviously composed of a large set of written as well as unwritten rules.…”

Forestry and the New Institutional Economics

“…There is now a consensus among scholars that Ronald Coase's 1937 paper, 'The Nature of the Firm,' provided the original and enduring inspiration for the development of NIE. With a focus centering around the theory of the firm and transaction costs, NIE benefitted from the ideas of the Austrian school of economics (Hayek 1937(Hayek , 1945, the economics of information (Stigler 1961(Stigler , 1975, human behavior and cognitive science (Simon 1957(Simon , 1962, organizations and markets (Williamson 1975(Williamson , 1985Simon 1991), the theory of property rights (Alchian and Demsetz 1972;Demsetz 1967;Barzel 1989;Pejovich 1995), institutions (North 1990(North , 1991, the history of industrial enterprise (Chandler 1992), and, lastly, transaction cost economics (Williamson 1979(Williamson , 1998Groenewegen 1996). NIE is concerned with the role of governance structures in terms of institutional environment and institutional arrangements.…”

“…Their major function is to enhance the predictability of human behavior (Pejovich 1995). The growing literature around institutions point to a distinction between the institutional environment and institutional arrangements.…”

Institutional Change for Creating Capacity and Capability for Sustainable Development - a Club Good Perspective

“…When economic and social interactions increase (more transactions), it can be expected that existing formal institutions and structures of institutional governance are only able to deal with a limited amount of transactions efficiently (Pejovich, 1995).…”