Economic calculation and the organization of markets

Piano, Ennio E.; Rouanet, Louis

doi:10.1007/s11138-018-0425-4

Cited by 31 publications

(18 citation statements)

References 45 publications

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“…For rejoinders, seeAllen (2015) andBarzel (2015). For a recent complementary overview of Barzel's approach, seePiano and Rouanet (2018).3 More generally, for Barzel, any difference between net benefits when defining, protecting and/or exchange property rights consumes resources and when it does not constitutes "transaction costs. "…”

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confidence: 99%

Logic is a harsh mistress: welfare economics for economists

Leeson

2019

Journal of Institutional Economics

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Every economic explanation assumes maximization. How strange, then, that few economists accept one of maximization's most straightforward implications: every observed institution is efficient. My aim is to persuade economists of this fact and thus to dissuade them from making illogical claims about social welfare. To frame my argument, I consider the “property rights approach” to institutions developed by Yoram Barzel. I speculate that economists resist what maximization implies about institutional efficiency because they think that efficiency-always precludes them from improving the world, and hope of improving the world is what attracted them to economics in the first place. But, besides being inconsistent, resistance is unnecessary: efficiency-always does not preclude economists, or anyone else, from improving the world.

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confidence: 99%

Logic is a harsh mistress: welfare economics for economists

Leeson

2019

Journal of Institutional Economics

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“…At the same time, it is also surprising that this exchange of ideas has not been more thoroughgoing. Numerous authors have suggested that there are gains from trade to be had from merging aspects of each tradition (see Langlois 1986Langlois , 1992Boettke 1989;Foss 1994Foss , 1997Boettke andCoyne 2003, 2009;Sima 2004;Foss and Klein 2009;Manne 2014;Bylund and McCaffrey 2017;McCaffrey 2018;Piano and Rouanet 2020). These contributions represent promising movements in the direction of integration; nevertheless; we believe that there remain unseized profit opportunities from further integrating the two traditions to improve our understanding of the institutions-entrepreneurship link.…”

Section: Introductionmentioning

confidence: 81%

“…Foss and Klein (2012) see the Austrian emphasis on the entrepreneur as necessary for a robust theory of organization, arguing that entrepreneurs establish firms because the judgment they exercise is noncontractible and can thus only be expressed by forming a firm. 12 More recently, Ennio E. Piano and Louis Rouanet (2020) have argued that NIE scholars should incorporate insights bequeathed by the calculation debate. For their part, Austrian scholars ought to adopt a greater appreciation for the fact that private property rights are costly to establish and the corollary that, even in unhampered markets, not every asset will be privately owned due to the existence of transaction costs (Barzel 1997;Allen 2000; Piano and Rouanet 2020).…”

Section: Institutional Arrangementsmentioning

confidence: 99%

“…13 Furthermore, Piano and Rouanet (2020) maintain that economic calculation over which property rights to establish can only occur in an institutional environment where some prices already exist and are free to arise. However, like Foss and Klein (2012), Piano and Rouanet (2020) develop their arguments in the context of organizational economics. Thus, one irony given the Austrians' Mengerian origins is that in the last thirty years Austrian work in "institutions and organizations" has tended to shift toward "institutional arrangements" and away from the "institutional environment."…”

Section: Institutional Arrangementsmentioning

confidence: 99%

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Institutions and Entrepreneurship: Pushing the Boundaries

Burns

Fuller

2020

QJAE

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New institutional economics (NIE) and Austrian economics (AE) both emphasize the role that institutions play in facilitating or impeding entrepreneurship and hence economic growth. In this paper, we discuss the complementarities between AE and NIE for advancing our understanding of the relationship between institutions and entrepreneurship. We argue that a subjectivist view of institutions, entrepreneurial microfoundations, and capital heterogeneity can enrich our understanding of within-country variation in entrepreneurial strategies, institutional evolution, and the relationship between institutions and production processes. We hope our discussion serves as an invitation both for further theoretical collaboration between the two camps and as a spur to applied research at the intersection of institutions and entrepreneurship.

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“…For example, while catallactic transaction costs involve costs of triangulation, transfer, and trust (Munger 2018), autarkic exchange largely skirts the bulk of these costs, its transaction costs involving primarily uncertainties. Similarly, the cost-benefit calculations themselves may also vary between catallactic and autarkic economies (see Piano and Rouanet 2020).…”

Section: The Boundary Between Autarkic and Catallactic Entrepreneurshipmentioning

confidence: 99%

Autarkic Entrepreneurship

Packard

2020

QJAE

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The so-called autistic economy (here autarkic)—the economy of one—has been employed by Austrian theorists as a useful analytic baseline on which to build catallactic (market process) theory, which has included a theory of entrepreneurship. But so far, the autarkic economy has been examined almost exclusively in this way. In this article it is argued that the autarkic economy must brought forward in our theorizing to be understood not as a mere analytic tool, but as a real and significant aspect of praxeology. It is proposed that catallaxy and autarky be understood as substitutes, complements, and even competitors. Extending Austrian theorizing of the autarkic economy, the entrepreneurial function within autarkic economies is examined and elaborated. It is shown that, far from only a catallactic role, the entrepreneurial function is prominent within the autarkic economy also, in which the entrepreneur plays a significant role in augmenting individual lifestyles and, thus, total economic development.

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Economic calculation and the organization of markets

Cited by 31 publications

References 45 publications

Logic is a harsh mistress: welfare economics for economists

Logic is a harsh mistress: welfare economics for economists

Institutions and Entrepreneurship: Pushing the Boundaries

Autarkic Entrepreneurship

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