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A Critique of the New Comparative Economics
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The article critically examines the "new comparative economics" paradigm and its underlying model of the "institutional possibilities frontier" as an instrument of comparative efficiency analysis of economic systems. The model suggests a social costs minimization trade-off between economic disorder and dictatorship. But the alternative approach - that of the "new traditional economics" - is shown to be more adequate and promising. New traditional economics deals with the evolutionary analysis of institutions in the context of historical development of economic and non-economic norms and values.
Title: A Critique of the New Comparative Economics
Description:
The article critically examines the "new comparative economics" paradigm and its underlying model of the "institutional possibilities frontier" as an instrument of comparative efficiency analysis of economic systems.
The model suggests a social costs minimization trade-off between economic disorder and dictatorship.
But the alternative approach - that of the "new traditional economics" - is shown to be more adequate and promising.
New traditional economics deals with the evolutionary analysis of institutions in the context of historical development of economic and non-economic norms and values.
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