This second edition assesses some of the major refinements, extensions, and useful applications that have developed in neoinstitutionalist thought in recent years. More attention is given to the overlap between the New Institutional Economics and developments in economic history and political science. In addition to updated references, new material includes analysis of parallel developments in the field of economic sociology and its attacks on representatives of the NIE as well as an explanation of the institution-as-an-equilibrium-of-game approach.Already an international best seller, Institutions and Economic Theory is essential reading for economists and students attracted to the NIE approach. Scholars from such disciplines as political science, sociology, and law will find the work useful as the NIE continues to gain wide academic acceptance. A useful glossary for students is included.Eirik Furubotn is Honorary Professor of Economics, Co-Director of the Center for New Institutional Economics, University of Saarland, Germany and Research Fellow, Private Enterprise Research Center, Texas A&M University.Rudolph Richter is Professor Emeritus of Economics and Director of the Center for New Institutional Economics, University of Saarland, Germany.

The emergence of New Institutional Economics toward the end of the twentieth century profoundly changed our ideas about the organization of economic systems and their social and political foundations. Imperfect Institutions explores recent developments in this field and pushes the discussion forward by allowing for incomplete knowledge of social systems and unexpected system dynamics and, above all, by focusing explicitly on institutional policy. Empirical studies extending from Africa to Iceland are cited in support of the theoretical argument.In Imperfect Institutions Thráinn Eggertsson extends his attempt to integrate and develop the new field that began with his acclaimed Economic Behavior and Institutions (1990), which has been translated into six languages. This latest work analyzes why institutions that create relative economic backwardness emerge and persist and considers the possibilities and limits of institutional reform.Thráinn Eggertsson is Professor of Economics at the University of Iceland and Global Distinguished Professor of Politics at New York University. Previously published works include Economic Behavior and Institutions (1990) and Empirical Studies in Institutional Change with Lee Alston and Douglass North (1996).

“McCloskey and Ziliak have been pushing this very elementary, very correct, very important argument through several articles over several years and for reasons I cannot fathom it is still resisted. If it takes a book to get it across, I hope this book will do it. It ought to.”—Thomas Schelling, Distinguished University Professor, School of Public Policy, University of Maryland, and 2005 Nobel Prize Laureate in Economics“With humor, insight, piercing logic and a nod to history, Ziliak and McCloskey show how economists—and other scientists—suffer from a mass delusion about statistical analysis. The quest for statistical significance that pervades science today is a deeply flawed substitute for thoughtful analysis. . . . Yet few participants in the scientific bureaucracy have been willing to admit what Ziliak and McCloskey make clear: the emperor has no clothes.”—Kenneth Rothman, Professor of Epidemiology, Boston University School of HealthThe Cult of Statistical Significance shows, field by field, how “statistical significance,” a technique that dominates many sciences, has been a huge mistake. The authors find that researchers in a broad spectrum of fields, from agronomy to zoology, employ “testing” that doesn’t test and “estimating” that doesn’t estimate. The facts will startle the outside reader: how could a group of brilliant scientists wander so far from scientific magnitudes? This study will encourage scientists who want to know how to get the statistical sciences back on track and fulfill their quantitative promise. The book shows for the first time how wide the disaster is, and how bad for science, and it traces the problem to its historical, sociological, and philosophical roots.Stephen T. Ziliak is the author or editor of many articles and two books. He currently lives in Chicago, where he is Professor of Economics at Roosevelt University. Deirdre N. McCloskey, Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago, is the author of twenty books and three hundred scholarly articles. She has held Guggenheim and National Humanities Fellowships. She is best known for How to Be Human* Though an Economist (University of Michigan Press, 2000) and her most recent book, The Bourgeois Virtues: Ethics for an Age of Commerce (2006).

What would you do if, the very day you were hired, you knew you could be unemployed in as little as two years? You'd seek opportunities in your current job to develop a portfolio of skills and contacts in order to make yourself more attractive to future employers. Representatives and senators think about their jobs in Congress in this way, according to Glenn R. Parker.While in office, members of Congress plan not merely for the next election but for the next stage of their careers. By networking, serving on committees, and championing particular legislation, they deliberately accumulate human capital---expertise, networks, and reputation---which later will give them bargaining power in the job market. Parker's study of the postelective careers of more than 200 former members of Congress, both U.S. representatives and senators, who have left office during the last half century shows that such strategic planning generally succeeds. In most cases, the human capital these politicians amassed while in office increased their occupational mobility and earning power.Capitol Investments offers a sophisticated yet accessible analysis of the acquisition and marketability of political skills. It suggests that an awareness of the trade in human capital shapes an officeholder's actions as much as the desire to win another election.Glenn R. Parker is Distinguished Professor in the Department of Political Science at Purdue University.

In Complexity, the widely applauded work by Mitchell Waldrop that introduced the exciting and important work of the Santa Fe Institute to a wide audience, Brian Arthur and his ideas played a pivotal role and were shown connecting creatively with the many aspects of the Institute's work. This book brings together Professor Arthur's pioneering articles and provides a comprehensive presentation of his exciting vision of an economics that incorporates increasing returns. After a decade of resis-tance from economists, these ideas are now being widely discussed and adopted, as Kenneth Arrow recounts in his foreword. In fundamental ways they are changing our views of the working economy. The essential ideas are first introduced at a popular level with an article originally published in the Scientific American. They are then shown in powerful and convincing application to a variety of questions, including competition between technologies and the development of industrial clusters such as Silicon Valley. The volume also contains the technical articles that underpin the creation of this important and original work in economics. Brian Arthur's work establishes a whole new domain for economics, a new perspective on many contemporary economic problems, and an explanation for many puzzling features of the high technology economy. This book provides the ideal introduction to and a comprehensive exposition of Arthur's work.

This important book compares the growth achieved in Japan and Europe with the frustrated growth in the major societies of mainland Eurasia. More broadly, it is about the conflict in world history between economic growth and political greed. Eric Jones proposes two fundamentally new frameworks. One replaces industrial revolution or great discontinuity as the source of change and challenges the reader to accept early periods and non-western societies as vital to understanding the growth process. The second offers a new explanation in which tendencies for growth were omnipresent but were usually--though not always--suppressed. Finally, the erosion of these negative factors is discussed, explaining the rise of a world economy in which growth has recurred and East Asia takes a prominent place.Eric Jones has written a substantial new introduction for this edition, which includes discussions of early evidence of growth episodes and the relation of these points to the Industrial Revolution, and the relevance of the East Asian "miracle" to his thesis.

This intriguing work explores the world of three amate artists. A native tradition, all of their painting is done in Mexico, yet, the finished product is sold almost exclusively to wealthy American art buyers.Cowen examines this cultural interaction between Mexico and the United States to see how globalization shapes the lives and the work of the artists and their families. The story of these three artists reveals that this exchange simultaneously creates economic opportunities for the artists, but has detrimental effects on the village.A view of the daily village life of three artists connected to the larger art world, this book should be of particular interest to those in the fields of cultural economics, Latino studies, economic anthropology and globalization.

“McCloskey and Ziliak have been pushing this very elementary, very correct, very important argument through several articles over several years and for reasons I cannot fathom it is still resisted. If it takes a book to get it across, I hope this book will do it. It ought to.”—Thomas Schelling, Distinguished University Professor, School of Public Policy, University of Maryland, and 2005 Nobel Prize Laureate in Economics“With humor, insight, piercing logic and a nod to history, Ziliak and McCloskey show how economists—and other scientists—suffer from a mass delusion about statistical analysis. The quest for statistical significance that pervades science today is a deeply flawed substitute for thoughtful analysis. . . . Yet few participants in the scientific bureaucracy have been willing to admit what Ziliak and McCloskey make clear: the emperor has no clothes.”—Kenneth Rothman, Professor of Epidemiology, Boston University School of HealthThe Cult of Statistical Significance shows, field by field, how “statistical significance,” a technique that dominates many sciences, has been a huge mistake. The authors find that researchers in a broad spectrum of fields, from agronomy to zoology, employ “testing” that doesn’t test and “estimating” that doesn’t estimate. The facts will startle the outside reader: how could a group of brilliant scientists wander so far from scientific magnitudes? This study will encourage scientists who want to know how to get the statistical sciences back on track and fulfill their quantitative promise. The book shows for the first time how wide the disaster is, and how bad for science, and it traces the problem to its historical, sociological, and philosophical roots.Stephen T. Ziliak is the author or editor of many articles and two books. He currently lives in Chicago, where he is Professor of Economics at Roosevelt University. Deirdre N. McCloskey, Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago, is the author of twenty books and three hundred scholarly articles. She has held Guggenheim and National Humanities Fellowships. She is best known for How to Be Human* Though an Economist (University of Michigan Press, 2000) and her most recent book, The Bourgeois Virtues: Ethics for an Age of Commerce (2006).

Taking a longer view than most literature on economic development, Richard A. Easterlin stresses the enormous contrast between the collective experience of the last half century in both developed and developing countries and what has gone before. An economic historian and demographer, the author writes in the tradition of the "new economic history," drawing on economic theory and quantitative evidence to interpret the historical experience of economic theory and population growth. He reaches beyond the usual disciplinary limits to draw, as appropriate, on sociology, political science, psychology, anthropology, and the history of science. The book will be of interest not only to social scientists but to all readers concerned with where we have been and where we are going.". . . Easterlin is both an economic historian and a demographer, and it is the combination of these two disciplines and the fine balance between theory and experience that make this well-written, refreshingly optimistic book excellent reading." --Population and Development Review"In this masterful synthesis, Richard Easterlin draws on the disciplines of economic history, demography, sociology, political science, psychology, and the history of science to present an integrated explation of the origins of modern economic growth and of the mortality revolution. . . . His book should be easily accessible to non-specialists and will give them a sense of why economic history can inform our understanding of the future." --Dora L. Costa, Massachusetts Institute of Technology, EH.Net and H-Net"Growth Triumphant is, simply, a fascinating book. Easterlin has woven together a history of economic growth, economic development, human mortality and morbidity, the connections each has with the others, and the implications of this nexus of forces on the future. . . . This book deserves a wide audience." --Choice"In what must surely be the most fair-minded, well-balanced, and scrupulously reasoned and researched book on the sensational subjects implied in its title--the Industrial Revolution, the mortality and fertility revolutions, and the prospects for future happiness for the human race--Professor Easterlin has set in place the capstone of his research career." --Journal of Economic HistoryRichard A. Easterlin is Professor of Economics, University of Southern California.

Since the mid 1960s, theorists have elaborated over two dozen different solutions to the collection action problem. During much of this same period, students of conflict have explored many questions about protest and rebellion. The Rebel's Dilemma examines what happens when one brings the full richness of collective action theories to bear on the many complex problems of collective dissent.". . . a significant contribution to the understanding of collective behavior, protest, and rebellion." --Choice"The book is interesting and thought-provoking, and its insights extend beyond the narrow subject of rebellion to help illuminate many issues related to organizing groups to undertake collective action." --Public Choice"[Lichbach's] book is monumental and pivotal. . . . [It] consolidates over three decades of research on collective action problems and sets the agenda for future studies of collective dissent and rebellion. . . . [This] book is a major step forward. It will have an enormous impact in the field of conflict studies and belongs on the shelf of anyone even casually interested in dissent, rebellion, and revolution. . . . [This] book is a major step forward. It will have an enormous impact in the field of conflict studies and belongs on the shelf of anyone even casually interested in dissent, rebellion, and revolution." --American Political Science Review"For scholars interested in game-theoretic analyses of politics . . . essential reading." --Manus I. Midlarsky, Journal of Politics"Lichbach has to be praised for providing valuable insight on the logic of collective dissent. . . ." --Political StudiesMark Irving Lichbach is Professor of Political Science, University of Colorado.

Seldom considered is whether markets do an adequate job of shaping our tastes. David George argues that they do not, and that the standard economic definition of efficiency can be used to demonstrate that the market ignores people's desires about their desires. He concludes that markets perform poorly with respect to second-order preferences, thus worsening the problem of undesired desires. The book further investigates changes in perceptions and public policy toward such activities as gambling, credit, entertainment, and sexual behavior.David George is Chair and Professor Economics, LaSalle University.

This second edition assesses some of the major refinements, extensions, and useful applications that have developed in neoinstitutionalist thought in recent years. More attention is given to the overlap between the New Institutional Economics and developments in economic history and political science. In addition to updated references, new material includes analysis of parallel developments in the field of economic sociology and its attacks on representatives of the NIE as well as an explanation of the institution-as-an-equilibrium-of-game approach.Already an international best seller, Institutions and Economic Theory is essential reading for economists and students attracted to the NIE approach. Scholars from such disciplines as political science, sociology, and law will find the work useful as the NIE continues to gain wide academic acceptance. A useful glossary for students is included.Eirik Furubotn is Honorary Professor of Economics, Co-Director of the Center for New Institutional Economics, University of Saarland, Germany and Research Fellow, Private Enterprise Research Center, Texas A&M University.Rudolph Richter is Professor Emeritus of Economics and Director of the Center for New Institutional Economics, University of Saarland, Germany.

The emergence of New Institutional Economics toward the end of the twentieth century profoundly changed our ideas about the organization of economic systems and their social and political foundations. Imperfect Institutions explores recent developments in this field and pushes the discussion forward by allowing for incomplete knowledge of social systems and unexpected system dynamics and, above all, by focusing explicitly on institutional policy. Empirical studies extending from Africa to Iceland are cited in support of the theoretical argument.In Imperfect Institutions Thráinn Eggertsson extends his attempt to integrate and develop the new field that began with his acclaimed Economic Behavior and Institutions (1990), which has been translated into six languages. This latest work analyzes why institutions that create relative economic backwardness emerge and persist and considers the possibilities and limits of institutional reform.Thráinn Eggertsson is Professor of Economics at the University of Iceland and Global Distinguished Professor of Politics at New York University. Previously published works include Economic Behavior and Institutions (1990) and Empirical Studies in Institutional Change with Lee Alston and Douglass North (1996).

“McCloskey and Ziliak have been pushing this very elementary, very correct, very important argument through several articles over several years and for reasons I cannot fathom it is still resisted. If it takes a book to get it across, I hope this book will do it. It ought to.”—Thomas Schelling, Distinguished University Professor, School of Public Policy, University of Maryland, and 2005 Nobel Prize Laureate in Economics“With humor, insight, piercing logic and a nod to history, Ziliak and McCloskey show how economists—and other scientists—suffer from a mass delusion about statistical analysis. The quest for statistical significance that pervades science today is a deeply flawed substitute for thoughtful analysis. . . . Yet few participants in the scientific bureaucracy have been willing to admit what Ziliak and McCloskey make clear: the emperor has no clothes.”—Kenneth Rothman, Professor of Epidemiology, Boston University School of HealthThe Cult of Statistical Significance shows, field by field, how “statistical significance,” a technique that dominates many sciences, has been a huge mistake. The authors find that researchers in a broad spectrum of fields, from agronomy to zoology, employ “testing” that doesn’t test and “estimating” that doesn’t estimate. The facts will startle the outside reader: how could a group of brilliant scientists wander so far from scientific magnitudes? This study will encourage scientists who want to know how to get the statistical sciences back on track and fulfill their quantitative promise. The book shows for the first time how wide the disaster is, and how bad for science, and it traces the problem to its historical, sociological, and philosophical roots.Stephen T. Ziliak is the author or editor of many articles and two books. He currently lives in Chicago, where he is Professor of Economics at Roosevelt University. Deirdre N. McCloskey, Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago, is the author of twenty books and three hundred scholarly articles. She has held Guggenheim and National Humanities Fellowships. She is best known for How to Be Human* Though an Economist (University of Michigan Press, 2000) and her most recent book, The Bourgeois Virtues: Ethics for an Age of Commerce (2006).

What would you do if, the very day you were hired, you knew you could be unemployed in as little as two years? You'd seek opportunities in your current job to develop a portfolio of skills and contacts in order to make yourself more attractive to future employers. Representatives and senators think about their jobs in Congress in this way, according to Glenn R. Parker.While in office, members of Congress plan not merely for the next election but for the next stage of their careers. By networking, serving on committees, and championing particular legislation, they deliberately accumulate human capital---expertise, networks, and reputation---which later will give them bargaining power in the job market. Parker's study of the postelective careers of more than 200 former members of Congress, both U.S. representatives and senators, who have left office during the last half century shows that such strategic planning generally succeeds. In most cases, the human capital these politicians amassed while in office increased their occupational mobility and earning power.Capitol Investments offers a sophisticated yet accessible analysis of the acquisition and marketability of political skills. It suggests that an awareness of the trade in human capital shapes an officeholder's actions as much as the desire to win another election.Glenn R. Parker is Distinguished Professor in the Department of Political Science at Purdue University.

In Complexity, the widely applauded work by Mitchell Waldrop that introduced the exciting and important work of the Santa Fe Institute to a wide audience, Brian Arthur and his ideas played a pivotal role and were shown connecting creatively with the many aspects of the Institute's work. This book brings together Professor Arthur's pioneering articles and provides a comprehensive presentation of his exciting vision of an economics that incorporates increasing returns. After a decade of resis-tance from economists, these ideas are now being widely discussed and adopted, as Kenneth Arrow recounts in his foreword. In fundamental ways they are changing our views of the working economy. The essential ideas are first introduced at a popular level with an article originally published in the Scientific American. They are then shown in powerful and convincing application to a variety of questions, including competition between technologies and the development of industrial clusters such as Silicon Valley. The volume also contains the technical articles that underpin the creation of this important and original work in economics. Brian Arthur's work establishes a whole new domain for economics, a new perspective on many contemporary economic problems, and an explanation for many puzzling features of the high technology economy. This book provides the ideal introduction to and a comprehensive exposition of Arthur's work.

This important book compares the growth achieved in Japan and Europe with the frustrated growth in the major societies of mainland Eurasia. More broadly, it is about the conflict in world history between economic growth and political greed. Eric Jones proposes two fundamentally new frameworks. One replaces industrial revolution or great discontinuity as the source of change and challenges the reader to accept early periods and non-western societies as vital to understanding the growth process. The second offers a new explanation in which tendencies for growth were omnipresent but were usually--though not always--suppressed. Finally, the erosion of these negative factors is discussed, explaining the rise of a world economy in which growth has recurred and East Asia takes a prominent place.Eric Jones has written a substantial new introduction for this edition, which includes discussions of early evidence of growth episodes and the relation of these points to the Industrial Revolution, and the relevance of the East Asian "miracle" to his thesis.

This intriguing work explores the world of three amate artists. A native tradition, all of their painting is done in Mexico, yet, the finished product is sold almost exclusively to wealthy American art buyers.Cowen examines this cultural interaction between Mexico and the United States to see how globalization shapes the lives and the work of the artists and their families. The story of these three artists reveals that this exchange simultaneously creates economic opportunities for the artists, but has detrimental effects on the village.A view of the daily village life of three artists connected to the larger art world, this book should be of particular interest to those in the fields of cultural economics, Latino studies, economic anthropology and globalization.

“McCloskey and Ziliak have been pushing this very elementary, very correct, very important argument through several articles over several years and for reasons I cannot fathom it is still resisted. If it takes a book to get it across, I hope this book will do it. It ought to.”—Thomas Schelling, Distinguished University Professor, School of Public Policy, University of Maryland, and 2005 Nobel Prize Laureate in Economics“With humor, insight, piercing logic and a nod to history, Ziliak and McCloskey show how economists—and other scientists—suffer from a mass delusion about statistical analysis. The quest for statistical significance that pervades science today is a deeply flawed substitute for thoughtful analysis. . . . Yet few participants in the scientific bureaucracy have been willing to admit what Ziliak and McCloskey make clear: the emperor has no clothes.”—Kenneth Rothman, Professor of Epidemiology, Boston University School of HealthThe Cult of Statistical Significance shows, field by field, how “statistical significance,” a technique that dominates many sciences, has been a huge mistake. The authors find that researchers in a broad spectrum of fields, from agronomy to zoology, employ “testing” that doesn’t test and “estimating” that doesn’t estimate. The facts will startle the outside reader: how could a group of brilliant scientists wander so far from scientific magnitudes? This study will encourage scientists who want to know how to get the statistical sciences back on track and fulfill their quantitative promise. The book shows for the first time how wide the disaster is, and how bad for science, and it traces the problem to its historical, sociological, and philosophical roots.Stephen T. Ziliak is the author or editor of many articles and two books. He currently lives in Chicago, where he is Professor of Economics at Roosevelt University. Deirdre N. McCloskey, Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago, is the author of twenty books and three hundred scholarly articles. She has held Guggenheim and National Humanities Fellowships. She is best known for How to Be Human* Though an Economist (University of Michigan Press, 2000) and her most recent book, The Bourgeois Virtues: Ethics for an Age of Commerce (2006).

Taking a longer view than most literature on economic development, Richard A. Easterlin stresses the enormous contrast between the collective experience of the last half century in both developed and developing countries and what has gone before. An economic historian and demographer, the author writes in the tradition of the "new economic history," drawing on economic theory and quantitative evidence to interpret the historical experience of economic theory and population growth. He reaches beyond the usual disciplinary limits to draw, as appropriate, on sociology, political science, psychology, anthropology, and the history of science. The book will be of interest not only to social scientists but to all readers concerned with where we have been and where we are going.". . . Easterlin is both an economic historian and a demographer, and it is the combination of these two disciplines and the fine balance between theory and experience that make this well-written, refreshingly optimistic book excellent reading." --Population and Development Review"In this masterful synthesis, Richard Easterlin draws on the disciplines of economic history, demography, sociology, political science, psychology, and the history of science to present an integrated explation of the origins of modern economic growth and of the mortality revolution. . . . His book should be easily accessible to non-specialists and will give them a sense of why economic history can inform our understanding of the future." --Dora L. Costa, Massachusetts Institute of Technology, EH.Net and H-Net"Growth Triumphant is, simply, a fascinating book. Easterlin has woven together a history of economic growth, economic development, human mortality and morbidity, the connections each has with the others, and the implications of this nexus of forces on the future. . . . This book deserves a wide audience." --Choice"In what must surely be the most fair-minded, well-balanced, and scrupulously reasoned and researched book on the sensational subjects implied in its title--the Industrial Revolution, the mortality and fertility revolutions, and the prospects for future happiness for the human race--Professor Easterlin has set in place the capstone of his research career." --Journal of Economic HistoryRichard A. Easterlin is Professor of Economics, University of Southern California.

Since the mid 1960s, theorists have elaborated over two dozen different solutions to the collection action problem. During much of this same period, students of conflict have explored many questions about protest and rebellion. The Rebel's Dilemma examines what happens when one brings the full richness of collective action theories to bear on the many complex problems of collective dissent.". . . a significant contribution to the understanding of collective behavior, protest, and rebellion." --Choice"The book is interesting and thought-provoking, and its insights extend beyond the narrow subject of rebellion to help illuminate many issues related to organizing groups to undertake collective action." --Public Choice"[Lichbach's] book is monumental and pivotal. . . . [It] consolidates over three decades of research on collective action problems and sets the agenda for future studies of collective dissent and rebellion. . . . [This] book is a major step forward. It will have an enormous impact in the field of conflict studies and belongs on the shelf of anyone even casually interested in dissent, rebellion, and revolution. . . . [This] book is a major step forward. It will have an enormous impact in the field of conflict studies and belongs on the shelf of anyone even casually interested in dissent, rebellion, and revolution." --American Political Science Review"For scholars interested in game-theoretic analyses of politics . . . essential reading." --Manus I. Midlarsky, Journal of Politics"Lichbach has to be praised for providing valuable insight on the logic of collective dissent. . . ." --Political StudiesMark Irving Lichbach is Professor of Political Science, University of Colorado.

Seldom considered is whether markets do an adequate job of shaping our tastes. David George argues that they do not, and that the standard economic definition of efficiency can be used to demonstrate that the market ignores people's desires about their desires. He concludes that markets perform poorly with respect to second-order preferences, thus worsening the problem of undesired desires. The book further investigates changes in perceptions and public policy toward such activities as gambling, credit, entertainment, and sexual behavior.David George is Chair and Professor Economics, LaSalle University.