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Institutional transition and the problem of credible commitment

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  • Boettke, Peter

Abstract

During the last phase of state socialism, the economic reforms attempted by these counties didn’t stop the collapse of communism. Neither did the free market economic reforms in the democratic West starting around 1975 bring progress and prosperity expected. The frustrations of both these attempts of transformation make it clear that the goal of social transition would not be achieved without liberal limits on the state - what was created to ward off private predation, which itself became a greater problem of predation. Indeed, we can only ensure the effective function of the society by establishing the self-sustaining constitution and enforcing credible commitment that bind the public institutions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32089.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32089

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Related research

Keywords: Economies in Transition; Informal Institutions;

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  1. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change
    [Understanding the Process of Economic Change]
    ," Introductory Chapters, Princeton University Press.
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Cited by:
  1. Boettke, Peter, 2010. "Teaching economics, appreciating spontaneous order, and economics as a public science," MPRA Paper 33064, University Library of Munich, Germany.

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