An Economic Response to “Why Inefficient Institutions Always Exist?” from the Micro-Perspective
AbstractAs is well‐known,“foot‐binding”,regarded as an inefficient institution owing to its great harm to the women’s body and mind, existed and lasted for a very long period in the history of China. Furthermore, we are faced with the general question: why so many inefficient institutions in reality exist and persist? And this investigation is motivated to provide us with an economic explanation from micro‐perspective. Based upon some necessary assumptions and the definition of meta‐institution, it is argued in a simple mathematical model that equilibrium solution will always be inefficient institution even though the institutions themselves will experience various changes.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41606.
Date of creation: 01 Aug 2012
Date of revision:
Meta-institution; Social net-welfare; Economic equilibrium;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
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