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A new institutional perspective on business associations: Filling a gap between firms and states in the dynamic analysis of Richard Day

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  • Nugent, Jeffrey B.

Abstract

In much of his work, Richard H. Day was concerned with the dynamics of growth among firms, households, industries and entire economies, and the fact that normal processes could end up at multiple equilibria or even out of equilibrium. To his great credit, he made use of optimizing models based on rational expectations to examine how firms and their managers would react in ways that would deal with the obstacles facing them, in some cases with the help of suitable policies of democratic governments. The purpose of this analysis is to point to a number of circumstances in which one type of institution omitted from his analysis, namely, business associations, might be able to serve as a very useful intermediary between the firms and government in mitigating the risks and inefficiencies that otherwise might lead to unfortunate equilibria and disequilibria in which firms and entire economies might find themselves.

Suggested Citation

  • Nugent, Jeffrey B., 2023. "A new institutional perspective on business associations: Filling a gap between firms and states in the dynamic analysis of Richard Day," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 49-59.
    • Handle: RePEc:eee:jeborg:v:211:y:2023:i:c:p:49-59
    DOI: 10.1016/j.jebo.2023.04.015
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    References listed on IDEAS

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    More about this item

    Keywords

    Business associations; Firm dynamics; Collective action; Coordination;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H4 - Public Economics - - Publicly Provided Goods
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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