Mahmoud Motavaseli; Ali Rostamiaan
Abstract
Subjectivity and its interactive relation to socio-institutional context have been recently brought to attention in new approaches of social and economic theories that seek to analyze human action. The shortcomings resulted from naïve versions of methodological individualism, which make explanation ...
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Subjectivity and its interactive relation to socio-institutional context have been recently brought to attention in new approaches of social and economic theories that seek to analyze human action. The shortcomings resulted from naïve versions of methodological individualism, which make explanation of social phenomena regardless of inter-personal interactions and relations, call for more interpretative approaches in explaining such phenomena. This article attempts to make a better understanding of the concept of intersubjectivity, through questioning subjectivism and its ontological dependency to social context. To this end, in addition to examining the implicit themes in epistemological contributions of some of the greatest minds of Austrian school of economics, we try to embed the creative entrepreneurial action in an interpretative-institutional framework, and to bring intersubjectivity, as an important explanatory position in analyzing such action, into the theoretical attention.
Ali Nassiri Aghdam; Zeynab Mortazavifar
Abstract
To transform their innovative ideas to profitable businesses, entrepreneurs need to organize many different transactions. To perform theses transaction, they need to operate in the context of institutional environment. If institutional environment facilitates transactions and lowers their costs, it is ...
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To transform their innovative ideas to profitable businesses, entrepreneurs need to organize many different transactions. To perform theses transaction, they need to operate in the context of institutional environment. If institutional environment facilitates transactions and lowers their costs, it is said that there is a good business environment and we expect that the benefits of transactions outweigh their costs and in this environment, innovations relevant to transactions can be realized and vice versa. In this paper, following John R. Commons, one of the pioneers of original institutional economics, we argue that to lower transaction costs, institution must be able to resolves conflicts of interest. In other word, to design cost-economizing institutions, one needs to recognize conflicts of interest and find solutions in the way that they can be resolved. In this framework, we demonstrate that some of the World Bank’s Doing Business Indicators are designed to indicate the existence and efficiency of such institutions. If it seems acceptable, then improving business environment would be a continuous process of designing institutions that their main function is resolving conflicts of interest.
Mohammad Reza Farzaneh; Ali Bagheri; Mohammadhossein Ramezani Ghavamabadi
Abstract
Unsustainable withdrawal of groundwater resources has resulted in increasing spread of economic, social and ecological consequences in Iran. Particularly, since the adoption of "Protection of groundwater resources of Iran Act" (passed in 1966), numerous policies and laws with the aim of protecting groundwater ...
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Unsustainable withdrawal of groundwater resources has resulted in increasing spread of economic, social and ecological consequences in Iran. Particularly, since the adoption of "Protection of groundwater resources of Iran Act" (passed in 1966), numerous policies and laws with the aim of protecting groundwater resources have been passed and enforced; however, the level of groundwater table has been continuously decreasing while the number of prohibited plains have been increasing. So, the question arises that where the problem is originated from; and despite nearly 50 years of policy-making, legislation and implementation, why are groundwater resources not protected, but the situation has been getting worse and worse. Relying on the premises of institutional theories, the present paper will address the context and features of water bodies based on three components of mental models, structures, and the system of benefit and power distribution. The results show that the components of institutional environment are inconsistent with the context of legality.
meysam amiry
Abstract
Most tax policies that are based on tax-payer decision-making are drawn upon classical economic models. Studies, however, indicate that decision-making models which lack psycho-social bases and are merely designed based on economic parameters, cannot fully explain developments and evolution of actions ...
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Most tax policies that are based on tax-payer decision-making are drawn upon classical economic models. Studies, however, indicate that decision-making models which lack psycho-social bases and are merely designed based on economic parameters, cannot fully explain developments and evolution of actions by decision-makers. Therefore, a large body of literature has been formed about analysis of tax-paying decisions based on behavioral economics. In the present study, a brief overview of the theoretical bases of behavioral economics, as well as both theoretical and practical research conducted in this field, are going to be presented. Unfortunately, relevant studies have been indicative of increasingly widespread of tax evasion in our country despite various measures taken in this regard. Considering factors related to behavioral economics that are influencing tax evasion and using policy-making capacities stated in this approach may apparently help Iran reduce tax evasion and improve the effectiveness of its tax system.
ali cheshomi; Habib Habibi Nikjou
Abstract
Endogenous institutional reforms can be analyzed within the framework of political economy. This article focuses on institutional reforms in banking industry. The most important formal institution of banking system, which is regulation and supervision of banks, is carried out in Iran by its Central Bank ...
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Endogenous institutional reforms can be analyzed within the framework of political economy. This article focuses on institutional reforms in banking industry. The most important formal institution of banking system, which is regulation and supervision of banks, is carried out in Iran by its Central Bank and the Council of Money and Credit. In this article, the reforms in formal banking institutions in both de jure and de facto arrangements in the period after the 1979 revolution are analyzed. The main question of this article is that how the idea of North and others (2006 and 2009) on limited-access and open-access social order can apply only to the banking industry? Historical evidence and statistical analysis show that the institutional arrangement and enforcement characteristics of banking system in Iran is consistent with features of limited-access order. Especially in 1990s, although private banking was prohibited in Iran, but elites of the dominant coalition, achieved rent by establishing informal banks. These conditions resulted in increasing competition between members of dominant coalition and this led to amending the rules of entry in early 2000 in which private banks were allowed to be established formally. These newly established private banks had ties to another group of the dominant coalition. Then, numerous laws and regulations were adopted to improve supervision of banking activities. In late 2000, the interests of non-formal banks were damaged, and therefore, they tried to continue their activities in formal ways. Overall, the evidence suggests that the Iranian banking institutions still have features of natural state (limited-access order), but there has been a transition from the basic natural state before 2000s to some features of mature natural state.
Hamid Padash; Bahman Khodapanah; Mahdi Ebrahimzadeh
Abstract
In the knowledge-based economy, the key of wealth creation is accumulation and application of knowledge in activities and the globalization process of economy. This research, on the basis of institytional economics literature v.s. neoclassical economics, aimes to examine the role of the institutional ...
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In the knowledge-based economy, the key of wealth creation is accumulation and application of knowledge in activities and the globalization process of economy. This research, on the basis of institytional economics literature v.s. neoclassical economics, aimes to examine the role of the institutional environment in realization and development of knowledge-based economy. We have examined the impact of institutional environment on the knowledge economy by using theoretical framework, empirical evidence and regression estimation. Based on theoretical literature, we have analysed institutional environment in three levels: political environment, legal environment and business environment. Then, regression results suggest that political and environment indicators have positive and significant effect on changes in Knowledge Economy Index (KEI), but the effect of business environment has not found to be significant. In general, the effect of overall institutional environment index on the KBI changes is confirmed.
Farshad Momeni; Ali Nikounesbati
Abstract
Studies show that not only there are important differences between old and new institutionalism, but also new Institutional economics is not a single body of thought. In addition, there are important differences in the assumptions, methods and subject matter between the new institutional economics and ...
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Studies show that not only there are important differences between old and new institutionalism, but also new Institutional economics is not a single body of thought. In addition, there are important differences in the assumptions, methods and subject matter between the new institutional economics and neoclassical economics. Overall, the institutional approach led to major changes in explanations and policy recommendation about development problems, of which, we can mention the emphasize on importance of informal institutions and organizations, the importance of the firm and importance of interdisciplinary approach. Comparing the approaches of institutional and neoclassical economics toward economic growth, as the most important index of development, shows that institutional approach has greater explanatory power and it suggests different policy recommendations. Recent institutional studies show that creation of a democratic and participatory institutional structure is the foundation of economic growth and a prerequisite for the implementation of right economic policies. However, special attention also should be given to poverty and inequality. Therefore, the move towards a democratic structure is the most important institutional reform that should be done in Iran. This is the only practical way to reduce inequality and achieve sustained growth in the country.
