Institutional Economics

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32 Does institutional quality lead to higher growth or higher growth lead to higher institutional quality?
By Isaac Leobardo Sánchez Juárez · Universidad Autónoma de Ciudad Juárez

Roberto Minadeo · Conselho Nacional de Desenvolvimento Científico e Tecnológico

I agree with the point of view from Gabriel. This virtuous circle is something supposed to happen in the knowledge society.

I agree with the point of view from Gabriel. This virtuous circle is something supposed to happen in the knowledge society.

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7 One of the latest "fads" in (agricultural) development economics are agricultural commodity exchanges in Africa. What is your view? Any experiences?
By Gerdien Meijerink · Wageningen University

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I guess the focus on ECX in Africa, particularly in Ethiopia, is part of the broader misconception that the main bottleneck to African Agriculture is ... [more]

I guess the focus on ECX in Africa, particularly in Ethiopia, is part of the broader misconception that the main bottleneck to African Agriculture is "markets", implicitly meaning "output markets". However, we know that dealing with "input markets" is at least as important as as doing something about relaxing constraints in output markets. No doubt the ECX in Ethiopia is helping with reducing a fraction of the transaction costs for selected commodities, particularly in terms of modernizing information flows and delivery mechanisms, including storage for marketing those products. However, I have not heard about any similar attempt to solve input market constraints for those same commodities. For instance, I do not see many suppliers in the fertilizer market, and we know what happens when there are few sellers and many buyers. Prices of cereals has been rising continually in Ethiopia for many years, which means farmers are ok as far as their output market is concerned. To some extent, the substantial rises in prices of major staples can be explained by demand side pressures (e.g., urbanization as well as large construction projects). However, rising transaction costs in input supply markets provide a key to understand the food production and supply challenges in Ethiopia. To a certain extent Ethiopia's ECX provided some solution to marketing problems of the previous decades. I suppose that is what is expected to happen when policy-makers are excessively concerned with problems of the previous era, paying no attention to the shifting sands in the policy contexts.

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1 Bounded Rationality and Organization
By Fernando Estrada · Externado University of Colombia

Yannick Perez · Université Paris-Sud 11

On a similar topic you can also have alook to Claude Parthenay contribution on H. Simon : http://fr.scribd.com/doc/48024844/Herbert-Simon-la-rationali... [more]

On a similar topic you can also have alook to Claude Parthenay contribution on H. Simon : http://fr.scribd.com/doc/48024844/Herbert-Simon-la-rationalite-limitee-article-de-Claude-Parthenay

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Erling Berge

Norwegian University of Life Sciences (UMB)
Jan Riseth

Norut Tromsø
Mat Huellhoff

Fachhochschule Dortmund
Mark Robson

Nanjing Forestry University
Bernard Gazier

Université de Paris 1 Panthéon-Sorbonne
John Gowdy

Rensselaer Polytechnic Institute
József Tóth

Corvinus University of Budapest
William D. Savedoff

Center for Global Development
Saifalislam Alqudah

Universiti Malaysia Perlis
One Ditau

University of the Witwatersrand

Institutional Economics

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