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A quest for real-world examples (Best Practices) from developing countries.
Some research findings show that there is a significant relationship observed between entrepreneurship education and entrepreneurial culture. Given the private sector’s involvement is essential in economic development and also that the capacity to recruit new graduates in the formal sector is very much limited, it’s highly vital that existing and new entrepreneurial cultures are adequately exploited. And, it is also necessary to link this cultural dimension with formal entrepreneurial education.
Is there any program/project successfully implemented so that those two issues are properly linked and resulted in achieving the desired goal (As Best Practice)? (Good if country and program/project examples are mentioned.)
Many thanks!
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I appreciate you Mr Melkamu Tadesse Wazza that you have raised the mind blowing question in RG.Entrepreneurship Education is a streamlined program designed by the respective Government to tap up the potential entrepreneurial skills, knowledge and techniques to promote the budding entrepreneurs in the particular location.
The term Entrepreneurial culture means that practices are being followed over the years or decades among the young entrepreneurs in the given geographical location.
Of course, the Entrepreneurial culture is not exploited in some societies due to some factors which hinders the development of those entrepreneurs.
There will be a wide gap between these two groups of entrepreneurs. Some societies may not encourage the entrepreneurial culture because of the lack of awareness, knowledge and skills among the young entrepreneurs.
It is very challenging issue among the budding entrepreneurs those who are reluctant to apply the new skills, knowledge and technical ideas etc to the society.
It is important to note that the psychological factors like Achievement Motivation, Perception, Attitude and Awareness creation etc could help to change the mind of these entrepreneurs in the given society.
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CSR Researchers
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Section 4.5 of the following paper summarizes the relevant literature in the field.
The post-print version is available here (free access): https://www.gmarzi.com/wp-content/uploads/JPC_Final_Repository.pdf
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After running some regression, as well as the correlation matrix, I find that where corruption increase government spending diminishes especially military ones. Yet the literature highlights that we should observe the reversal phenomenon. No matter the regression I run, the result is meaningful. I'm finding explanation to this result
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Increased corruption has a tendency to increase revenue leakages in that government collects less tax due to corruption in the end impacts negatively on the amounts of funds available for supporting government expenditures
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Cognitive pillar refer to those that determine the extent to which wider belief systems and cultural frames are imposed on or adopted by individual actors and organizations. And informal institutions also refer to cultural beliefs..
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Dear Dr. Saikia!
You raised a relevant topic to consider. I think you refer to the concept of rules:
1) Brady, M. Covid-19 and the power of rules. HPLS 43, 11 (2021). https://doi.org/10.1007/s40656-021-00368-9 Free access:
2) Bo Yan, Bin Chen, Long Wu, Xiaomin Zhang & Heng Zhu (2021) Culture, Institution, and COVID-19 First-Response Policy: A Qualitative Comparative Analysis of Thirty-One Countries, Journal of Comparative Policy Analysis: Research and Practice, 23:2, 219-233, DOI: 10.1080/13876988.2021.1878458 Free access:
Rules link together culture, cognitive signals with informal institutions.
Yours sincerely, Bulcsu Szekely
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Doing better with less in the form of frugal innovation is the need of the hour especially under resource constraints.
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I recommend the product frugality scale by von Janda and colleagues:
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What I really interested in is to understand whether cross-country differences in political regimes are stemming from variations in cultural/religious factors or they are just results of differences in economic conditions such as the distribution of wealth, income, or power.
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Cultural and religious factors influence the shape of the political regime of the countries, substantially in terms of honesty and transparency.
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I would like to combine the GEM (Global Entrepreneurship Monitor) dataset (observations from 2002-2015) with the GLOBE Phase 2 aggregated observations (study from 2004 - Entrepreneurial culture). My question is now whether it would be correct to extrapolate the GLOBE observation for the missing years or not.
If this is not possible, I could only use all observations from the GEM dataset for 2004 only.
Thank you very much for your help!
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Too risky.
Many things are changing in the "culture" and "societal values" in such a long period (2008 crisis, Arab spring, wars, populisms, ...) in order to neglect them and just extrapolating the situation of 2004 till 2015.
I hope to have been helpful
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Our ministry questiond the impact which our science has on society and economy in Kazakhstan... Now a small group of our scientists (Farida Alzhanova and me) are studying foreign experience. Which indicators Norway use to evaluate this impact? and can we cooperate in a long-term base with OSIRIS?
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I have the technology and the tool to measure the impact of science on behavior
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Hello
My name is Arkadiusz Derkacz.
I am looking for interested scientists from outside Poland who are interested in researching transactions carried out in the company in the context of the new institutional economics. I would like to jointly define the institutional matrix for human activity in the company. Scientific foundations are mainly based on O.E. Williamson transaction concept.
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Tłumaczenie automatyczne między rosyjskim i polskim musi być lepiej niż z angielskiego. Języki te są bardziej jak. Więc między sobą pewnie będziemy komunikować się w języku rosyjskim i polskim.
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I'm really interested in any theoretical or empricial work that is being undertaken to look at the power of relationships. In particular professional relationships developed between youth professionals and young people involved in the youth justice system. In this context I am interested in discussions about how such committed relationships can moderate, internalise or otherwise engage, negotiate and overcome 'externalities' - adapting the discourse from institutional economics to potentially informing youth justice interventions.
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I also just remembered that the Psychosocial Research Unit at the University of Central Lancashire has done interventions/research with young offenders but can't access the report/publication right now: https://www.uclan.ac.uk/research/explore/groups/psychosocial_research_unit.php . You try to find it by seeking out the publications of Alastair Roy or Lynn Froggett here on RG.
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I'd like to ask from my colleagues- the distinguished social science's researchers who are focused on studying the development of (formal & informal) institutions in terms of the geographical visualization of economic development. My aim of the 20-year scientific observations is to carry out the parallels between the sectoral economic development in any point of the globe and the development of institutional relations (both formal & informal). As a general rule, most highly developed human organizations (formal institutions) on the basis of advanced rules of game are located in developed countries and due diminishing transaction costs, those institutes attracted the most talented individuals. Based on opportunistic behavior of individuals given perfection and quite acceptable rules of the game, it could be possible to argue about globalization, which contributes to rather fusion/ merge, than "clash of civilizations" (termin of Prof. Samuel Huntington).
Therefore, I am looking for opportunities to read about the newly developed area of social sciences, an an intersection of :
1) economic sociology,
2) neo institutional economics,
3) economic geography,
4) international economic development,
5) political sciences & international relations and many other fields.
I will highly appreciate your replies.
With the best regards,
Ragip BAYRAMBEYLI (Kirsehir AE University, PhD Candidate, History) bayragip@gmail.com
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Is it possible to chat with O.E.Williamson?
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  • What is the role of African states and institutions in economic and social development of the world?
  • How multilateral development institutions and European Union agencies could contribute to regional development in Africa?
  • What are the opportunities and present risks for Africa today
  • What are the key requests and expectations from Africa for the next decade?
  • What are the major challenges to Africa’s security?
  • Which African platforms provide solutions in a world without borders?
  • Which programs, discussion platforms and international institutions step in to fill the gaps in promoting understanding, unity and equality in Africa?
  • What are the major public-private partnerships and key enabling factors to accelerate investments in Africa?
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Africa's sustainable development agenda, to a large extent depends on its political leadership that must be transformative, by making the right political policies and ensuring its implementation. This imperative is necessary for African countries to channel their resources to infrastructural development by adopting public-private partnership model and motivations for businesses and entrepreneurship to create, innovate and harness her social capital that would engender economic growth and good governance.
Other critical variables include good governance practices, citizens participation in governance processes, embracing research for development policy and practice, citizens' empowerment, technological development, building strong institutions, collaboration with African diaspora communities and the international community for support towards achieving sustainable development agenda.
The major challenge is lack of political will by most African leaders to embrace reforms that would foster national development and undercut their influence and power base. For instance, the issue of restructuring in Nigeria.
Africa should learn how Singapore was transformed from a developing nation to a first class world nation within a short period as a result of transformative leadership.
The international community should support African nations to build citizen-centered political culture for effective and responsive leadership and responsible and active followership towards attaining Africa's sustainable development.
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Dear all,
In economic point of view, how to proceed if i'm interested to study the existing structure of an institutional system, to identify constraints, and improve efficiency? Any basic tools, methods in it?
Thanks in advance.
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You might need to apply Institutional Analysis and Development (IAD) Framework developed by Elinor Ostrom, a prominent scholar from Indiana University who was awarded Nobel Prize in economics in 2009. This framework will be very much useful to address complexity in institution-related issues.
The IAD Framewok was later expanded by Floriane Clement by adding more exogenous variables to incorporate political context and distribution of power amongst actors.
Kind regards
Salim
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Hello experts, i want to work on the effect of government increasing external debt on financial markets, i want to know if there is existing theory or literature related? Also if there is the need to use an overlapping generation model to determine the payback procedure?
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Corporates, generally, have well defined rules and regulations. They have their infrastructure, plant & machinary etc. which is difficult to dismantle time and again with changes in the environment. In big firms, the Corporate Bureaucracy, which is limiting factor for innovation and which leaves no space for entrepreneurship, is well known. Then why are living with term Corporate Entrepreneurship.
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Hi Amir,
Thanks for nice inputs.
Entrepreneurs (Start-up) don’t work for large companies; they create them. In University campuses, Corporate carrier is considered to be the end of entrepreneurial spirit in the student. How come, then, we think of corporate as entrepreneur. Obviously corporates cannot become entrepreneurs; they are corporates with their systems, processes and bureaucracy.. 
A new construct 'Corporate Entrepreneurship' is in vogue in the entrepreneurship literature.  encompasses a set of activities. Various authors have defined Corporate Entrepreneurship as attitudes, and actions that are believed to help large companies regain some of this lost magic. Some employees work effectively by leveraging the strengths of their organization towards their entrepreneurial endeavors. Most of corporate growth usually comes from such employees of the company being willing to be an entrepreneur (and the company supports the endeavor). Therefore, the form (corporate) only facilitates; It is the employees who show entrepreneurial attitudes and behaviour. Therefore, I consider the term 'Corporate Entrepreneurship' an Oxymoron.
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The current lending system we know is basically based on the collateral based whether it is directly or indirectly. Banks or financial institutions are using credit ratings to justify their security and that's all. What I want to know and have ideas and opinions from the scholars, is it possible to transform this collateral based lending system to fully risk-based lending system
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Where there is no underlying asset backing the loan, it is uncollateralized lending. We can do risk scoring based lending if there is adequate pool data on borrower behaviour , giving the ability to predict the possibility of default.
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I would like to carry out a research in the area of diversification, and I am in dilemma, which variables should  I take to get good results
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You may have a look in the following paper;
You may also go through the following IMF paper;
There's also an explanation bt Hawaii Economic Issues;
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political leaders image through social media
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Search for sentiment analysis using Twitter or Facebook.
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How can political instability be measured? What are the explanatory variables?
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In my opinión, it may vary according to the political system. Obviously, I guess you are asking about democratic government.
First of all, you should consider for how long democracy is the regular system in the country studied. In my opinión, a core indicator is the duration of the parliamentary term -if it´s the same that it´s supposed to be-. Other indicators can be the number of political parties or groups in the parliament and how they show up or disappear. It should show some correlation with the political parties that has effective access to government responsabilities. Secondary indicators you may study is the representativeness and how difficult or not is being elected as a politician. Another indicator could be the degree of decentralization and how it works in terms of relationships between the different levels of governments.
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Kindly I want to know your opinions about the influences of terrorism on investment. Further, what are the other things that investment might be influenced by?
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Peter Gordon and Harry Richardson once did a study (actually a project) on the economic impact of terrorism in the context of USA, especially Los Angeles.  You can search for their papers or even book on this topic.
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The audit firm rotates the audit partner prior to mandatory audit rotation in many cases such as https://pcaobus.org//News/Releases/Pages/04012015_Enforcement.aspx.
I want to know how regulators investigate the audit firms that violates the audit partner rotation rules in low investor protection countries like China and Pakistan.
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thanks a lot  respected María Antonia García Benau 
Can you share the process or mechanism, how regulator in Spain control it?
thanks in Anticipation 
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Since 1989, Indonesia have promulgated more than ten versions fo its investment negaitive list for both foreign and domestic investment. I want to know more about how the researchers view such lists and the problems arising from it.
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Thanks a lot for your answer.
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I need data of private investment of Bangladesh.Is the credit provided by banks to private sector equal to private investment in an economy like Bangladesh?
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Economically...YES but not financially. It is not equal but equavalent. Creditor only need the payment+interest (or profit...whatever you called it) but investor need the business profit as long as the investment stays in the business.
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relationship between high education institution and economic development
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There are at least three channels for higher education institutions to affect economic development.  First, colleges and universities are one of the sources of innovation and technological development.  Proximity to university can result in higher probability of endogenous growth.  Second, college and university graduates are the main part of labor market that is necessary for economic development.  One example is that some firms may especially be interested in hiring students as interns without pay or with low-pay.  That factor can attract some firms, leading to some degree of economic development.  Third, colleges and universities themselves are often biggest employers in the local areas.  That certainly contributes to local economy.
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I am conducting research on bank efficiency. However, when I run the DEA analysis on the solver platform by Zhou, efficiency scores are all around 1 in fact only 7 observations are less than 1 in a sample of 80. I presume I got the wrong inputs and outputs. My inputs are total assets,staff expenses and other expenses. Outputs are interest revenue, other revenues, total deposits and loans and advances. Anything amiss. I would appreciate your insight. Should I revert to the efficiency ratio?
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I suggest having a look at recent studies using network or 2 stage DEA which solve the problem of whether deposits constitute an input or output. You can find papers published in JBF and Omega. Also you cannot use total assets as inputs. 50-60% of total assets are loans which are always considered output. As a starting point you may want to have a look at my literature review paper published in EJOR in 2010.
DEA Bank efficiency literature review (EJOR, 2010):
Resolving the deposit dilemma with DEA (JBF, 2011):
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Hi, I want to use Delta test for my panel model's homogeneity. But Pesaran-Yamagata (2008) Gauss codes for X1,X2. But I have 4 explanatory variable. How can I transform the Gauss Code for this test? 
My main problem is about X matrices. 
(Also I'll be thankful for recommend other ways in eviews or stata)
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Hi Mr. Oguz
You can use this Gauss Code by changing only the variable names, time and cross-section numbers.
Note: I prepared the code for using 4 explanatory variables.
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Economics uses classical game theory (John von Neumann, Oskar Morgenstern), but there is also combinatorial game theory (Elwyn Berlekamp, John Conway), which I find potentially fruitful. Combinatorial games have been put in an auction play framework, essentially using a hybrid approach of classical and combinatorial games. In combinatorial game theory, hot and cold games could be useful, as well as thermography and sente/gote. Where is the state of the art of combinatorial games in economics?
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Thank you Dragos! I will read it. A quick look tells me how a simple combinatorial game may be used to run an economic experiment. Actually, it seems nice in its simplicity.
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I'm assessing the measures that government in developing countries has done to support the private sector, but I don't know how to categorize these measures. For instance, I can do a classification by production stages. But I'm not sure that it can cover all the measures or be a complete one.
Every help is appreciated.
Regards
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You could also look at the projects where Pubulic Private Partnerships (PPP) and the amounts and their contribution in terms of employment and other services provided as a qualitative and quaantitative measure
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As the technology & IT sector is growing, it is not unusual to see job saturations and unemployment. 
It starts with a win-win situation where the government keeps spending and giving incentives and more and more jobs arise and high wage rates offered ;  with more and more people coming and getting jobs until the classic supply-demand question arises. You see profits going down and mergers/acquisitions start. You can see people going jobless every day. So we embark on a lose-lose situation, Now what to do?
So how to tackle that from Institution perspective and what are the survival strategies for laid-off employees.
Kindly share your views backed with available supported research/results.
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You can go through the article
The Human Side of Mergers: Those Laid Off and Those Left Aboard
New Forms of Employment and Household Survival Strategies in Russia (by Simon Clarke)
Keep Employees Motivated After Downsizing
Debunking Layoff myths
 Strategies for Successful Organizational Downsizing
Employment Downsizing and Its Alternatives
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In must of, so call developed societies, there are important economic sectors which have been heavily regulated by state agencies, must of the them are because social, economic or environmental interests. In general, social security, infrastructure (energy, telecom, water, transportation, ports, airports, etc) as well as others activities related to environmental protection or education investments (Schools and Universities). So, how those regulations and particularly, the learning trajectory under those dynamic institutions set ups, are constraining or improving economic performance of the economy.  I understand democracy performance in a context where society goal is possible to be achieved under low social and transaction cost.Somehow it is very much to do with the way society solve conflicting issues regarding new expectations as for example, carbon neutrality or total renewable energy balance.
Please tell me if you have research theory, cases or ideas on how to face this relationship.
Regards
Leiner
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It sound very interesting mechanism to using experimental economics on that political aspect....Thank you
Leiner
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Has anyone ever conducted choice experiments on alternative contracting arrangements in farming or anything similar? For example, providing processors/traders with alternative contract choices with farmers. I would like to analyze which types of contracts are most attractive for farmers versus millers in order to stimulate better linkages through improved coordination. Any suggestions?
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Good day, Matty.
I have successfully designed and analyzed hierarchical choice modelling experiments for structuring and bundling telco service contracts for small-to-medium and large business clients. The hierarchical choice modelling approach might suit the problem type as market contract choice might involve top-down hierarchical decisions, e.g. "I see you chose this <broad type> alternative, which <options/features> from this <pop-up menu> would you then choose?". A nice side-benefit is the generation of inclusive value estimates - an estimate of the value of including a sub-menu of options as a feature of a higher-level set of alternative choice attributes. A few nice features of the nested choice designs or sub-menus is that they often need no additional experimental design and add little in terms of participant cognition load and therefore overall completion time. They can often be implemented as a 'tick one or more' list, optionally displayed if a participant chooses a higher-level alternative, often with explicit additional option prices and, for online surveys, a dynamic price or cost implication summary of boxes ticked. Lastly they can model real choice contexts with better fit. Ever tried to buy a Subway (tm) sandwich? Ha! I have been thinking of, but not had success in gaining the funding to research, a similar problem of how best to structure self-funded irrigation schemes to optimize scheme success, and I thought the above approach could work. What do you think?
Cheers.
Damien
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Per the literature on transaction cost economics, capitalist contracts are not enforceable in situations of uncertainty. Yet, what exactly are the constraints that set in motion the demand for endogenous enforcement institutions?
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The definition of uncertainty is negative, so we know what it is not and not what it is. Consequently contracts are not enforceable in the sense we don't' have theory prescribed mechanisms. From all this it follows that demand for such mechanisms set in motion should follow some kind of random walk.
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And, accordingly, which research methods would be most appropriate for identifying changes on different levels of the institutional structure (environment)?
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Hi! I'm also doing research on institutional theory specifically on institutional change and I coincidentally just recently finished John Cambell's Institutional Change and Globalization (2004) of which the second chapter (The Problem of Change), discusses this issue. The quick answer is, yes.
First, because it gives you a picture of the kind of change that occurs and whether in fact there is change (evolutionary, punctuated equilibrium, punctuated evolution). Second and related to the first, it gives you some idea of the process of change: sometimes change in one level or dimension of the institution (rules, laws) may not lead to change in another (principles, values) and vice versa. 
Two important works were cited by Campbell in disaggregating institutional dimensions: Peter Hall's (1992, 1993) work on policy paradigms and Scott (2001) et. al.'s work on healthcare. 
Cheers!
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In my view, it is indeed possible if synthesized with the works of Veblen...
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David
This is an excellent question steep in institutionalism. I think that J. R. Commons’ two ways classification of economic doctrines into past, present, and future time on the one hand, and  contract-account on the other is the anchor point where Keynes's and Marx's Money of Account ideas meet. Some points that I think that are worth considering are:
·         “The ownership of value is the present right to the expected exchange-value of things, and it is this right that has a present value-in-exchange.” [Commons, John R., Legal Foundations of Capitalism,  [Madison: The University of Wisconsin Press,  1968].
·         The individual is at liberty “...to pursue any livelihood or avocation, and for that purpose to enter into all  contracts  which may be proper, necessary, and essential to his carrying out to a successful conclusion the purpose”. (Ibid., p. 17.)
·          “...assets and liabilities are valued with reference to two different markets.” which he calls the “commodity markets” and “...the market for debts” (Ibid., p. 159.) Commons proceeds to complicate his discussions in regards to “time” on the one hand, and  “...a third class of assets having a peculiar position between commodities and debts, namely, that special case of  “intangible” property, consisting of patents rights, copyrights, trade-name, goodwill, business reputation, good credit.” (Ibid., p. 159.) on the other hand.
We may want to connect Commons with Veblen’s theory of leisure class for its equating human behavior to that of the savages. Veblen likened the behavior of the gentlemen with  the manners and behavior of the bush people.
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I am writing a chapter in my thesis on the evolution of polish electoral law in the context of its impact on the budget process. I believe that the concept of path-dependence could constitute an useful framework for that purpose, but the research on path-dependence I encountered is methodologically vague. Hence I ask if there exist an established methodological framework which could help me in this regard.
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Dear Michał,
In our publication crossing trails in the marshed we have explored and applied the concept of path-dependence to analys the evolution of policies considering the Danube Delta in Romania. The concept is further developed in the conceptual framework Evolutionary Governance Theory (EGT) (see for an overview the publication An overview of EGTs Main Concepts). In EGT we place path dependencies in a configuration with interdependencies and goal-dependencies. We argue that studying this configuration is useful for analysing and explaining the evoluation of governance, particular policy fields or instruments. The methodology we recommend is path-mapping. Please let me know if you like to get some more information. 
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I want indicators for an organization's financial strength not ROA , others please.
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Hi
Attached is a study on BSC by Mr. Shaverdi that you might find useful.
If you are reviewing banking sector, one of my study has three series of measures of financial performance. Two categories are applicable to other industries as well. 
you can also find it on my profile.
Hope it helps
Sincerely,
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Hi all,
I wish to incorporate the variable(s) that represent governance as an explanatory variable for agricultural productivity?  How the term "governance" could be related here? Can someone suggest few variables that can be used as proxies?
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You can use some of the indicators in the International Country Risk Guide. Several of them, like Rule of Law or Investor Profile, are associated to good governance.
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Evidence supports two hypotheses: (1) that higher levels of pre-conflict democracy facilitate peaceful negotiation and reduce the incidence of conflict; (2) that higher expected levels of post-conflict democracy reduce the opportunity cost of war, and thus increase the incidence of conflict.
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Not quite to the point, but if there is no "out" for the group which was previously more violent, then they will fear what "democracy" might serve them up and resist this reform all the more viciously. Not quite to the point either, but consider that Indonesia's military retained a very high share of seats after "democracy", and that after many other conflicts, the military has retained exclusive powers. I don't know how to write this into the analysis, but I don't think that the analysis can be complete without at least thinking through these sorts of issues.
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Is it fair to assume we have now crossed the rubicon and things are more tune with steady progress now and for another decade or more to come? While AIG and GM seem to need more help in the USA, banks have been building new markets. European banks of course seem to be hit because of the lack of viable collateral and fast closing avenues of fresh equity. Also maybe the use of Contingent Capital is not fair and Europe is actually headed for more trouble within banking?
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Your assumption that banks have resiliently adapted might be a bit optimistic. There is still a lot of work to do and not all banks have managed to consistently pass their stress tests. Check out the FRB CCAR page for details. The issue with advancing new credit in any market is the balance between threshold return levels and risk of default -- or other loss factor. Clear property rights, shorter tenor credit advances, and good quality collateral that is not positively correlated to the direction of risk are essential.
Also don't forget that with the internet, reputation is key to growing new market capaclty. So look to issues of cyber threats, intellectual and other property rights and corruption as reasons to not enter markets.
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Douglass North refers to 'adaptive efficiency' without, in my knowledge, really defining it. Do you know of a good definition for this concept?
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Everyone is right. In conclusion, the adaptive efficiency is the result of conditions that provide: (1) low level of negative market effects; (2) change coupled with the ability of subjects to adapt quickly; (3) any better alternative is stable (long term), but only until there is no more perfect.
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Explain in detail the reasons for your support or lack of it for this government policy.
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This is a interesting issue that came up regarding the Great Lakes in the US. In that case, the attempt to transfer water to arid areas failed. I agree with Matthew and Gabriel that the background is critical in answering this question.
In general, one concern (at least in the US context) is that a transfer of water from one geographic place to another might discourage users in the arid area from engaging in sustainable practices, since water becomes "artificially" available, removing barriers to over-use and incentives to conserve and devise approaches that reduce water consumption. Even if pricing mechanisms are used to signal water scarcity (e.g., by raising the price for usage about a certain threshold deemed necessary for a household), those who can afford the higher prices may continue to use water as if it were plentiful, thereby increasing the pressure on resources (such price mechanisms also run the risk of burdening economically those who can least afford it). A primary concern for the water-rich area is the effect a transfer might have on water levels and quality, and on aquatic and surrounding ecosystems.
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Do labor market institutions evolve according to theoretical institutional arguments?
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I've been working on the ways that several labor market institutions are formed. The argument that institutions evolve towards more efficent ones, due to the forces of the market, seem, at least in this constext, to not be true. For example labor flexibility has dominated the past decades european LM, while at the same time most of research has shown that flexibility does not in fact lower unemployment. Therefore, a question rises: if this LM institution did not evolve towards a most efficient one, which were the forces that affected this gradual transformation? The work of Acemoglou and Olson seems relevant: the clash of different interest groups that hold de jure and de facto power, form the economic and political institutions that, among others, will support the preservation of their power; the driving force is not efficiency, but individual/group power.
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This article evaluates Herbert A. Simon’s contribution to organization theory, placing special emphasis on the criterion of bounded rationality. Simon’s criticism of the orthodox version of organizational bureaucracy is interpreted and his analysis is extended to institutional economics. One of Simon’s main achievements in organizational theory consisted of analytically evaluating the psychology of individual and collective behaviour, thereby opening up the way for future investigation by D. Kahneman and T. Schelling.
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Increased interest in the idea that human rationality is bounded has generated a need for a theoretical framework incorporating more realistic models of human actors.
Using a quasi-natural voting experiment encompassing a 160-year period , we investigate whether a higher level of complexity leads to increased reliance on trusted parliamentary representatives. We find that when more referenda are held on the same day, constituents are more likely to refer to parliamentary recommendations when making their decisions.
Our setting is particularly well suited for deriving empirical insights on the consequences of bounded rationality in real voting situations (see "Bounded Rationality and Voting Decisions over 160 Years: Voter Behavior and Increasing Complexity in Decision-Making", PLOS ONE, 2013, http://dx.plos.org/10.1371/journal.pone.0084078)
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My paper with Ani Mitra and Arnab Biswas suggests that it does, on average, but that it may not have any impact in countries where women are worst-off, and in the worst cases media freedom may even worsen matters. In highly unequal societies, increasing educational attainment overall, along with other strategies to promote development and economic growth seem to matter more.
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Thanks for sharing
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The Ethiopian Commodity Exchange (ECX) is seen as a model for other African countries, where most commodity exchanges are languishing. Although new, the number of studies on the ECX is rising and many are negative. African agricultural markets can certainly benefit from improvement: transaction costs and risks in these markets are high. A commodity exchange is seen as an institutional arrangement that would solve many of these problems. But it is difficult to "get right" and introduces new problems.
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Coul dyou clarify "...but it is rare to say that as ECx is monopolized "?
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Institutional economics
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The debate referred to by Glaeser et al. is about what has caused institutions and economic growth (history) as opposed to how to cause them (development economics). In the Glaeser view, good polices (often put in place by dictators) lead to human capital and economic growth, which tend to induce better political institutions. This view is more sanguine regarding the productivity of economists, who can whisper recommendations in the metaphorical despot's ear. Acemoglu and Robinson (Why Nations Fail) are more nihilistic: Latin America, for example, was cursed by resources that were easy to predate and ended up with predatory political institutions that impeded growth. North (of Mexico) America, in contrast, was "blessed" by scarcity and had to adopt political institutions based on property.