LPPM supported by PKPM & Department of Economics, Atma Jaya Catholic University
organize:
Public Lecturing on
“Market, Crisis and Policies in the Light of the Recent Financial Crisis”
By Professor Eric Brousseau
(Univ. of Paris X & European School on New Institutional Economics)
On Tuesday, Feb 16th, 13.00 – 15.00
Venue:
Aula D, Atma Jaya Catholic University, Jl. Sudirman 51, Jakarta
For further information:
Yunti & Siwi, LPPM Unika Atma Jaya, Jl. Jendral Sudirman 51, Jakarta 12930
Telp (fax) : (021) 572-7461; Tel. (021) 572-7615 – 19 psw 139 & 427
Email: lembaga.penelit...@atmajaya.ac.id
Abstract :
To analyze how states influence the building of institutional frameworks, we
contrast behavior-establishing institutions (BEI) with rights establishing
institutions (REI). The former prescribe agents’ behaviors, while the later
allows them to make decisions. Outcomes of BEI are monitorable, while outcomes
of REI are difficult to anticipate due to freedom of choice, strategic
interactions, and complexities in aggregation of individual actions. REI are
economically superior to BEI because they decrease the cost of innovation and
of organization. However, they can lead to critical discrepancies between
observed distribution of wealth and power and expected one, which ends up in a
crisis: a socially non acceptable result that leads agents to claim for the
intervention of the state. State intervention can be called either for
correcting the distribution of wealth, or for redesigning components of the
institutional framework. We highlight a cumulative
process where BEI and REI develop successively: a phase of liberalization
generating processes of regulation and vice versa. This allows understanding
why “open access societies” combine open competition with a considerable body
of regulation and a high level state intervention. Our framework also points
out possibilities of bifurcations due to the choices made when disequilibria
and crises occur. We then propose explanations for the emergence and evolution
of alternative sociopolitical models.
Speaker:
Eric Brousseau is Professor of Economics at the University of Paris Ouest. He
has been the Director of EconomiX, a joint Research Center between the CNRS and
the University of Paris X, since June 2005. His research agenda focus on the
economics of institutions and on the economics of contracts, with two main
applied fields: the economics of Intellectual Property Rights and the economics
of the Internet and digital activities. In matter of institutional economics,
Eric Brousseau has been working extensively on the economic of multi-level
governance, public vs. self-regulation, and on the dynamic of institutions. He
published more than 80 papers in various academic journals and collective
books. He authored a book on the economics of contracts (1993) and edited 16
collective books or journal issues. In particular, he published recently with
Nicolas Curien a book entitled “Internet and Digital Economics,” and (in
cooperation with Jean-Michel Glachant)
another book entitled “New Institutional Economics, a guidebook” (both at
Cambridge University Press). He has been involved in researches for the French
Government, the European Commission, the US National Science Foundation, the
UN, and the OECD.
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