Purchase Solution

institutions as humanly devised constraints

Not what you're looking for?

Ask Custom Question

Please review the attached file and make a brief to its content.

Purchase this Solution

Solution Summary

The write up gives a learned discussion on institutions as humanly devised constraints

Solution Preview

Step 1
The author defines institutions as humanly devised constraints that provide structure to political, economic, and social interactions. The essay focuses on economic interactions and how institutions have impacted economic growth and development. According to the essay institutions create conditions that lead to lowering of costs, increase of profitability, and benefit in engaging in economic activity. The author shows the role of institutions in the performance of economies and shows an analysis from a historical perspective. Without institutions, cooperation is difficult. At the same time it takes resources to define and enforce exchange agreements. According to the author it is essential to have both political and economic institutions. What the author strives to show is that the evolution of political and economic institutions is responsible for increasing productivity.

Step 2
The author refers to the history of development of institutions. These were essential to capture the gains from trade. The author gives a sequence of events that leads to the formation of institutions in a primitive society. He begins with exchange of hunting and gathering in a village. The author shows how trade spreads from village to village and ...

Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Learning Lean

This quiz will help you understand the basic concepts of Lean.