As a result of the transaction cost theory and got the Nobel economics | The Knowledge Dynasty

As a result of the transaction cost theory and got the Nobel economics

In all, the Chief Executive and CEO as almost one thing, academically but also change. As a result of the transaction cost theory and got the Nobel economics prize Coase (R.Coase), one of the main contributions to the understanding of markets, why is there a business provides the theoretical explanation. In 1988, Marcos recalled his life, he admits in the 1930s formed his theory of the firm, had the effect of Lenin. This section, our Chinese readers may than many Westerners would also like to know, because Lenin wrote of the State and revolution, the Louis Vuitton Soviet economy dominates the future of the Organization, the Soviet State as a whole super employment company. The former Soviet Union and China’s reform and opening up has experience before a “planned”, is actually in a super State companies rely on central planning directives to configure resources of economic system. I said, what about the theory of planned economy, is a company theory: when the company to cover the entire country, company internal scheme, authority, command and administrative operation of the national economy has become.

Marcos did not entirely agree with Lenin. He saw that a super State company, holes: internal organization running too high, the cost might exceed the company forms of savings market transaction fees! in that case, the Super company organization is not worthwhile, it is necessary to reduce the size of company, to increase the number of companies, the expansion of market transactions between companies. It is not easy to believe that Marcos on national consent of Super company theory is not entirely agree with the theory that not only explains why the “invisible hand” of the market will continue to produce internal from “visible to the Veterans of” management and control of the company, also infer the whole national economy encompasses the centrally planned scope of the reform of the State company Super routes decentralization, decentralization, shrinkage, the scope of the planned order, expanding the role of the price mechanism, until the formation of space in the market economy Replica Handbags by various companies to organize production and trading conditions. On the other hand, I don’t agree with those who think China has formed a “best of the history of mankind,” and the economic system. Because it was the “perfect market” with a super State company both institutional extreme lies between a great flexibility. China came out super State company, by redefining power. The problem is, the past is a super State company-enterprise integration, political and economic reform, decentralization, and administrative power and economic power are put together. New question is, how reasonable decentralisation of power distribution, and what to leave a reasonable Replica handbags distribution constraints? and effective constraint, powers in market trading, corruption is not a moral issue individual officials, but rather a systematic problem.

It’s back to the booklet. Why so much like the Mayor of CEO because reform of the disintegration of the State power company, the Central Government level, the degree of separation is relatively high, the Chief Executives are increasingly close to everybody’s business of public management, from the CEO position. However, as the decentralization of a carrier, the local authorities of the separation of the low level, local governments often more like companies direct allocation of resources, projects, implementation of investment decisions, revenue other than economic benefits. Is good or bad, plan a super State company in the era of reform and opening up is broken down into numerous pieces, which-together with the Government-in-one turned to the competing local enterprises and companies. This is one of transition in China.

However, the mayor or not entirely equivalent to the CEO. This is because, the Mayor has the political structure of the grant of legal force. This is another big company big boss also does not have, or should never have. We know that legitimate force is a double edged weapon, either a very efficient implementation of the right of economic decision-making, can also be very effective implementation error in economic decision-making. For example, to convince many people voluntarily pooled investments to build a highway, is a very troublesome; and along the small land owners to reach agreement on the construction of the highway is in trouble. If you can hold the legal force, the use of Chanel Bags mandatory tax to fund raising, and then force the right to obtain the expropriation of the land, the road of trouble not small for many? of course. However, as also sword, rely on the legitimate force a meet the economic needs of the road is easy, but use legitimate force is also very easy to rebuild a is not required for the economy. Anyway, to raise funds from collecting the tax, land from, the wrong way is hard to find, the more difficult to correct. In this sense, the legal force of power into the hands of the Mayor, higher than the average Designer Handbags do easily, it is also easy. Let me focus on is the author of this book’s attitude to this problem. As a high-powered Mayor, he certainly better understand legal force all sorts of wonderful places. However, the book of Adam Smith referenced as follows, but shows the book author’s basic position. Smith then brilliantly, might as well let me once again cited. “In the Government in power is self-righteous. He seems to think he could look like at the mercy of a pair of hands in a piece on the Board.

As a result of the transaction cost theory and got the Nobel economics

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.



New Skills, New You: Transform your career in 2016 with Coursera

Follow us on Twitter