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Course, academic year 2022/2023
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Institutional Economics - JPB331
Title: Institutional Economics
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2019 to 2022
Semester: winter
E-Credits: 5
Examination process: winter s.:
Hours per week, examination: winter s.:2/0, Ex [HT]
Capacity: unknown / unknown (59)
Min. number of students: unlimited
Virtual mobility / capacity: no
State of the course: taught
Language: English
Teaching methods: full-time
Teaching methods: full-time
Is provided by: JEB022
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: PhDr. Jiří Schwarz, Ph.D.
Teacher(s): Mgr. Josef Bajzík
PhDr. Jiří Schwarz, Ph.D.
Class: Courses not for incoming students
Incompatibility : JEB022
Pre-requisite : JPB330
Is incompatible with: JEB022
Annotation -
Last update: PhDr. Jiří Schwarz, Ph.D. (08.02.2013)
This course presents wide-ranging and growing literature on the economics of institutions (and organizations), with an emphasis on applications and evidence. We begin with the methods and fundamental concepts upon which the new institutional economics builds. Then we turn to a study of the institutional environment, the constraints that guide individuals' behavior. We investigate how institutions change and how are they shaped by the individuals and firms themselves.
Literature -
Last update: PhDr. Jiří Schwarz, Ph.D. (01.10.2019)

Buchanan, James M. 1982. Order Defined in the Process of its Emergence.

+Coase, R. H. 1998. The New Institutional Economics. The American Economic Review 88, No. 2, Papers and Proceedings of the Hundred and Tenth Annual Meeting of the American Economic Association (May, 1998), pp. 72-74.

Coase, R. H. 1974. The Lighthouse in Economics. Journal of Law and Economics 17, no. 2 (October 1): 357-376.

+Barnett, W., & Block, W. 2007. Coase and Van Zandt on Lighthouses. Public Finance Review 35(6), 710-733. doi:10.1177/1091142107302182

Coase, R. H. 1960. The Problem of Social Cost. Journal of Law and Economics 3 (October 1): 1-44.

+Meiners, Roger E. and Bruce Yandle. 1998. Common Law Environmentlaism. Public Choice 94(1-2): 49-66.

Hayek, F. A. 1945. The Use of Knowledge in Society. The American Economic Review 35, no. 4: 519-530.

+Akerlof, George A. 1970. The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics 84 (3): 488-500. doi:10.2307/1879431.

+Leeson, Peter. 2012. Ordeals. Journal of Law and Economics 55(3): 691-714.

North, Douglass C. 1991. Institutions. The Journal of Economic Perspectives 5, no. 1 (January 1): 97-112.

+Leeson, Peter. 2014. “God Damn”: The Law and Economics of Monastic Malediction. Journal of Law, Economics, and Organization 30(1): 193-216.

+Aoki, Masahiko. 2001. Toward a comparative institutional analysis. Part of part 1.

Leeson, Peter. 2007. An-arrgh-chy: The Law and Economics of Pirate Organization. Journal of Political Economy 115(6): 1049-1094.

+Skarbek, David. 2011. Governance and Prison Gangs. The American Political Science Review 105(4): 702-716.

Benson, Bruce L. 1984. Rent Seeking from a Property Rights Perspective. Southern Economic Journal 51, no. 2 (October 1): 388-400. doi:10.2307/1057819.

+Zahedieh, Nuala. 2010. Regulation, rent-seeking, and the Glorious Revolution in the English Atlantic economy. The Economic History Review 63, no. 4: 865-890. doi: 10.1111/j.1468-0289.2009.00505.x

Hall, Joshua C., Russell S. Sobel, and George R. Crowley. 2010. Institutions, Capital, and Growth. Southern Economic Journal 77, No. 2, pp. 385-405.

+Wolfers, Justin, Daniel W. Sacks, and Betsey Stevenson. 2013. The New Stylized Facts About Income and Subjective Well-Being. CAMA Working Paper 03/2013.

+McCloskey, Deirdre. 2006. The Bourgeois Virtues: Part 1 - Apology.

+Pejovich, Svetozar. 1999. The Effects of the Interaction of Formal and Informal Institutions on Social Stability and Economic Development. Journal of Markets & Morality 2, no. 2, pp. 164-181.

Dutta, Nabamita, Peter T. Leeson, and Claudia R. Williamson. 2013. The Amplification Effect: Foreign Aid’s Impact on Political Institutions. Kyklos 66(2): 208-228.

+Liebowitz, Stan J., and Stephen E. Margolis. 2000. Path Dependence. In Bouckaert, Boudewijn and De Geest, Gerrit (eds.), Encyclopedia of Law and Economics, Volume I. The History and Methodology of Law and Economics, Cheltenham, Edward Elgar.

Du, Julan, Lu, Yi, and Tao, Zhigang. 2012. Contracting institutions and vertical integration: Evidence from China’s manufacturing firms. Journal of Comparative Economics 40 (1), pp. 89-107.

+ optional readings

Teaching methods
Last update: PhDr. Jiří Schwarz, Ph.D. (04.10.2021)

Standard lectures in Opletalova. Students unable to attend should join an MS Teams team:

Those students who are unable to attend the lectures in person, are invited to join a MS Teams team via the link below. I will start a video stream there at the beginning of every lecture. Use your university account to log in (log with your student ID number as, for example, and use your CAS password). Note that when first joining the team, you have to be admitted in by me. So please join the team in advance and not during the lecture itself. Together with joining the team, send me ( an email explaining why you are not able to attend in person. Personal attendence is strongly preferred, I will tell you more during the first lecture.

The MS Teams link:

You can also find the team via its name "Institutional Economics (IES, JEB022/JPB331)".

Requirements to the exam -
Last update: PhDr. Jiří Schwarz, Ph.D. (03.10.2018)

Essay on one of given topics in the middle of the semester + presentation in groups 30%
Read one paper each week, write and upload summary of the readings to Moodle 20%
Final written exam 50%

Syllabus -
Last update: PhDr. Jiří Schwarz, Ph.D. (03.10.2018)

1. Introduction
2. Old institutionalism, emergence of the institutional tradition, method of analysis
3. Property rights theory, transaction costs
4. Contracts, agency costs, information costs
5. What are institutions? Types of institutions
6. Institutions as collective choices, conceptions of the state
7. Social conflict view of institutions (rent seeking)
8. Institutions and economic performance
9. Norms, culture, social conventions
10. Institutional change, path dependence
11. Theory of the firm

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