Public Affairs Policy

Social Science Knowledge and Economic Development: An by Vernon W. Ruttan

By Vernon W. Ruttan

Ruttan advances a version of institutional swap, which creates an atmosphere the place source and cultural endowments and technical switch can ensue. The disequilibria due to such alterations create possibilities for the layout of extra effective institutional preparations. The layout point of view hired within the publication stands in sharp distinction to natural or evolutionary perspectives.With its emphasis on interdisciplinarity, Social technology wisdom and Economics Developmentis very important examining for social scientists, improvement economists, and within the improvement reports classroom.Vernon W. Ruttan is Regents Professor Emeritus within the division of utilized Economics on the collage of Minnesota.

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Extra info for Social Science Knowledge and Economic Development: An Institutional Design Perspective

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I use the term cultural endowments to capture those dimen­ sions of culture that have been transmitted from the past. Contemporary changes in institu­ tions, for example, can be expected to harden into the next generation's cultural endowments. 24 Social Science Knowledge and Economic Development An important advantage of the pattern model outlined in figure 1 . 1 is that it avoids the necessity of choosing between a materialist conception of human action, in which agents mechanically respond to changes in resource endowments, and an idealist conception of human action, in which agents respond only to subjective changes in cultural endow­ ments (such as religion or ideology) .

Executives of several major corpora­ tions, influenced by subtle lobbying by the EDF, commented favorably on the emissions trading proposals. 18. This section draws heavily on Ruttan (200Ib, 511-16). For a retrospection on the use of tradable permits see Tietenberg (2002). Induced Institutional Innovation 21 The design of the S0 emissions trading system advanced in the 2 Clean Air Act of 1990 drew on earlier EPA experience. The EPA began experimenting with emissions trading permits in 1974. The early pro­ grams included the elimination of lead in gasoline, the phaseout of chlorofluorocarbons and halons in refrigeration, and the reduction of water pollution from nonpoint sources.

It is somewhat more difficult, however, to describe the mechanisms that link institutional change and changes in cultural endowments in terms of the neoclassical model (other than as metaphor). Another potential criticism of the pattern model of figure 1 . 1 is that it is "overdeter­ mined. " Identification problems become intractable since every vari­ able in the system is subject to influences arising from changes in every other variable (Resnick and Wolff 1987). But because changes in the different relationships in the model occur at different rates, the identification problem, while difficult, is tractable.

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