Modelling of Institutional Changes in Transition Countries - the Gap Between the Theory and Practice

Abstract

The first part discusses the consequences of the deficit of real institutional changes in post-socialist SEE countries, and their substitutions by the various anti-developmental institutional imitations, which essentially had the character of alternative quasi-institutions and were in a function of enrichment for the privileged individuals. It points to the importance of neo-institutional economic theories (NET), which provide a sound grounds and recommendations for explanation of the imitation changes, which had anti-institutional and anti-development character.

Keywords

• institutions
• institutional modelling
• transaction costs
• institutional design
• formalisation of institutions