In a model of repeated games, we determine the conditions under which cooperation is an equilibrium outcome among the G-20 countries. We consider first, that members are uncertain about the lifespan of the G-20. Second, the nature of member countries and their interrelations can change because...

This paper is based on the author’s lecture given at the Russian Summer School on Institutional Analysis 2007, organized by the State University — Higher School of Economics with the financial support of Innovation educational program. The author defines a reform as an intentional...

One of the main obstacles for successful economic development is the formation of institutional traps, inefficient yet stable norms of behaviour. Domination of barter exchange, arrears, corruption and black market activities are examples of institutional traps that have hampered reforms in...

This is the first part of the research devoted to the problem of the choice of institutional reform strategies. A strategy is defined as a planned trajectory of institutional changes in time. Three types of strategies are compared: shock therapy, gradual growing, and interim institution...

Any legislative framework is likely to generate different institutions or norms of behavior which the legislator occasionally could have never foreseen. I suggested a general pattern, on which inefficient, if stable, norms or institutions called institutional traps would form.

What is the influence of syndicate organization on the duration of loan arrangement? I answer this question using the survival analysis methodology on a sample of loans from 59 countries over the 1992-2006 period. I find that syndicate size, concentration, reputation, and national diversity...

The theory of institutional traps, i.e. ineffective but stable institutions or behavior norms, is develope din connection with economic reforms. Mechanisms are described that cause a system to get into a trap and ways of going out of it are analyzed. Concepts of transformation costs and...

Two myths have harmed many economies throughout the world. One is the theory of absolute advantage of central planning over the market mechanism, and the other is the belief that efficient markets develop spontaneously and quickly enough if appropriate economic legislation is established....

This is the second part of the work devoted to the problem of the choice of institutional reform strategies. In the first part a concept of a promising trajectory was introduced. This is a trajectory that has good chances to be successful since it meets a number of requirements; their list was...