ECONOMIC AND POLITICAL INSTITUTIONS AND CONSUMER PRICES

Main Article Content

Aldona Zawojska


Keywords : institutions, prices, consumer goods, food, EU
Abstract
This paper analyzes the role of institutions in price setting and cross-country price disparity. The objective of the study was to test whether there is a statistical relationship between relative price levels and selected dimensions of quality of institutions. The whole observation period runs from 1996 to 2010. Data set includes comparative consumer and food price levels from the Eurostat-OECD PPP Programme as well as an institutional quality indices produced by the World Bank (Worldwide Governance Indicators), the Fraser Institute (the survey Economic Freedom of the World) and the EBRD-World Bank (Business Environment and Enterprise Perfor­mance Survey). The analysis separately covers Central and Eastern European EU Member States, and Poland with Denmark. The results of the linear relationship between the different dimensions of institutions and price levels did not indicate the similarities between countries and in time with regard to strength and direction of that relationships, although correlations between the prices and some institutional variables were moderate and high.

Article Details

How to Cite
Zawojska, A. (2012). ECONOMIC AND POLITICAL INSTITUTIONS AND CONSUMER PRICES. Annals of Agricultural Economics and Rural Development, 99(4), 7–28. https://doi.org/10.22630/RNR.2012.99.4.37
References

Acemoglu D., Johnson S. 2005: Unbundling institutions, "Journal of Political Economy", nr 113(5), s. 949-995. (Crossref)

Acemoglu D., Johnson S., Robinson J.A. 2002: Reversal of fortune: Geography and institutions in the making of the modern world of income distribution, "Quarterly Journal of Economics", nr 117(4), s. 1231-1294. (Crossref)

Aidis R., Estrin S. 2006: Institutions, networks and entrepreneurship development in Russia: An exploration, "WDI Working Papers", nr 833. University of Michigan, William Davidson Institute. (Crossref)

Al-Marhubi F. 2000: Corruption and inflation, "Economic Letters", nr 66(2), s. 199-202. (Crossref)

Barro R.J. 1991: Economic growth in a cross section of countries, "Quarterly Journal of Economics", nr 106(2), s. 407-444. (Crossref)

Barzel Y. 1989: Economic Analysis of Property Rights. Political Economy of Institutions and Decisions, Cambridge University Press.

Baumol W.J. 1990: Entrepreneurship: Productive, unproductive, and destructive, "Journal of Political Economy", nr 98(5), s. 893-921. (Crossref)

Berkowitz D., Clay K.B. 2011: The Evolution of a Nation: How Geography and Law Shaped the American States, Princeton University Press. (Crossref)

Business attitudes towards cross-border sales and consumer protection. Analytical report, "Flash Eurobarometer", nr 186, The Gallup Organization, 2006, http://ec.europa.eu/public_opinion/flash/fl_186_en.pdf

Chang E.C.C., Kayser M.A., Linzer D., Rogowski R. 2010: Electoral System and the Balance of Consumer-Producer Power, Cambridge University Press, New York. (Crossref)

Chang E.C.C., Kayser M.A., Rogowski R. 2008: Electoral systems and real prices: Panel evidence from OECD countries, 1970-2000, "British Journal of Political Science", nr 38(4), s. 739-751. (Crossref)

Clague Ch., Keefer P., Knack S., Olson M. 1996: Property and contract rights in autocracies and democracies, "Journal of Economic Growth", nr 1, s. 243-276. (Crossref)

Clark D.S. 1975: Judicial protection of the constitution in Latin America, "Hastings Constitutional Law Quarterly", nr 2(2), s. 405-442.

Coase R.H. 1937: The nature of the firm, "Economica", New Series, nr 4(16), s. 386-405. http://www.ea.ufrgs.br/pos/home/turmas/esp2007/MBA2007/Download/ArquivoProfessor/Coase_%20 The_Nature_of_the_%20Firm.pdf (Crossref)

Coase R.H. 1990: The Firm, The Market, and the Law, University of Chicago Press.

Coase R.H. 1992: The institutional structure of production, "American Economic Review", nr 82(4), s. 713-719.

Demsetz H. 1967: Toward a theory of property rights, "American Economic Review", nr 57(2), s. 347- 359. http://www.econ.ucsb.edu/~tedb/Courses/Ec100C/Readings/Demsetz_Property_Rights.pdf

Denzau A.T., North D.C. 1994: Shared mental models: Ideologies and institutions, "Kyklos", nr 47(1), s. 3-31. http://128.118.178.162/eps/eh/papers/9309/9309003.pdf (Crossref)

Fafchamps M., Minten B. 2001: Property rights in a flea market economy, "Economic Development and Cultural Change", nr 49(2), s. 229-267. (Crossref)

Fischer Ch. 2012: Price convergence in the EMU? Evidence from micro data, "European Economic Review", nr 56(4), s. 757-776. (Crossref)

Gerring J., Thacker S.C. 2005: Do neoliberal policies deter political corruption? "International Organization", nr 59(1), s. 233-254. http://www.bu.edu/sthacker/files/2012/02/IO2005.pdf (Crossref)

Getz K.A., Volkema R.J. 2001: Culture, perceived corruption, and economics: A model of predictors and outcomes, "Business and Society", nr 40(1), s. 7-30. (Crossref)

Glaeser E., La Porta R., Lopez-de-Silanes F., Shleifer A. 2004: Do institutions cause growth?, "Journal of Economic Growth", nr 9(3), s. 271-303 (Crossref)

Guriev S., Rachinsky A. 2005. The role of oligarchs in Russian capitalism, "Journal of Economic Perspectives", nr 19(1), s. 131-150. (Crossref)

Gwartney J., Lawson R., Hall J. 2012: Economic Freedom of the World. 2012 Annual Report, Fraser Institute, http://www.freetheworld.com/2012/EFW2012-complete.pdf

Hanssen F.A. 2004: Is there a politically optimal degree of judicial independence? "American Economic Review", nr 94(3), s. 712-729. (Crossref)

Hayek F.A. 1945: The use of knowledge in society, "American Economic Review", nr 35(4), s. 519-530.

Hellman J.S., Jones G., Kaufmann D., 2000: 'Seize the State, Seize the Day': State Capture, Corruption, and Influence in Transition, "Policy Research Working Paper, nr 2444. http://elibrary.worldbank.org/docserver/download/2444.pdf?expires=1347984801&id=id&accname=guest&checksum=7EA5DAD1AC3B6E27A092AB22E19FDB38

Henisz W.J. 2000: The institutional environment for economic growth, "Economics and Politics", nr 12(1), s. 1-31. (Crossref)

Hsu C.L. 2005: Capitalism without contracts versus capitalists without capitalism: Comparing the influence of Chinese guanxi and Russian blat on marketization, "Communist and Post-Communist Studies", nr 38(3), s. 309-327. (Crossref)

Iversen T. 1999: Contested Economic Institutions: The Politics of Macroeconomics and Wage Bargaining in Advanced Democracies, Cambridge University Press, New York.

Jeammaud A. 1990: La règle droit comme modèle, "Recueil Dalloz-Sirey" Chronique: s. 199-210. (Crossref)

Kaufmann D., Kraay A., Mastruzzi M. 2010: The Worldwide Governance Indicators: Methodology and analytical issues, "Policy Research Working Paper", nr 5430, World Bank, Washington, DC.

Kayser M.A. Chang E.C.C., Linzer D., Rogowski R. 2011: Electoral Systems and the Balance of Consumer-Producer Power, Cambridge University Press.

Knack S., Keefer P. 1995: Institutions and economic performance: Cross-country tests using alternative institutional measures, "Economics and Politics", nr 7(3), s. 207-227. (Crossref)

Krkoska L., Robeck K. 2008: Business environment and enterprise behaviour in East Germany compared to West Germany and Central Europe, "Journal of Comparative Economics", nr 36(4), s. 568-583. (Crossref)

Kurtz M., Schrank A. 2007: Growth and governance: Models, measures, and mechanisms, "Journal of Politics", nr 69(2), s. 538-554. (Crossref)

La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R. 1999: The quality of government, "Journal of Law, Economics, and Organization", nr 15(1), s. 222-279. (Crossref)

Linzer D.A., Rogowski R. 2008: Lower prices: The impact of majoritarian systems in democracies around the world, "Journal of Politics", nr 70(1), s. 17-27. (Crossref)

Mauro P. 1995: Corruption and growth, "Quarterly Journal of Economics, nr 110(3), s. 681-712. (Crossref)

MEMO/12/105. Frequently Asked Questions: How corruption is tackled at EU level, Brussels, 15 February 2012. (Crossref)

Mulherin J.H., Netter J., Overdahl J. 1991: Prices are property: The organization of financial exchanges from a transaction cost perspective, "Journal of Law and Economics", nr 34(2), s. 591-644. (Crossref)

Nee V. 2005: The new institutionalisms in economics and sociology, [w] Handbook of Economic Sociology, Smelser N.J, Swedberg R. (red.), Princeton University Press, Princeton, s. 49-74. (Crossref)

North D.C. 1984a: Transaction costs, institutions, and economic history, "Zeitschrift für die gesamte Staatswissenschaft"/"Journal of Institutional and Theoretical Economics", nr 140(1), s. 7-17.

North D.C. 1984b: Government and the cost of exchange in history, "The Journal of Economic History", nr 44(2), s. 255-264. (Crossref)

North D.C. 1990: Institutions, Institutional Change and Economic Performance, Cambridge University Press, New York. (Crossref)

North D.C. 1992: Transaction Costs, Institutions, and Economic Performance, International Center for Economic Growth, San Francisco, California.

North D.C. 1993: The New Institutional Economics and Development, "Economic History" nr 9309002, EconWPA, http://128.118.178.162/eps/eh/papers/9309/9309002.pdf

North D.C. 1994a: Economic performance through time, "American Economic Review", nr 84(3), s. 359-368.

North D.C. 1994b: Institutions matter, "Economics History Working Paper", nr 9411004, Economics working paper archive, Washington University, St Louis.

North D.C. 1996: Epilogue: Economic Performance through Time, [w] Empirical Studies in Institutional Change. Political Economy of Institutions and Decisions, L.J. Alston, T. Eggertsson, D.C. North (red.), Cambridge University Press, s. 342-356. (Crossref)

North D.C. 2007: Instytucje, ideologia i wyniki gospodarcze. Forum Obywatelskiego Rozwoju, Warszawa [North. D.C., 1992: Institutions, Ideology and Economic Performance, "Cato Journal", nr 11(3), s. 477-488.

North D.C., Thomas R.P. 1973. The Rise of the Western World, Cambridge University Press, Cambridge. (Crossref)

Olson M. 1982: The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities, Yale University Press, New Haven.

Paldam M., Gundlach E. 2008: Two views on institutions and development: The grand transition vs the primacy of institutions, "Kyklos", nr 61(1), s. 65-100. (Crossref)

Parker S.C. 2004: The Economics of Self-Employment and Entrepreneurship, Cambridge University Press, Cambridge. (Crossref)

Rogers J.H. 2007: Monetary union, price level convergence, and inflation: How close is Europe to the USA? "Journal of Monetary Economics", nr 54(3), 785-796. (Crossref)

Rosenberg N., Birdzell L.E. 1986: How the West Grew Rich: The Economic Transformation of the Industrial World, Basic Books, New York.

Schotter A. 2001: The Economic Theory of Social Institutions, Cambridge University Press, Cambridge, New York.

Simon H.A. 1991: Organisations and markets, "Journal of Economic Perspectives", nr 5(2), s. 25-44. (Crossref)

Weinberg J. 2012: Do majoritarian electoral systems favor consumers: Identifying cross-national consumer bias, "International Studies Quarterly", s. 1-7, doi: 10.1111/j.1468-2478.2012.00751.x (Crossref)

Williamson O.E. 1975: Markets and Hierarchies. Analysis and Antitrust Implications, The Free Press, New York.

Williamson O.E. 1985: The Economic Institutions of Capitalism, The Free Press, New York.

Williamson O.E. 2000: The new institutional economics, "Journal of Economic Literature", nr 38(3), s. 595-613. (Crossref)

World Bank. 2002: Building Institutions for Markets: World Development Report 2002, Oxford University Press, New York.

Yeager T.J. 1998: Institutions, Transition Economies, and Economic Development, Westview Press, Boulder, Colorado.

Zawojska A. 2012: Zróżnicowanie i konwergencja cen dóbr konsumpcyjnych w integrującej się Europie, "Roczniki Ekonomii Rolnictwa i Rozwoju Obszarów Wiejskich", t. 99, z. 2, s. 16-32.

Statistics

Downloads

Download data is not yet available.