| REVISTA DE ECONOMÍA
INSTITUCIONAL No. 3, SECOND SEMESTER 2000
The Ubiquity of Habits and Rules 
Geoffrey M. Hodgson [pdf] [html]
[Key words: habits, rules, learning, communication, cognition,
uncertainty, JEL: D81, D83, D84]
Under what circumstances is it necessary or convenient
for an agent to rely on habits and rules? This paper focuses
on the types of decision situation giving rise to their
use. Even optimisation requires the development of rules,
and for this reason mainstream economics cannot legitimately
ignore these questions. It argues that habits and rules
are ubiquitous in human activity, presents a new taxonomy
and analyses seven types of decision situations classified
according to the type of information problem involved. Neither
neoclassical nor behavioural economics can provide a complete
account of the bases of habits or rules in these cases.
Differing Paradigms, Similar
Flaws: Constructing a New Approach to Federalism in the
United States
Mark C. Gordon [pdf] [html]
[Key words: federalism, intergovernmental relationships,
state and local governments, institutional design, JEL:
H11, H71, H73, H77]
This article presents a new approach to federalism that
focus more on the outcome desired than on formal power relationships,
considers more realistically the role played by states and
localities, and incorporates the role of citizens more directly
in the analysis. This approach underlines, contrary to the
approach of the U.S. Supreme Court and Congress, how to
structure the federal system so that each level of government
can contribute best to public problems solutions and recognizes
that interaction, partnership, and occasionally tension
between levels of government are required to insure that
citizens become more engaged in North American civic society.
The Constitutional Court
and Labor Market Flexibility
Luis E. Fajardo y Juan C. Guataquí [pdf] [html]
[Key words: constitution, labor legislation, contracts,
labor market flexibility, JEL: E24, K12, K31]
This document presents a number of theoretical and practical
arguments to explain how constitutional jurisprudence (rulings
on the constitutionality of laws and on the “acción
de tutela”) has become a factor affecting the flexibility
of labor legislation in Colombia. Two examples are presented.
One of them deals with the acción de tutela, the
other with a lawsuit demanding the unconstitutionality of
a law. The latter example is formalized through a microeconomic
model taken from the producer’s theory to demonstrate
how a reduction in the degree of flexibility in labor contracts
may affect decisions on wage levels and/or employment.
Political Economy and
Public Finances: Theory, Evidence and Lab Results
Javier A. Gutiérrez, Carolina Guzmán y
Ulpiano J. Jiménez [pdf] [html]
[Key words: experimental economics, public finances, fiscal
deficit, principal-agent, JEL: C70, C91, H72]
This paper summarizes theoretical models and empirical
evidence concerning political economy of public finances.
It emphasizes political and institutional issues that influence
different levels of public debt and fiscal deficits in countries
and subnational entities with similar economic performance,
and describes fiscal contract relationships between governors
and voters using principal-agent theory. It then applies
methods of experimental economics and game theory, to evaluate
how these relationships contribute in debt accumulation
and fiscal unbalances, in a laboratory experiment in which
participants act as agents (governors) and then as principals
(voters).
Public Debt Disjunctive:
Pay or Excise
Antonio Hernández G., Luis I. Lozano E., Martha
Misas A. [pdf] [html]
[Key words: public debt, fiscal deficit, monetary policy,
central bank, JEL: E52, E58, H62, H63]
This paper contributes to the debate regarding national
government debt. It asks if government should excise public
debt through inflation or pay it as it was stipulated, and
argues that, from an economic and social point of view,
what is desirable is the just fulfillment of State obligations.
First section describes the evolution of national government
finances over the last ten years. Second section shows different
simulations to analyze the determinants of interest payments.
Final section examines proposals that seek to reduce public
debt though monetary emission and discusses some of its
possible consequences.
Disjunctive is not to Pay
or Excise Debt, is to Pay it Extra Charge or at Just Price
Mauricio Cabrera G. y Jorge I. González [pdf] [html]
[Key words: fiscal deficit, public debt, monetary policy,
interest rate, JEL: E52, E58, H62, H63]
The article shows that the disjunctive stated by Hernández
et. al. between pay or excise national public debt is not
relevant. Discussion should focus on the current price that
is paid for national public debt. Treasury is offering TES
on the market at an interest rate much greater than DTF.
This extra charge, besides is not justified, increases national
debt. Current management of national public debt should
be restated so that fiscal adjustment and economic recovery
can be accomplished. |
