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Bingtao Song Xiamen University

An Institutional Change Analysis of the Civilization Evolution in Public Economics----An Effort with Collective methodology. Bingtao Song Xiamen University The Center for Yellow River Civilization and Sustainable Development, Henan University. I. Introduction.

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Bingtao Song Xiamen University

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  1. An Institutional Change Analysis of the Civilization Evolution in Public Economics----An Effort with Collective methodology Bingtao Song Xiamen University The Center for Yellow River Civilization and Sustainable Development, Henan University

  2. I. Introduction • Civilization or Modernization:unescapable comparison between west and east, ancient and modern • Huntington（2002）:conflicts • Miller（2002）:co-existence • Weber（2006）cultural difference • Zhao(2005):Cultural mix and civilization transmutation • Karl Marx: technological change • North（1976，1981）:property right system • Hayek: Social evolution

  3. Methodology in Economics？ • Difference between individual action and collective action(Olson, 1965) • Collective activity? Individual Methodology? Basing on individual rationality assumption? • Experiments of dicision in group or by individually • Knowledge transfering about institution: Gene?Culture?Institution?

  4. II. Collective Methodology and Elite determiner • Who choose culture or institution for group?Individual or group?people or elite? • What kind of institution matter in civilization ? State or war system(Gordon,1999, Deng,2004),----public economic institution • Historian’s point: State is the base of civilization（Braudel, 1982, 2003 ；Herzog, 1998 ；Zhao，2005；Chen，2007） • Who stress it in economics? Market economy and/or state(public) economy?（Keynes，1936；Commons，1959；Coase，1937 ） • How to deal with non-market economy or public economy?

  5. The failure of methodology • The challeng of experiment to the self-interest and individualism methododolgy（Henrich et al, 2001; Roth et al, 1991; Camerer, 2001） • Indvividual action and choose is heavily dependent on the institution (culture) or environment (黄凯南，2008） • But where institution come from? Individual choose or group choose? • Individual behavior assumption come from Kaldor’s typical economic facts（Barro&Sala-i-Martin，1995，2004）,How about other facts of 5 billions people?

  6. Collective Characteristics of Civilizatin Evolution • Pre-modern or Pre-civilization: group or tribe • What is the really concern by undeveloped society? • Objective and function of civilization system: Defence, survival or benefit maximum? • A case: 1840-1910 China Lead to state-building of Maoism • Who choose the system? What is the history of institutional change?Elites choose, popullace follow? • A case: 肖申克的救赎, The structure of this meeting room

  7. III. Civilization Evolution • Civilization: labor-division of public economy • Ancient civilization: the victory of state system: a new public economy----So-called democracy decilned! • Modern civilization: The victory of public finace: A new public economy----So-called exchange of public goods

  8. Some cases: Civilization Experiments • Religions • Feudalism • From public finance to democracy or socialism? • What kind of public goods? • 消费者与付费者的区别：Who pay for it? Who consume it?

  9. IV. Conclusion • Civilization: technology?Market institution?Public economic institution! • Who choose public goods? Who pay for? Which kind of public goods? • Who choose institution? For what aim? • Elites or Populace • Individualism or collectivism

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