IDEAS home Printed from https://ideas.repec.org/a/sae/jinter/v35y2023i1p108-127.html
   My bibliography  Save this article

A New Institutional Economic Perspective on Alternative Governance Mechanisms at the Local Government Level

Author

Listed:
  • Joe Wallis
  • Syed Rizvi

Abstract

The ‘new institutional economics’ (NIE) can go a long way towards comprehending the emerging complexities of local government. As local bodies seek to forge collaborative partnerships with other organisations, they have to decide whether to solve horizontal co-ordination problems through market, hierarchy or network mechanisms. NIE can show that where other governance mechanisms are incomplete or subject to high transaction costs, trust and co-operation can informally develop through the process by which network interactions become embedded within each other. We show how this approach can be revised to take into account the expressive dimension of behaviour in hope-based networks whose members are bound together not so much by structures of resource dependence as by the hope and trust they place in the advancement of common goals. JEL: L38

Suggested Citation

  • Joe Wallis & Syed Rizvi, 2023. "A New Institutional Economic Perspective on Alternative Governance Mechanisms at the Local Government Level," Journal of Interdisciplinary Economics, , vol. 35(1), pages 108-127, January.
    • Handle: RePEc:sae:jinter:v:35:y:2023:i:1:p:108-127
    DOI: 10.1177/02601079211036841
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/02601079211036841
    Download Restriction: no
    File URL: https://libkey.io/10.1177/02601079211036841?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Randall Collins, 1993. "Emotional Energy as the Common Denominator of Rational Action," Rationality and Society, , vol. 5(2), pages 203-230, April.
    2. Joe Wallis & Brian Dollery, 1999. "Market Failure, Government Failure, Leadership and Public Policy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37296-2, September.
    3. Jon Elster, 1998. "Emotions and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 47-74, March.
    4. Kuran, Timur, 1990. "Private and Public Preferences," Economics and Philosophy, Cambridge University Press, vol. 6(1), pages 1-26, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wallis, Joe, 2006. "Evaluating economic theories of NPOs: A survey, a case study and some new directions for socio-economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(6), pages 959-979, December.
    2. Wallis, Joe, 2002. "Drawing on revisionist economics to explain the inspirational dimension of leadership," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(1), pages 59-74.
    3. Wallis, Joe, 1999. "Understanding the role of leadership in economic policy reform," World Development, Elsevier, vol. 27(1), pages 39-53, January.
    4. Joe Wallis, 2006. "Coaching and the supply of hope:The Economics of commitment and a case study of supported employment services," Forum for Social Economics, Springer;The Association for Social Economics, vol. 35(2), pages 1-20, September.
    5. Achim Schlüter & Insa Theesfeld, 2010. "The grammar of institutions: The challenge of distinguishing between strategies, norms, and rules," Rationality and Society, , vol. 22(4), pages 445-475, November.
    6. Andrew W. Lo & Dmitry V. Repin & Brett N. Steenbarger, 2005. "Fear and Greed in Financial Markets: A Clinical Study of Day-Traders," American Economic Review, American Economic Association, vol. 95(2), pages 352-359, May.
    7. Dequech, David, 2000. "Confidence and action: a comment on Barbalet," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(6), pages 503-515, November.
    8. Lombardi, Michele & Yoshihara, Naoki, 2013. "Natural implementation with partially honest agents in economic environments," MPRA Paper 48294, University Library of Munich, Germany.
    9. Kieran Donaghy, 2011. "Models of travel demand with endogenous preference change and heterogeneous agents," Journal of Geographical Systems, Springer, vol. 13(1), pages 17-30, March.
    10. Stephan Schulmeister, 2000. "Technical Analysis and Exchange Rate Dynamics," WIFO Studies, WIFO, number 25857.
    11. repec:cep:stitep:/2012/563 is not listed on IDEAS
    12. Michaël Lainé, 2014. "Vers une alternative au paradigme de la rationalité ? Victoires et déboires du programme spinoziste en économie," Post-Print hal-01335618, HAL.
    13. Steven J. Stanton & Crystal Reeck & Scott A. Huettel & Kevin S. LaBar, 2014. "Effects of induced moods on economic choices," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(2), pages 167-175, March.
    14. Mateus Joffily & David Masclet & Charles N Noussair & Marie Claire Villeval, 2014. "Emotions, Sanctions, and Cooperation," Southern Economic Journal, John Wiley & Sons, vol. 80(4), pages 1002-1027, April.
    15. Rojhat Avsar, 2021. "Rational Emotions: An Evolutionary Perspective," Review of Evolutionary Political Economy, Springer, vol. 2(2), pages 297-314, July.
    16. Christopher Boyce & Mikolaj Czajkowski & Nick Hanley & Charles Noussair & Michael Townsend & Steve Tucker, 2015. "The effects of emotions on preferences and choices for public goods," Discussion Papers in Environment and Development Economics 2015-08, University of St. Andrews, School of Geography and Sustainable Development.
    17. Olivier Chanel & Graciela Chichilnisky, 2009. "The influence of fear in decisions: Experimental evidence," Journal of Risk and Uncertainty, Springer, vol. 39(3), pages 271-298, December.
    18. Emmanuel Petit, 2008. "Does indignation lead to generosity? An experimental investigation," Post-Print hal-00278586, HAL.
    19. Rahmani, Djamel & Loureiro, Maria & Escobar, Cristina & Gil, José M., 2021. "How Emotions Affect Choices: The Case of Wine," 2021 Conference, August 17-31, 2021, Virtual 314943, International Association of Agricultural Economists.
    20. Erik O. Kimbrough & Vernon L. Smith & Bart J. Wilson, 2008. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade," American Economic Review, American Economic Association, vol. 98(3), pages 1009-1039, June.
    21. Gaudeul, Alexia & Keser, Claudia & Müller, Stephan, 2021. "The evolution of morals under indirect reciprocity," Games and Economic Behavior, Elsevier, vol. 126(C), pages 251-277.

    More about this item

    Keywords

    NIE; networks; local government; transaction costs; hope and trust;
    All these keywords.

    JEL classification:

    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jinter:v:35:y:2023:i:1:p:108-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.