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John R. Commons, Wesley N. Hohfeld and the Origins of Transactional Economics

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  • Luca Fiorito

Abstract

The aim of this paper is to provide an assessment of John R. Commons’ adoption of Wesley N. Hohfeld’s framework of jural opposites and correlatives in order to construct his transactional approach to the study of institutions. Hohfeld’s influence on Commons, it is argued, was both positive and negative. On the one hand, Commons, followed Hohfeld and recognized that such concepts as property and inheritance actually represent an aggregation of numerous types of legal relations. Hohfeld’s schema provided a powerful rhetorical and analytical tool whereby these highly abstracts conceptions could be reduced to a limited number of primary elements. Moreover, Hohfeld’s schema appeared to be consistent with Commons’ general methodological and psychological commitments. On the other hand, Commons’ forging of “transaction” as the elementary unit of economic analysis can be seen as an attempt to go beyond Hohfeld. Commons was in fact unsatisfied with Hohfeld’s bi-lateral treatment of jural relations and with his neglect of the role played by state officials in enforcing transactions and, in so doing, in promoting specific individual interests as collective public policies

Suggested Citation

  • Luca Fiorito, 2008. "John R. Commons, Wesley N. Hohfeld and the Origins of Transactional Economics," Department of Economics University of Siena 536, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:536
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    References listed on IDEAS

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    1. Morris A. Copeland, 1936. "Commons's Institutionalism in Relation to Problems of Social Evolution and Economic Planning," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 50(2), pages 333-346.
    2. J. M. Clark, 1918. "Economics and Modern Psychology: II," Journal of Political Economy, University of Chicago Press, vol. 26(2), pages 136-136.
    3. Asso, Pier Francesco & Fiorito, Luca, 2004. "Human Nature and Economic Institutions: Instinct Psychology, Behaviorism, and the Development of American Institutionalism," Journal of the History of Economic Thought, Cambridge University Press, vol. 26(4), pages 445-477, December.
    4. Malcolm Rutherford, 2000. "Institutionalism Between the Wars," Journal of Economic Issues, Taylor & Francis Journals, vol. 34(2), pages 291-303, June.
    5. Yngve Ramstad, 1996. "Is a Transaction a Transaction?," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(2), pages 413-425, June.
    6. Viktor Vanberg, 1997. "Institutional Evolution through Purposeful Selection: The Constitutional Economics of John R. Commons," Constitutional Political Economy, Springer, vol. 8(2), pages 105-122, June.
    7. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    8. Thomas Kemp, 2006. "Of Transactions and Transaction Costs: Uncertainty, Policy, and the Process of law in the Thought of Commons and Williamson," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(1), pages 45-58, March.
    9. Ugo Pagano, 2003. "Posiciones legales y complementariedades institucionales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 5(9), pages 17-54, July-Dece.
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    Cited by:

    1. Theriault, Veronique & Sterns, James A., 2012. "John R. Commons and the Evolution of Institutions: The Case of the Malian Cotton Sector," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124460, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

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