Bureaucratic agencies as third-party enforcers
(English)Manuscript (preprint) (Other academic)
In institutional economic theory, the court is most commonly recognized, or even identified, as THE third-party enforcer. The court is however only one of several types of third-party enforcers of the state apparatus. Bureaucratic agencies are for example normally assigned a ‘bundle’ of regulations and policies to enforce and implement. Financial supervisory agencies, health inspections and environmental protection agencies are examples of such. Accounting for bureaucratic agencies as third party enforcers in conventional institutional economics theory poses some problems. However, by incorporating bureaucratic agencies as third-party enforcers into the theoretical framework, institutional economics as a field may become better able to account for the very important processes by which institutions are implemented and enforced. As actors of the institutional structure, bureaucratic agencies can be defined as types of ‘institutional organizations’.
Institutional economics; third-party enforcers; bureaucratic agencies
Economics and Business
IdentifiersURN: urn:nbn:se:liu:diva-77435OAI: oai:DiVA.org:liu-77435DiVA: diva2:526937