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Richter, R. Who Listened? Unappreciated Teachings of New Institutional Economics Related to the Financial Crisis 2008. Credit and Capital Markets – Kredit und Kapital, 42(4), 473-485. https://doi.org/10.3790/kuk.42.4.473
Richter, Rudolf "Who Listened? Unappreciated Teachings of New Institutional Economics Related to the Financial Crisis 2008" Credit and Capital Markets – Kredit und Kapital 42.4, 2009, 473-485. https://doi.org/10.3790/kuk.42.4.473
Richter, Rudolf (2009): Who Listened? Unappreciated Teachings of New Institutional Economics Related to the Financial Crisis 2008, in: Credit and Capital Markets – Kredit und Kapital, vol. 42, iss. 4, 473-485, [online] https://doi.org/10.3790/kuk.42.4.473

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Who Listened? Unappreciated Teachings of New Institutional Economics Related to the Financial Crisis 2008

Richter, Rudolf

Credit and Capital Markets – Kredit und Kapital, Vol. 42 (2009), Iss. 4 : pp. 473–485

2 Citations (CrossRef)

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Prof. (em.) Dr. Dr. h.c. Rudolf Richter, Universität des Saarlandes, Wirtschaftswissenschaften, Wirtschaftstheorie, Postfach 15 11 50, D-66041 Saarbrücken.

Cited By

  1. Essays on New Institutional Economics

    Methodology from the Viewpoint of an Economic Theorist: Fifty Years On

    Richter, Rudolf

    2015

    https://doi.org/10.1007/978-3-319-14154-1_10 [Citations: 0]
  2. Entrepreneurs as Surrogate Forward Traders of Goods and Services, Seen from the Viewpoint of New Institutional Economics

    Richter, Rudolf

    European Business Organization Law Review, Vol. 11 (2010), Iss. 3 P.459

    https://doi.org/10.1017/S1566752910300073 [Citations: 4]

Abstract

Who Listened? Unappreciated Teachings of New Institutional Economics Related to the Financial Crisis of 2008

Who was listening before the Financial Crisis of 2008 to Arrow's warnings and the teachings of Coase? Due to transaction costs, incomplete foresight and bounded rationality not all risks that would be desirable to shift can be shifted through the market. Financial firms and other institutions take on part of the burden. To expand the frontier of risk trading requires institutional answers – in particular new forms of credible commitments. Improvements in information technology alone do not do the trick. (JEL D40, E40, E44, G 20, G21, G28, G29)