IDEAS home Printed from https://ideas.repec.org/a/wsi/dltcxx/v02y2007i02ns0219871107000324.html
   My bibliography  Save this article

Measuring Transaction Costs: Diverging Approaches, Contending Practices

Author

Listed:
  • NING WANG

    (School of Global Studies, Arizona State University, Tempe, AZ 85287-5102, USA)

Abstract

This paper brings order to the vast conceptual and empirical literature on measuring transaction costs. It critically reviews the broad and diverse landscape of the field of transaction costs measurement, ranging from financial economics, Williamsonian transaction cost economics, the transaction sector, non-marketed transaction costs, environmental economics and natural resource management, institutions and development, and the economics of identity. Three sources of and three approaches to transaction costs are identified. Though the literature as a whole appears in disarray, each research program is driven by its own internal dynamics between conceptual and empirical challenges. The paper proposes that a systematic investigation of the light that the concept of transaction cost sheds on the structure of production stands out as a most promising approach to move the field forward.

Suggested Citation

  • Ning Wang, 2007. "Measuring Transaction Costs: Diverging Approaches, Contending Practices," Division of Labor & Transaction Costs (DLTC), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 111-146.
    • Handle: RePEc:wsi:dltcxx:v:02:y:2007:i:02:n:s0219871107000324
    DOI: 10.1142/S0219871107000324
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/abs/10.1142/S0219871107000324
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219871107000324?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Greif,Avner, 2006. "Institutions and the Path to the Modern Economy," Cambridge Books, Cambridge University Press, number 9780521480444, October.
    2. Scott E. Masten & Stéphane Saussier, 2000. "Econometrics of Contracts : an Assessment of Developments in the Empirical Literature on Contracting," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 215-236.
    3. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
    4. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    5. Simeon Djankov & Oliver Hart & Caralee McLiesh & Andrei Shleifer, 2008. "Debt Enforcement around the World," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1105-1149, December.
    6. Claude Menard & Mary M. Shirley (ed.), 2005. "Handbook of New Institutional Economics," Springer Books, Springer, number 978-0-387-25092-2, January.
    7. Gary D. Libecap, 2005. "Chinatown: Transaction Costs in Water Rights Exchanges. The Owens Valley Transfer to Los Angeles," ICER Working Papers 16-2005, ICER - International Centre for Economic Research.
    8. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, October.
    9. Gabre-Madhin, Eleni Z., 2001. "Market institutions, transaction costs, and social capital in the Ethiopian grain market:," Research reports 124, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Coggan, Anthea & Buitelaar, Edwin & Whitten, Stuart & Bennett, Jeff, 2013. "Factors that influence transaction costs in development offsets: Who bears what and why?," Ecological Economics, Elsevier, vol. 88(C), pages 222-231.
    2. Nitzan, Jonathan & Bichler, Shimshon, 2018. "El capital como poder. Un estudio del orden y el creorden," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 177844, December.
    3. Nitzan, Jonathan & Bichler, Shimshon, 2009. "Capital as Power. A Study of Order and Creorder," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 157973, December.
    4. Browne, Oliver R. & Ji, Xinde James, 2023. "The Economic Value of Clarifying Property Rights: Evidence from Water in Idaho’s Snake River Basin," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    5. Sedlarski, Teodor & Ankova, Iliana, 2010. "Възможност За Счетоводно Отчитане На Транзакционните Разходи В Предприятията [A Possible Way to Estimate Transaction Costs Through the Firm's Accounting System]," MPRA Paper 52428, University Library of Munich, Germany.
    6. Phan, Thu-Ha Dang & Brouwer, Roy & Davidson, Marc David, 2017. "A Global Survey and Review of the Determinants of Transaction Costs of Forestry Carbon Projects," Ecological Economics, Elsevier, vol. 133(C), pages 1-10.
    7. Graham R. Marshall, 2020. "Evaluating Adaptive Efficiency in Environmental Water Recovery: Application of a Framework for Institutional Cost-Effectiveness Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-28, April.
    8. Merkert, Rico, 2010. "Changes in transaction costs over time - The case of franchised train operating firms in Britain," Research in Transportation Economics, Elsevier, vol. 29(1), pages 52-59.
    9. Wang Ning, 2018. "The Theory of Share Tenancy and the Old “Good Economics”," Man and the Economy, De Gruyter, vol. 5(1), pages 1-5, June.
    10. Foscaches, Caroline & Macchione Saes, Maria Sylvia & Bigio Schnaider, Paula Sarita, 2019. "Does social identity matter in governance decisions? Evidence from an agrarian reform settlement in Brazil," Land Use Policy, Elsevier, vol. 83(C), pages 215-226.

    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. Rui Wang & Qianmao Zhu & Matthew Noellert, 2024. "Weak central government, strong legal rights: the origins of divergent legal institutions in 18th-century Chinese and Japanese rice markets," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Luca Eufemia & Michelle Bonatti & Stefan Sieber & Barbara Schröter & Marcos A. Lana, 2020. "Mechanisms of Weak Governance in Grasslands and Wetlands of South America," Sustainability, MDPI, vol. 12(17), pages 1-23, September.
    3. Frolov, Daniil, 2019. "The manifesto of post-institutionalism: institutional complexity research agenda," MPRA Paper 97662, University Library of Munich, Germany.
    4. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, October.
    5. Mike, Károly, 2016. "Merre vezessen a magyar kapitalizmus útja?. Látkép Ronald Coase világítótornyából [Which course for Hungary s capitalism?. A view from Ronald Coase s lighthouse]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 597-614.
    6. Masahiko Aoki, 2013. "Endogenizing institutions and institutional changes," Chapters, in: Comparative Institutional Analysis, chapter 16, pages 267-297, Edward Elgar Publishing.
    7. Masahiko Aoki, 2006. "Mechanisms of Endogenous Institutional Change," Discussion Papers 05-013, Stanford Institute for Economic Policy Research.
    8. Helder Marcos Freitas Pereira & Maria Sylvia Macchione Saes, 2022. "Government Support and Institutions’ Intermediation throughout Companies’ Adaptation to the COVID-19 Crisis," Sustainability, MDPI, vol. 14(9), pages 1-16, May.
    9. Caballero-Miguez, Gonzalo & Varela-Lafuente, Manuel M. & Dolores Garza-Gil, María, 2014. "Institutional change, fishing rights and governance mechanisms: The dynamics of the Spanish 300 fleet on the Grand Sole fishing grounds," Marine Policy, Elsevier, vol. 44(C), pages 465-472.
    10. Caballero, Gonzalo, 2015. "Community-based forest management institutions in the Galician communal forests: A new institutional approach," Forest Policy and Economics, Elsevier, vol. 50(C), pages 347-356.
    11. Sanchez-Pages Santiago & Straub Stéphane, 2010. "The Emergence of Institutions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, September.
    12. Annette M. Kim, 2011. "Introduction: Real Rights to the City—Cases of Property Rights Changes towards Equity in Eastern Asia," Urban Studies, Urban Studies Journal Limited, vol. 48(3), pages 459-469, February.
    13. Masahiko Aoki, 2013. "Institutions as cognitive media between strategic interactions and individual beliefs," Chapters, in: Comparative Institutional Analysis, chapter 17, pages 298-312, Edward Elgar Publishing.
    14. Möllering, Guido, 2009. "Market constitution analysis: A new framework applied to solar power technology markets," MPIfG Working Paper 09/7, Max Planck Institute for the Study of Societies.
    15. Samuel Garrido, 2010. "Mejorar y quedarse. La cesión de tierra a rentas por debajo del equilibrio en la Valencia del siglo XIX," Documentos de Trabajo de la Sociedad de Estudios de Historia Agraria 1009, Sociedad de Estudios de Historia Agraria.
    16. Coyne, Christopher J. & Mathers, Rachel L., 2011. "Rituals: An economic interpretation," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 74-84.
    17. Robert P. Gilles & Emiliya A. Lazarova & Pieter H. M. Ruys, 2007. "Stability, Specialization And Social Recognition," Division of Labor & Transaction Costs (DLTC), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 83-109.
    18. Ghebru, Hosaena, 2015. "Is There a Merit to the Continuum Tenure Approach? A Case of Demand for Land Rights Formulation in Rural Mozambique," 2015 Conference, August 9-14, 2015, Milan, Italy 211683, International Association of Agricultural Economists.
    19. Maseland, Robbert, 2021. "Contingent determinants," Journal of Development Economics, Elsevier, vol. 151(C).
    20. Claude Ménard & Mary M. Shirley, 2010. "The Contribution of Douglass North to New Institutional Economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00654327, HAL.

    More about this item

    Keywords

    Transaction costs; transaction cost economics; transaction cost measurement; structure of production;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D - Microeconomics
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F - International Economics
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L - Industrial Organization
    • O - Economic Development, Innovation, Technological Change, and Growth

    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:wsi:dltcxx:v:02:y:2007:i:02:n:s0219871107000324. 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: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscinet.com/dltc/dltc.shtml .

    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.