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LEGAL UNDERSTANDING OF TRANSACTION COSTS
Corresponding Author(s) : Murat R. Kamarov
Humanities & Social Sciences Reviews,
Vol. 7 No. 6 (2019): November
Abstract
Purposes: This paper is devoted to the legal understanding of transaction costs both as a concept and a method developed within the framework of the institutional economics discipline for analyzing the consequences of various kinds arising from the exchange of goods. This work is relevant due to the need to apply new interdisciplinary methodological approaches to solving the problems that classical jurisprudence faces. The authors gave legalized concepts of transaction and transaction costs.
Methods: As the main task within the framework of this paper, the authors proposed a classification of transaction costs, with the help of which it is possible to analyze legal activity in various fields. The study was based on the works of foreign and Russian scientists, economists and lawyers.
Results: In the paper, the authors found that the classification of transaction costs used in economics was created only for analyzing relationships within substantive law and using them to analyze other legal relationships seems to be quite problematic. As a result of the study, the authors developed a new classification of transaction costs, which can be used both for the analysis of substantive and procedural law. Also, they focus on certain aspects of various transaction costs.
Implications/Applications: In this regard, a problem arises in creating a classification that would take into account the advantages of all these approaches, and would also be suitable for describing both substantive and procedural legal relations.
Novelty/Originality: The development of domestic and foreign legal science is impossible without the use of interdisciplinary approaches, including not only the interaction of intersectoral relations, and this article has studied this issue.
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- Mill, J. S. (1967). On the definition of political economy; and on the method of investigation proper to it. Collected Works of John Stuart Mill, IV. Toronto: University of Toronto Press, 309-339.
- Ershov, V. V., Ashmarina, E. M., & Korneev, V. M. (2016). Economic Law as a Science. State and Law, 3, 54-65.
- Commons, J. R. (1931). Institutional Economics. American Economic Review, 21, 652.
- Polanyi, K. (2001). The Great Transformation. The political and economic origins of our time. Boston: Beacon Press, 309 p.
- Ollila, P. (2009). Principles of Institutional Economics. Helsingin yliopisto, taloustieteen laitos. Selvityksiä nro, 56.
- Arrow, K. J. (1985). The potentials and limits of the market in resource allocation. In Issues in contemporary microeconomics and welfare (pp. 107-124). Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06876-0_2 DOI: https://doi.org/10.1007/978-1-349-06876-0_2
- North, D. C., & North, D. C. (1992). Transaction costs, institutions, and economic performance (pp. 13-15). San Francisco, CA: ICS Press.
- Eggertsson, T., Eggertsson, T., & Eggertsson, Þ. (1990). Economic behavior and institutions: Principles of Neoinstitutional Economics. Cambridge University Press. https://doi.org/10.1017/CBO9780511609404 DOI: https://doi.org/10.1017/CBO9780511609404
- Auzan, A. A. (2017). Institutional Economics: New Institutional Economic Theory: A Textbook. M. : INFRA-M, p. 120
- Odintsova, M. I. (2007). Institutional economy. M. : SU Higher School of Economics, p. 93.
- Malkina, M. Yu., Loginova, T. P., & Lyadova, E. V. (2015). Institutional economics: study guide. Nizhny Novgorod: Nizhny Novgorod State University, 258 p.
- Chelyshev, M. Yu. (2002). Inter-sectoral relations between civil and tax law in the first part of the Tax Code of the Russian Federation. Legal policy and legal life, 4(9), 65.
- Stepanenko, R. F. (2015). The general legal theory of marginality. Abstract of the thesis for the degree of Doctor of Law. Kazan (Volga Region) Federal University. Kazan.
- Stavins, R. N. (1995). Transaction costs and tradeable permits. Journal of environmental economics and management, 29(2), 133-148. https://doi.org/10.1006/jeem.1995.1036 DOI: https://doi.org/10.1006/jeem.1995.1036
- Davis, M. H., & Norman, A. R. (1990). Portfolio selection with transaction costs. Mathematics of operations research, 15(4), 676-713. https://doi.org/10.1287/moor.15.4.676 DOI: https://doi.org/10.1287/moor.15.4.676
- Constantinides, G. M. (1986). Capital market equilibrium with transaction costs. Journal of political Economy, 94(4), 842-862. https://doi.org/10.1086/261410 DOI: https://doi.org/10.1086/261410
- Dyer, J. H. (1997). Effective interim collaboration: how firms minimize transaction costs and maximise transaction value. Strategic management journal, 18(7), 535-556. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<535::AID-SMJ885>3.0.CO;2-Z DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<535::AID-SMJ885>3.0.CO;2-Z
- Lesmond, D. A., Ogden, J. P., & Trzcinka, C. A. (1999). A new estimate of transaction costs. The Review of Financial Studies, 12(5), 1113-1141. https://doi.org/10.1093/rfs/12.5.1113 DOI: https://doi.org/10.1093/rfs/12.5.1113
- North, D. C. (1984). Transaction costs, institutions, and economic history. Zeitschrift für die gesamte Staatswissenschaft/Journal of institutional and theoretical economics, (H. 1), 7-17.
- Stoll, H. R., & Whaley, R. E. (1983). Transaction costs and the small firm effect. Journal of Financial Economics, 12(1), 57-79. https://doi.org/10.1016/0304-405X(83)90027-2 DOI: https://doi.org/10.1016/0304-405X(83)90027-2
References
Mill, J. S. (1967). On the definition of political economy; and on the method of investigation proper to it. Collected Works of John Stuart Mill, IV. Toronto: University of Toronto Press, 309-339.
Ershov, V. V., Ashmarina, E. M., & Korneev, V. M. (2016). Economic Law as a Science. State and Law, 3, 54-65.
Commons, J. R. (1931). Institutional Economics. American Economic Review, 21, 652.
Polanyi, K. (2001). The Great Transformation. The political and economic origins of our time. Boston: Beacon Press, 309 p.
Ollila, P. (2009). Principles of Institutional Economics. Helsingin yliopisto, taloustieteen laitos. Selvityksiä nro, 56.
Arrow, K. J. (1985). The potentials and limits of the market in resource allocation. In Issues in contemporary microeconomics and welfare (pp. 107-124). Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06876-0_2 DOI: https://doi.org/10.1007/978-1-349-06876-0_2
North, D. C., & North, D. C. (1992). Transaction costs, institutions, and economic performance (pp. 13-15). San Francisco, CA: ICS Press.
Eggertsson, T., Eggertsson, T., & Eggertsson, Þ. (1990). Economic behavior and institutions: Principles of Neoinstitutional Economics. Cambridge University Press. https://doi.org/10.1017/CBO9780511609404 DOI: https://doi.org/10.1017/CBO9780511609404
Auzan, A. A. (2017). Institutional Economics: New Institutional Economic Theory: A Textbook. M. : INFRA-M, p. 120
Odintsova, M. I. (2007). Institutional economy. M. : SU Higher School of Economics, p. 93.
Malkina, M. Yu., Loginova, T. P., & Lyadova, E. V. (2015). Institutional economics: study guide. Nizhny Novgorod: Nizhny Novgorod State University, 258 p.
Chelyshev, M. Yu. (2002). Inter-sectoral relations between civil and tax law in the first part of the Tax Code of the Russian Federation. Legal policy and legal life, 4(9), 65.
Stepanenko, R. F. (2015). The general legal theory of marginality. Abstract of the thesis for the degree of Doctor of Law. Kazan (Volga Region) Federal University. Kazan.
Stavins, R. N. (1995). Transaction costs and tradeable permits. Journal of environmental economics and management, 29(2), 133-148. https://doi.org/10.1006/jeem.1995.1036 DOI: https://doi.org/10.1006/jeem.1995.1036
Davis, M. H., & Norman, A. R. (1990). Portfolio selection with transaction costs. Mathematics of operations research, 15(4), 676-713. https://doi.org/10.1287/moor.15.4.676 DOI: https://doi.org/10.1287/moor.15.4.676
Constantinides, G. M. (1986). Capital market equilibrium with transaction costs. Journal of political Economy, 94(4), 842-862. https://doi.org/10.1086/261410 DOI: https://doi.org/10.1086/261410
Dyer, J. H. (1997). Effective interim collaboration: how firms minimize transaction costs and maximise transaction value. Strategic management journal, 18(7), 535-556. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<535::AID-SMJ885>3.0.CO;2-Z DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<535::AID-SMJ885>3.0.CO;2-Z
Lesmond, D. A., Ogden, J. P., & Trzcinka, C. A. (1999). A new estimate of transaction costs. The Review of Financial Studies, 12(5), 1113-1141. https://doi.org/10.1093/rfs/12.5.1113 DOI: https://doi.org/10.1093/rfs/12.5.1113
North, D. C. (1984). Transaction costs, institutions, and economic history. Zeitschrift für die gesamte Staatswissenschaft/Journal of institutional and theoretical economics, (H. 1), 7-17.
Stoll, H. R., & Whaley, R. E. (1983). Transaction costs and the small firm effect. Journal of Financial Economics, 12(1), 57-79. https://doi.org/10.1016/0304-405X(83)90027-2 DOI: https://doi.org/10.1016/0304-405X(83)90027-2