Post-fordism vs Toyotism

Regulation school gives strong critical review on fordism 'americal model' of capitalism. It is iteresting to configure it with the emerging of "Toyotism" as a Japanese model of capitalism.

Nonaka and Takeuchi (SECI Model), William Ouchi, Masahiko Aoki are several Japanese scholars who give contribution on the studies of organizational economics, which may more appropriate with regulation school in economics.

Information Economics and Organization Economics

Since our major concern is on Regulation School, it likely important to grasp more on these two fashionable branches in economics, namely, "Information Economics" and "Organization Economics".

"Pak Kwik", behavior finance and "Regulation" problem

Pak Kwik's opinion in KOMPAS today, remaind me on the manuscript of André Orleans "Efficience, finance comportementale et convention: une synthèse theorique" in "Les Crises Financières" (Robert Boyer et al., 2004) - report for Conseil d'Analyse Economique, think thank group for French Prime Minister.

This style of thinking is comparable with "Behaviourist Finance". Robert J. Shiller with his fascinating book "Irration Exuberance" mentions the same issues.

However, in the perspective of Regulation School, actually, crisis will erupt in the situation in which mode of regulation could not support regime of accumulation. When mode of accumation is collaps, it is searching new mode of regulation. It is the time, where crisis hit in around Asian countries, Mexican country, Russia and other countries in three continents (Asia, Europe and America).

I argue, in such period of transition..searching on new equilibrium...economic development should be more fragile and financial market will be more volatile..

But why Indonesia become more fragile comparing to the neighbouring countries? The answer may resides on the mode of regulation itself, in which comparing to other countries in the region, Indonesia is more unstable. I think...

Business cycle, crisis and institution

Studies of crisis commonly are relied on business cycle theory. Concerning Asian crisis, the weakness of financial institution are usually blamed as a major source. Franklin Allen and Douglas Gale provide a comparation of financial institution system in their book, which should be important to study comparatively different behavior of financial market. Simply speaking, there are three important model of financial institution, which are Anglo-saxon Model (UK and US), Japanese Model and German Model.

Two pivotal points in Regulation school

Regulation school accentuates two pivotal points, namely "Regime of Accumulation" and "Mode of Regulation". According to Regulation theory, every Regime of Accumulation will reach a crisis point at which the Mode of Regulation no longer supports it, and society will be forced to find new rules and norms, forming a new Mode of Regulation. This will begin a new Regime of Accumulation, which will eventually reach a crisis, and so forth...(cited).

Indeed, crisis and long-run of economic performance become major concern.

Austrian School

Foss mentioned that all Austrian school, basically, have common interest in knowledge economy. It is likely referd mainly with Schumpeter view on "creative destruction". Today, this school has their relevances with globalized economy, knowlege-based economy etc...

Knowledge management and organizational economics

Nikolaj J Foss from Copenhagen Business School and Danish Research Unit for Industrial Dynamic is one leading scholar in his field who link organizational economics and knolwedge management issues.

Organizational economics in financial market

Organizational economics... likely is commonly applied in financial theories. Akerlof, who with Stiglitz obtained Nobel Prize 2001, mentioned about asymmetric information, which is usefull for analysis financial market today. Jansen and Meckling analized the principal - agency relation, which is one of the most powerfull on the issues of corporate governance. Olivier Willimson proposed transaction cost theory brining hierarchy versus market in his analysis.

All are about organizational economics...

Corporate governance in Asia

It is widely accepted that Corporate Governance in Asia become an important souce of financial debacle.

Pak Suad contributes in this research book.

Stijn Claessens is one of a leading fiancial-economist concerning on this issues

Some organizations are concern: Center for Economics Institution, IDE.

And in Indonesia, this kind of organization flourish: FCGI, IICG, IICD,

The economics of organization

This may designate what I think on the "merging" of the organization studies and economics...

Here it is the important journal in this field.

Why Regulation School?

What is Regulation School?

Regulation School is one branch in economics, which was born in 1970s (Post-Fordism period) influenced by Marxist tradition of thinking (through Louis Althusser).

Pioneered by French prominent scholars, Robert Boyer and Michel Aglietta, this school has a "double criticism", since it criticize neo-classical paradigm on their perfect rationality inducing the institution-free conception on the market competition. And in the same time it also modify the "rigidity" of Marxist perspective by accepting the different regime of accumulation and hence the different regime of institutions.

It is widely accepted that this school have flourished in French and European universities, but actually in United States dispersed-thinking coinciding with the regulation school such as Douglass North, Masahiko Aoki were also developing. As well as, scholars like H.A Simon and Williamson are recognized as persons who promulgate a new institutionalism approach that is relatively comparable in certain senses with Regulation School.

Young scholars in French, like André Orleons and Olivier Favereau, are considerably important in developing the school by accentuating on specific aspects in economics, such as finance (behavioural finance) and labour market (contract theory in labour market or financial market).

Robert Boyer in his article "Les Institutions dans la théorie de la régulation" explains that regulation school considers five principal form of instutionals and regime of accumulation on:
1. Monetary regime
2. Employment mode
3. Competition model
4. International regime
5. State model

Several issues related to these five mode are: constitutional order, institution theory, routines, conventions and habitus.

Regulation school gives major attention on "crisis", which should be important cycle on the long-run, sustainability, mode of accumulation.

Accordingly, Regulation School is actually very vast field of studies, which coincides with several issues on economics and business, such as monetary studies, financial crisis, corporate governance, organizational behaviour, corporate strategy and so on.

It should be important to develop a series of research agenda to address relevant problems related to major concern of Regulation School.