Objective
Existing institutional theory, including political economics and contract theory, convincingly show that institutional details have large impacts on economic and policy outcomes. Once this is recognized, it follows that contracts should depend on the organisational design of the institution to which the contract is offered. Stage 1 of Project Gine aims at characterising optimal contracts as a function of this design. Stage 2 develops a framework for endogenising and characterising the optimal institutional design. At Stage 3, sets of institutions are endogenised at the same time, where the design of one is an optimal response to the designs of the others. This outcome is referred to as a general institutional equilibrium.
Such a theory or methodological framework has several immensely important applications. Development aid contracts should carefully account for the political structure in the recipient country; otherwise the effect of aid may surprise and be counterproductive. The major application motivating this study, however, is environmental policy. Not only must the optimal environmental policy be conditioned on political economy forces; it must also be a function of institutional details, such as the political system. This can explain why the choice of instrument differs across political systems, and why politicians often prefer standards rather than economic instruments. Furthermore, we still do not have a good knowledge of how to design effective and implementable international environmental treaties. The optimal treaty design as well as the best choice of policy instrument must take into account that certain institutions (e.g. interest groups, firm structures, and perhaps even local governance) respond endogenously to these policies.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences sociology governance
- social sciences economics and business economics political economy
You need to log in or register to use this function
We are sorry... an unexpected error occurred during execution.
You need to be authenticated. Your session might have expired.
Thank you for your feedback. You will soon receive an email to confirm the submission. If you have selected to be notified about the reporting status, you will also be contacted when the reporting status will change.
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
ERC-2011-StG_20101124
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Host institution
0313 Oslo
Norway
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.