Analysing Economic Institutions
Taposik Banerjee
Economic Growth, Efficiency And Inequality by Satish K. Jain and Anjan Mukherji Routledge India, 2018, 206 pp., 795
October 2018, volume 42, No 10

Economic growth is often considered as one of the most important indicators to measure the success of an economic institution. While few would disagree with the importance of growth, the bone of contention would be how to achieve it and at what cost. In economics the concept of growth is linked with the idea of efficiency. Efficient use of resources is supposed to be a major driving factor for economic growth. Researchers as a result often find themselves preoccupied with efficient rules and institutions. Efficiency however is not the only value that economists may be concerned about. There are other social and economic values that one may wish to consider and equality is one such value of immense importance. An outcome that is efficient does not necessarily satisfy the principle of equality. In fact, we often find ourselves in situations where we are forced to choose one value at the cost of another. The consequence of such choice needs to be evaluated carefully. It is therefore imperative that to determine the desirability and purpose of an institution, which may or may not explicitly state its allegiance to some of these values, its outcome be examined thoroughly from the perspective of these values.

The book under review is a collection of ten excellent papers that analyse institutions, rules and policies from the perspective of growth, efficiency and inequality. The articles which are written by some accomplished academicians and some young and promising researchers, cover a wide range of economic institutions.

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