The creation and effects of social capital have seldom been a target for systematic analysis in orthodox economics. The purpose of the paper is to argue that in order to include social capital, along with physical and human, into economic analysis, we have to regard human preferences as...

Social institutions are persistent regularities in contracting and other relations amongst men and in the unintended consequences of such rule-like behavior. They include morality and law as well as institutions of governance such as branding and advertising. Institutions are studied in all...

This paper reconsiders the economic explanation of EU regional policy from an evolution- ary perspective. It contrasts the neoclassical equilibrium notions of market and government failure with the prevalent evolutionary neo-Schumpeterian and Austrian-Hayekian perceptions. Based on this...

This paper reconsiders the theoretical foundations of EU regional policy in economics. It begins with a discussion of the line of thought of its prevalent explanation in equilibrium economics which is focusing on market failures as its key underpinning and which is the major toolkit of...

We investigate the cases when the Bonacich measures of strongly connected directed bipartite networks can be interpreted as a Nash equilibrium of a non-cooperative game. One such case is a two-person game such that the utility functions are bilinear, the matrices of these bilinear forms...

This paper examines how a change in layoff order can affect the decomposition and the size of unemployment in an equilibrium model where workers make optimal occupational reallocation decisions. In a calibrated model, a policy that concentrates involuntary unemployment incidences to...

An undirected connected bimodal network has two Bonacich measures quantifying the centrality of the nodes. We show that the product of Bonacich measures of an undirected bimodal network may be viewed as a product measure that is nearest (w.r.t. Euclidean norm) to the matrix representing the...

This paper studies Finnish firms and especially it's boardroom network and the effects that it has on financial actions. Compared with earlier studies, this study also takes into consideration both firms that are not connected and uses them as a natural comparison, as well as principal component...

We present a model for the dynamics of networks in which edges represent positions in organizations, holders of which are connected to each other when the positions belong to the same organization. Once a vacancy is opened, the new employee can be hired from the current network. In particular,...

We study axiomatically recursive clustering methods for networks. Such methods can be used to identify community structures of a network. One of the methods is based on identifying a node subset that maximizes the average degree within this subset. Once such a subset is found, the method is...