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Unformatted text preview: Jennifer Edwards Economic History of Europe Prof. Alpert September 26, 2010 In rationalizing for the perpetuation of the institutions it is explained that institutions efficiency and are based on some type of casual structure for example to cut taxes and increase consumption. This is suggested that the government will cut taxes just to increase consumption and the explanation of institution efficiency will effect the enhancing of institutions primarily different. Another example of this situation is the private property rights and that is the inefficiently common access to resource. (Persson, 2010) A lot of these efficiencies I believe to exist because of limited liability companies, property rights, banks and companies that are monopolies. As far as monopolies goes there are companies out there that are taking the whole market and increasing consumption whereas you have another company that tries to come in on the other company who has the market is not willing to share and that causes a lot of companies to fall back because they cant play in that particular market. In some market some exchange develop and they only need institutional framework. The beneficial effect of institutions of private property rights...
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