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1、KNOWLEDGE,INSTITUTIONSANDEVOLUTIONINECONOMICSAsAdamSmithrecognised,thedivisionoflabouristhedivisionofknowledge.Thedivisionoflabourisessentialtothegrowthofknowledge,becauseknowledgegrowsbydivision.Inthisvolume,BrianJ.Loasbyexploreshowthelimitationsofhumanknowledgecreateopportunitiesaswell
2、asproblemsinthemoderneconomy.Institutionsemergeasawayofcopingwiththeproblemsandhelpingtoexploittheopportunitiesinanevolutionaryprocess.However,thisevolutionaryprocessdoesnotnecessarilyproduceoptimalresults,makingmanyoftheoptimisationtechniquesofmoderneconomicslessthanuseful.Thevolumealso
3、exploreshowthebiologicalfoundationofhumancognitionhelpsustounderstandboththeroleofinstitutionsandthenatureofcapabilitiesorperformanceskills,bothindividualandorganisational.Transactionandgovernancecostsalonearenotanadequatebasisforunderstandingeconomicorganisation:thisistobeexplainedbycap
4、abilitiesaswellastransactions.BrianJ.LoasbyhasheldpositionsinAberdeen,Birmingham,BristolandStirling,whereheiscurrentlyHonoraryProfessor.Theorganisationofknowledge,withineconomicsandtheeconomy,isthethemeofhisthreebooks—Choice,ComplexityandIgnorance,TheMindandMethodoftheEconomistandEquilib
5、riumandEvolution—andmanyarticlesforjournalsandeditedcollections.THEGRAZSCHUMPETERLECTURES1EVOLUTIONARYECONOMICSANDCREATIVEDESTRUCTIONJ.StanleyMetcalfe2KNOWLEDGE,INSTITUTIONSANDEVOLUTIONINECONOMICSBrianJ.LoasbyKNOWLEDGE,INSTITUTIONSANDEVOLUTIONINECONOMICSBrianJ.LoasbyLondonandNewYorkFirst
6、published1999byRoutledge11NewFetterLane,LondonEC4P4EESimultaneouslypublishedintheUSAandCanadabyRoutledge29West35thStreet,NewYork,NY10001RoutledgeisanimprintoftheTaylor&FrancisGroupThiseditionpublishedintheTaylor&Francise-Library,2003.©1999BrianJ.LoasbyAllrightsreserved.Nopartofthisbookma
7、ybereprintedorreproducedorutilisedinanyformorbyanyelectronic,mechanical,orothermeans,nowknownorhereafterinvented,includingphotocopyingandrecording,orinanyinformationstorageorretrievalsystem,withoutpermissioninwritingfromthepublishers.BritishLibraryCataloguinginPublication