Steven N. S. Cheung - Contribution To Economics and China's Economic Development

Contribution To Economics and China's Economic Development

Chueng's contribution to economics and China's economic development can be roughly grouped in the following areas,

  1. New Institutional Economics
    1. how different kinds of contractual arrangement affect transaction costs, which are often ignored by neoclassical economists
    2. realizing the importance of transaction costs (as Cheung often mentions in his writings, if there is no transaction costs (the original starting point assumption by Coase), there is no difference in using different institutional arrangements (e.g. market or government)).
    3. the nature of the firm (a government, to a certain extent, is a firm and can be more efficient than the market in some areas),
  2. Methodology
    1. emphasis on economic explanation (according to Cheung, economic explanation is the ONLY objective of the study of economics);
    2. the analysis of relevant and observable real world constraints: Adam Smith's tradition,
    3. downward sloping demand curve: Neoclassical tradition,
    4. theories must be potentially refutable but not yet refuted (Cheung considers many mainstream concepts not observable, leading to the non-refutable nature of many theories (such as utilities, welfare))
    5. focus on capturing the underlying and relevant constraints to explain economic phenomena that might seem odd and strange on the surface.
  3. China's economic development
    1. Considerable influence among the Chinese speaking population (most of his work after 1982 are written in Chinese);
    2. Prediction of China's institutional reform (which, in general, has been quite accurate)
    3. Analysis of the deficiencies in the Chinese state owned enterprises


Read more about this topic:  Steven N. S. Cheung

Famous quotes containing the words contribution to, contribution, economics, china, economic and/or development:

    “Sometimes I think that idlers seem to be a special class for whom nothing can be planned, plead as one will with them—their only contribution to the human family is to warm a seat at the common table.”
    —F. Scott Fitzgerald (1896–1940)

    “Sometimes I think that idlers seem to be a special class for whom nothing can be planned, plead as one will with them—their only contribution to the human family is to warm a seat at the common table.”
    —F. Scott Fitzgerald (1896–1940)

    “There is no such thing as a free lunch.”
    —Anonymous.

    An axiom from economics popular in the 1960s, the words have no known source, though have been dated to the 1840s, when they were used in saloons where snacks were offered to customers. Ascribed to an Italian immigrant outside Grand Central Station, New York, in Alistair Cooke’s America (epilogue, 1973)

    “Riot in Algeria, in Cyprus, in Alabama;
    Aged in wrong, the empires are declining,
    And China gathers, soundlessly, like evidence.
    What shall I say to the young on such a morning?—
    Mind is the one salvation?—also grammar?—
    No; my little ones lean not toward revolt.”
    —William Dewitt Snodgrass (b. 1926)

    “In our personal ambitions we are individualists. But in our seeking for economic and political progress as a nation, we all go up—or else all go down—as one people.”
    —Franklin D. Roosevelt (1882–1945)

    “On fields all drenched with blood he made his record in war, abstained from lawless violence when left on the plantation, and received his freedom in peace with moderation. But he holds in this Republic the position of an alien race among a people impatient of a rival. And in the eyes of some it seems that no valor redeems him, no social advancement nor individual development wipes off the ban which clings to him.”
    —Frances Ellen Watkins Harper (1825–1911)